Address at the World Trade Center of New Orleans

on the topic of

Thank you for your kind introduction John. It is great to be here today among friends from all segments of the maritime industry. This is a wonderful opportunity for me to share with you my vision for the future of the American maritime community, particularly as our Nation faces its greatest peril.

This is my second trip to New Orleans since I was sworn into office aboard the Cape Kennedy almost three months ago.

That unique swearing-in ceremony outside of Washington was a first for a Maritime Administrator

and I can tell you that it certainly won’t be the last of firsts while I am at the helm. I did have a formal swearing-in ceremony in Washington with Secretary Mineta in early January, but the New Orleans ceremony was especially symbolic and fitting for me because I’ve spent most of my career aboard ships rather than offices. If you were not there or did not hear about it, the ceremony was aboard one of our Ready Reserve Fleet ships and it was a truly inspirational experience.

I have some critical work to accomplish in a very short period of time and my swearing-in ceremony aboard the Cape Kennedy reminded me that although the future of the maritime industry can be shaped in Washington, the future of our industry must also be carried out by you -- the maritime community. Industry and Government are responsible for building a solid partnership that strengthens, NOT WEAKENS, the maritime community. I am here to do exactly that, strengthen my partnership with you by transforming the way we operate, the way we do business, and even the way in which we view ourselves.

I am honored to be here in my new position as Maritime Administrator. In light of the events of September 11, and the crucial ongoing war against terrorism every action taken at the Maritime Administration is now examined and re-examined with this perspective in mind. I’ve said this before and I am going to say it again, business as usual is not enough anymore. Every action we take, every proposed rule we initiate is now looked at in terms of helping American jobs, the American economy and American security. In light of September 11 and the long-term war on which our nation has now embarked, we are considering every initiative with this new perspective in mind.

It is a great honor to have been selected by President Bush to serve in his Administration. I sincerely wish that I could stand here today and proclaim that the maritime industry is healthy or that we are poised for an immediate turnaround. An industry-wide turnaround may take some time. However, if industry and government will work together to promote sound maritime policy, we will certainly get there sooner rather than later. That is why organizations like the USMMA Alumni Association, Propeller Club, and other organizations which make up the Maritime Alliance here in New Orleans are crucial to the development and execution of a sound maritime policy.

I want my fellow colleagues here today, to know that am 100% committed to take on the significant challenges of this job --- to do all I can to help move the U.S. maritime industry forward. And at the same time, we must also ALL be ready to work together to support the war on terrorism.

Many of you have seen the maritime industry in all of its phases. You’ve seen the best and the worst of maritime policy from afar – the good ideas that come from Washington and the not so good ideas.

Many of you have felt that over the years, maritime interests have become last on the public policy list, that the Government does not care, that the Department of Transportation does not hear your concerns, and that MARAD may be out of step with the industry. However true that may have been in the past – and I do not want to stop to argue about how true it may or may not have been – it is not true now in this Administration. As I have told virtually everyone in MARAD – I don’t care where we have been – it’s where we are going that counts. We at the Department of Transportation know that all parts of the Department have to work together – and that we have to work with all parts of the industry. We know we have to put the past behind us and work together now. I think you all know that, too.

I’m staking my professional reputation on the realistic hope that we as an industry can work together – and MARAD is alive and well and will be here to help you.

As we work together over the coming years, there are going to be some policy disagreements along the way, but we as a community are not going to go very far in this new environment if we do not speak together as one voice, one maritime community, united. We cannot afford to have a fractious maritime community at the expense of a U.S. maritime presence throughout the nation and world. I am not criticizing one group over another, but I believe that the U.S. maritime community needs to realize that there isn’t much time to waste. An unproductive cycle of attacking one group after another in order to look out for one’s self interest simply cannot exist in this new environment. Self-destructive behavior within the industry can easily spell the end.

Let me briefly mention some of the important challenges and considerations we are facing at the Maritime Administration and the Department of Transportation. The newly established Transportation Security Administration does not only seek to protect aviation security interests, but maritime, highway, transit and rail – all modes – and we must all cooperate to develop this security agency together. Every aspect of the maritime industry has a role to play. Additionally, the TSA will require significant manpower resources specializing in maritime and intermodal transportation, and a familiarity with port operations. I sincerely believe that a secondary mission of the United States Merchant Marine Academy and the state maritime academies could be to provide the necessary manpower resources from the graduates who may be unable to find permanent employment at sea to fulfill their commitments.

