MARAD Briefs

$100 Million for small shipyard grants; California Sealift Terminals wins contract; Calypso LNG drops license application

•Maritime Administration Administering $100 Million in Small Shipyard Grants

Under the terms of the American Recovery and Reinvestment Act, the Maritime Administration has received $100 million for the Small Shipyards Grant Program, which had been funded at $10 million in 2008. This program provides 75 percent federal funds with 25 percent matching funds from the shipyard for capital improvements and related infrastructure improvements which will foster efficiency, competitive operations and quality ship construction and repair. Grant funds may also be used for maritime training programs to foster technical skills and operational productivity.

Of the $100 million, $75 million is reserved for shipyards with 600 employees or less and up to $25 million may be awarded to yards with up to 1200 employees.

Applications must be filed by April 20, 2009 and awards must be made by the Maritime Administration by August 17, 2009. More information is available on the Maritime Administration web site, www.marad.dot.gov.

•Maritime Administration Awards Contract to California Sealift Terminals, Inc.

The Maritime Administration has awarded a contract to California Sealift Terminals, Inc, San Francisco, Calif., to provide layberth services for three Ready Reserve Force vessels--Cape Henry, Cape Horn, and Cape Hudson (Cape H’s). The contract value is $1,978,470 with options that could range to $5,034,801.

•Calypso LNG Withdraws Deepwater Port License Application

On February 25, 2009, Calypso LNG, LLC informed the Maritime Administration and the U.S. Coast Guard it will cease all license processing work on the Calypso Deepwater Port LNG project, fully withdrawing its application from consideration at this time. As such, Calypso will not pursue the necessary approvals from the Maritime Administration or the state to license their proposed energy receiving facility off the coast of Florida.

In 2007, Calypso (and its parent company, GDF SUEZ Energy North America,) negotiated a landmark LNG tanker U.S.-flag and crew agreement with the Maritime Administration to operate its deepwater port with over 100 highly trained and well paid U.S. citizen mariners when it became operational.

The Maritime Administration and Calypso remain committed to the long-term value of liquefied natural gas as a new source of clean, reliable and secure energy, and hold out the hope that the company may resubmit the application at a later date and under more favorable conditions.

Unfortunately, the withdrawal of the Calypso project will result in a loss of job and training opportunities for U.S. mariners in the expanding international LNG tanker trade.

The Maritime Administration will continue to actively seek U.S. manning and flagging agreements with its entire pool of applicants.