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U.S. Congress is currently drafting the 2009 economic stimulus package, which could include a "Marine Highway" initiative that proposes to remove thousands of trucks off Atlantic and Pacific Coast highways and move their freight to more fuel-efficient “Green Ships”.

The proposal follows a report carried out by Stas Margaronis, president of California-based Santa Maria Shipowning & Trading, Inc. entitled “Green Ships Can Fight Global Warming.”

The report is based on a ten-year effort to build fuel-efficient, low-emission ships to transport freight on U.S. marine highways.

Margaronis argues that coastal or short sea shipping can remove tens of thousands of trucks from the country's roads and highways every day. This, he claims, would significantly impact the country's environment and infrastructure, make roads safer and less congested, and bring savings to consumers, shippers and taxpayers.

Margaronis has proposed to create low-carbon freight corridors in partnership with trucking companies. Ships powered by ultra-low sulfur diesel would be contracted by shippers and truckers to haul containerized truckloads along coastal corridors, with trucks used for pick-ups and deliveries.

The Green Marine Highway Initiative is currently in contention for inclusion in the U.S. Congress 2009 economic stimulus package, which if approved could create over 20,000 new jobs in shipbuilding, steel fabrication, marine propulsion, cargo handling and new ship manning.

Over 20,000 trucks travel on the East and West Coast corridors daily. The Green Marine Highway Initiative would remove these trucks from highways and shift their freight onto 66 fuel-efficient ships, thereby cutting carbon emissions, saving shippers money and reducing the effects of global warming. These additional ships would also lead to an increase in bunker volumes along the US coastline.

The cost to taxpayers would be around $250 million for U.S.-backed loan guarantees to generate $3.3 billion in new shipbuilding as well as $1.7 billion in upgrades for ports and harbors.

In addition, U.S. law, the Jones Act, requires that all coastal ships be built in the United States and manned by U.S. crews. The work cannot therefore be outsourced to foreign competitors, so the Marine Highway Initiative would create new jobs for shipbuilders and steel makers in the Great Lakes, the Gulf Coast, and along the East and West Coasts.

The campaign recently picked up the endorsement of Caterpillar Marine Power Systems, which would provide marine engines to power the new ships.

The initial fleet of 66 ships could be financed with $165 million through U.S. Maritime Administration Title XI loan guarantees. However, Congress must first authorize the funding.

Using Title XI, taxpayers would spend $165 million to guarantee $3.3 billion in bank loans for construction. This equates to $50 million for a ship that would carry 300 53-foot truckloads of cargo.

In addition, $85 million is proposed for port and shipyard improvements that would guarantee $1.7 billion in loans. In total, $250 million will guarantee $5 billion in marine highway guarantees.

Margaronis is seeking signatures on an electronic petition that will be sent to Congress urging the allocation of the funds to reactivate the US Maritime Administration's Title XI loan guarantee program.

This will facilitate the financing of 66 American built ships to transport truckloads by water. For more information on the Green Ships initiative and to sign the petition, please visit www.GreenShips.org.