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The Maritime Minute - 11/10/2011

SENATE COMMITTEE APPROVES PROVISION TO IMPROVE JONES ACT WAIVER PROCESS:   The Senate Commerce Science and Transportation Committee approved on November 2, 2011 language in S. 1430, the Maritime Administration Act for Fiscal Year 2012, that would require the Maritime Administration to certify that it is not possible to "use a United States flag vessel or United States flag vessels collectively to meet national defense requirements" when issuing waivers of the navigation and vessel-inspection laws, e.g., Jones Act waivers.
This provision is a response to the oil release from the Strategic Petroleum Reserve (SPR) over the summer of 2011.  The Obama Administration waived the Jones Act nearly 50 times to allow foreign shipping companies to transport the oil released from the SPR.  The Jones Act requires the use of American vessels and American seafarers when moving cargo between two points in the United States.  In waiving the Jones Act, the Administration outsourced jobs to foreign vessels and foreign workers even though some 30 American vessels of various sizes were available to assist in the transportation of SPR oil.
S. 1430 would ensure transparency in the waiver process by requiring the Maritime Administration to certify why it is not using American vessels.  This change in law will help ensure that U.S. flag vessels are given appropriate consideration prior to the issuance of any waivers being granted.  The provision is strongly supported by the American Maritime Partnership, and Chairmen John Rockefeller (D-WV) and Frank Lautenberg (D-NJ), and Ranking Members Kay Bailey Hutchison (R-TX) and Roger Wicker (R-MS) are to be commended for their prompt action on this important issue.
 
NEWBUILD PROGRAM ANNOUNCED FOR 16 NEW U.S.-FLAG OFFSHORE SUPPLY VESSELS:  A major operator of U.S.-flag offshore supply vessels has approved a new vessel construction program that will lead to 16 vessels joining the Jones Act fleet in the next few years.  Hornbeck Offshore Services, Inc. based in Covington, La., is committing $720 million to build the vessels.  The first of the new hulls should enter service in 2013.  Another 16 vessels could be ordered if market conditions warrant.  Click here to read more.
  
American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards and crewed by American mariners ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.

The Maritime Minute - 10/31/2011

ESCOPETA FINED $15 MILLION FOR JONES ACT VIOLATION:   U.S. Customs and Border Protection fined Escopeta Oil Company $15 million for violating the Jones Act. The company transported a jack-up rig from Texas to Alaska using a foreign-flagged vessel. The rig is drilling in Alaska’s Cook Inlet and the fine will not affect operations. Click here to read more.
 
AMP CHAIRMAN JAMES HENRY RECEIVES THE 2011 ADMIRAL OF THE OCEAN SEA AWARD:  American Maritime Partnership Chairman James Henry received the 2011 Admiral of the Ocean Sea Award (AOTOS) presented by the United Seaman’s Service at the 42nd annual industry gala dinner in New York City. The AOTOS Award is the most prestigious award given in the transportation and maritime industry, recognizing those who have made significant contributions to American shipping and to American and international seafarers. Henry has played a significant role in virtually every major initiative in United States maritime policy since he assumed the presidency of the Transportation Institute in 1987 and became its chairman in 1990. He played a particularly key role in protecting the Jones Act when it came under attack in the mid-1990s and during the 2010 Gulf oil spill. Click here to read more.
 
NEW EAST RIVER FERRY SERVICE PROVING A SUCCESS IN NEW YORK CITY:  The New York Times reports that a ferry service begun in late June 2011, which transports passengers between Brooklyn and Manhattan across the East River, has been a huge success and is attracting twice as many passengers as anticipated. Policymakers see the ferry service as a way to create jobs and expand economic activity by attracting more developers to the river’s east bank. “The only major complaint I’ve heard is that people want more of it,” said Seth W. Pinsky, the president of the city’s Economic Development Corporation, which oversees the service. Click here to read more.
 
