A SEDI Project Proposal: A Proposal to Diversify St.Croix Economy/Industries & the Panama Canal (Oil Refinery, Shipyard - Drydock Maintenance/Repair & Transshipment Port) St. Croix Shipyard Maintenance/Repair & Drydock: A $200 million Industry Project Proposal to Create 2,000 Jobs (A SEDI Supported Project) In 2011, the U.S. private shipbuilding and repairing industry directly provided 107,240 jobs (see Figure E1), $7.9 billion in labor income, and $9.8 billion in gross domestic product, or GDP, to the national economy (see Figure E2). Including direct, indirect, and induced impacts, on a nationwide basis, total economic activity associated with the industry reached 402,010 jobs, $23.9 billion of labor income, and $36.0 billion in GDP in 2011. ABR has reached an agreement in principle to purchase Hovensa, LLC, inclusive of the Hovensa Refinery and all related contracts and assets. Pending ratification of the 30th Legislature of the Virgin Islands, ABR has also reached an agreement with the Government of the Virgin Islands regarding the terms and conditions of Hovensa, LLC’s operation of the Hovensa Refinery. St. Croix Renaissance Park is a 1244-acre industrial park located on the south coast of St. Croix in the U.S. Virgin Islands. Businesses that choose Renaissance Park benefit from the property’s shovel-ready industrial and commercial land, deep-water port, strategic international shipping location, low-cost power and water supplies, and high quality infrastructure. Panama Canal - As demand is rising for efficient global shipping of goods, the canal is positioned to be a significant feature of world shipping for the foreseeable future. However, changes in shipping patterns—particularly the increasing numbers of larger-than-Panamax ships—will necessitate changes to the canal if it is to retain a significant market share. In 2006 it was anticipated that by 2011, 37% of the worlds container ships would be too large for the present canal, and hence a failure to expand would result in a significant loss of market share. An enlargement scheme to allow for a greater number of transits and the ability to handle larger ships, has been under consideration for some time, has been approved by the government of Panama, and is in progress, with completion expected in 2014. The cost is estimated at US$5.25 billion, and the project will double the canals capacity, allowing more traffic and the passage of longer and wider ships. Jones Act/Domestic Shipping (US Virgin Islands Exempt from Jones Act) Americas dependence on the seas remains integral to its economic health and survival as a nation. Similarly, because of the vastness of the nation, the expansive network of rivers, lakes, and canals is critical to the efficient transportation of natural resources, food, and manufactured goods from state to state and ultimately to market. Because of the importance of the merchant marine and the critical role that coastwise and inland waterway transportation plays in its economy, America has always made sound decisions about protecting the integrity of this system along with the vitality of our waterways. Thus, the Jones Act, titled after its sponsor Senator Wesley R. Jones, from Washington State, was passed as part of the Merchant Marine Act of 1920. This federal legislation imposes four primary requirements on vessels carrying goods between U.S. ports; specifically, the vessels must be: owned by U.S. companies that are controlled by U.S. citizens with at least 75 percent U.S. percent ownership; at least 75 percent crewed by U.S. citizens; built (or rebuilt) in the United States; and registered in the United States. These requirements apply to all trade between ports in the U.S. mainland, Alaska, Hawaii, Puerto Rico, and the Virgin Islands. While excluded from the Jones Act, the outlying territories, such as Guam, are covered by similar laws that require vessels be U.S.-flagged, owned, and crewed, but do not impose the U.S.-build requirement. The Secretary of Homeland Security can waive the Jones Act requirements on a case-by-case basis during times of national emergency or in the interest of national defense. The Jones Act fleet includes over 39,000 commercial vessels and annually transports approximately one billion tons of cargo. Based on the principle that cargo carried between U.S. ports is vital to the American economy, the Jones Act protects the nations waterways from being turned over to foreign ships, owners, or crews. The Federal Reserve Bank of New York commonly known as the New York Fed issued on June 29, 2012, a report on the competitiveness of the Puerto Rican economy that recommended an exemption from the Jones Act for the Commonwealth. The full exemption recommended by the New York Fed for Puerto Rico would be modeled on the exemption that applies to the Virgin Islands of the United States, which allows foreign flag ships to engage in the domestic U.S. Virgin Island trade.
Posted on: Wed, 26 Nov 2014 18:29:18 +0000