Sea Year

The USMMA’s shipboard training program, or “Sea Year,” exposes Midshipmen to life at sea on board commercial and military vessels and provides cost-effective hands-on seamanship and engineering sea time that meets the requirements to secure USCG mariner credentials.

Midshipmen are required to have 360 days of sea service during their four-year maritime education to obtain their USCG merchant mariner credentials.  Shipping companies and the U.S. Navy are part of a cooperative effort to ensure that a Midshipman’s shore based education is enhanced by the required on-the-job training at sea.

Sea Year is critical to the education and training of Midshipmen at the USMMA, and all training must be conducted in a safe and respectful environment.  In the wake of a series of reports that indicated problems with sexual misconduct and other coercive behaviors, both on campus and at sea, DOT and MARAD leadership suspended commercial Sea Year so we could develop a better understanding of the problem and a strategy to ensure the safety of the Midshipmen.  An independent external consultant assessed the organization and made recommendations in December 20161.

Last year, Secretary Foxx’s decision to stand down commercial sea year over concerns about Midshipmen being subjected to sexual misconduct stirred vocal disagreement from industry leaders. Those same leaders, including many USMMA alumni, worked with MARAD through an extended stand down of Sea Year while the cultural audit was conducted.  A consortium of 14 leading maritime companies came together with MARAD to examine ways to ensure that Sea Year training is conducted in a safe and respectful environment. Just two weeks after the stand down, the consortium brought forth a proposal to address sexual assault and harassment prevention and response.  MARAD and DOT subsequently created the Shipboard Climate Compliance Team (SCCT) to establish standards and collaborate with industry, labor and the consortium, and lay out workable criteria for the companies to achieve those standards.  The SCCT is led by a MARAD Senior Executive Service leader, who is a USMMA graduate.  The team is made up of 10 experienced mariners (four of whom are female), and sexual harassment and sexual assault and civil rights experts.  Working with industry and labor partners, and with assistance from a subject matter expert, the SCCT has established stringent new requirements that companies must meet to be eligible to participate in Sea Year training.  Because of the strong working relationship between MARAD and these maritime leaders, five companies today are already meeting new standards for sea year eligibility and have Midshipmen currently, or preparing to, sail aboard their companies’ vessels.

MARAD’s “Sea Year Eligibility” criteria include the following:

Company-Wide Zero Tolerance Message – Shipping company CEOs will issue an annual company-wide message outlining specific rules for the workplace, strongly stating that sexual assault and sexual harassment, including any retaliation based on a complaint, are unacceptable, and committing the company to eradicate such behavior and enforcing a zero-tolerance policy.

Annual Sexual Assault and Sexual Harassment Prevention Training Requirement for Crew – Annual sexual assault and harassment prevention training will ensure that crewmembers clearly understand what constitutes sexual assault and sexual harassment, its negative impact, the importance of prevention, and the severe penalties for engaging in prohibited behavior or for failing to report an incident.  All crewmembers will clearly understand their responsibility as supervisors, employees, witnesses, and bystanders. Crewmembers must complete this training prior to Midshipmen arriving on board, or within 72 hours of signing-on, if Midshipmen are already onboard the vessel

Mentors with Enhanced Selection Criteria and Duties – Mentors for each ship play a crucial role in the success and development of cadets.  Per enhanced mentor qualifications, a mentor must certify that he/she does not have any pending complaints or history of violations of any other company’s Sexual Assault Sexual Harassment policies.  The mentor must be of good character, and know, support, and advocate for the company’s sexual assault sexual harassment prevention and response policies. Mentor duties include:

• Helping Midshipmen understand company shipboard policies and procedures, and their roles and responsibilities aboard the ship;
• Serving as a resource for Midshipmen while onboard;
• Being readily available to Midshipmen and seeking to understand each individual’s concerns about their vessel assignment;
• Guiding the Midshipmen in understanding shipboard protocol, sexual assault and harassment prevention and response policies, and expected code of conduct;
• Supporting Midshipmen once they join the crew and helping them transition from their academic learning environment to the professional shipboard setting;
• Encouraging the development of a well-rounded mariner;
• Referring Midshipmen to other resources as needed, such as other crewmembers aboard the vessel, company employees, or Academy personnel; and
• Participating in prescribed sexual assault and harassment prevention and anti- discrimination training and serving as a reporting mechanism for complaints of sexual misconduct.

Accreditation

Actions to improve sexual assault and sexual harassment prevention and response at the Academy also address concerns raised during the Academy’s reaccreditation.  In June 2016, the Middle States Commission on Higher Education (MSCHE) placed the Academy’s accreditation in warning status because it found that the Academy was not meeting five of MSCHE’s fourteen standards of accreditation. Of the five standards, one pertains to improving sexual misconduct response and prevention and four are related to independent governance at the Academy and returning budget and management authorities to the USMMA as a condition of accreditation.

In 2009, the Government Accountability Office (GAO) issued a report that described certain USMMA budget and management problems, which led Congress to require DOT and MARAD to provide additional oversight of the Academy’s budget.  The USMMA had  three Superintendents from 2008 to 2011 trying to fix these problems. Rear Admiral James Helis became Superintendent in 2012 and brought stability and resolution.  By 2014, the GAO reported to Congress that the USMMA had addressed all 47 of the management shortcomings that GAO identified in 2009.  Returning budget and management authorities to the USMMA addresses accreditation concerns and recognizes the tremendous accomplishments by Superintendent Helis and his leadership team.

The Academy remains accredited while we work with MSCHE to address their requirements and recommendations, and we are making good progress.  As recommended by MSCHE, DOT requested relief from legislation that constrains the Academy’s budget. Thanks to the actions of this Subcommittee, one of the two constraints has already been lifted.  MARAD and the Academy are currently working to fill key positions and to return direct reporting authority for human resources, financial management and procurement back to the Academy.  Finally, as noted above, DOT and MARAD are supporting the Academy’s efforts to ensure the safety of its Midshipmen by improving sexual assault and sexual harassment response and prevention on campus and during Sea Year. The Academy has two years to return to full compliance, and we are confident that we will meet that goal and ensure the highest caliber education for the Academy’s Midshipmen.

STATEMENT OF

REAR ADMIRAL JAMES HELIS,
US MARITIME SERVICE SUPERINTENDENT
UNITED STATE MERCHANT MARINE ACADEMY

BEFORE THE

COMMITTEE ON APPROPRIATIONS
SUBCOMMITTEE ON TRANSPORTATION, HOUSING AND
URBAN DEVELOPMENT, AND RELATED AGENCIES
UNITED STATES SENATE

HEARING ON

PREVENTING SEXUAL ASSAULT AND SEXUAL HARASSMENT AT
THE UNITED STATES MERCHANT MARINE ACADEMY

April 5, 2017

Good morning, Chairman Collins, Ranking Member Reed and members of the Subcommittee. Thank you for the invitation to testify on the state of the United States Merchant Marine Academy (USMMA or Academy).

The mission of the Academy is to educate and graduate licensed merchant mariners and leaders of exemplary character who will serve America’s marine transportation and defense needs in peace and war. Each year the Academy graduates highly-qualified U.S Coast Guard (USCG) credentialed mariners committed to serving the Nation as officers in the Armed Forces and the Merchant Marine.

The Academy provides a comprehensive four-year leadership development experience.  All graduating Midshipmen will receive a Bachelor of Science degree, a USCG-issued Merchant Marine officer’s license, and a commission in an Active or Reserve Component of one of the Armed Forces.  They can meet their service obligation in one of two ways: twenty to twenty- five percent will choose to serve five years on Active Duty as an officer in any branch of the Armed Forces, while the remaining majority of the class will sail for five years as a Merchant Marine officer on US-flagged commercial ships or with a Federal agency, which can include the Military Sealift Command or the National Oceanographic and Atmospheric Administration.

The Academy’s mission begins with the men and women who pass through its gates in late June to begin their four-year journey.  The Academy has a highly competitive and selective admissions process. Candidates must have a strong academic record and demonstrate superior character and leadership potential through their participation in co-curricular activities, athletics, and community service.  They must meet rigorous medical and physical fitness qualifications for military service.  And they must receive a nomination from a Member of Congress or qualify for one of fifty direct appointments by the Secretary of Transportation by demonstrating qualities deemed to be of special value to the Academy.

I believe that enhancing the diversity of the Regiment of Midshipmen will strengthen our efforts to improving the campus culture, which in turn is critical to eliminating sexual assault, sexual harassment, and other coercive and unacceptable behaviors.  Over the past six years the quality and diversity of the incoming classes has improved considerably.  Comparing the classes of 2014 and 2020, the most recently admitted, we saw the mean score on the Scholastic Aptitude Test (SAT) improve from 1215 to 1280. The percentage of women admitted rose from 12.9 percent to 19.7 percent.   Admission of individuals who represent racial minorities similarly rose from 15.2 percent to 24 percent.  Other indicators of the quality of our incoming candidates include class rank and grade point average, as well as candidates who have held key leadership positions in student government, athletics, and co-curricular and community activities.  We are pleased with the progress we are making and expect to see continued improvements in the quality and diversity of future classes.

My top strategic priorities for the Academy are preventing sexual assault and sexual harassment and other coercive behaviors, reaccreditation by the Middle States Commission on Higher Education (MSCHE), continuing our work to modernize and renovate campus infrastructure and facilities, and strengthening Midshipmen leadership development.  I will focus my testimony today on sexual assault and harassment prevention and reaccreditation.

Sexual assault and sexual harassment are unacceptable behaviors that have no place at any institution of higher education, especially one committed to developing our Nation’s future leaders.  I am committed to the elimination of sexual assault and harassment on our campus and, until we reach that goal, improving the environment at the Academy so that victims are comfortable reporting all incidents and confident that Academy personnel will respond appropriately to reported incidents.   The steps we have taken since 2012 to address sexual assault and harassment are included in our annual reports to Congress. We welcomed an evaluation of our programs by the Department of Transportation’s (DOT) Inspector General in FY 2013 and FY 2014, which provided another set of eyes on our programs and useful recommendations which we have implemented.  In addition, the National Defense Authorization Act for Fiscal Year 2017, P.L. 114-328, requires the DOT Inspector General to report, by March 31, 2018, on the effectiveness of the sexual assault and sexual harassment prevention and response program (SAPR) at the Academy. The Defense Manpower Data Center (DMDC) continues to administer the Service Academy Gender Relations (SAGR) Survey in even numbered years, and conducts focus groups with Midshipmen, staff and faculty in odd-numbered years as they do for the other four Federal Service Academies.  Additionally, the results of the study commissioned by the Department of Transportation in 2016 on the Academy culture have been reviewed, and we are incorporating the suggestions across campus.

At the Academy, we established a multi-disciplinary Sexual Assault Review Board (SARB), which meets monthly, to provide executive oversight and procedural guidance for the SAPR program by reviewing ways to improve processes, system accountability and victim access to quality services.  The SARB has implemented standard operating procedures for Investigating an Unrestricted Report of Sexual Assault and Processing a Restricted (confidential) Report of Sexual Assault, and Maintenance of Restricted and Unrestricted Reports.

In FY 2012, USMMA hired its first Sexual Assault Response Coordinator (SARC).  The SARC resides at the Academy, and is available to Midshipmen 24/7 through a victim hotline.  Victims are provided with information and referrals, and assistance in obtaining any necessary medical or mental health treatment at the Academy or at an appropriate facility in the local community and/or victim advocacy agency.  Victims have access to confidential (restricted) reporting through the SARC, Health Clinic counseling staff, the Chaplain and a small number of specially trained staff and faculty victim advocates.  The Academy works closely with the local victim advocacy agency to provide an additional confidential reporting option.  A victim may also make an unrestricted report, which will result in the initiation of a criminal and administrative investigation.

The SARC, working with the Superintendent, Commandant and Dean of Academics, has significantly improved training across the Academy aimed at the prevention of sexual assault and sexual harassment.  Faculty and staff receive mandatory training annually.  Incoming Midshipmen receive mandatory training in the first three weeks in small group settings (20-25 midshipmen per training) covering the topics of sexual assault, sexual harassment, dating violence, stalking, and bystander intervention.  Beginning with the Class of 2019, we increased training to three hours from the one hour that previous classes received. The SARC and Commandant continue to provide quarterly training throughout each Midshipman’s academic career in both small and large group settings.  The SARC and the Department of Professional Development and Career Services provide special training sessions prior to departure for Sea Year (sophomores spend four months at sea and juniors spend eight months at sea). Training focuses on where to seek help or assistance (captain, designated person ashore, SARC’s 24/7 hotline), situational awareness, risk reduction, and bystander intervention.  In 2016, the Academy adopted the Green Dot Bystander Intervention Program, which teaches students to identify volatile situations in which there could be the possibility of sexual violence and to defuse those situations through diversion or distraction.  In addition, the SARB recently decided to increase our training on sexual assault and proper conduct for Midshipmen prior to their departure for sea training this summer.

