mHRHD '00 July 2001 U.S. Department of Transportation Norman Y. Mineta Secretary Maritime Administration Bruce J. Carlton Acting Deputy Maritime Administrator Headquarters 400 Seventh Street, SW Washington, DC 20590 j Contents Introduction . V Philadelphia Agile Port Study . 26 Public Port Financing . 26 Chapter 1-National Security . 1 Port Capital Expenditures . 26 Maritime Security Program (MSP) . 1 Deep-draft . 26 Voluntary Intermodal Sealift Agreement (VISA) . 2 Inland Shallow-draft . 26 MSPIVISA Linkages . 2 Risk Management . 26 National Defense Reserve Fleet (NDRF) ................ 3 Port Readiness . 27 Ready Reserve Force (RRF) ..................... , . 3 Port and Cargo Security . 27 RRF Sea Trial and Dock Trial Program . 3 RRF Operations ............................ , . 4 Technical Assistance to Foreign Ports Training . 27 Logistics Support . 4 National Port Security Strategy Development . 27 RRF Roll/Roll-off Capacity Upgrade Program . 5 American Committee on Ports . 27 RRF Special Mission Ships . 5 Inter-American Committee on Ports (CIP) . 27 Auxiliary Crane (T-ACS) Ships ....................... 5 International Port Assessments . 27 Offshore Petroleum Discharge Systems (OPDS) Tankers 5 MARINE INTERMODAL: Tankers .......................................... 5 Freight Transportation!Intermodal System . 28 Sea Barge Clipper (SEABEE) Ships . 5 Departmental and DOT Agency Initiatives . 28 LASH Vessels . 5 Technical Assistance . 29 Sealift Enhancement Features (SEF) . 5 ENVIRONMENTAL ACTIVITIES: Aviation Logistics Support Ships (T-AVB) ............... 6 Dredging . 29 State Maritime Academy Schoolship Maintenance and Repair (M&R) Program ............................. 6 Environmental Compliance and Compliance Management 30 Scrapping or Disposal of Obsolete Vessels . 6 Environmental Standards . 30 War Risk Insurance ................................ 6 Industry Support . 31 RRF Claims Settlement . 7 Title XI and Other Insurance Compliance ................7 Chapter 4-Domestic Operations Emergency Operations . 7 Piracy and Attacks on Merchant Shipping . 7 Marine Transportation System Initiative (MTS) . 33 An Assessment of the U.S. Marine Transportation System 33 Chapter 2-Shipbuilding and Ship Conversion Implementation of MTS Recommendations . 33 Significant Activities . 34 SHIPBUILDING INITIATIVES: Technical Assistance . 34 Title XI Guarantees . 13 Rural Transportation Initiative . 34 MARITECH . 13 Jones Act ....................................... 34 MARAD MARITECH Projects . 13 Assistance for Shippers . 35 MARITECH Advanced Shipbuilding Enterprise . 14 Small Passenger Vessel Waiver Authority . 35 National Maritime Resource and Education Center (NMREC) . 14 Industry Trends and Profile . 35 Capital Construction Fund . 14 Inland Waterways . 35 Construction Reserve Fund ......................... 15 Shipyard Activity . 15 Upper Mississippi River/Illinois Waterway Navigation Shipyard Improvements . 15 Study ...................................... 36 One DOT Marine Related Activities .................. 15 Deep-sea . 36 Offshore Oil Support... 36 Chapter 3-Port, Intermodal, and Ferry Services ................................. 36 Environmental Activities PORT: GREAT LAKES: Port Economic Impact Models . 25 Marine Transportation System . 36 Port Facility Conveyance Program . 25 Maritime Promotion ............................. 37 CCDoTT ....................................... 25 Environmental Issues ............................ 37 MARAD '00 --- - -------- Chapter 5-Ship Operations Chapter 8-International Activities U.S.-Flag Fleet Profile ............................. 39 Maritime Agreement with Brazil . 65 Operating-Differential Subsidy ...................... 39 Administrator Holds Negotiations in China ............. 65 Subsidy Rates . 39 Maritime Talks in Korea . 65 Section 804 Activities . 39 Pressing for Open Ports in Japan . 65 Foreign Transfers . 40 Shipping and the World Trade Organization (WTO) . 66 Ship Operations Cooperative Program (SOCP) . 40 International Transportation Symposium . 