mHRHD 2001 Maritime Administration's Annual Report to Congress U.S. Department of Transportation Maritime Administration mHRHD 2001 U.S. Department of Transportation Norman Y. Mineta Secretary Maritime Administration Captain William G. Schubert Maritime Administrator Headquarters 400 Seventh Street, SW Washington, DC 20590 ------------------------ Contents Introduction . v Chapter 3-Port, Intermodal, and Environmental Activities Chapter 1-National Security Ports ...........................................23 Maritime Security Program (MSP) . 1 Port Facility Conveyance Program .................. 23 Voluntary Intermodal Sealift Agreement (VISA) ...........3 CCDoTT ...................................... 23 MSPIVISA Linkages .................................3 Public Port Financing .............................23 National Defense Reserve Fleet (NDRF) ................ .4 Port Capital Expenditures ..........................23 Ready Reserve Force (RRF) .......................... .4 Deep-draft .....................................23 25th Anniversary of Ready Reserve Force ................5 Risk Management ................................24 Implementation of New Ship Manager Contracts ...........5 Port Readiness ..................................24 A Systematic Ship Maintenance Program .................5 Port and Cargo Security ...........................24 Turbo Activations Show Readiness ......................7 Technical Assistance to Foreign Ports .................24 Training .......................................25 Special Missions for RRF Vessels .......................8 National Port Security Strategy Development ...........25 Offshore Petroleum Discharge System ...................8 Inter-American Committee on Ports (CIP) .............25 Modular Cargo Delivery System (MCDS) ................8 Marine lntermodal Freight Transportation/Intermodal Systems ..25 Aviation Logistic Support Ship (T-AVB) ..................8 Departmental Intermodal Initiatives ..................26 Lighter Aboard Ship (LASH) ..........................9 Environmental Activities ............................27 State Maritime Academy Schoolship Maintenance and Industry Support .................................27 Repair (M&R) Program ............................9 Environmental Standards ..........................28 RRF Operations ....................................9 Environmental Compliance and Compliance Management .28 Breakout 2001 .................................... 10 Dredging and Dredged Material Management ..........29 Logistics Support .................................. 10 RRF Claims Settlement ............................. 10 Chapter 4-Domestic Operations Ship Disposal Program for Disposition of Obsolete Marine Transportation System Initiative .................31 Vessels ....................................... 10 An Assessment of the U.S. Marine Transportation System ..31 War Risk Insurance ................................ 11 Implementation of MTS Recommendation .............31 Title XI and Other Insurance Compliance . .11 Domestic Shipping .................................32 Emergency Operations . .11 Significant Activities ..............................32 Technical Assistance ............................. .32 Rural Transportation Initiative ..................... .33 Chapter 2-Shipbuilding and Ship Conversion Jones Act ......................................33 Title XI Guarantees ................................ 13 Assistance for Shippers ............................33 MARITECH ..................................... 13 Small Passenger Vessel Waiver Authority ..............33 MARAD MARJTECH Projects ...................... 13 Industry Trends and Profile ..........................33 National Shipbuilding Research Program Advanced Inland Waterways ................................33 Shipbuilding Enterprise (NSRP-ASE) ............... 14 Upper Mississippi River/Illinois Waterway Navigation Study .34 National Maritime Resource and Education Ferry Services . ..................................34 Center (NMREC) ................................ 14 Missouri River Master Control Revision ...............34 Technology Center ................................. 14 Deep-Sea Trades .................................34 Capital Construction Fund . .14 Offshore Oil Support ..............................34 Construction Reserve Fund .......................... 15 Great Lakes Shipyard Activity .................................. 15 Domestic Carriers ...............................34 Shipyard Improvements ........................... 15 Current Developments ............................35 Public, Private, and Intergovernmental Partnerships Ballast Water Issue and Legislation ..................35 for Marine-Related Activities ....................... 16 Maritime Promotion and Outreach ...................35 MARAD '01 Chapter 5-Ship Operations Opening Ports in Japan Still a Concern .................59 U.S.-Flag Fleet Profile ..............................37 Contacts with China ................................59 Operating-Differential Subsidy .....................37 Organization for Economic Cooperation and Subsidy Rates ................................37 Development (OECD) ............................59 Section 804 Activities ............................ 37 Maritime Services in the World Trade Organization Foreign Transfers ................................38 (WTO) and Free Trade Negotiations .................60 Ship Operations Cooperative Program (SOCP) ......... 38 Chapter 9-Administration Chapter 6-Cargo Preference Strategic and Performance Planning ....................61 Preference Cargo ................................. 47 Maritime Subsidy Board ............................61 Cargo Preference Act of 1954 ...................... .47 Customer Satisfaction Program .......................61 Cargo Preference Act of 1904 ...................... 47 Legal Services and Agency Decisions ..................62 The Maritime Security Act of 1996 .................. .47 Rulemaking .....................................62 Public Resolution 17 of the 73rd Congress ............ .4 7 Freedom of Information Act (FOIA) ..................62 PL. 105-383 ................................... .47 International ....................................62 Civilian Agencies ................................. .47 Ship Scrapping ..................................62 Israeli Cash Transfer (GO!) ....................... .47 Maritime Assistance ..............................62 Export-Import Bank (EXIMBANK) .................. .47 Ship Financing ..................................63 Strategic Petroleum Reserve Military Cargoes ......... .48 Legislation .....................................63 Military Cargoes ................................. .48 Defense Security Cooperation Agency ................. .48 Litigation ......................................64 Agricultural Cargoes .............................. .49 Information Resources Management ..................64 Title I ........................................ .49 Safety Program ..................................65 Title II ....................................... .49 Human Capital ..................................65 Title III ...................................... .49 Installations and Logistics: Real Property ..............65 Section 416(b) ................................. .49 Budget ........................................65 Food for Progress .............................. .49 Accounting .....................................66 Ocean Freight Differential (OFD) .................. .49 Acquisition .....................................66 Minimum Tonnage ...............................50 Audits ..........................................66 Fair and Reasonable Rates ........................50 Office of the Inspector General ......................66 General Accounting Office .........................67 Chapter 7-Maritime Labor, Training, and Safety Training .........................................55 U.S. Merchant Marine Academy .....................55 Financial Statements: State Academies .................................55 Exhibit 1: Statement of Financial Condition Supplemental Training ............................56 September 30, 2000 and September 30, 2001 Garrett A. Morgan Technology and Transportation Assets .....................................68 Futures Program ...............................56 Liabilities ...................................69 Merchant Marine Awards ..........................56 Exhibit 2: Statement of Operations Labor ...........................................56 September 30, 2000 and September 30, 2001 ..........70 Seafaring Labor .................................56 Notes to Financial Statements Annual Crewing Assessment of U.S. Merchant Mariners ..56 September 30, 2000 and September 30, 2001 ......... 71 Longshore .....................................57 Safety ..........................................57 Appendices Chapter 8-International Activities I: Maritime Subsidy Outlays--1937-2001 ...............73 Secretary Signs New Maritime Pact with Russia ..........59 II: Combined Financial Statement of Companies NATO Planning Board for Ocean Shipping with ODS ....................................75 (PBOS) Participation .............................59 III: Reports Released or Updated in FY 2001 ........... 77 MARAD '01 ii Figures 18: Cargo-Carrying U.S.-Flag Fleet by Area of 1. Maritime Security Program Operation-July-December 2000 ..................39 Participants as of Sept. 30, 2001 ................... 1 19. U.S.-Flag Fleet of Passenger Vessels, Tugs/Towboats,