Our survey results since 2012 indicate that Midshipmen have much better awareness and understanding of sexual assault and sexual harassment, and appreciate the commitment of everyone from the Secretary of Transportation through MARAD, the Academy’s senior leadership, and Midshipmen Regimental officers to eliminate this scourge from the Academy. We are extremely disappointed that we are not seeing a decrease in incidents in the survey results.  In 2016, we redoubled our efforts to address this problem.

As a first step, we began drilling down into the available data and feedback from the Advisory Board and our own conversations with Midshipmen.  It became clear to me that we needed to more closely examine the Sea Year and its potential effects, as that is the component of our program that sets USMMA apart from the other federal service academies. MSCHE affirmed this concern in their report last year, highlighting a need for the USMMA to address the issues of sexual assault and harassment at sea and on campus. After further analysis and discussion among the senior leadership at USMMA, MARAD, and DOT, as MARAD Executive Director Joel Szabat discussed in his testimony, former Secretary Foxx decided to stand down sea year training until procedures were in place to better assure a safe climate for our Midshipmen. The combined efforts of USMMA, MARAD, DOT, and industry and labor resulted in the certification process described by Mr. Szabat, which we have now implemented.

In addition to the sea year stand down, Secretary Foxx directed a deep dive into USMMA culture to identify other factors that could be contributing to our challenges with sexual assault and harassment and other unacceptable behaviors.  The study has provided useful analysis that will inform our way forward.

While we have implemented policies and programs based on best practices adopted in the military and higher education, we have not seen the results we desire or expect. The core issue we must address—that we are now addressing—is the very culture of USMMA. We must take actions to transform the USMMA culture such that every Midshipman is respected, valued, and can develop to her or his fullest potential to serve the Nation as a leader of exemplary character. The entire USMMA community must have zero tolerance for sexual assault and sexual harassment, retaliation, bullying, hazing, coercion, victim blaming, and alcohol misuse/abuse. Leadership, staff, faculty, and Midshipmen must all unite to eliminate this behavior and support victims, and hold those who violate Academy core values and standards accountable for their actions, when incidents take place.

We are hiring two Victim Advocate-Educators who will assist the SAPRO director in planning and executing training and providing victim services. We have also added a sea year coordinator to the SAPRO.

Additional steps we have taken over the past six months include a reintegration program for Midshipmen when they return from sea and the addition of mandatory online interactive sexual assault and alcohol abuse prevention training.  A special team made up of staff, faculty, and Midshipmen participated in a cultural change conference at the US Air Force Academy in February 2017 and are now drafting a comprehensive campaign plan to transform USMMA culture.  The Deputy Superintendent led an effort which has produced a comprehensive and integrated Sexual Assault Prevention and Response Framework.   A committee also has begun work to overhaul sea year policies and all training in preparation for sea year.

In addition to the efforts to improve the Sea Year training experience, the USMMA has developed a comprehensive plan to reduce sexual assault and sexual harassment on campus. The USMMA Sexual Assault Prevention and Response (SAPR) Program has significantly improved training across the Academy aimed at the prevention of sexual assault and sexual harassment, including online prevention training, case studies, videos, social media, professional speakers and small groups.  Actions taken by the USMMA have included installation of new emergency call boxes and security cameras, improvement of the security guard force, implementation of a 24/7 hotline for reporting inappropriate behaviors, and victim assistance in obtaining medical or mental health treatment. Efforts will continue to improve upon the SAPR Program as the USMMA implements recommendations from the cultural audit and responds to feedback from Midshipmen.

The Academy’s work to improve sexual assault and sexual harassment prevention and response addresses one of the recommendations made by MSCHE, which accredits the Academy’s academic degrees.  In June 2016, MSCHE placed USMMA in a warning status because USMMA was not meeting five of MSCHE’s fourteen standards of accreditation.  We are presently taking action to meet the requirements identified by MSCHE to be granted full accreditation. Actions taken over the past year include MARAD’s establishment of the Maritime Education and Training Executive Review Board (METERB), which serves as a formal governing and oversight body for USMMA; requesting and receiving relief from Congressional legislation constraining the Academy’s budget during the interim Continuing Resolution period; developing templates for budget development and tools for linking resources with the Strategic Plan; filling key job positions and requesting that MARAD return direct reporting authority for human resources, financial management, and procurement back to the Academy; ensuring the safety of Midshipmen from sexual assault and sexual harassment by initiating a culture change campaign; and ensuring Midshipmen safety at sea by vetting maritime companies through MARAD’s Shipboard Climate Compliance Team to determine if they have adequate policies and procedures in place to prevent sexual assault and harassment from happening, and are ready to respond if an incident does occur.

STATEMENT OF

DAVID J. RIVAIT
ASSOCIATE ADMINISTRATOR FOR BUDGET AND PROGRAMS
AND CHIEF FINANCIAL OFFICER
MARITIME ADMINISTRATION
U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE

HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION

MAY 13, 2009

Good afternoon Chairman Cummings, Ranking Member LoBiondo, and Members of the Subcommittee. Thank you for inviting me to discuss the budget priorities of the Maritime Administration (MARAD) for 2010. I am pleased to appear before you to describe how the President’s budget request will support maritime transportation, contributing to improving this Nation’s economy, environment, and security. For 2010, MARAD requests appropriations of $346 million.

MARAD 2010 program initiatives are highlighted by a $15 million Presidential Initiative for integrated maritime transportation planning between DOT and DHS, a $12 million program increase for U.S Merchant Marine Academy operations and capital improvements, and a $1.1 million increase in funding to support the State Maritime Academies. We are also focused on administering the Small Shipyard grant program, which has expanded tenfold in FY 2009 with American Recovery and Reinvestment Act (ARRA) funding.

Another priority emphasis for our agency is our coordination with industry, U.S. Government agencies, the military, and international parties on anti-piracy efforts. Before addressing the specifics of our 2010 budget proposal, I wanted to take a moment to review our activities in this area.

PIRACY

Together with the U.S. Coast Guard, Department of State, Department of Defense, and other government partners, MARAD is working directly with the maritime sector in coordinating government/industry anti-piracy efforts, including the use by industry of best management practices that reduce the risk of successful piracy attack. Our engagement has resulted in issuance of industry best practices, systematic dissemination of anti-piracy information, and increased coordination and communication between commercial vessels and naval authorities.

We are working in close coordination with other government agencies on a range of anti-piracy initiatives. MARAD and the Office of Naval Intelligence are publishing piracy advisories and alerts for the benefit of industry. We are continuously updating our website and electronic system “MARVIEW”, providing information to commercial shipping, and continuing to improve vessel tracking and projected schedules in the Horn of Africa region by collaborating with the U.S. flag industry and the National Maritime Intelligence Center. And, with the Military Sealift Command and the Navy Criminal Investigation Service, MARAD has developed “Anti-Piracy Assistance Teams” to provide advice on improving anti-piracy physical and operational security measures.

MARAD has been actively engaged in the work of the international cooperation mechanism known as the Contact Group on Piracy off the Coast of Somalia, which has four constituent Working Groups. The United States is the assigned lead for Working Group #3, which focuses on industry self-awareness and outreach. The Maritime Administration has been co-leading the efforts of the working group in close collaboration with the Coast Guard. The principal output to date has been the development and dissemination of anti-piracy Best Management Practices. MARAD is also coordinating with the International Maritime Organization’s Marine Safety Committee, and other groups.

ECONOMIC GROWTH AND RECOVERY

Serving one of the most pressing national priorities, in 2010, MARAD plans to devote $59 million, or approximately 17 percent of the agency request, to programs focused on reducing congestion, expanding global connectivity, and advancing economic growth. This compares with the 2009 enacted budget of $144 million, which included $100 million in ARRA funding.

MARAD’s programs also help strengthen and improve the Marine Transportation System, relieving pressure on highways by helping to increase the use of our nation’s waterways. As waterborne transport provides a cost-effective transportation alternative, it can help impact congestion in other transportation modes, and significantly reduce fuel consumption per ton-mile, with a related carbon footprint reduction. It can reduce the cost of goods consumers use every day, and contribute to improving quality of life. The MARAD 2010 program also includes a Presidential Initiative for integrated maritime transportation planning with the Department of Homeland Security to inform development and modernization of intermodal freight infrastructure linking coastal and inland ports to highway and rail networks.

Presidential Initiative: Secure and Efficient Intermodal Freight Infrastructure at Coastal and Inland Ports Initiative

The MARAD 2010 program is highlighted by the Presidential Initiative for the Secure and Efficient Intermodal Freight Infrastructure at Coastal and Inland Ports. A program increase of $15 million is requested for this initiative, which is aimed at supporting integrated planning between the DOT and DHS in the area of maritime transportation. The initiative will advance the development and modernization of intermodal freight infrastructure, linking coastal and inland ports to highway and rail networks. These funds will be administered in partnership with the DHS to support studies and joint planning that considers the interdependencies between strategic port security requirements and system throughput, support marine highway transportation database and research development, and advance the Maritime Safety and Security Information System, a global vessel tracking system used by DHS, DOD, DOT, and other federal agencies.

Assistance to Small Shipyard Grants

In FY 2009, Congress provided $17.5 million and an additional $100 million in American Recovery and Reinvestment Act (ARRA) to support capital improvements at qualified shipyards to improve the ability of domestic shipyards to compete for domestic and international commercial ship construction. The total funding represents over a tenfold increase to our program. Our deadline for receipt of ARRA shipyard grant applications was April 20, and we have received a very significant response. We are reviewing applications now, and plan to have all grants awarded and the full amount obligated by August 17, 2009. The deadline for award of the $17.5 million is July 9, 2009, and these funds will be fully obligated by that date. As the focus of our FY 2010 grant program will be on the administration and oversight of the FY 2009 grant awards, no funding is requested for shipyard grants in FY 2010.

Maritime Guaranteed Loan Program (Title XI)

Title XI offers loan guarantees for shipyard modernization projects and for building vessels in U.S. shipyards. The FY 2010 request provides $3.6 million, an increase of $0.1 million over the FY 2009 enacted, to maintain the administration of the Title XI guaranteed loan portfolio. No subsidy funds are requested for FY 2010.

Ocean Freight Differential

The Ocean Freight Differential program is an important component of the Cargo Preference program. The MARAD request includes an estimated $175 million in new borrowing authority for 2010 to pay the Department of Agriculture’s Commodity Credit Corporation to offset the additional cost to ship humanitarian food aid cargo on U.S.-flag vessels.

SECURITY, PREPAREDNESS, AND RESPONSE

Security, preparedness, and response is the agency’s priority mission, and commands the largest share of the budget request – $265.6 million or 77 percent, representing an increase of $0.2 million over 2009. The agency’s activities focus on developing and maintaining a vital and viable U.S. merchant marine for commerce, emergency response, and national security. The budget request will support three agency programs contributing to defense mobilization and emergency response readiness: United States Merchant Marine Academy, State Maritime Academies, and Maritime Security Program. MARAD’s programs help ensure the readiness of sealift capacity to respond to national crises and DOD mobilizations. The U.S. Merchant Marine Academy and State Maritime Academies educate and graduate merchant marine officers ready to serve the maritime industry and Armed Forces. The Maritime Security Program sustains a fleet of commercial vessels capable of supporting national security and federal emergency response requirements.

United States Merchant Marine Academy

The U.S Merchant Marine Academy (USMMA) has been an area of focus for the agency. Providing support and oversight to restore and strengthen USMMA programs and processes is a Maritime Administration management imperative. And, heightening the profile and prestige of the Academy is a priority of Secretary LaHood. In 2009, MARAD took positive steps to address and remediate a number of identified internal control issues, including: conversion to Civil Service of staff previously funded by non-appropriated funding instrumentalities, and the appointment of an Assistant Chief Financial Officer (CFO) at the USMMA reporting to the MARAD CFO. In 2009, MARAD provided Congress with an operating plan providing transparency as to how appropriated funds are expected to be expended by the USMMA.

The agency’s 2010 budget request for $74.4 million will support the continued improvement of USMMA management. The request includes a program increase of $12 million, of which $4.8 million is for Academy Operations and $7.2 million is for the Capital Improvement Program.

