MarAd approves $241 million loan guarantee

MarAd approves $241 million loan guarantee    The U.S. Maritime Administration confirmed Friday it has approved a $241 million Title XI federal loan guarantee that will be used by a Brazilian firm Boldini to purchase five platform supply vessels from a Eastern Shipbuilding Group of Panama City, Fla.
   The supply boats will be used to service oil field platforms in deep water off the coast of Brazil.
   The Panama City News Herald reported the approval on March 9.
   'Today's signing demonstrates that America's shipbuilders can be competitive in international markets,' said Maritime Administrator David Matsuda, during a visit to the shipyard. 'We will support these export opportunities for U.S. businesses and American shipyard workers wherever possible.'

Matsuda

   Matsuda had been questioned about the status of the loan application by Rep. Steve Southerland II, R-Fla., during a March 1 hearing of the House Coast Guard and Maritime Transportation Subcommittee.
   The vessels, built for Rio de Janeiro-based Boldini, are estimated to result in 300 new local jobs over the next three-and-a-half years, MarAd said.
   Since 1981 Eastern said it has built or converted more than 60 vessels for the offshore oil industry. MarAd said it has built eight platform supply vessels since 2003, with three more under construction. They are used to transport workers, supplies, parts and chemicals to offshore oil rigs. They will also serve as rescue and emergency response vessels, with extensive salvage, firefighting and medical facilities.
   MarAd said in a statement that demand for supply vessels for the Brazilian offshore drilling market has increased substantially.
   In 2008, MarAd awarded Eastern Shipbuilding a $581,000 federal grant for shipyard software and equipment from its Small Shipyard Grants Program. And in 1999, the Transportation Department agency provided a federal guarantee on a $6 million loan to finance facility upgrades.
   MarAd has guaranteed about $2.2 billion in U.S. shipyard projects, including construction of tugs, barges, dive support vessels, drill rigs, ferries, tankers, offshore supply vessels, and container vessels.