Is America World City realistic?

In other webpages, I have discussed the Freedom Ship, as well as the Principality of New Utopia. Here we take on the 250,000 ton colossus known as America World City. First, note that the project is patriotic to the point of jingoism, railing against the foreign cruise lines and workers who take jobs away from good 'ol americans. This can be seen in these ads: Innkeeper, Awake! and Nominees, please!. Second, like the Freedom Ship, it is an extremely large and expensive project, and while tentative contracts have been reached, funding does not seem to have materialized. Without the 10-digit loan, all the "sure we'll build it if you have the money" contracts are worthless. While they have developed some excellent corporate contacts, I am still doubtful about them being funded. They had hoped to get money through the Marad Title XI program, which provides loans to american shipbuilders, but it is having some problems. Although it seems to have survived a threatened extinction, it garaunteed only $225 million in loans during the 2002 fiscal year (through September) to the entire american shipbuilding industry. This is less than a quarter of what World City needs. Following are some relevant news items gleaned from the web so you can judge for yourself.

• A boat that might not float: Budget cuts could sink program that helps U.S. shipbuilders compete Joanne Laucius The Ottawa Citizen; with files from Bloomberg News.

  Nearly 300 ships on the drawing boards, including the world's largest cruise ship, could be scuttled if the U.S. eliminates a loan-guarantee program.

  President George W. Bush's proposed budget would drop Title 11, a program that cuts borrowing costs by guaranteeing loans to U.S. shipbuilders. Title 11 critics say U.S. businesses are too dependent on government.

  The America World City, a "floating resort" almost half a kilometre long, is among oil rigs and cruise and cargo ships that might not be built if the proposal become a reality.

  The 21-storey ship, with room for 6,200 passengers and a crew of 2,400, was to sail for the first time in 2003. World City America Inc. of New York wants guarantees for $1.32 billion U.S.

  South Korea, China and Japan lead the world in shipbuilding. It appears that eliminating Title 11 would have only a minimal effect on Canada's shipbuilding industry.

  Oceanic Consulting Corp., a St. John's, Nfld., company, was awarded a $250,000 contract to test the hull design of America World City.

  Yesterday, Ocean's president Dan Walker said his company had completed only about a tenth of the contract, and was only half-finished the model engineers were planning to test.

  "I think it's a really visionary project," said Mr. Walker. "I hope they get it off the ground."

  http://www.oceansblue.org/bluetourism/chartacourse/cruiseship/waves010408.html

• At 160,000 gt, the Ultimate Dream would still be the world's largest cruise ship. Unless, that is, the World City project gets off the ground. Sitting in the Marad Title XI in tray is an application for $1.3 billion in loan guarantees to build the 6,200 passenger ship. Current plans are for hull modules to be built by the Halter Marine Group, then assembled at Aker Gulf Marine's Ingleside, Texas, facility.

  http://www.marinelog.com/DOCS/NEWS/MMAug8.html, as of 8/2000

• AMERICA WORLD CITY - a 378m, 250,000 tonne passenger vessel designed to accommodate 6,400 passengers and 2,200 crew members - has been constructed in model form and is now ready for performance evaluation. Testing is to include flow visualization, resistance and self-propulsion experiments. From these tests, the designers will be able to evaluate the final shape of the hull as well as the power required to propel the vessel at its desired operating speed. The test model for America World City is 9.5 meters in length at a scale 1:40. As one of Oceanic's larger models, it is a fine example of the expert workmanship of the firm's design and fabrication specialists.

  www.oceaniccorp.com/pdfs/winter2001.pdf, winter 2001

• Former NCL president Knut Kloster Jr. appears to be having more success with his ResidenSea project than his father has thus far had with with his World City project. The 250,000 gt America World City always seems to be just one or two tantalizing steps away from materializing into an actual contract. In contrast, Knut Kloster Jr.'s plans for a floating resort where accommodations can be purchased has now reached the stage where a letter of intent has been signed with Germany's HDW, and there are plans for two further ships to follow the first[Note that this is referring to ResidenSea]. Ironically, HDW was closely involved with plans to build the World City for Knut Sr., back in the days when German shipbuilding subsidies were more lavish and before the project was painted red, white, and blue and remarketed as a path to America's maritime salvation!

  http://www.marinelog.com/DOCS/crfeat.html

• Floating City May Become Reality

  An old proposal to build an amazing floating city is stirring excitement again at Port Canaveral. It was 12 years ago that entrepreneurs began planning to dock a giant ship called the Phoenix World City at the port. The idea had been forgotten by most, but now may actually happen.

  The quarter-mile giant is now being called the America World City, and the Westin hotel chain has joined the project. Westin is planning on operating three luxury high-rises on the deck.

  "We've got a 50-50 chance of getting it here," port commissioner Mac McLouth said.

  McLouth was cautiously optimistic about the project 12 years ago. Now, as the port's executive director, he is still cautious.

  While planners have not yet built the ship, they have built a network of corporate and political backers for the project, which seems to be giving the project a new momentum.

  Proponents said that the ship's presence would recast Port Canaveral as the world's foremost cruise port. The World City would hold up to 6,500 passengers. It would have its own marina in the hull, holding four 400-passenger shuttle craft.

  The plan to build parts of the vessel in idle American shipyards, and to assemble the whole thing in Central Florida is generating a new and larger constituency for the ship .

  Port officials said that the construction project alone would mean 6,000 jobs. The ship's operations would bring another 6,000. Backers, though, need $1 billion to build it. They hope to have the money by this summer and to have the ship sailing in about three years.

  Google Cache of news story, may disappear, from 3/2001

• "Last year alone, Title XI helped finance some $800 million in ship construction." ... "by statistical estimates, the funds available to provide guarantees will be depleted by July 2001." ... "Projects totaling more than $5 billion are pending Title XI loan guarantees. Although not all projects are likely to receive approval for Title XI, currently available funds would enable MARAD to approve only approximately $800 million in maritime projects." [seems like this makes the chances of funding a single, billion+ project anytime soon pretty low]

  http://www.amo-union.org/Newspaper/Morgue/4-2001/Sections/News/facts.htm

• Item: OIG review of MARAD Title XI Loan Guarantee Program announced
  Date: November 6, 2001
  Type: Announcement
  Summary: We initiated an audit of the Title XI loan guarantee program administered by the Maritime Administration (MARAD) at the request of the Senate Committee on Commerce, Science, and Transportation and the House Appropriations Committee. Our short-term objective is to assess the effect of the October 19, 2001, bankruptcy filing of American Classic Voyages Co. (AMCV) on its Title XI loan guarantees. Because of the filing, AMCVÕs loan guarantees totaling over $367 million are now at risk. We will also perform a comprehensive review of the Title XI program, specifically to determine if (1) procedures for submitting, reviewing, approving, and monitoring selected Title XI loan guarantees comply with laws and regulations, and (2) these procedures are adequate and effectively implemented in order to protect the interests of the United States.

  http://www.oig.dot.gov/item_details.php?item=617

• Examining approved applications for the 2001 fiscal year shows that Marad approved $730 million in loans. In the 2002 fiscal year, through September, they only approved $225 million in loans. It seems likely that the economic recession has affected the shipbuilding industry. It seems that the chance of one ship getting a billion dollar loan anytime soon is pretty low.