CARGO CARRIED BY U.S.-FLAG LAKES FLEET IS BIG JOBS GENERATOR:  Cargo hauled on the Great Lakes in U.S.-flag vessels is responsible for more than 103,000 jobs in the United States according to a new study released on October 18. The study, The Economic Impacts of the Great Lakes-St. Lawrence Seaway System, further determined that the value of economic output tied to U.S.-flag laker cargos topped $20 billion in 2010. Those cargos also generated federal, state, and local taxes totaling more than $2.2 billion. Indiana has the most jobs tied to cargo moved in Jones Act lakers with 39,903. Michigan follows with 23,485 and Ohio is close behind with 23,334 jobs. Totals by other states are: Wisconsin - 5,589; Illinois - 5,356; Minnesota - 4,309; Pennsylvania - 761; and New York -305. Click here to read more.
 
ORDER FOR NEW TANKERS WILL ADD 1,000-PLUS JOBS AT PHILADELPHIA SHIPYARD:  The construction of two new tankers to move Alaska North Slope crude oil to the West Coast will swell employment at Aker Philadelphia’s shipyard. More than 1,000 new hires will be needed to build the double-hull ships, each of which will be capable of hauling 730,000 barrels per trip. The keel will be laid for the first tanker in mid-2012 and both vessels should enter service in 2014.
 

American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards and crewed by American mariners ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.

UPDATE -RAPIDGATE Implementation Postponed

UPDATE (10/3) - Dave Shutter, NSSA Security Officer, sent an email confirming that ALL INSTALLATIONS IN HAMPTON ROADS have extended the full implementation of RapidGate to 10/31/2011.  This includes Norfolk Naval Shipyard.  He also stated, "I have to say, DO NOT count on another extension, and continue to get your NCACS Card or be ready to get the day passes." 

The following message was received from LCDR Darrell Weaver, Security Officer at Norfolk Naval Station:

Naval Station Norfolk,
 The implementation date at Naval Station Norfolk for full NCACS/RAPIDGate usage has been rescheduled to 31 October 2011 to better align with other installations in the greater Hampton Roads area. All contractors/vendors who intend to participate in NCACS need to aggressively interact with us and EID to get NCACS badges as soon as possible. Those contractors/vendors who obtain NCACS badges (or already have) shall use them to gain access.
 The majority of the problems we are seeing lie in resolving RAPIDGate application issues. To assist in correction, any company who believes there is a delay in processing of their RAPIDGate application needs to provide us their company name, a POC with good contact info, and the date of submission including any details. 
 As of this morning, Naval Station Norfolk has received 4000 credentials for issue, however, we are issuing approximately 250 one-day passes per day.  These numbers do not equate to the actual number of contractor/vendor personnel that enter this base daily.
 31 October 2011 is a firm date and is a Monday. Plan accordingly. Pls disseminate widely.
 v/r,
LCDR Darrell Weaver, USN
Security Officer
Naval Station Norfolk
1957 Taussig Blvd.
Norfolk Virginia 23511-3494
COM: 757-322-2500

The Maritime Minute - 9/23/2011

 
ANOTHER FEDERAL REPORT DEBUNKS MYTH JONES ACT INHIBITED CLEAN-UP OF GULF OIL SPILL:  Compliance with the Jones Act did not impede the clean-up of the Deepwater Horizon spill, according to the On Scene Coordinator’s report to the National Response Team. The report found that, “Although there was significant media and some congressional interest in the Jones Act during the…response, at no time did compliance with the Jones Act actually impede the response operations…” The report also notes a foreign-flagged vessel engaged in skimming operations beyond three nautical miles could collect oil or oiled seaweed and then transit to a point in the United States without need of a waiver or exemption. Click here to read the report.
 
SENATE CRITICIZES DHS FOR FOR HANDLING OF JONES ACT WAIVERS:  The U.S. Senate Appropriations Committee criticized the Department of Homeland Security for its handling of Jones Act waivers in a report accompanying the DHS Appropriations Act (H.R. 2017). The Committee found that U.S. vessels, mariners and shipyards were negatively impacted and underutilized as a result of lax enforcement of Congressional intent. “The committee is very concerned that more than 45 waivers of the Jones Act have been issued enabling foreign-flagged vessels to transport oil released from the Strategic Petroleum Reserve in response to extreme fluctuations in the price of gas. The committee is also concerned about the lack of transparency in conducting these waivers,” the report said.  Click here to read more.
 