The increase in Academy Operations will compensate for non-appropriated funding sources no longer available for mission-related activities, and will establish for the Academy a sufficient appropriated funding base. MARAD’s request includes $0.8 million for the services of an Architecture/Engineering firm to support a blue ribbon panel of experts who will continue work started in 2009 to examine the Academy’s long-term capital improvement needs. This panel will make their recommendations for an updated capital improvement master plan to the Secretary of Transportation.

The requested increase of $7.2 million for capital improvements will augment capital investment funding to $15.4 million, allowing for significant deferred renovations of Mallory Pier, which is the main ship mooring pier and provides protection for all training vessels and other waterfront facilities. The deteriorated condition of the pier could present safety implications if not remedied.

State Maritime Academies

The 2010 request for the State Maritime Academy (SMA) program includes $15.6 million, an increase of $1.1 million from the FY 2009 enacted level. MARAD’s 2010 request includes funds for: (1) annual direct payments to each of the six state maritime academies, (2) the Student Incentive Payment (SIP) program, and (3) payment of maintenance and repair costs for training ships on loan to the state academies. Of the $15.6 million request:

• $2.4 million will be paid directly to the SMA for maintenance and support, a payment of $400,000 to each school in 2010.
• $2.0 million will fund the SIP program, for which the annual incentive payment per cadet will be $8,000 in 2010.
• $11.2 million will fund maintenance and repair costs for Federally-owned training ships on loan to the various state academies.

The state academies regard the SIP Program as among the most important recruiting tools to encourage state maritime academy cadets to pursue careers as Civil Service Mariners. We expect the authorized increase in SIP payments from $4,000 per year to $8,000 to increase interest in the program. This major improvement positions the program for a successful 2010.

Maritime Security Program

The Maritime Security Program (MSP) is the agency’s largest appropriated program. The primary purpose of the MSP is to provide the DOD with assured access to commercial U.S.-flag ships and related intermodal systems, as well as a pool of trained U.S. mariners available to support national security requirements during war or national emergency. MSP vessel participants also deliver cargoes supporting overseas deployments of U.S. forces. The DOD Surface Deployment and Distribution Command reports that since September 11, 2001, U.S.-flag commercial ships have delivered over 425,000 twenty foot equivalent units (TEUs) of containerized equipment and supplies to support U.S. troops in Iraq and Afghanistan. MSP ships have also supported the rebuilding of Iraq. For 2010, the MARAD request of $174 million will fund 60 ships in the MSP fleet in at the authorized level of $2.9 million per ship. Funding at this level will enable DOT to continue to maintain a U.S.-flag international trade merchant fleet crewed by U.S. citizens to serve the Nation’s commercial and national security needs.

ENVIRONMENT

MARAD environmental programs are aimed at reducing pollution and the adverse environmental effects of maritime transportation and facilities on communities and livability; focusing on obsolete vessel disposal, reducing marine air emissions, and treating ballast water. The 2010 request includes $19 million, or 5% of the agency’s request.

Ship Disposal

Of the 2010 request of $15 million for the Ship Disposal program, $12 million will support the disposal of obsolete ships in the National Defense Reserve Fleet. Due to the presence of onboard hazardous materials such as residual fuel, asbestos and solid polychlorinated biphenyls on these ships, they must be disposed of properly. Expedited disposal of obsolete ships lessens environmental risk and makes sense not only from the standpoint of avoiding possible harm to the environment, but also in terms of reducing costs. Environmental cleanup costs after a hazmat discharge incident are often far higher than the cost of proper and timely disposal. The budget request is expected to support the removal of 15 obsolete vessels from the inventory in 2010, providing for domestic dismantling contracts, artificial reefing, deep sinking, vessel sales and donations, and vessel export for recycling (if available).

The 2010 budget request also includes $3 million in funding to continue nuclear license management for the inactive Nuclear Ship SAVANNAH. The budget will support the continued maintenance and safeguarding of the SAVANNAH nuclear plant, and technical actions to keep the vessel into conformance with Nuclear Regulatory Commission standards.

Environmental Programs

The impact of marine transportation on the human and natural environment has become more evident particularly in port and coastal communities, which are feeling the brunt of environmental quality impacts from marine transportation activities. At the same time, marine transportation is expected to grow considerably due to increased use of our nations waterways for freight and passenger movement. Marine-related environmental impacts will therefore become more profound. The environmental impacts of marine transportation must be adequately anticipated and addressed or they will adversely affect the nation’s economic growth and the quality of life of our port communities. The MARAD 2010 program will work toward the reduction of port and vessel air pollution, further critical multi-modal transportation research to reduce environmental pollution, implement initiatives to reduce the agency’s carbon footprint, and advance ballast water treatment technologies.

Mr. Chairman, I wish to express my appreciation for the opportunity to present and discuss our program initiatives for 2010, and for the Committee’s continuing support for maritime programs. We will continue to keep this Committee apprised of the progress of our programs in these areas in the coming year, including our efforts working with other agencies on anti-piracy issues.

I look forward to working with you on advancing maritime transportation in the United States, and am happy to respond to any questions you and the members of this Committee may have. Thank you.

 STATEMENT OF

JEAN E. McKEEVER
ASSOCIATE ADMINISTRATOR FOR
BUSINESS AND WORKFORCE DEVELOPMENT
MARITIME ADMINISTRATION
U.S. DEPARTMENT OF TRANSPORTATION

BEFORE THE

COMMITTEE ON FOREIGN AFFAIRS
SUBCOMMITTEE ON AFRICA AND GLOBAL HEALTH

ON

LOCAL AND REGIONAL PURCHASES:
OPPORTUNITIES TO ENHANCE U.S. FOOD AID

June 4, 2009

Good morning, Mr. Chairman and Members of the Subcommittee.  I appreciate the invitation to brief the House Committee on Foreign Affairs, Subcommittee on Africa and Global Health on the recent Government Accountability Office (GAO) study on local and regional purchases (LRP) used for food aid.

The cargo preference statute of 1954, as amended in 1985 was envisioned by Congress to help support the U.S. merchant marine, which is vital to the nation’s defense, by requiring the use of U.S.-flag carriers for at least 75 percent food aid shipments.  Support of the U.S. fleet was structured in a way that reimbursed the food programs on the shipments in excess of 50 percent of food aid shipped.   Any additional costs on the first 50 percent of food aid shipped under cargo preference and not reimbursed are borne by the agencies implementing the food aid programs.

Mr. Chairman, the Subcommittee asked that we address three specific issues in our testimony today, relating to the need to update the memorandum of understanding (MOU), obstacles to ensuring that an updated framework governs the application of cargo preference requirements to LRP, and whether there are actions that Congress could take to clarify the application of cargo preference with regard to LRP.  I will defer to my colleagues from the food aid agencies on any issues related to the implementation of food aid programs.

In regard to ensuring that an updated framework governs the application of cargo preference requirements to U.S. food aid clarifies how they pertain to U.S. agencies’ use of LRP, we believe the requirements, as established by law are clear, and there are no obstacles.  Except as otherwise exempted by law, cargoes financed by the American taxpayer and moving by water are subject to 50 percent carriage on US-flag vessels when practicable.  Only food aid specified in 46 USC 55314 exported from the United States is subject to the 75 percent requirement.  

With regard to the GAO recommendations on the Memorandum of agreement, we have maintained that the MOU is not an impediment to agencies’ use of LRP.  The MOU among the U.S. Agency for International Development (USAID), the Commodity Credit Corporation of the Department of Agriculture (USDA) and the Maritime Administration (MARAD) merely describes the process of how MARAD’s ocean freight differential (OFD) reimbursement to USDA and USAID is calculated. In addition, because LRP is subject to cargo preference at the 50 percent level, the MOU is not applicable.

Finally, we appreciate the Subcommittee’s consideration in asking whether there are actions that Congress could take that could clarify some of the ambiguities in the application of cargo preference requirements as they pertain to LRP.  Following the enactment of PL 110-417, the National Defense Authorization Act of 2009, we anticipate holding discussions with the agencies whose programs are affected by the legislation and working with them towards an appropriate consensus in advance of submitting regulations for review by the Office of Management and Budget.

In summary, I want to thank the members of the Subcommittee and Chairman for your leadership in holding this hearing today.  I will be glad to answer any questions you may have.

DEPARTMENT OF TRANSPORTATION
MARITIME ADMINISTRATION

STATEMENT OF

ACTING DEPUTY ADMINISTRATOR
JAMES CAPONlTl

ON

PIRACY AGAINST U.S.-FLAG VESSELS

BEFORE THE

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION
U.S. HOUSE OF REPRESENTATIVES

May 20th, 2009

     Good morning, Chairman Cummings, Ranking Member LoBiondo and Members of the Committee. I am pleased to have the opportunity to appear before you today

to discuss the serious threat stemming from the ongoing piracy problem in the

waters off of Somalia, and the lessons learned from recent attempts at piracy affecting U.S.-flag vessels. Throughout 2008 and continuing into 2009, the global

piracy situation has grown substantially worse- particularly in an ever expanding

area off the coasts of Somalia, where more than 20,000 vessels transit the region

each year. Although the impact of piracy has been very significant, the American

public has only recently been made more aware of the situation with the attacks

on two American flag vessels, the MAERSK ALABAMA and the LIBERTY SUN –

both of which were carrying food aid for Somalia.

      Acts of piracy threaten freedom of navigation and the flow of commerce. Off

the Horn of Africa, piracy disrupts the flow of critical humanitarian supplies.

Pirates frequently demand millions of dollars in ransom for the release of

hostages, ships and cargoes. Press reports indicate that in 2008, pirates

received an estimated $30 million dollars in ransom for the release of seajacked

vessels. In 2008, 42 vessels were seized by pirates operating off the Coast of

Somalia. Globally, 889 mariners were held hostage by pirates (815 in Somalia)

as part of ransom demands. The International Maritime Bureau (IMB) reported

that in 2008, globally, 11 mariners were murdered by pirates and another 21 are

missing and presumed dead. The IMB also reported that during the same

period, off the Horn of Africa, four mariners were killed and 14 are missing and

presumed dead.  In 2009, the number of attacks continues to rise however the success rate (except for April) has been reduced.  In total there have been more than 27 successful seajackings in 2009 with more than 476 seafarers captured.  (15 vessels are currently being held with 229 seafarers.)  One seafarer was killed by pirates last week. 

     The vessels most vulnerable to piracy attacks are those traveling slowly (with

limited speed capabilities) and with low freeboard - that is to say, there is not

much height between the water and the deck level. A primary reason for the pirates’ success is the ineffectiveness of Somalia’s government, enabling pirates to operate with virtual impunity. Further, there have been press reports opining that some local officials are on the pirates' payroll.

     The Gulf of Aden, which links the Mediterranean Sea and the Suez Canal, and the Red Sea with the Indian Ocean, is one of the busiest shipping lanes in the world.  An average of 50 commercial vessels transit the Gulf daily. Many of these vessels are potential targets. More than 3.3 million barrels of oil pass through

the Gulf of Aden every day. This represents 4% of the world's total daily

production and 12% of all the oil transported by water daily around the world by

sea. In addition, numerous other cargoes and container freight pass through the

Gulf daily.

     Approximately 80% of the vessels transiting the Gulf of Aden carry cargo

destined to and from Europe, East Africa, South Asia, and the Far East.

However, a significant portion of cargoes is also destined to and from the United

States. In addition, U.S. citizens serve as crew or are passengers on vessels

transiting the area.

     On average, at least one U.S. commercial vessel transits the area each day.

Many of these US-flag vessels carry Department of Defense cargo bound for

Operations Iraqi and Enduring Freedom. U.S.-flag vessels transiting the region

also carry humanitarian cargoes generated by the U.S. Agency for International

Development (USAID) or international organizations to the Horn of Africa,

including Djibouti and Somalia and other countries in East Africa or South Asia.

     As mentioned, seajackings off the Horn of Africa significantly increased in

2008 and 2009.  Although only one-third of one percent of all the vessels transiting the Gulf of Aden are seajacked, the cost and disruption to the flow of commerce overall is significant. There is also a serious risk of an environmental disaster should a vessel be damaged or sunk during a hostile attack. Press reports indicate that

several merchant mariners have been killed or are presumed dead and that hundreds, including American mariners, have been traumatized by being attacked and held hostage, and even by the uncertainties generated by the growing instability of the region.

     Ship owners and operators are also negatively affected by rising daily

operating costs due to increased insurance premiums and, in some cases, operational delays caused by longer transit times or diversions to avoid the area. In many cases, there are additional costs related to the higher wages which must be paid to crew transiting the higher risk area. Both the shipper and the consumer are ultimately affected by these higher operating costs and the delays in the supply chain.  This is particularly true where vessels are diverted around the Cape of Good

Hope in an effort to avoid the Gulf of Aden altogether, which also increases fuel

consumption and the carbon footprint of marine transportation. Higher shipping

costs likewise raise the costs of commodities for local populations.