66 Organization for Economic Cooperation and Development (OECD) ...................................... 66 Chapter 6-Cargo Preference Preference Cargo . 51 Chapter 9-Administration Cargo Preference Act of 1954 . 51 Strategic Planning . 67 Cargo Preference Act of 1904 . 51 Maritime Subsidy Board . 67 The Maritime Security Act of 1996 . 51 Customer Satisfaction Program... 67 Public Resolution 17 of the 73rd Congress . 51 LEGAL SERVICES AND AGENCY DECISIONS: CIVILIAN AGENCIES: FOIAs ........................................ 68 Israeli Cash Transfer . 51 Shipbuilding Related Activities . 68 Export-Import Bank (EXIMBANK) ................. 51 Litigation . 68 Strategic Petroleum Reserve ..........................52 Rulemaking . 69 Military Cargoes . 52 Maritime Assistance ..............................69 DOD SERVICES AND AGENCIES Legislation . 69 Defense Security Cooperation Agency . 52 Information Resources Management . 70 Safety Program . 70 Air Force . 53 Personnel . 70 U.S. Army Corps of Engineers ..................... 53 Defense Logistics Agency . 53 INSTALLATIONS AND LOGISTICS: Navy/Marine Corps ............................. 53 Real Property . 71 Agricultural Cargoes . 53 Audits: FY 2000 ............................... 71 Title I ........................................ 53 Office of the Inspector General . 71 Title II ....................................... 53 General Accounting Office ........................ 71 Title III . 53 Accounting . 71 Section 416b .................................. 53 Maritime Administration Organization Chart . 72 Food for Progress . 53 Maritime Administration Field Organization Chart . 73 Ocean Freight Differential (OFD)... ................. 54 Minimum Tonnage . 54 Financial Statements: Fair and Reasonable Rates . 54 Exhibit 1: Statement of Financial Condition September 30, 2000 ............................ 74 Chapter 7-Maritime Labor, Training, and Safety Exhibit 2: Statement of Operations September 30, 2000 . 76 U.S. Merchant Marine Academy ..................... 61 Notes to Financial Statements . 77 State Academies ................................. 61 Appendices Supplemental Training . 62 I: Maritime Subsidy Outlays--1937-2000 .............. 78 Garrett A. Morgan Technology and Transportation Futures II: Combined Financial Statements of Companies Program .................................... 62 with ODS ................................... 79 Merchant Marine Awards . 62 III: Studies and Reports Released in FY 2000 . 80 Labor ........................................ 62 Annual Crewing Assessment of U.S. Merchant Mariners . 62 Charts Longshore . 63 1: Maritime Security Program Participants as of Safety ....................................... 63 Sept. 30, 2000 . 1 MARAD '00 ii 2: VISA Participants as of Sept. 30, 2000 ................ 2 6: Worldwide Ship Deliveries-Calendar Year 2000 . 22 3: MSP Participants as of September 30, 2000 .......... 11 7: Capital Construction Fund Holders-September 30, 4: Major Commercial New Construction on 2000 ...................................... 23 Order as of September 30, 2000 . 19 8: Construction Reserve Fund Holders-September 30, 2000 ...................................... 24 5: U.S. Port Capital Expenditures for 1999 (Thousands of Dollars) ................................... 26 9: Cargo-Carrying U.S.-Flag Fleet by Area of Operation As of July 1, 2000 . 42 6: U.S. Port Capital Expenditures Projected for 2000-2004 (Thousands of Dollars) ......................... 26 10: U.S.-Flag Fleet of Passenger Vessels, Tugs/Towboats, and Other Work Boats As of July 1, 2000 .......... 43 Figures 11: Major Merchant Fleets of the World-July 1, 2000 . 44 1: Commercial Shipbuilding Orderbook (1,000 GT and 12: U.S. Waterborne Commerce ..................... 45 Over) September 30, 2000 ....................... 16 13: ODS Accruals and Outlays-January 1, 1937 to 2: Commercial Shipbuilding Orderbook History (As of September 30, 2000 . 46 September 30, 2000) . 17 14: ODS Accruals and Outlays by Shipping Lines- 3: Capital Investments (U.S. Shipbuilding and.