TANKER FLEET GROWS AGAIN:  Another large tank vessel has joined the Jones Act fleet. On Aug. 30, Crowley Maritime Corporation took delivery of its 10th articulated tug/barge tanker, the VISION/650-10 from Halter Marine in Pascagoula, Miss. The 587-foot-long barge can carry 185,000 barrels of petroleum products each trip and will service West Coast ports. The tug carries a crew of 11 has an overall length of 689 feet when both vessels are coupled. If stood on end, the tug/barge unit would be as tall as a 50-story skyscraper. Later this year, Crowley will take delivery of the first of three even larger barges capable of carrying 330,000 barrels each trip.
 
ALASKA TANKER COMPANY SETS BAR FOR ENVIRONMENTAL PROTECTION, SHIPBOARD SAFETY:  Through June of 2010, Alaska Tanker Company (ATC) ships have safely and efficiently carried over 1,272 million barrels of crude oil and its workforce has completed over 14 million man-hours without anyone being so hurt that they were unable to return to work the next day (lost-time injury). No tanker company in the world has ever achieved this safety record. For the past eight years, ATC vessels have moved BP’s oil from Valdez, Alaska, through the difficult North Pacific waters without spilling a drop of crude oil to sea. Credited for this exceptional record is the expertise of Alaska Tanker Company’s management and the skill and commitment of its workforce, which includes members of the Seafarers International Union (SIU) and the Marine Engineers Beneficial Association (MEBA). “The employees of ATC are committed to mitigating the risks we face every day, one day at a time, one job at a time,” said ATC CEO Anil Mathur. “Our goal is an entire generation of seafarers spending their entire working lives without an injury, whilst earning a decent living for their families and loved ones.”
 
MEET A MEMBER:  Moran Towing Corporation, founded in 1860 and headquartered in New Canaan, Conn., has 16 operational bases located along the U.S. East and Gulf Coasts. This family-owned company has several lines of business, providing ship docking services, towing and transportation. The company transports commodities such as oil, coal, grain, fertilizer, alumina, scrap steel and aggregates; as well as cement for utilities, oil companies, trading houses and other industrial corporations. The company employs 993 professionals who reside in 38 different U.S. states. The company has a fleet of 105 tugboats and 31 barges, all of which have been built in the United States. Over the past decade the company has made significant investments in new tugs and barges, which provided continuous employment for hundreds of shipyard workers in Maine, Wisconsin, Louisiana, Florida and Alabama.
 
American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards and crewed by American mariners ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.

DOD Budget Update at VSRA Annual Meeting

At the annual meeting of the VSRA membership on Tuesday, September 20th, RDML(ret)  Joe Carnevale, Senior Defense Advisor, Shipbuilders Council of America, addressed the members with a thoroughly researched and sobering analysis of the Department of Defense budget.  His analysis included a recap of the budgets going back to the post-Vietnam War era up to the present.  He focused the audience on the growing gap between spending and revenue, and also addressed the Budget Control Act of 2011 and what impact it can have on FY-12 and future funding.

Click on DOD Budget Analysis and Update  to view the RDML Carnevale's presentation.

Metro Machine Acquired!

General Dynamics to buy ‍Metro ‍Machine
Large defense contractor hopes for more Navy work
By Robert McCabe
| The Virginian-Pilot
NORFOLK

General Dynamics Corp., one of the nation’s largest defense contractors, plans to buy ‍Metro ‍Machine Corp., a privately held ship-repair facility in Norfolk.

 ‍Metro ‍Machine employs about 400 people on the Berkley riverfront across from downtown. It has been in the Navy ship-repair business since 1972 and is a prime contractor for work on frigates, dock landing ships and amphibious transport docks that are based at local U.S. Navy facilities.

 The deal is subject to review by the U.S. Justice Department, in consultation with the Defense Department. It is expected to close in November.

 An additional $16 million would be placed in escrow to serve as a fund to satisfy certain claims General Dynamics might have. Any remaining balance after 18 months would flow to the employee stock owners.