     The United States has been a leader in promoting collaborative international

action to combat the current piracy crisis. It has been our Nation's long-standing

policy to support freedom of the seas. In July 2008, the United States took a

leadership role in the United Nations fight against piracy. This resulted in United

Nations (UN) Security Council Resolution 1816 which authorized countries

cooperating with the Transitional Federal Government (TFG) of Somalia, for

which advance notification has been provided to the Secretary-General, to enter

Somali territorial waters to repress piracy. This was followed by additional

Security Council Resolutions 1838 and 1846 in the fall of 2008. In December

2008, the United States drafted UN Security Council Resolution 1851 which

authorizes countries cooperating with the TFG of Somalia to enter Somali

territory to repress piracy. This resolution was adopted by the Security Council.

     UN Security Council Resolution 1851 also encouraged the establishment of

an international cooperation mechanism -- known now as the Contact Group on

Piracy off the Coast of Somalia (CGPCS).  The Contact Group for Piracy off the Coast of Somalia was created in New York City on January 14, 2009, and currently numbers 28 nations (Australia, Belgium, China, Denmark, Djibouti, Egypt, France, Germany, Greece, India, Italy, Japan, Kenya, Republic of Korea, The Netherlands, Norway, Oman, Portugal, Russia, Saudi Arabia, Somalia TFG, Sweden, Spain, Turkey, United Arab Emirates, United Kingdom, United States, and Yemen), and 6 international organizations (African Union, Arab League, European Union, North Atlantic Treaty Organization, United Nations Secretariat and International Maritime Organization) with seven additional countries (Canada, Cyprus, Liberia, Nigeria, Malaysia, Panama, Singapore) pending requests to participate.  The Department of State represents the United States on the CGPCS. The CGPCS acts as a common point of contact between and among states, regional and international organizations on all aspects of combating piracy and armed robbery at sea off Somalia's coast. The CGPCS

met in January at the United Nations in New York City and in Egypt in mid-

March. The CGPCS will meet again in late May.

     The CGPCS established four working groups to provide recommendations to

the CGPCS. Working Group #I is addressing activities related to military and

operational coordination and is chaired by the United Kingdom. Working Group

#2 is addressing judicial aspects of piracy and is chaired by Denmark. The

United States has the lead for Working Group #3, which focuses on shipping self awareness and interaction with industry. The Department of Transportation's

Maritime Administration (MARAD) and the Coast Guard have been co-leading

this Working Group. Working Group #4 is tasked with offering recommendations

to improve diplomatic and public information efforts and is chaired by Egypt.

     The UN Security Council resolutions called for greater cooperation between

governments and industry to reduce the incidence of piracy. In January 2009,

former-Secretary of State Rice stated that, "Once a hostage situation develops,

the stakes in military operations increase. Consequently, an important part of

counter-piracy efforts must be measured in enhancing self-defense capabilities of

commercial vessels, increasing the odds of success against pirates until

warships arrive." This sentiment still holds true today, and we saw evidence of

this in the seajacking of the MAERSK ALABAMA.

     Because of its specialized knowledge, such as operation of our mobility sealift

vessels, and established relationships with U.S. and international shipping,

maritime unions, the marine insurance community and global maritime industry

associations, MARAD has considerable experience in dealing with the diverse

interests of the global maritime industry and is actively involved in the fight

against piracy. MARAD is perhaps unique among government agencies with regard

to its interest in piracy issues and its ability to assist. MARAD operates a fleet of

Ready Reserve Force (RRF) vessels that have transited the Gulf of Aden

region in support of Operations Iraqi and Enduring Freedom (OIF and OEF). As OIF

winds down, RRF vessels may be called upon to play a significant role again in

support of the demobilization of forces, with a consequence of exposing the

vessels and crews to threats from pirate attacks.

      Further, many vessels supported by MARAD's Maritime Security Program

(MSP), participate in the Agency's Voluntary lntermodal Sealift Agreement

(VISA) and transit the Gulf of Aden on a routine basis. The MAERSK ALABAMA

is one of the 60 vessels enrolled in the MSP. MARAD also oversees government

cargoes transiting the region - particularly food aid and military cargoes that are

carried mainly aboard U.S.-flag commercial vessels transiting the Gulf. Finally,

as an interface between U.S. maritime labor and the federal government, we

have great interest in protecting the welfare of U.S. mariners who sail aboard

vessels in the region.

      MARAD provides operational advice to U.S.-flag owners and operators,

including counter-piracy measures and awareness on a regular basis through

MARAD Advisories, through a comprehensive and frequently updated website,

and through MARAD’s electronic "MARVIEW” system which is available to

registered users. We have also contributed to the Maritime Safety and Security

Information System (MSSIS) for the purposes of providing more efficient piracy

related data.

     MARAD also plays a key role in the training of merchant mariners through the

development of International Maritime Organization (IMO) maritime security

courses and workforce development. Working with the U.S. Coast Guard and

IMO, Vessel Security Officer, Company Security Officer, and Facility Security

Officer courses were developed by the United States Merchant Marine Academy.

MARAD continues to certify maritime security training providers who meet the

criteria established by the U.S. Coast Guard. To date, more than 50 training

providers have been certified across the country. Efforts are also being made to

include anti-piracy and security training in the academic programs at USMMA

and the state maritime academies and to augment this training at the maritime union schools.

     In late December, the Department of State asked MARAD to assist with the

CGPCS Industry Outreach Working Group. Since 2008, MARAD has met on

numerous occasions with industry to help shape best management practices to

counter piracy and to share industry concerns with U.S. government agencies.

In late December, the National Security Council published an action plan, the

National Strategy for "Countering Piracy off the Horn of Africa: Partnership &

Action Plan" (CPAP). MARAD and the Department of Transportation were

actively involved in developing this Plan, and MARAD posted the CPAP on its

website for the benefit of industry.

     MARAD strongly supported the Military Sealift Command's proposal to create

and implement "Anti-Piracy Assistance Teams" (APAT) for commercial vessels. These teams consist of personnel from the Naval Criminal Investigative Service, and

MARAD. On a voluntary basis, these teams board U.S.-flag vessels and offer

recommendations on how to improve a vessel's physical defenses against

piracy.  The teams also review security tactics, techniques and procedures and make appropriate recommendations. To date, a number of successful APAT vessel assessments and recommendations have been completed and more are currently scheduled. We expect this process to be embraced by the international community for similar implementation.

     MARAD's continuing outreach to the maritime industry on the piracy issue

has taken many forms. In addition to leading informal meetings and participating

in international forums, MARAD has hosted several collaborative meetings with

both the American and international maritime industry community and

appropriate federal agencies. For example, in October and November 2008,

MARAD and the Department of State sponsored meetings with representatives

from the maritime industry to specifically discuss piracy in the Gulf of Aden.

Participants included company security officers from major U.S. flag carriers,

including American President Lines (APL), Horizon Lines, Maersk, Intermarine,

lnteramerican Ocean Shipping, American Roll OnIRoll Off, Crowley, American

Overseas Marine, and Ocean Shipholdings. Flag states with U.S.-owned vessels

or with vessels serving strategic U.S. interests also participated, including

representatives from Denmark, Marshall Islands, Liberia and Panama. The U.S.

Navy's Maritime Liaison Office Bahrain and the United Kingdom's Maritime

Transport Office were also included. Topics specifically addressed at these

meetings were maneuvering and speed, illumination, communication, duress

terminology, armed force protection, and self-defense devices which may be

used to deter piracy.

     At the request of the maritime industry, MARAD facilitated extensive

discussions on piracy with the Department of State, Department of Defense,

Federal Bureau of Investigation (FBI), Transportation Security Administration

(TSA) and the United States Coast Guard (Coast Guard). In November 2008,

MARAD participated in a public hearing hosted by the Coast Guard which focused on piracy initiatives being considered by the International Maritime Organization's

Maritime Safety Committee (MSC). In December 2008, MARAD staff played an

instrumental role in several other international planning events related to piracy.

MARAD participated in the NATO Senior Civil Emergency Planning Committee

(SCEPC) meeting held in Brussels, Belgium, which included piracy as an agenda

item. MARAD chairs the NATO Planning Board on Ocean Shipping, which

reports to the SCEPC.

     On December 2, 2008, MARAD hosted a Piracy Round Table meeting to

discuss industry "self-help" and best practices to counter piracy. This meeting

brought U.S. government agencies together with the maritime industry to develop

a mutual understanding of the problem and to develop best practices

recommendations. Members of the industry included shipping associations,

registries, carriers, marine insurance companies and representatives from the

European Union. U.S. government representatives included personnel from the

Coast Guard; Department of State; Department of Defense, Office of Naval

Intelligence; USAID; the National Security Council; and the Homeland Security

Council. MARAD established an Anti-Piracy portal on the Agency's website,

which is continuously updated. MARAD Advisories are posted on this site as are

any recent developments and key contact information.

     MARAD hosted an international maritime industry Piracy Summit on

December 11, 2008, with representatives from more than 50 industry

associations, insurers, shipping companies, and labor to encourage them to

further develop best management practices to combat piracy and to implement

these strategies. Representatives from the Department of State; the Department

of Homeland Security; Coast Guard; U.S. Transportation Command, Office of

Naval Intelligence and Military Sealift Command participated in the Summit.

     In late December, MARAD joined the Department of State for discussions in

London between representatives of European Union navies and maritime trade

associations. The purpose of these discussions was to further develop and

implement best management practices and to improve communication between

maritime companies and military forces in the Gulf of Aden region. MARAD

continues to meet with industry to finalize best management practices and share

industry concerns with government agencies.

     In early 2009, MARAD intensified its efforts in the fight against piracy to

further improve coordination between industry and the various navies

participating in the Gulf of Aden, to provide voluntary assessments of security on

U.S. vessels, to further establish best management practices to prevent

piracy and to bring industry's perspectives and ideas to the interagency process.

Additional industry meetings, UN meetings, meetings hosted by the Baltic

International Maritime Council (BIMCO) and a counter-piracy meeting held in

Dubai and hosted by the Maritime Liaison Office in Bahrain, have all pursued

these objectives. Since maritime labor is uniquely vulnerable to pirate attacks,

with mariners killed or held hostage as part of ransom demands, MARAD has

included maritime labor in discussions and meetings, when feasible. The most

recent MARAD industry and interagency meeting was held on April 23rd.

     MARAD led the U.S. delegation of Working Group #3 at the meeting of the

Contact Group on Piracy off the Coast of Somalia in March of 2009 (which was chaired by the USCG), and presented the international industry developed (and MARAD facilitated) "Best Management Practices" (BMPs) to counter piracy. MARAD also supported the dissemination of counter piracy guidance and better coordination between military and civilian operators in the region. The agency likewise provides U.S. flag projected schedules in the waters off Somalia to the National Maritime

Intelligence Center (NMIC) and vessel tracking information on U.S. flag carriers

to appropriate military authorities.

     Given limited military resources available to fully protect commercial shipping

in the waters off Somalia, there is an increasing focus on the issue of shipping

companies hiring private armed security personnel to protect their vessels while

transiting the waters off Somalia. However, there are many complicated factors

which must be addressed before the industry, as a whole, can adopt this

recommendation. These include the need to develop appropriate standards for

armed security providers, compliance with port state restrictions on arms aboard

merchant vessels entering many ports in the world, consideration of potential

escalation of violence due to the presence of arms onboard commercial vessels,

issues of safety for the crew and vessel, rules on the use of force, design

constraints of vessels to carry additional personnel, union contract issues,

insurance and liability issues and many other related factors.  Clearly, the maritime industry needs government assistance in this area to set or guide standards and measures of performance and MARAD is actively engaged with other agencies in understanding and developing the needed guidance on the use of armed security.

       On May 11, 2009, the USCG issued an updated “Maritime Security Directive” (for Ships Operating in High Risk Areas) that requires the implementation of several security protocols; many of which are similar to the BMPs noted above.  This MARSEC was developed by the USCG in close consultation with the interagency, including, MARAD.  At the request of the USCG, MARAD will participate with the USCG in reviewing vessel security plans required by the MARSEC.

     Most recently, MARAD has engaged the marine insurance industry to

determine the effects of the piracy situation on insurance rates and the effects on insurance if vessels carry armed security personnel aboard. On May 14^th, MARAD hosted a meeting of insurance representatives, the USCG, Department of State, and Military Sealift Command.  The concerns of the insurance companies were made clear.  MARAD and the USCG indicated that we will work together along with other federal agencies to develop an adequate process that enables carriers to embark armed security on board their vessels in a proper manner.  They also shared their concerns with standards, rules, and vetting of security firms, liability implications to the owner, insurer and security firm, and escalation of hostile actions that will increase risks.

