AASHTO Journal - Maritime Administration Issues Small Shipyard Funds

The U.S. Maritime Administration – known as MARAD – recently issued $8.75 million in grants to 15 small shipyards in 12 states through the Small Shipyard Grant Program. The funds will help shipyards modernize, increase productivity, and expand local job opportunities while competing in the global marketplace, the agency said.

[Above photo via MARAD]

“Continued investment in our small shipyards enables them to acquire the cutting-edge technologies needed to remain competitive elements of America’s maritime industry,” noted MARAD Administrator Ann Phillips in a statement. “These grants stimulate economic development by boosting opportunities for good jobs in the communities where shipyards are located.”

The agency noted in a report issued in June 2021 that shipbuilding and repair activity at both the national and state level by private U.S. shipyards in calendar year 2019 supported $42.4 billion worth of gross domestic product.

That report— entitled “The Economic Importance of the U.S. Private Shipbuilding and Repairing Industry” – found that the nation’s 154 private shipyards directly provided more than 107,000 jobs and contributed $9.9 billion in labor income to the national economy in 2019. On a nationwide basis – including direct, indirect, and induced impacts – the industry supported 393,390 jobs, $28.1 billion of labor income, and $42.4 billion in GDP, the agency said.

[Editor’s note: A recent episode of the “Thinking Transportation” podcast produced by the Texas A&M Transportation Institute discussed the critical importance of the maritime freight system to the U.S. economy.]

MARAD is also in the process of wrapping up a survey – conducted in partnership with the American Association of Port Authorities – of port authorities and marine terminal operators across the country that aims to identify the nation’s port cargo handling needs over the next five to 10 years.

Led by AAPA through a cooperative agreement with MARAD, the “Building American Production Capacity for Electric Port Equipment and Other Port Infrastructure Items” final report should be issued sometime this summer.