 Although terms of the sale were not disclosed Wednesday, Richard Goldbach, ‍Metro‍’‍s CEO, said the employee-owned stock-ownership plan would receive $148 million after repayment of ‍Metro‍’‍s debt and other obligations. General Dynamics’ largest customers today, and we provide very similar-type services to the Navy on the West Coast. So we see this as an opportunity to expand our repair offerings to the Navy and hope to grow.” in the area to work with them.” bought by BAE Systems in 2005. General Dynamics intends to fold Norfolk-based Metro Machine Corp. – above – into the shipbuilding and repair operations of NASSCO, the largest shipbuilding and repair company on the West Coast.

General Dynamics is based in Falls Church and intends to fold ‍Metro ‍Ma‍‍chine into the shipbuilding and repair operations of NASSCO, a San Diego-based unit that employs 3,400 and is the largest shipbuilding and repair company on the West Coast.

 “ We’re acquiring ‍Metro ‍Machine because we think it represents a growth opportunity,” Rob Doolittle, a spokesman, said Wednesday. “The Navy is one of

 General Dynamics owns two other East Coast shipyards – Bath Iron Works in Bath, Maine, and Electric Boat in Groton, Conn.

 “ We have a business group called Marine Systems that comprises those shipyards,” Doolittle said. “A majority of their work is new construction, but service and repair is a growing portion of that portfolio.”

 R ichard Sobocinsk i, vice president/contracts at Colon na’s Shipyard in Norfolk and a former employee at Bath Iron Works, said he didn’t think the deal would change the repair “factor” in the port.

“I think it makes ‍Metro a lot more stable than they were under small, private ownership,” he said. “Actually, there may be some opportunity for small businesses

 ‍Metro ‍Machine is the second major Navy ship-repair yard in Hampton Roads acquired by a major defense contractor. Its neighbor in Berkley, Norshipco, was

 In his letter to employee stock owners, Goldbach said he accepted the offer based on the advice of GreatBanc Trust Co.

 “The combination of ‍Met‍‍ro‍’‍s superior workforce with General Dynamics’s considerable resources should solidify ‍Metro‍’‍s ability to compete on U.S. Navy work for years to come,” Goldbach wrote.

 General Dynamics’ businesses encompass the marine, aerospace, defense, communications and electronics industries, according to its website. While it sold off many of its defense-related companies in the early 1990s, it began expanding again in 1995.

 Since 1997, it has acquired more than 50 companies, revenue has grown from $4 billion to about $32 billion, and its workforce has increased from 29,000 to about 90,000 workers, the website says.

 Robert McCabe, (757) 446-2327, robert.mccabe@pilotonline.com

VIRGINIAN-PILOT FILE PHOTO

 