    Finally, MARAD has reached out to the maritime labor community to seek ways to address the seafarer community’s interest in the human element issues associated with piracy, including training and awareness, communication.  The communication aspect is particularly important in gaining information from crews that have been released after being hostages.  Such information can contribute valuable lessons learned to further enhance security.

     Combating international piracy is no small effort. Much work has already

taken place, but much remains to be done, before international piracy can be

eliminated. Due to its unique and positive relationship with U.S.-flag and

international vessel owners, MARAD has maintained a vital role in the

development of U.S. anti-piracy policy. Additionally, through its training role,

MARAD provides a valuable service to the commercial fleet. The Department of Transportation and the Maritime Administration stand ready to assist in any way possible to address piracy and any other issue that threatens the national and economic security of the United States and our allies.

     I want to thank you for your leadership in holding this hearing today. I will be

happy to answer any questions you might have.

Note:  The word “hijack” refers to the seizing of a vehicle on a roadway or highway.  The term “seajack” is a nautical term which refers to the capture of a vessel on the high seas.  (The term “skyjack” refers to the seizing of an aircraft in flight.)

DEPARTMENT OF TRANSPORTATION
MARITIME ADMINISTRATION

STATEMENT OF

ACTING DEPUTY ADMINISTRATOR
JAMES CAPONlTl

ON

PIRACY AGAINST U.S.-FLAG VESSELS

BEFORE THE

COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION
U.S. HOUSE OF REPRESENTATIVES

May 20th, 2009

     Good morning, Chairman Cummings, Ranking Member LoBiondo and Members of the Committee. I am pleased to have the opportunity to appear before you today

to discuss the serious threat stemming from the ongoing piracy problem in the

waters off of Somalia, and the lessons learned from recent attempts at piracy affecting U.S.-flag vessels. Throughout 2008 and continuing into 2009, the global

piracy situation has grown substantially worse- particularly in an ever expanding

area off the coasts of Somalia, where more than 20,000 vessels transit the region

each year. Although the impact of piracy has been very significant, the American

public has only recently been made more aware of the situation with the attacks

on two American flag vessels, the MAERSK ALABAMA and the LIBERTY SUN –

both of which were carrying food aid for Somalia.

      Acts of piracy threaten freedom of navigation and the flow of commerce. Off

the Horn of Africa, piracy disrupts the flow of critical humanitarian supplies.

Pirates frequently demand millions of dollars in ransom for the release of

hostages, ships and cargoes. Press reports indicate that in 2008, pirates

received an estimated $30 million dollars in ransom for the release of seajacked

vessels. In 2008, 42 vessels were seized by pirates operating off the Coast of

Somalia. Globally, 889 mariners were held hostage by pirates (815 in Somalia)

as part of ransom demands. The International Maritime Bureau (IMB) reported

that in 2008, globally, 11 mariners were murdered by pirates and another 21 are

missing and presumed dead. The IMB also reported that during the same

period, off the Horn of Africa, four mariners were killed and 14 are missing and

presumed dead.  In 2009, the number of attacks continues to rise however the success rate (except for April) has been reduced.  In total there have been more than 27 successful seajackings in 2009 with more than 476 seafarers captured.  (15 vessels are currently being held with 229 seafarers.)  One seafarer was killed by pirates last week. 

     The vessels most vulnerable to piracy attacks are those traveling slowly (with

limited speed capabilities) and with low freeboard - that is to say, there is not

much height between the water and the deck level. A primary reason for the pirates’ success is the ineffectiveness of Somalia’s government, enabling pirates to operate with virtual impunity. Further, there have been press reports opining that some local officials are on the pirates' payroll.

     The Gulf of Aden, which links the Mediterranean Sea and the Suez Canal, and the Red Sea with the Indian Ocean, is one of the busiest shipping lanes in the world.  An average of 50 commercial vessels transit the Gulf daily. Many of these vessels are potential targets. More than 3.3 million barrels of oil pass through

the Gulf of Aden every day. This represents 4% of the world's total daily

production and 12% of all the oil transported by water daily around the world by

sea. In addition, numerous other cargoes and container freight pass through the

Gulf daily.

     Approximately 80% of the vessels transiting the Gulf of Aden carry cargo

destined to and from Europe, East Africa, South Asia, and the Far East.

However, a significant portion of cargoes is also destined to and from the United

States. In addition, U.S. citizens serve as crew or are passengers on vessels

transiting the area.

     On average, at least one U.S. commercial vessel transits the area each day.

Many of these US-flag vessels carry Department of Defense cargo bound for

Operations Iraqi and Enduring Freedom. U.S.-flag vessels transiting the region

also carry humanitarian cargoes generated by the U.S. Agency for International

Development (USAID) or international organizations to the Horn of Africa,

including Djibouti and Somalia and other countries in East Africa or South Asia.

     As mentioned, seajackings off the Horn of Africa significantly increased in

2008 and 2009.  Although only one-third of one percent of all the vessels transiting the Gulf of Aden are seajacked, the cost and disruption to the flow of commerce overall is significant. There is also a serious risk of an environmental disaster should a vessel be damaged or sunk during a hostile attack. Press reports indicate that

several merchant mariners have been killed or are presumed dead and that hundreds, including American mariners, have been traumatized by being attacked and held hostage, and even by the uncertainties generated by the growing instability of the region.

     Ship owners and operators are also negatively affected by rising daily

operating costs due to increased insurance premiums and, in some cases, operational delays caused by longer transit times or diversions to avoid the area. In many cases, there are additional costs related to the higher wages which must be paid to crew transiting the higher risk area. Both the shipper and the consumer are ultimately affected by these higher operating costs and the delays in the supply chain.  This is particularly true where vessels are diverted around the Cape of Good

Hope in an effort to avoid the Gulf of Aden altogether, which also increases fuel

consumption and the carbon footprint of marine transportation. Higher shipping

costs likewise raise the costs of commodities for local populations.

     The United States has been a leader in promoting collaborative international

action to combat the current piracy crisis. It has been our Nation's long-standing

policy to support freedom of the seas. In July 2008, the United States took a

leadership role in the United Nations fight against piracy. This resulted in United

Nations (UN) Security Council Resolution 1816 which authorized countries

cooperating with the Transitional Federal Government (TFG) of Somalia, for

which advance notification has been provided to the Secretary-General, to enter

Somali territorial waters to repress piracy. This was followed by additional

Security Council Resolutions 1838 and 1846 in the fall of 2008. In December

2008, the United States drafted UN Security Council Resolution 1851 which

authorizes countries cooperating with the TFG of Somalia to enter Somali

territory to repress piracy. This resolution was adopted by the Security Council.

     UN Security Council Resolution 1851 also encouraged the establishment of

an international cooperation mechanism -- known now as the Contact Group on

Piracy off the Coast of Somalia (CGPCS).  The Contact Group for Piracy off the Coast of Somalia was created in New York City on January 14, 2009, and currently numbers 28 nations (Australia, Belgium, China, Denmark, Djibouti, Egypt, France, Germany, Greece, India, Italy, Japan, Kenya, Republic of Korea, The Netherlands, Norway, Oman, Portugal, Russia, Saudi Arabia, Somalia TFG, Sweden, Spain, Turkey, United Arab Emirates, United Kingdom, United States, and Yemen), and 6 international organizations (African Union, Arab League, European Union, North Atlantic Treaty Organization, United Nations Secretariat and International Maritime Organization) with seven additional countries (Canada, Cyprus, Liberia, Nigeria, Malaysia, Panama, Singapore) pending requests to participate.  The Department of State represents the United States on the CGPCS. The CGPCS acts as a common point of contact between and among states, regional and international organizations on all aspects of combating piracy and armed robbery at sea off Somalia's coast. The CGPCS

met in January at the United Nations in New York City and in Egypt in mid-

March. The CGPCS will meet again in late May.

     The CGPCS established four working groups to provide recommendations to

the CGPCS. Working Group #I is addressing activities related to military and

operational coordination and is chaired by the United Kingdom. Working Group

#2 is addressing judicial aspects of piracy and is chaired by Denmark. The

United States has the lead for Working Group #3, which focuses on shipping self awareness and interaction with industry. The Department of Transportation's

Maritime Administration (MARAD) and the Coast Guard have been co-leading

this Working Group. Working Group #4 is tasked with offering recommendations

to improve diplomatic and public information efforts and is chaired by Egypt.

     The UN Security Council resolutions called for greater cooperation between

governments and industry to reduce the incidence of piracy. In January 2009,

former-Secretary of State Rice stated that, "Once a hostage situation develops,

the stakes in military operations increase. Consequently, an important part of

counter-piracy efforts must be measured in enhancing self-defense capabilities of

commercial vessels, increasing the odds of success against pirates until

warships arrive." This sentiment still holds true today, and we saw evidence of

this in the seajacking of the MAERSK ALABAMA.

     Because of its specialized knowledge, such as operation of our mobility sealift

vessels, and established relationships with U.S. and international shipping,

maritime unions, the marine insurance community and global maritime industry

associations, MARAD has considerable experience in dealing with the diverse

interests of the global maritime industry and is actively involved in the fight

against piracy. MARAD is perhaps unique among government agencies with regard

to its interest in piracy issues and its ability to assist. MARAD operates a fleet of

Ready Reserve Force (RRF) vessels that have transited the Gulf of Aden

region in support of Operations Iraqi and Enduring Freedom (OIF and OEF). As OIF

winds down, RRF vessels may be called upon to play a significant role again in

support of the demobilization of forces, with a consequence of exposing the

vessels and crews to threats from pirate attacks.

      Further, many vessels supported by MARAD's Maritime Security Program

(MSP), participate in the Agency's Voluntary lntermodal Sealift Agreement

(VISA) and transit the Gulf of Aden on a routine basis. The MAERSK ALABAMA

is one of the 60 vessels enrolled in the MSP. MARAD also oversees government

cargoes transiting the region - particularly food aid and military cargoes that are

carried mainly aboard U.S.-flag commercial vessels transiting the Gulf. Finally,

as an interface between U.S. maritime labor and the federal government, we

have great interest in protecting the welfare of U.S. mariners who sail aboard

vessels in the region.

      MARAD provides operational advice to U.S.-flag owners and operators,

including counter-piracy measures and awareness on a regular basis through

MARAD Advisories, through a comprehensive and frequently updated website,

and through MARAD’s electronic "MARVIEW” system which is available to

registered users. We have also contributed to the Maritime Safety and Security

Information System (MSSIS) for the purposes of providing more efficient piracy

related data.

     MARAD also plays a key role in the training of merchant mariners through the

development of International Maritime Organization (IMO) maritime security

courses and workforce development. Working with the U.S. Coast Guard and

IMO, Vessel Security Officer, Company Security Officer, and Facility Security

Officer courses were developed by the United States Merchant Marine Academy.

MARAD continues to certify maritime security training providers who meet the

criteria established by the U.S. Coast Guard. To date, more than 50 training

providers have been certified across the country. Efforts are also being made to

include anti-piracy and security training in the academic programs at USMMA

and the state maritime academies and to augment this training at the maritime union schools.

     In late December, the Department of State asked MARAD to assist with the

CGPCS Industry Outreach Working Group. Since 2008, MARAD has met on

numerous occasions with industry to help shape best management practices to

counter piracy and to share industry concerns with U.S. government agencies.

In late December, the National Security Council published an action plan, the

National Strategy for "Countering Piracy off the Horn of Africa: Partnership &

Action Plan" (CPAP). MARAD and the Department of Transportation were

actively involved in developing this Plan, and MARAD posted the CPAP on its

website for the benefit of industry.

     MARAD strongly supported the Military Sealift Command's proposal to create

and implement "Anti-Piracy Assistance Teams" (APAT) for commercial vessels. These teams consist of personnel from the Naval Criminal Investigative Service, and

MARAD. On a voluntary basis, these teams board U.S.-flag vessels and offer

recommendations on how to improve a vessel's physical defenses against

piracy.  The teams also review security tactics, techniques and procedures and make appropriate recommendations. To date, a number of successful APAT vessel assessments and recommendations have been completed and more are currently scheduled. We expect this process to be embraced by the international community for similar implementation.

     MARAD's continuing outreach to the maritime industry on the piracy issue

has taken many forms. In addition to leading informal meetings and participating

in international forums, MARAD has hosted several collaborative meetings with

both the American and international maritime industry community and

appropriate federal agencies. For example, in October and November 2008,

MARAD and the Department of State sponsored meetings with representatives

from the maritime industry to specifically discuss piracy in the Gulf of Aden.

