Remarks for
Captain William G. Schubert
Maritime Administrator

North Atlantic Ports Association
Radisson Warwick Hotel
Philadelphia, PA

June 4, 2004

Good morning. I am delighted to join you in these pleasant surroundings to participate in the North Atlantic Ports Association Conference. I feel privileged to be your guest and to be here on behalf of President George W. Bush and Secretary of Transportation Norman Y. Mineta.

This morning, I would like to focus on a number of Maritime Administration (MARAD) initiatives, which are relevant to maritime operations and interests.

Let me begin by sharing the most recent MARAD success story. Due to the collaborative efforts of MARAD and the Bush Administration, the first cruise ship to carry the Stars and Stripes in many years will be joining the fleet of U.S.-flagged ships on June 7, 2004. The re-flagging of the Pride of Aloha, in the Port of San Francisco, created nearly 5,000 maritime jobs, which gives rise to new optimism about the future of the U.S. merchant marine industry. I have been invited to participate in the ceremony to christen this first modern cruise ship to fly the flag of the United States of America on July 4 at the Aloha Tower in Honolulu, Hawaii. I am honored to help celebrate this momentous occasion.

Historically, the merchant marine has been viewed as this nation’s fourth arm of defense. And, today our maritime industry is as important as ever. America depends on her maritime services to help ensure our security, to provide sealift and to support our economy. As an example, the Port of Philadelphia clearly demonstrates the importance and effectiveness of America’s waterborne transportation system. The Port of Philadelphia port played a critical role in sealift operations in support of Operations Enduring and Iraqi Freedom by simultaneously handling the movement and security of commercial cargo and the deployment of U.S. military forces. This activity not only provided an important service to our Armed Forces, but also added jobs to the local economy.

To maintain ready, dependable sealift, MARAD is responsible for a fleet of ships, called the Ready Reserve Force (RRF). These ships are owned by the U.S. Department of Transportation, managed under contract by an industry partner, and staffed by civilian mariners. They deliver military equipment and other supplies to deployed U.S. Forces in peacetime and war. During the Iraqi conflict, 68 ships have carried much needed cargo to the theaters of operation. Now, they continue to serve our great Nation by transporting humanitarian assistance to help rebuild Iraq.

Let me now turn to an important MARAD initiative that addresses the maritime component of our overall transportation system. This wide-ranging proposal of maritime policies is called SEA-21 and includes a Short Sea Shipping component.

As you may know, Richard Armstrong, the chair of the Seaport Advisory Council, delivered a Short Sea Committee report yesterday. I am pleased to elaborate further on how MARAD’s Short Sea Shipping initiative can additionally strengthen our intermodal transportation system. From the perspective of both the Department of Transportation and MARAD, Short Sea Shipping is designed to move more freight by water and to work in partnership with other intermodal transportation systems. Rather than taking business and jobs away from trucks and railroads, the Short Sea Shipping component will ease congestion on our roads and highways, thus complementing an overloaded transportation system and adding capacity to our multi-modal transportation network.

Time is a shipper’s most critical requirement, due to product shelf life and/or dollar value. And, that is why another MARAD initiative currently under consideration by Congress will be of great significance. This initiative known as SAFETEA, includes the Safe, Accountable, Flexible, and Efficient Transportation Equity Act, and contains funding for the so-called "last mile"—the highway and rail connections to the ports, many of which are so critically in need of repair and improvement.

All of America’s ports will benefit greatly from SAFETEA. The Port of Philadelphia, mentioned earlier, is no exception. Presently, all its terminal facilities are located in close proximity and with easy access to all major trucking routes and railroad service. Consider that over 400 local trucking companies as well as three class-one railroads, operate in the region. How can they possibly operate efficiently if the connections they must use to get to the Port of Philadelphia are in varying stages of disrepair?

Similarly, we in MARAD believe that the flow of commerce must seamlessly mesh with the requirements for security. Under the leadership of Secretary Mineta and myself, the Department of Transportation and the Maritime Administration are working together to develop improvements in worldwide maritime transportation systems that will balance the efficiency of cargo transport with the need for security of transport. We have placed an emphasis on integrating security issues with our transportation system in ways that both ensure the stability of our economy and enhance our ability to compete in the global market.

The Maritime Transportation Security Act (MTSA), signed by President Bush in November 2002, saw the U.S. Coast Guard partnering with MARAD and other federal agencies to develop a viable set of security regulations for our industry. As such, MTSA seeks to strengthen security at the nation's seaports and MARAD advocates innovative security technology for commercial maritime applications. Transportation security is critical to helping us identify, understand, and integrate security and efficiency issues. Goods must flow smoothly, quickly and, most of all, securely, if we are to meet the expectations of today’s global economy and enhance homeland security.

U.S. seaports have already benefited from the more than 568 million dollars that are now available for the Port Security Grant Program. This program has awarded money to applicants who have demonstrated the willingness to explore the application of technologies such as electronic seals, vessel tracking, and electronic notification of vessel arrival to improve the security systems already in place at their port. Moreover, the program has assisted national seaports with the financing of facility and operational security improvements.

The Maritime Administration has and continues to play a key role in this program. MARAD, in cooperation with the Coast Guard and the Transportation Security Administration (TSA), is currently working on the next round of Port Security Grants for U.S. ports. These grants will help make it possible to improve security at ports as required by both MTSA and the International Ship and Port Facility Security Code (ISPS).

In addition to the Ports Security Grant Program, MARAD has developed an Inter-American Port Security Training Program in which nearly 300 port personnel have been trained in the Western Hemisphere in the past few years. By helping to increase security at the ports of our Western Hemispheric trading partners, security at U.S. ports will also be enhanced.

In addition to addressing port security, we must also look at the overall role ports will play in this new century, especially when it comes to American transportation needs and economic issues. The United States is dependent on trade, and trade is dependent on our ports. The national economy grew 4.2 percent in the first three months of this year and an efficient waterborne transportation system will greatly assist in the economic growth. Currently, more than seven million containers arrive in U.S. ports each year, and foreign trade and freight volumes at our ports are expected to double and/or triple by 2020. These numbers alone demonstrate how our ports and intermodal connectors are facing a serious capacity crunch. It should come as no surprise that MARAD is working diligently on solutions to these problems of congestion so that our economy will be able to thrive and remain competitive in the decades to come.

On that note, allow me to conclude my remarks. I have briefly touched upon just a few of the concerns that we are addressing daily at MARAD in order to maintain and improve both the competitiveness of the U.S.-flag Merchant Marine and the maritime industry as a whole. I hope that I have provided you with some insight into the current and future activities of the Maritime Administration so that we may better continue to work together to achieve America’s maritime goals.

On behalf of MARAD and the Bush Administration, thank you for the opportunity to meet with you today.

Thank you.

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