However, this possible new role for maritime academy graduates should not take away the importance of going to sea. When I graduated from Kings Point, I looked forward going to sea. It was something I felt obligated and wanted to do. A national reporter from the Baltimore Sun has taken a great interest in covering manpower issues in the merchant marine and I have told him that there is reason to be alarmed and we should not be comfortable with the status quo. This is a national security issue and I will continue to seek out ways to increase our fleet and our merchant mariner base.

Most importantly, we need to bolster programs and initiatives to promote the profitability of the U.S. flag – or our US merchant marine will simply cease to exist.

While transportation security has been at the top of every agenda at the Department and rightfully so, we at the Maritime Administration cannot ignore a larger task that looms over all of us --- building an American maritime policy for the 21st century.

To begin, we must not accept the continued overall decline of the U.S.-flag fleet. There has been an unprecedented decline in U.S.-flag tonnage over the past ten years. I have pledged to work diligently with industry and labor over the next few years to encourage new tonnage to enter the commercial market. As I have stated in my confirmation hearing and in virtually every press interview, we must also work hard to form a consensus on the reauthorization of the Maritime Security Program. I know you are pleased the Administration decided that the MSP program will remain at MARAD. With that issue settled, we need to find innovative ways to encourage other types of vessels to enter the domestic and foreign trades, flying the U.S. flag. I will use resources available to me, department-wide, in order to achieve this goal. I will stand behind any company that is considering adding new tonnage to the U.S. flag and there is one company here in New Orleans who can attest to my word.

One means of adding new tonnage to the U.S. flag would be to eliminate the three-year waiting period for newly constructed bulk and breakbulk vessels in order to carry civilian preference cargo and food aid. The Administration has supported the removal of this unnecessary restriction in the past and I will continue to advocate for the elimination of the three-year rule for food aid business subject to cargo preference eligibility.

Some of you may be eagerly following Congressman Oberstar’s tax parity legislation and I want to tell you that we are going to give Congressman Oberstar’s proposal the highest consideration. We need to explore the tonnage tax regime as an alternative to income tax for U.S. vessels in the foreign trade. The tonnage-based system has been successfully implemented in the United Kingdom and could provide a model or framework for this country to follow.

Prior to September 11, Secretary Mineta had initiated discussions on the establishment of a SEA-21 initiative to address marine transportation infrastructure improvements.

While movement on such an initiative has been postponed until all security concerns are addressed within the Department, the Maritime Administration will continue to explore the challenges facing the marine transportation system (MTS) and consider the possible development of coastwise shipping to relieve freight congestion on the highways.

This part of the Nation is in the forefront of our maritime efforts. The Nation’s largest ports are in the Gulf South; it is said that on any given day over 50 percent of the nation’s inland barges are on the Gulf South’s numerous rivers and waterways.

The Gulf is the geographic center of our shipbuilding and ship repair industries. Recently we have conducted meetings in all parts of the region under the Gulf Rivers Intermodal Partnership program. Almost 100 maritime executives and government transportation leaders met as part of GRIP’s "Where the Rudders Meets the Roads" project. This included state DOT officials who used their expertise to suggest how the marine mode can and should become a full partner with the land modes to meet the challenges of congestion due to a predicted doubling or tripling of overall transportation demand in the next 20 years. This Administration wants to encourage and promote the goals of this type of intermodal, intergovernmental, multi-industry initiative. Local progress like this provides a nationwide model for other regions to develop.

The United States is the world’s only superpower – and we did not reach this point without being a sea power. Our strong 200-plus maritime heritage helped build a critical foundation for the development of this Nation. It is time for us to serve our Nation, by working together to ensure that our Nation’s ports, vessels, and other maritime assets are adequately protected from the hands of terrorists. And we must also work together to develop a maritime policy for the 21st century.

The vitality of U.S.-flag shipping is as essential as airplanes, trucks, cars and trains for economic and citizen well-being.