Participants included company security officers from major U.S. flag carriers,

including American President Lines (APL), Horizon Lines, Maersk, Intermarine,

lnteramerican Ocean Shipping, American Roll OnIRoll Off, Crowley, American

Overseas Marine, and Ocean Shipholdings. Flag states with U.S.-owned vessels

or with vessels serving strategic U.S. interests also participated, including

representatives from Denmark, Marshall Islands, Liberia and Panama. The U.S.

Navy's Maritime Liaison Office Bahrain and the United Kingdom's Maritime

Transport Office were also included. Topics specifically addressed at these

meetings were maneuvering and speed, illumination, communication, duress

terminology, armed force protection, and self-defense devices which may be

used to deter piracy.

     At the request of the maritime industry, MARAD facilitated extensive

discussions on piracy with the Department of State, Department of Defense,

Federal Bureau of Investigation (FBI), Transportation Security Administration

(TSA) and the United States Coast Guard (Coast Guard). In November 2008,

MARAD participated in a public hearing hosted by the Coast Guard which focused on piracy initiatives being considered by the International Maritime Organization's

Maritime Safety Committee (MSC). In December 2008, MARAD staff played an

instrumental role in several other international planning events related to piracy.

MARAD participated in the NATO Senior Civil Emergency Planning Committee

(SCEPC) meeting held in Brussels, Belgium, which included piracy as an agenda

item. MARAD chairs the NATO Planning Board on Ocean Shipping, which

reports to the SCEPC.

     On December 2, 2008, MARAD hosted a Piracy Round Table meeting to

discuss industry "self-help" and best practices to counter piracy. This meeting

brought U.S. government agencies together with the maritime industry to develop

a mutual understanding of the problem and to develop best practices

recommendations. Members of the industry included shipping associations,

registries, carriers, marine insurance companies and representatives from the

European Union. U.S. government representatives included personnel from the

Coast Guard; Department of State; Department of Defense, Office of Naval

Intelligence; USAID; the National Security Council; and the Homeland Security

Council. MARAD established an Anti-Piracy portal on the Agency's website,

which is continuously updated. MARAD Advisories are posted on this site as are

any recent developments and key contact information.

     MARAD hosted an international maritime industry Piracy Summit on

December 11, 2008, with representatives from more than 50 industry

associations, insurers, shipping companies, and labor to encourage them to

further develop best management practices to combat piracy and to implement

these strategies. Representatives from the Department of State; the Department

of Homeland Security; Coast Guard; U.S. Transportation Command, Office of

Naval Intelligence and Military Sealift Command participated in the Summit.

     In late December, MARAD joined the Department of State for discussions in

London between representatives of European Union navies and maritime trade

associations. The purpose of these discussions was to further develop and

implement best management practices and to improve communication between

maritime companies and military forces in the Gulf of Aden region. MARAD

continues to meet with industry to finalize best management practices and share

industry concerns with government agencies.

     In early 2009, MARAD intensified its efforts in the fight against piracy to

further improve coordination between industry and the various navies

participating in the Gulf of Aden, to provide voluntary assessments of security on

U.S. vessels, to further establish best management practices to prevent

piracy and to bring industry's perspectives and ideas to the interagency process.

Additional industry meetings, UN meetings, meetings hosted by the Baltic

International Maritime Council (BIMCO) and a counter-piracy meeting held in

Dubai and hosted by the Maritime Liaison Office in Bahrain, have all pursued

these objectives. Since maritime labor is uniquely vulnerable to pirate attacks,

with mariners killed or held hostage as part of ransom demands, MARAD has

included maritime labor in discussions and meetings, when feasible. The most

recent MARAD industry and interagency meeting was held on April 23rd.

     MARAD led the U.S. delegation of Working Group #3 at the meeting of the

Contact Group on Piracy off the Coast of Somalia in March of 2009 (which was chaired by the USCG), and presented the international industry developed (and MARAD facilitated) "Best Management Practices" (BMPs) to counter piracy. MARAD also supported the dissemination of counter piracy guidance and better coordination between military and civilian operators in the region. The agency likewise provides U.S. flag projected schedules in the waters off Somalia to the National Maritime

Intelligence Center (NMIC) and vessel tracking information on U.S. flag carriers

to appropriate military authorities.

     Given limited military resources available to fully protect commercial shipping

in the waters off Somalia, there is an increasing focus on the issue of shipping

companies hiring private armed security personnel to protect their vessels while

transiting the waters off Somalia. However, there are many complicated factors

which must be addressed before the industry, as a whole, can adopt this

recommendation. These include the need to develop appropriate standards for

armed security providers, compliance with port state restrictions on arms aboard

merchant vessels entering many ports in the world, consideration of potential

escalation of violence due to the presence of arms onboard commercial vessels,

issues of safety for the crew and vessel, rules on the use of force, design

constraints of vessels to carry additional personnel, union contract issues,

insurance and liability issues and many other related factors.  Clearly, the maritime industry needs government assistance in this area to set or guide standards and measures of performance and MARAD is actively engaged with other agencies in understanding and developing the needed guidance on the use of armed security.

       On May 11, 2009, the USCG issued an updated “Maritime Security Directive” (for Ships Operating in High Risk Areas) that requires the implementation of several security protocols; many of which are similar to the BMPs noted above.  This MARSEC was developed by the USCG in close consultation with the interagency, including, MARAD.  At the request of the USCG, MARAD will participate with the USCG in reviewing vessel security plans required by the MARSEC.

     Most recently, MARAD has engaged the marine insurance industry to

determine the effects of the piracy situation on insurance rates and the effects on insurance if vessels carry armed security personnel aboard. On May 14^th, MARAD hosted a meeting of insurance representatives, the USCG, Department of State, and Military Sealift Command.  The concerns of the insurance companies were made clear.  MARAD and the USCG indicated that we will work together along with other federal agencies to develop an adequate process that enables carriers to embark armed security on board their vessels in a proper manner.  They also shared their concerns with standards, rules, and vetting of security firms, liability implications to the owner, insurer and security firm, and escalation of hostile actions that will increase risks.

    Finally, MARAD has reached out to the maritime labor community to seek ways to address the seafarer community’s interest in the human element issues associated with piracy, including training and awareness, communication.  The communication aspect is particularly important in gaining information from crews that have been released after being hostages.  Such information can contribute valuable lessons learned to further enhance security.

     Combating international piracy is no small effort. Much work has already

taken place, but much remains to be done, before international piracy can be

eliminated. Due to its unique and positive relationship with U.S.-flag and

international vessel owners, MARAD has maintained a vital role in the

development of U.S. anti-piracy policy. Additionally, through its training role,

MARAD provides a valuable service to the commercial fleet. The Department of Transportation and the Maritime Administration stand ready to assist in any way possible to address piracy and any other issue that threatens the national and economic security of the United States and our allies.

     I want to thank you for your leadership in holding this hearing today. I will be

happy to answer any questions you might have.

Note:  The word “hijack” refers to the seizing of a vehicle on a roadway or highway.  The term “seajack” is a nautical term which refers to the capture of a vessel on the high seas.  (The term “skyjack” refers to the seizing of an aircraft in flight.)

DEPARTMENT OF TRANSPORTATION
MARITIME ADMINISTRATION

STATEMENT OF

ACTING DEPUTY ADMINISTRATOR
JAMES CAPONlTl

BEFORE THE

SENATE ARMED SERVICES COMMITTEE

May 5, 2009

     Good morning, Chairman Levin, Ranking Member McCain and Members of

the Committee. I am pleased to have the opportunity to appear before you today

to discuss the serious threat stemming from the ongoing piracy problem in the

waters off of Somalia. Throughout 2008 and continuing into 2009, the global

piracy situation has grown substantially worse- particularly in an ever expanding

area off the coasts of Somalia, where more than 20,000 vessels transit the region

each year. Although the impact of piracy has been very significant, the American

public has only recently been made more aware of the situation with the attacks

on two American flag vessels, the MAERSK ALABAMA and the LIBERTY SUN –

both of which were carrying food aid for Somalia.

      Acts of piracy threaten freedom of navigation and the flow of commerce. Off

the Horn of Africa, piracy disrupts the flow of critical humanitarian supplies.

Pirates frequently demand millions of dollars in ransom for the release of

hostages, ships and cargoes. Press reports indicate that in 2008, pirates

received an estimated $30 million dollars in ransom for the release of seajacked

vessels. In 2008, 42 vessels were seized by pirates operating off the Coast of

Somalia. Globally, 889 mariners were held hostage by pirates (81 5 in Somalia)

as part of ransom demands. The International Maritime Bureau (IMB) reported

that in 2008, globally, 11 mariners were murdered by pirates and another 21 are

missing and presumed dead. The IMB also reported that during the same

period, off the Horn of Africa, four mariners were killed and 14 are missing and

presumed dead.

     The vessels most vulnerable to piracy attacks are those traveling slowly (with

limited speed capabilities) and with low freeboard -that is to say, there is not

much height between the water and the deck level. At any given time during the

past nine months, more than a dozen vessels and their crews have been held

hostage off the Somali coast. Currently, 18 commercial ships are being held for

ransom by pirates in Somalia, along with more than 300 crewmembers. One

reason for the success of seajackings and ransom taking is that the government

in Somalia is ineffective and this has enabled pirates to operate with virtual

impunity. Further, there have been press reports opining that some local officials

are on the pirates' payroll.

     The Gulf of Aden, which links the Mediterranean Sea and the Suez Canal

with the Indian Ocean, is one of the busiest shipping choke points in the world.

An average of 50 commercial vessels transit the Gulf daily. Many of these

vessels are potential targets. More than 3.3 million barrels of oil pass through

the Gulf of Aden every day. This represents 4% of the world's total daily

production and 12% of all the oil transported by water daily around the world by

sea. In addition, numerous other cargoes and container freight pass through the

Gulf daily.

     Approximately 80% of the vessels transiting the Gulf of Aden carry cargo

destined to and from Europe, East Africa, South Asia, and the Far East.

However, a significant portion of cargoes is also destined to and from the United

States. In addition, U.S. citizens serve as crew or are passengers on vessels

transiting the area.

     On average, at least one U.S. commercial vessel transits the area each day.

Many of these US-flag vessels carry Department of Defense cargo bound for

Operations Iraqi and Enduring Freedom. U.S.-flag vessels transiting the region

also carry humanitarian cargoes generated by the U.S. Agency for International

Development,(USAID) or international organizations to the Horn of Africa,

including Djibouti, Somalia and other countries in East Africa or South Asia.

     As mentioned, seajackings off the Horn of Africa significantly increased in

2008 and 2009, with more than 150 attacks and 55 successful seajackings.

Although only one-third of one percent of all the vessels transiting the Gulf of

Aden are seajacked, the cost and disruption to the flow of commerce overall is

significant. There is also a serious risk of an environmental disaster should a

vessel be damaged or sunk during a hostile attack. Press reports indicate that

merchant mariners have been killed or are presumed dead and that hundreds,

including American mariners, have been traumatized by being attacked and held

hostage, and even by the uncertainties generated by the growing instability of the

region.

     Ship owners and operators are also negatively impacted by rising daily

operating costs due to increased insurance premiums and operational delays

caused by longer transit times or diversions to avoid the area. In many cases,

there are additional costs related to the higher wages which must be paid to crew

transiting the higher risk area. Both the shipper and the consumer are ultimately

impacted due to these higher operating costs and the delays in the supply chain.

This is particularly true where vessels are diverted around the Cape of Good

Hope in an effort to avoid the Gulf of Aden altogether, which also increases fuel

consumption and the carbon footprint of marine transportation. Higher shipping

costs also raise the costs of commodities for local populations.

     The United States has been a leader in promoting collaborative international

action to combat the current piracy crisis. It has been our Nation's long-standing

policy to support freedom of the seas. In July 2008, the United States took a

leadership role in the United Nations fight against piracy. This resulted in United

Nations (UN) Security Council Resolution 1816 which authorized countries

cooperating with the Transitional Federal Government (TFG) of Somalia, for

which advance notification has been provided to the Secretary-General, to enter

Somali territorial waters to repress piracy. This was followed by additional

Security Council Resolutions 1838 and 1846 in the fall of 2008. In December

2008, the United States drafted UN Security Council Resolution 1851 which

authorizes countries cooperating with the TFG of Somalia to enter Somali

territory to repress piracy. This resolution was adopted by the Security Council.

