FOR IMMEDIATE RELEASE
Friday, April 9, 1999
Contact: Vontell Tucker
Telephone: 202-366-5807
MARAD 3-99
TRANSPORTATION SECRETARY SLATER
ANNOUNCES $1 BILLION LOAN GUARANTEE
FOR SHIPBUILDING IN MISSISSIPPI
Continuing support of the U.S. shipbuilding industry, U.S.
Secretary of Transportation Rodney E. Slater today announced a
loan guarantee valued at more than $1 billion to support
construction of two passenger ships in Mississippi for American
Classic Voyages Co. of Chicago.
"This shipbuilding contract will benefit the nation as a whole because it creates new jobs and helps to maintain a shipbuilding workforce available to meet defense needs when necessary," Secretary Slater said. "The shipbuilding initiative launched by President Clinton continues to pay dividends for America and its workers."
According to the U.S. Department of Transportation’s Maritime Administration (MARAD), this shipbuilding project will result in the creation of more than 2,000 new jobs. The vessels will be built at Ingalls Shipyard in Pascagoula, Miss., and will operate exclusively in the Hawaiian Islands. The two vessels will be the first large cruise ships to be built in the United States in 50 years.
This construction contract is the largest project ever financed by MARAD, and it is the largest commercial shipbuilding project approved since enactment of President Clinton's National Shipbuilding Initiative six years ago. The loan guarantee is provided under Title XI of the Merchant Marine Act.
Under the Title XI ship financing program, which is administered by MARAD, businesses secure loans in the private sector with repayment guaranteed by the federal government.
Ship financing is one part of the Clinton Administration’s five-part initiative to help strengthen the U.S. maritime industry. The other four are intended to ensure fair international competition, eliminate unnecessary government regulation, improve competitiveness, and assist the industry with international marketing.
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