Tote awarded a $324.6 million Title XI loan guarantee to help finance replacement ships for Sea Star Line.
The U.S. Department of Transportation has approved a $324.6 million Title XI loan guarantee to Saltchuk Resources and its subsidiary TOTE Shipholdings, Inc., to finance the construction of two “Marlin Class” container ships that will be used by Sea Star Line, which operates a service between Florida and Puerto Rico and the Virgin Islands.
The ships, under construction at General Dynamics’ NASSCO yard in San Diego, will be fueled with liquefied natural gas. They are slated for completion next year and in 2016.
“This financing from the U.S. Department of Transportation and MARAD enables TOTE to invest in modern technology that will create jobs, reduce our impact on the environment, and ensure a safer and healthier workplace for our employees,” stated Anthony Chiarello, TOTE’s president and chief executive officer.
The Title XI program guarantees the repayment of loans, obtained in the private sector by ship owners, for the construction reconstruction, or reconditioning of vessels in U.S. shipyards. MARAD currently guarantees approximately $1.7 billion in U.S. shipyard projects.
Tote hooks loan guarantee for ‘Marlin Class’ ships