     UN Security Council Resolution 1851 also encouraged the establishment of an international cooperation mechanism -- known now as the Contact Group on Piracy off the Coast of Somalia (CGPCS).  The Contact Group for Piracy off the Coast of Somalia was created in New York City on January 14, 2009, and currently numbers 28 nations (Australia, Belgium, China, Denmark, Djibouti, Egypt, France, Germany, Greece, India, Italy, Japan, Kenya, Republic of Korea, The Netherlands, Norway, Oman, Portugal, Russia, Saudi Arabia, Somalia TFG, Sweden, Spain, Turkey, United Arab Emirates, United Kingdom, United States, Yemen), and 6 international organizations (African Union, Arab League, European Union, North Atlantic Treaty Organization, United Nations Secretariat and International Maritime Organization) with 7 additional countries (Canada, Cyprus, Liberia, Nigeria, Malaysia, Panama, Singapore) pending requests to participate.  The Department of State represents the United States on the CGPCS. The CGPCS acts as a common point of contact between and among states, regional and international organizations on all aspects of combating piracy and armed robbery at sea off Somalia's coast. The CGPCS met in January at the United Nations in New York City and in Egypt in mid- March. The CGPCS will meet again in late May.

     The CGPCS established four working groups to provide recommendations to

the CGPCS. Working Group #I is addressing activities related to military and

operational coordination and is chaired by the United Kingdom. Working Group

#2 is addressing judicial aspects of piracy and is chaired by Denmark. The

United States has the lead for Working Group #3, which focuses on shipping self

awareness and interaction with industry. The Department of Transportation's

Maritime Administration (MARAD) and the Coast Guard have been co-leading

this Working Group. Working Group #4 is tasked with offering recommendations

to improve diplomatic and public information efforts and is chaired by Egypt.

     The UN Security Council resolutions called for greater cooperation between

governments and industry to reduce the incidence of piracy. In January 2009,

former-Secretary of State Rice stated that, "Once a hostage situation develops,

the stakes in military operations increase. Consequently, an important part of

counter-piracy efforts must be measured in enhancing self-defense capabilities of

commercial vessels, increasing the odds of success against pirates until

warships arrive." This sentiment still holds true today, and we saw evidence of

this in the seajacking of the MAERSK ALABAMA.

     Because of its specialized knowledge, such as operation of our mobility sealift

vessels, and established relationships with U.S. and international shipping,

maritime unions, the marine insurance community and global maritime industry

associations, MARAD has considerable experience in dealing with the diverse

interests of the global maritime industry and is actively involved in the fight

against piracy. We are perhaps unique among government agencies with regard

to its interest in piracy issues and its ability to assist. MARAD operates a fleet of

Ready Reserve Force (RRF) vessels which have transited the Gulf of Aden

region in support of Operations Iraqi and Enduring Freedom (OIFIOEF). As OIF

winds down, RRF vessels may be called upon to play a significant role again in

support of the demobilization of forces, with a consequence of exposing the

vessels and crews to threats from pirate attacks.

      Further, many vessels supported by MARAD's Maritime Security Program

(MSP), participate in the Agency's Voluntary lntermodal Sealift Agreement

(VISA) and transit the Gulf of Aden on a routine basis. The MAERSK ALABAMA

is one of the 60 vessels enrolled in the MSP. MARAD also oversees government

cargoes transiting the region - particularly food aid and military cargoes that are

carried mainly aboard U.S.-flag commercial vessels transiting the Gulf. Finally,

as an interface between U.S. maritime labor and the federal government, we

have great interest in protecting the welfare of U.S. mariners who sail aboard

vessels in the region.

      MARAD provides operational advice to U.S.-flag owners and operators,

including counter-piracy measures and awareness, on a regular basis through

MARAD Advisories, through a comprehensive and frequently updated website,

and through MARAD1s electronic "MARVIEW system which is available to

registered users. We have also contributed to the Maritime Safety and Security

Information System (MSSIS) for the purposes of providing more efficient piracy

related data.

     MARAD also plays a key role in the training of merchant mariners through the

development of International Maritime Organization (IMO) maritime security

courses and workforce development. Working with the U.S. Coast Guard and

IMO, Vessel Security Officer, Company Security Officer, and Facility Security

Officer courses were developed by the United States Merchant Marine Academy.

MARAD continues to certify maritime security training providers who meet the

criteria established by the U.S. Coast Guard. To date, more than 50 training

providers have been certified across the country. Efforts are also being made to

include anti-piracy and security training in the academic programs at USMMA

and the state maritime academies.

     In late December, the Department of State asked MARAD to assist with the

CGPCS Industry Outreach Working Group. Since 2008, MARAD has met on

numerous occasions with industry to help shape best management practices to

counter piracy and to share industry concerns with U.S. government agencies.

In late December, the National Security Council published an action plan, the

National Strategy for "Countering Piracy off the Horn of Africa: Partnership &

Action Plan" (CPAP). MARAD and the Department of Transportation were

actively involved in developing this Plan, and MARAD posted the CPAP on its

website for the benefit of industry.

     MARAD strongly supported the Military Sealift Command's proposal to create

and implement "Anti-Piracy Assessment Teams" for commercial vessels. These

teams consist of personnel from the Naval Criminal Investigative Service, and

MARAD. On a voluntary basis, these teams board U.S.-flag vessels and offer

recommendations on how to improve a vessel's physical defenses against

piracy, and review security tactics, techniques and procedures. To date, a

number of successful APAT vessel assessments and recommendations have

been completed. We expect this process to be embraced by the international

community for similar implementation.

     MARAD's continuing outreach to the maritime industry on the piracy issue

has taken many forms. In addition to leading informal meetings and participating

in international forums, MARAD has hosted several collaborative meetings with

both the American and international maritime industry community and

appropriate federal agencies. For example, in October and November 2008,

MARAD and the Department of State sponsored meetings with representatives

from the maritime industry to specifically discuss piracy in the Gulf of Aden.

Participants included company security officers from major U.S. flag carriers,

including American President Lines (APL), Horizon Lines, Maersk, Intermarine,

lnteramerican Ocean Shipping, American Roll OnIRoll Off, Crowley, American

Overseas Marine, and Ocean Shipholdings. Flag states with U.S.-owned vessels

or with vessels serving strategic U.S. interests also participated, including

representatives from Denmark, Marshall Islands, Liberia and Panama. The U.S.

Navy's Maritime Liaison Office Bahrain and the United Kingdom's Maritime

Transport Office were also included. Topics specifically addressed at these

meetings were maneuvering and speed, illumination, communication, duress

terminology, armed force protection, and self-defense devices which may be

used to deter piracy.

     At the request of the maritime industry, MARAD facilitated extensive

discussions on piracy with the Department of State, Department of Defense,

Federal Bureau of Investigation (FBI), Transportation Security Administration

(TSA) and the United States Coast Guard (Coast Guard). In November 2008,

MARAD participated in a public hearing hosted by the Coast Guard, focused on

piracy initiatives being considered by the International Maritime Organization's

Maritime Safety Committee (MSC). In December 2008, MARAD staff played an

instrumental role in several other international planning events related to piracy.

MARAD participated in the NATO Senior Civil Emergency Planning Committee

(SCEPC) meeting held in Brussels, Belgium, which included piracy as an agenda

item. MARAD chairs the NATO Planning Board on Ocean Shipping, which

reports to the SCEPC.

     On December 2, 2008, MARAD hosted a Piracy Round Table meeting to

discuss industry "self-help" and best practices to counter piracy. This meeting

brought U.S. government agencies together with the maritime industry to develop

a mutual understanding of the problem and to develop best practices

recommendations. Members of the industry included shipping associations,

registries, carriers, marine insurance companies and representatives from the

European Union. U.S. government representatives included personnel from the

Coast Guard; Department of State; Department of Defense, Office of Naval

Intelligence; USAID; the National Security Council; and the Homeland Security

Council. MARAD established an Anti-Piracy portal on the Agency's website,

which is continuously updated. MARAD Advisories are posted on this site as are

any recent developments and key contact information.

     MARAD hosted an international maritime industry Piracy Summit on

December 11, 2008, with representatives from more than 50 industry

associations, insurers, shipping companies, and labor to encourage them to

further develop best management practices to combat piracy and to implement

these strategies. Representatives from the Department of State; the Department

of Homeland Security; Coast Guard; U.S. Transportation Command, Office of

Naval Intelligence and Military Sealift Command participated in the Summit.

     In late December, MARAD joined the Department of State for discussions in

London between representatives of European Union navies and maritime trade

associations. The purpose of these discussions was to further develop and

implement best management practices and to improve communication between

maritime companies and military forces in the Gulf of Aden region. MARAD

continues to meet with industry to finalize best management practices and share

industry concerns with government agencies.

     In early 2009, MARAD intensified its efforts in the fight against piracy to

further improve coordination between industry and the various navies

participating in the Gulf of Aden, to provide voluntary assessments of security on

U.S. vessels, and to further establish best management practices to prevent

piracy and to bring industry's perspectives and ideas to the interagency process.

Additional industry meetings, UN meetings, meetings hosted by the Baltic

International Maritime Council (BIMCO) and a counter-piracy meeting held in

Dubai and hosted by the Maritime Liaison Office in Bahrain, have all pursued

these objectives. Since maritime labor is uniquely vulnerable to pirate attacks,

with mariners killed or held hostage as part of ransom demands, MARAD has

included maritime labor in discussions and meetings, when feasible. The most

recent MARAD industry and interagency meeting was held on April 23rd.

     MARAD led the U.S. delegation of Working Group #3 at the meeting of the

Contact Group on Piracy off the Coast of Somalia in March of 2009, and

presented the international industry developed (and MARAD facilitated) "Best

Management Practices" (BMPs) to counter piracy. MARAD also supported the

dissemination of counter piracy guidance and better coordination between

military and civilian operators in the region. The agency likewise provides U.S.

flag projected schedules in the waters off Somalia to the National Maritime

Intelligence Center (NMIC) and vessel tracking information on U.S. flag carriers

to appropriate military authorities.

     Given limited military resources available to fully protect commercial shipping

in the waters off Somalia, there is an increasing focus on the issue of shipping

companies hiring private armed security personnel to protect their vessels while

transiting the waters off Somalia. However, there are many complicated factors

which must be addressed before the industry, as a whole, can adopt this

recommendation. These include the need to develop appropriate standards for

armed security providers, compliance with port state restrictions on arms aboard

merchant vessels entering many ports in the world, and consideration of potential

escalation of violence due to the presence of arms onboard commercial vessels,

issues of safety for the crew and vessel, rules on the use of force, design

constraints of vessels to carry additional personnel, union contract issues,

insurance and liability issues and many other related factors.

     Most recently, MARAD has engaged the marine insurance industry to

determine the effects of the piracy situation on insurance rates and to determine

the effects on insurance if vessels carry armed security personnel aboard. We

will continue to work with industry to determine whether, and to what extent,

armed security might be used aboard commercial vessels in certain

circumstances.

     Combating international piracy is no small effort. Much work has already

taken place, but much remains to be done, before international piracy can be

eliminated. Due to its unique and positive relationship with U.S.-flag and

international vessel owners, MARAD has maintained a vital role in the

development of U.S. anti-piracy policy. Additionally, through its training role,

MARAD provides a valuable service to the commercial fleet. The

Department of Transportation and the Maritime Administration stand ready to

assist in any way possible to address piracy and any other issue that threatens

the national and economic security of the United States and our allies.

     I want to thank you for your leadership in holding this hearing today. I will be

happy to answer any questions you might have.

DEPARTMENT OF TRANSPORTATION
MARITIME ADMINISTRATION

STATEMENT OF

ACTING DEPUTY ADMINISTRATOR
JAMES CAPONITI

BEFORE THE

SUB-COMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION
OF THE
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
UNITED STATES HOUSE OF REPRESENTATIVES

ON

INTERNATIONAL PIRACY

FEBRUARY 4, 2009

Good afternoon, Mr. Chairman and Members of the Sub-committee.  I am pleased to have the opportunity to appear before you today to discuss the serious threat stemming from maritime piracy. Throughout 2008, the global piracy situation grew substantially worse– particularly in the Gulf of Aden off the Coast of Somalia. The impact of piracy has been very significant.  Acts of piracy threaten freedom of navigation and the flow of commerce.  Off the Horn of Africa, piracy disrupts the flow of critical humanitarian supplies.  Pirates frequently demand millions of dollars in ransom for the release of hostages, ships and cargoes.  The Washington Post recently reported that pirates made an estimated $30 million hijacking ships for ransom last year.  In 2008, 42 vessels were seized by pirates operating off the Coast of Somalia.  Globally, 889 mariners were held hostage (815 in Somalia) as part of ransom demands.  The International Maritime Bureau (IMB) reports that in 2008, globally, 11 mariners were murdered by pirates and another 21 are missing and presumed dead.  Particularly, the IMB also reports that, off the Horn of Africa, four mariners were killed and 14 are missing and presumed dead.

