Bill aims to beef up US shipbuilding

A bipartisan group of lawmakers is hoping to cure America’s maritime-industry woes with the introduction Thursday of an ambitious bill cheekily dubbed the SHIPS (Shipbuilding and Harbor Infrastructure for Prosperity and Security) for America Act. 

The bill aims to narrow the vast gap between U.S. and Chinese shipbuilding capacity and improve the Pentagon’s ability to move forces and materiel in a conflict. Currently, the U.S. has 80 flagged commercial shipping vessels to China’s 5,500, according to a release from the office of bill co-sponsor Sen. Mark Kelly, D-Ariz.

“By supporting shipbuilding, shipping, and workforce development, it will strengthen supply chains, reduce our reliance on foreign vessels, put Americans to work in good-paying jobs, and support the Navy and Coast Guard’s shipbuilding needs,” Kelly said in the release.

The effort would be funded by a new maritime security trust fund, in the vein of the Highway Trust Fund and Aviation Trust Fund, to set aside money that doesn’t depend on the annual budget appropriations process, the release said.

Kelly is joined by Sen. Todd Young, R-Ind.; Rep. John Garamendi, D-Calif.; and Rep. Trent Kelly, R-Miss., in sponsoring the bill.

Some of its provisions would:

• Add a maritime security adviser to the White House staff and stand up an interagency board to field a national maritime strategy.
• State a goal to build 250 U.S.-flagged commercial ships in the next decade under a new Strategic Commercial Fleet Program.
• Create a 25-percent tax credit for shipyard investments. 
• Add a 33-percent tax credit for spending on building new, or upgrading existing, vessels for commercial maritime use.
• Form a rule-making committee for commercial maritime regulations that will require government-funded cargo to be transported on U.S.-flagged vessels. It would also require the same for a portion of imports from China, starting in 2029.
• Found a U.S. Center for Maritime Innovation to coordinate ship design and manufacturing processes.
• Launch a recruiting campaign for commercial maritime and shipbuilding jobs, a retention program for merchant mariner credentials, and investments in the U.S. Merchant Marine Academy and state maritime academies.

Ultimately, the bill also aims to increase U.S. shipbuilders’ capacity to build vessels for the Navy and Military Sealift Command; and to recruit more mariners to crew them.

“Unfortunately, the bottom line now is America needs more ships,” Young said. “Shipbuilding is a national security priority and a stopgap against foreign threats and coercion.”