In a statement the Department ofTransportation offshoot said $9.46m will be divided amongst a dozen shipyardsin ten different states.
The announcement was made at a ceremonyin Jeffersonville, Indiana, the headquarters of one of the recipients, by actingmaritime administrator Paul “Chip” Jaenichen, who was joined by USTransportation Secretary Anthony Foxx.
“Improvements at ourshipyards mean more ships can be built right here in the US, which means morejobs for hardworking Americans,” Foxx said. “These grants are about creatingnew opportunities in our local communities, as well as competing in the globaleconomy.”
Marad said the funds, whichare connected to the Small Shipyard Grant Program, will be spent onmodernisation projects that will aid in the ongoing crusade to help USshipbuilders compete more effectively in the global marketplace.
The agency received morethan 100 grant applications seeking nearly $100m in assistance from an initiativethat has ploughed roughly $150m into domestic yards since 2009 under the ObamaAdministration.
It’s unclear how the gapbetween requests and awards will be plugged but one observer who serves as advisorto financiers that are seeking ways to penetrate the US shipping space sayprivate equity is becoming an increasingly attractive source of capital.
They noted Littlejohn &Co, a private equity firm based in the posh New York suburb of Greenwich,Connecticut, recently backed a $10m injection that TY Offshore intends to useon improvements that will help it speed up and expand its production capabilities.
In arecent report about the US shipbuilding industry Marad said there are currently 117 domestic shipyards spread across 26 states that are activein the construction of newbuildings. They noted there are another 200facilities that are capable, but not active, and specialise in ship repairs.
Jeffboat, which hosted Marad’saward ceremony, received a $845,817 grant that will be used to enhance efficiencyby supporting a project aimed at adjusting the width and orientation of one ofits four productions lines, according to Wednesday’s announcement.
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