The vessels most vulnerable to piracy are those traveling slowly and with low freeboard – that is to say, there is not much height between the water and the deck level.  At any given time during the past six months, close to a dozen or more vessels and their crews have been held hostage off the Somali coast.  Currently, ten commercial ships are being held for ransom by pirates in Somalia, along with approximately two hundred crewmembers.  Just last Thursday, the LONGCHAMP, a German tanker, was captured in the Gulf of Aden – the third ship to be taken this month in what is one of the world’s busiest shipping lanes.  The ship is registered in the Bahamas.  Its crew includes 12 Filipinos and one Indonesian.  One reason for the success of seajackings and ransom taking is that the government in Somalia is ineffective and this has enabled pirates to operate with relative impunity.  Further, there have been press reports opining that some local officials are on the pirates’ payroll. 

The Gulf of Aden, which links the Mediterranean Sea and the Suez Canal with the Indian Ocean, is one of the busiest shipping choke points in the world. An average of 50 commercial vessels transit the Gulf daily.  Many of these vessels are potential targets.  More than 3.3 million barrels of oil pass through the Gulf of Aden every day. This represents 4% of the world’s total daily production and 12% of all the oil transported by water daily around the world by sea.  In addition, numerous other cargoes and container freight pass through the Gulf daily. 

Approximately 80% of the vessels transiting the Gulf of Aden carry cargo destined to and from Europe, East Africa, South Asia, and the Far East.  However, a significant portion of cargoes is also destined to and from the United States.  In addition, U.S. citizens serve as crew or are passengers on internationally registered vessels transiting the area.

On average, at least one U.S. commercial vessel transits the area each day. Many of these US-flag vessels carry Department of Defense cargo bound for Operations Iraqi and Enduring Freedom.  U.S.-flag vessels transiting the region also carry humanitarian cargoes generated by U.S. AID or international organizations to the Horn of Africa, including Djibouti, Somalia and other countries in East Africa or South Asia. 

As mentioned, seajackings off the Horn of Africa significantly increased in 2008, with more than 100 attacks and 40 successful seajackings.  Although only one-third of one percent of all the vessels transiting the Gulf of Aden are seajacked, the cost and disruption to the flow of commerce overall is significant.  There is also a serious risk of an environmental disaster should a vessel be damaged or sunk during a hostile attack.  Press reports indicate that numerous merchant mariners have been killed or are presumed dead and that hundreds more have been traumatized by being attacked and held hostage. 

Ship owners and operators are also negatively impacted by rising daily operating costs due to increased insurance premiums and operational delays caused by longer transit times or diversions to avoid the area.  In many cases, there are additional costs related to the higher wages which must be paid to crew transiting the higher risk area.  Both the shipper and the consumer are ultimately impacted due to these higher operating costs and the delays in the supply chain.  This is particularly true where vessels are diverted around the Cape of Good Hope in an effort to avoid the Gulf of Aden altogether, which also increases fuel consumption and the carbon footprint of marine transportation.  Higher shipping costs also raise the costs of commodities for local populations.  The Horn of Africa is currently experiencing its most severe food security crisis since the early 1990s.

The United States has been a leader in international action to combat the current piracy crisis.  Historically, it has been our Nation’s long-standing policy to support freedom of the seas.  In July 2008, the United States took a leadership role in the United Nations against piracy.  This resulted in United Nations (UN) Security Council Resolution 1816 which authorized countries cooperating with the Transitional Federal Government of Somalia, for which advance notification has been provided to the Secretary-General to take all necessary means within existing international law to repress piracy and armed robbery in Somali Territorial waters.  This was followed by additional Security Council resolutions 1838 and 1846 in the fall of 2008.  In December 2008, the United States drafted UN Security Council Resolution 1851 which authorizes countries cooperating with the Transitional Federal Government (TFG) of Somalia to take all necessary means to repress piracy and armed robbery in Somalia.  In effect, this allows states that have received the authorization of the TFG to use Somali territory and airspace to conduct counter-piracy operations ashore.   

UN Security Council Resolution 1851, which authorized all necessary means at sea and in Somalia, also encouraged the establishment of an international cooperation mechanism -- known now as the UN Contact Group on Piracy off the Coast of Somalia (CGPCS).  The CGPCS has 24 nations as members and five international organization observers (the UN, NATO, EU, AU and the IMO).  In addition, invitations have been extended to four other nations and the Arab league.  The Department of State represents the United States on the CGPCS.  The CGPCS will facilitate the sharing of information, coordinate activities, and reach out to the shipping and insurance industries.   The first meeting of the CGPCS took place January 14^th at the United Nations in New York City. 

The CGPCS established four working groups which will provide recommendations to the CGPCS.  Working Group #1 will address activities related to military and operational coordination and will be convened by the United Kingdom.  Working Group #2 will address judicial aspects of piracy and will be convened by Denmark.  The United States has the lead for Working Group #3, which focuses on shipping self-awareness and other capabilities.  MARAD is leading efforts on this Working Group in close collaboration with the Coast Guard.  Working Group #4 will endeavor to offer recommendations to improve diplomatic and public information efforts and will be convened by Egypt.

The UN Security Council resolutions called for greater cooperation between governments and industry to reduce the incidence of piracy.  In January 2009, former-Secretary of State Rice stated that, "Once a hostage situation develops, the stakes in military operations increase. Consequently, an important part of counter-piracy efforts must be measured in enhancing self-defense capabilities of commercial vessels, increasing the odds of success against pirates until warships arrive."   This sentiment still holds true.

Because of its specialized knowledge, such as operation of our mobility sealift vessels, and established relationships with U.S. and international shipping, maritime unions, and marine insurance communities, the Department of Transportation’s Maritime Administration (MARAD) has considerable experience in dealing with a diverse maritime industry and is actively involved in the fight against piracy.  MARAD is perhaps unique among government agencies with regard to its interest in piracy issues and its ability to assist.  MARAD operates a fleet of Ready Reserve Force (RRF) vessels which have transited the Gulf of Aden region in support of Operations Iraqi and Enduring Freedom (OIF).  As OIF winds down, RRF vessels may play a significant role again in support of the demobilization of forces, exposing vessels and crews to threats from pirate attacks.  Further, many vessels supported by MARAD’s Maritime Security Program (MSP), which participate in the Voluntary Intermodal Sealift Agreement (VISA), transit the Gulf of Aden on a routine basis.  Finally, MARAD has oversight over government cargoes transiting the region – particularly aid and military cargoes that are carried mainly aboard U.S.-flag commercial vessels transiting the Gulf.  As an interface between U.S. maritime labor and the federal government, the Maritime Administration also has great interest in protecting the welfare of U.S. mariners who sail aboard vessels in the region. 

MARAD also provides operational advice to U.S.-flag owners and operators, including counter-piracy measures and awareness, on a regular basis through MARAD Advisories and through a comprehensive and frequently updated website.   We play a key role in the training of merchant mariners through the development of International Maritime Organization (IMO) maritime security courses and workforce development.  Working with the U.S. Coast Guard and IMO, Vessel Security Officer, Company Security Officer, and Facility Security Officer courses were developed by the United States Merchant Marine Academy.  MARAD continues to certify maritime security training providers who meet the criteria established by the U.S. Coast Guard.  To date, more than 50 training providers have been certified across the country.

In late December, the State Department asked MARAD to assist with the CGPCS Industry Outreach Working Group.  To this end, MARAD continues to meet with industry to help shape best management practices to counter piracy and to share industry concerns with U.S. government agencies.  Also in December, the National Security Council published an action plan, the National Strategy for “Countering Piracy off the Horn of Africa: Partnership & Action Plan” (CPAP).  MARAD and the Department of Transportation were actively involved in developing this Plan, and MARAD posted the CPAP on its website for the benefit of industry. 

MARAD also supports the Military Sealift Command’s proposal to create and implement “Anti-Piracy Assessment Teams.”  These teams will consist of personnel from the Naval Criminal Investigative Service, the Federal Law Enforcement Training Center, and MARAD.  On a voluntary basis, these teams will board U.S.-flag vessels and offer recommendations on how to improve a vessel’s physical defenses against piracy, and review tactics, techniques and procedures.  The American industry has embraced this proposal, and we plan to share the process with the international community for similar implementation.

MARAD’s continuing outreach to the maritime industry on the piracy issue has taken many forms.  In addition to leading informal meetings and participating in international forums, MARAD has hosted several collaborative meetings with both the American and international maritime industry community.  In October and November 2008, MARAD and the State Department sponsored meetings with representatives from the maritime industry to specifically discuss piracy in the Gulf of Aden.  Participants included company security officers from major U.S. flag carriers,  including American President Lines (APL), Horizon Lines, Maersk, Intermarine, Interamerican Ocean Shipping, American Roll On/Roll Off, Crowley, American Overseas Marine, and Ocean Shipholdings.  Flag states with U.S.-owned vessels or with vessels serving strategic U.S. interests also participated, including representatives from Denmark, Marshall Islands, Liberia and Panama.  The U.S. Navy’s Maritime Liaison Office Bahrain and the United Kingdom’s Maritime Transport Office were also included. Topics specifically addressed at these meetings were maneuvering and speed, illumination, communication, duress terminology, armed force protection, and self-defense devices which may be used to deter piracy.

At the request of the maritime industry, MARAD facilitated extensive discussions on piracy with the State Department, Federal Bureau of Investigation (FBI), Transportation Security Administration (TSA) and the United States Coast Guard (Coast Guard).  In November 2008, MARAD participated in a public hearing hosted by the Coast Guard, focused on piracy initiatives being conducted by the International Maritime Organization’s Maritime Safety Committee (MSC).  In December 2008, MARAD staff played an instrumental role in several other international planning events related to piracy.  MARAD participated in the NATO Senior Civil Emergency Planning Committee meeting held in Brussels, Belgium, by the NATO Planning Board on Ocean Shipping.  This Planning Board is chaired by MARAD.   

On December 2, 2008, MARAD hosted a Piracy Round Table meeting to discuss industry “self-help” and best practices to counter piracy.  This meeting brought U.S. government agencies together with the maritime industry to develop a mutual understanding of the problem and to develop best practices recommendations.  Members of the industry included shipping associations, registries, carriers, marine insurance companies and representatives from the European Union.  U.S. government representatives included personnel from the Coast Guard, State Department, Department of Defense, Office of Naval Intelligence, U.S. Agency for International Development, the National Security Council, and the Homeland Security Council.  MARAD established an Anti-Piracy portal on the Agency’s website, which is continuously updated.  MARAD Advisories are posted on this site as are any recent developments and key contact information.

MARAD hosted an international maritime industry Piracy Summit on December 11, 2008, with representatives from more than 50 industry associations, insurers, shipping companies, and labor to encourage them to further develop best management practices to combat piracy and to implement these strategies.  Representatives from government included the Department of State (State Department), the Department of Homeland Security , Coast Guard, U.S. Transportation Command, Office of Naval Intelligence and Military Sealift Command.

In late December, MARAD joined the State Department for discussions in London between representatives of European Union navies and maritime trade associations.  The purpose of these discussions was to further develop and implement best management practices and to improve communication between maritime companies and military forces in the Gulf of Aden region.  MARAD continues to meet with industry to finalize best management practices and share industry concerns with government agencies.

In early 2009, MARAD intensified its efforts in the fight against piracy to further improve coordination between industry and the various navies participating in the Gulf of Aden, to provide voluntary assessments of security on U.S. vessels, and to further establish best management practices to prevent piracy.  Additional industry meetings, UN meetings, meetings hosted by the Baltic International Maritime Council (BIMCO) and a counter-piracy meeting held in Dubai and hosted by the Maritime Liaison Office in Bahrain, have all pursued these objectives.  Since maritime labor is such an important factor in pirate attacks, and since mariners have been killed or held hostage as part of ransom demands, MARAD has included maritime labor in discussions and meetings, when feasible.    

It is clear that combating international piracy is no small effort, evidenced by its long history.  Much work has already taken place, but much remains to be done, before international piracy can be eliminated.  Due to its unique and positive relationship with U.S.-flag and international vessel owners, MARAD has a vital role in the development of U.S. anti-piracy policy.  Additionally, through its training role, MARAD provides a valuable service to the commercial fleet. Mr. Chairman, the Department of Transportation and the Maritime Administration stand ready to assist in any way possible to address piracy and any other issue that threatens the national and economic security of the United States and our allies. 

I want to thank the members of this Subcommittee and Chairman Cummings for your leadership in holding this hearing today.  I will be happy to answer any questions you might have.

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