In 1789, our nation's very first Congress passed legislation to encourage growth and activity for U.S. shipbuilders and use of American ships. To do this, they enacted a 10 percent tariff rebate to all imports and exports shipped on American-made vessels.
Why were American shipbuilders and ships such a high priority that Congress would go out of its way to boost domestic shipbuilding activity?
With the world's largest oceans at our coasts and the planet's biggest freshwater lakes on our northern border, being able to build and maintain our own ships meant independence. Shipbuilding meant having the freedom to trade with whoever we wanted, whenever we wanted. It meant that we could defend our coasts, hold our own on the oceans, and support our allies overseas. And shipbuilding meant jobs for thousands of hardworking Americans in our fledgling nation.
The situation 226 years later isn't much different. Everything that shipbuilding meant in 1789, it still means today.
American shipbuilders ensure that our nation can build and maintain the vessels our military needs to keep our nation secure. They also provide essential commercial vessels. Vessels that enable domestic commerce on our inland waterways and link our domestic energy supply chains. In 2013, U.S. shipbuilders directly employed 110 thousand [external link] Americans nationwide and produced $37.3 billion in gross domestic product.
That's according to the Maritime Administration's 2015 Shipbuilding Economic Impact Study, a current look at the industry that MARAD Administrator Chip Jaenichen and I released yesterday [external link].
Now, these aren't just any run-of-the-mill jobs. These are jobs where you can come in off the street, start at the bottom, and work your way up through the ranks.
No matter who you are or where you're from, if you're willing to work hard, you can start on the ground floor of America's shipyards. You can get on-the-job-training. You can learn the system and work your way up. These are jobs with good benefits, and steady and stable income. They allow workers to support strong families, and contribute to healthy neighborhoods and communities.
Facilities like Great Lakes Shipyard in Cleveland, Ohio, are making it happen. They're sending their workers to local community colleges, to get the training and certifications they need to succeed, as welders, as diesel engine mechanics, pipefitters and electricians.
And the shipyards are footing the bill.
DOT has been working to promote shipyard activity and growth.
One way we do this is through the Title "Eleven" (XI) Program, which provides loan guarantees for ship-owners who build vessels all along our coasts and Great Lakes. Right now, the department and MARAD are guaranteeing about $1.7 billion in U.S. Shipbuilding projects, like the world's first LNG-powered containerships, built at NASSCO in San Diego. Currently, construction is underway on the second vessel--construction that is providing employment for 600 workers. When complete, these two vessels are estimated to support employment for 60 full time mariners, 195 shore side personnel; and over 1600 dock and port workers, truckers, vendors, and repairmen.
So, we're proud to support shipyards as they continue to provide more opportunities for hardworking Americans to join the middle class. And that's in addition to the economic and military security they help ensure.
As I said at the start, our nation's very first Congress found it important enough to support our shipbuilders. Sure, a lot has changed over the last two centuries, but the importance of shipbuilding continues.
And that's why this Department will fight to ensure that our nation's shipbuilders have a robust and promising future.