Japan’s Mitsui E&S has revealed another step in its plan to assemble Buy America, Build America Act (BABA) compliant cranes in the US.

Mitsui E&S says that its US subsidiary PACECO and Brookfield “are continuously working together as partners to contribute to securing port infrastructure in the United States.” This follows the announcement on February 21, 2024, the U.S. government will invest in cyber countermeasures for the Maritime Transport System (MTS) to strengthen the resilience of port cranes against cyber risks.

“MITSUI E&S, through discussions with Brookfield and PACECO, is on track to comply with the Build America, Buy America Act (BABA), a requirement for utilising federal funds, by adopting 55% of cost of crane components be U.S. made and final assembly of the cranes in the United States.

“In order to maintain the high quality of the product as well as to achieve short delivery and BABA compliance in response to the expected demand from the United States, Mitsui E&S is planning to have [its] own transportation vessel for the port cranes,” Mitsui E&S said.

This could mean Mitsui E&S is planning on assembling port cranes in the US and then shipping them fully erect to ports and terminals with its own vessel. Under the Merchant Marine Act this would be a transport between two US ports. As such cabotage regulations would require that the vessel be constructed in US, flagged in the US and crewed by US citizens and permanent residents.

As far as is known shipping is not considered a “component” under the BABA requirements. PACECO is understood to be looking for US-made components including drive components, brakes, wire rope and other parts to get over the 55% local component cost requirement.

“MITSUI E&S will keep strengthening its response to BABA, including expanding the scope of crane production in the United States in accordance with U.S. government policy, in order to contribute to securing the safety of U.S. port infrastructure,’ the company concluded.

Japan’s Mitsui E&S has revealed another step in its plan to assemble Buy America, Build America Act (BABA) compliant cranes in the US.

Mitsui E&S says that its US subsidiary PACECO and Brookfield “are continuously working together as partners to contribute to securing port infrastructure in the United States.” This follows the announcement on February 21, 2024, the U.S. government will invest in cyber countermeasures for the Maritime Transport System (MTS) to strengthen the resilience of port cranes against cyber risks.

“MITSUI E&S, through discussions with Brookfield and PACECO, is on track to comply with the Build America, Buy America Act (BABA), a requirement for utilising federal funds, by adopting 55% of cost of crane components be U.S. made and final assembly of the cranes in the United States.

“In order to maintain the high quality of the product as well as to achieve short delivery and BABA compliance in response to the expected demand from the United States, Mitsui E&S is planning to have [its] own transportation vessel for the port cranes,” Mitsui E&S said.

This could mean Mitsui E&S is planning on assembling port cranes in the US and then shipping them fully erect to ports and terminals with its own vessel. Under the Merchant Marine Act this would be a transport between two US ports. As such cabotage regulations would require that the vessel be constructed in US, flagged in the US and crewed by US citizens and permanent residents.

As far as is known shipping is not considered a “component” under the BABA requirements. PACECO is understood to be looking for US-made components including drive components, brakes, wire rope and other parts to get over the 55% local component cost requirement.

“MITSUI E&S will keep strengthening its response to BABA, including expanding the scope of crane production in the United States in accordance with U.S. government policy, in order to contribute to securing the safety of U.S. port infrastructure,’ the company concluded.