UPDATE - RAPIDGate Clarification from NSSA

The following message was recived from Dave Shutter, Security Manager, NSSA.  It clarifies some of the mis-information that has been circulating about the Hampton Roads implementation of the Naval Commercial Access Control System (NCACS), formerly called RAPIDGate.  If you have any specific questions about company registration and other aspects of NCACS, you are encouraged to call "RAPIDGate" directly at (877) 727-4342.
Please know that the VSRA Security Committee meets the second Tuesday of every month at United Coatings Corporation, 650 Chautaqua Avenue, Portsmouth.  The next meeting will be August 9th at 10:00 AM., at which NCASC will be a "hot topic".
"All -
         Clarification on RapidGate, based on numerous questions/concernsfrom many companies! This applies to all Hampton Roads Naval Installations!
         Effective Monday, 8/1/2011, the following ID's will get you access at NOB, JEBLCFS, Oceana, NWSY and their assoc annexes: CAC, NCAC (RapidGate), Current Regional Badge/Base Badge (Until 10/31/2011), and a day pass. Info on NNSY attached and below...
          Regional badges WILL NOT be issued any longer effective 8/1/2011, only day passes for those not using RAPIDGate. A day pass can be obtained by providing a visit request to the government sponsor to be endorsed and forwarded to the appropriate pass office. This will be for a ONE DAY pass, they will not issue any temp passes for more than ONE Day!
          The Kiosk's will be operational effective 8/1/2011 for use at all Hampton Roads Pass Offices. If you have not registered for Rapid Gate yet, and you do not want to have day passes issued daily, please do so soonest.
          TWIC is an approved DOD access card and can be used to gain access if a specific requirements to the installation can be verified through documentation.  Under most circumstances, the TWIC must be accompanied by a Government or Commercial Bill of Lading.
          Ship's Visit request will still be required for access to all Naval Ship's. This will continue through the NSSA website and your Prime.
          Sponsor is whoever is your contracting command, if NSSA is your contracting office, then I am your sponsor for RapidGate registration.
David Shutter
Security Manager (NSSA RMC)
9170 Second St Ste 120.
Norfolk, Va. 23511
          CNRMA "Reasons for Denial" will remain in effect. CNRMA is also going to attempt to keep their CVS site up and operational to view if personnel are cleared to pick up their NCACS card. 
          NNSY will change their process effective 1 October, 2011, NNSY Access Control Process. The three dark column headers read in order as follows: Credential Type, Valid for Perimeter Access, and Valid for Access into designated CIA's. They will be using Rapidgate for their perimeter access like all other installations, but will continue to use the spreadsheet submittals for their NAVSEA Badges, routed through your Trusted Agent.
          As always, if there are any questions/concerns please let me know.
R/
David Shutter   
NSSA Security Manager
NNSY C1123 Private Yard Security
Norfolk, VA 23511-2393
Phone: (757) 443-3872 ext.2592 DSN: 646
Cell: (757) 613-9094  Fax: (757) 443-3698

UPDATE - JINII Registration Form and Agenda Available HERE

The annual JINII (Joint Industry Navy Improvement Initiative) meeting will be held on Thursday, September 1st in conjunction with the ASNE Fleet Maintenance & Modernization Symposium 2011 in San Diego. The  2011 JINII Registration Form should be completed and submitted to register for the meeting. 

The 2011 JINII Agenda can be accessed by this link.

25th Annual VSRF Golf Tournament - Sponsorships Available!

25th Annual VSRA Golf Tournament - UPDATE (8/8)
THE GOLFER SLOTS ARE FULL!   There are still sponsorship opportunities.  There are also MANY surprises planned as we celebrate our Silver Anniversary.
When: Tuesday, August 16, 2011 at Bayville Golf Club
Join us at the beautiful and challenging Bayville Golf Club in Virginia each, a short distance just off Shore Drive where a spacious 268-acre former daily farmland, open to capricious winds and salt air of the nearby Chesapeake Bay.
Bayville Golf Club
4137 First Colony Road, Virginia Beach, VA  23455
All proceeds to benefit the Virginia Ship Repair Foundation an IRS 501(c)(3) Education Foundation and are tax deductible. YOUR foundation focuses on the ship repair future workforce and incumbent training. This is the organizations principal way to raise funds for this important industry work.
Tournament Schedule 
  • 10:00-12:30  Registration and Practice Range
  • 11:00 a.m.  Lunch
  • 12:30 p.m. Shotgun Start
  • “After Golf” Social – Prizes and Awards Presentation
  • Beverage carts, photos, snacks, goody bags, raffles

Sponsorship Packages  Are Still Available

The specifics of the sponsorship packages will be available on the APPLICATION FORM.
Platinum (2 teams included)         $5,000
Gold (1 teams included)                 $2500
Silver (2 golfers included)              $1800
After Golf Social                               $750
Beverage Cart                                   $750
Lunch Sponsor                                 $600
Hole Sponsor                                     $500
Longest Drive                                    $400
Closest to Pin                                    $400
  2011 Golf Tournament Application is still available.  This is a Word Document Form that can be completed electronically.  Since the golfer slots are full, all reservations received will be added to the waiting list on a FIRST-COME FIRST-SERVE basis.  Sponsorship packages with golfers (Platinum, Gold and Silver) had priority to fill the 144 golfer slots until JULY 16th. 
 For specific questions, please contact:
Leigh Kennedy directly at 757-215-2550 or e-mail lkennedy@earl-ind.com

The Maritime Minute - 8/2/2011

LEXINGTON INSTITUTE SALUTES JONES ACT AS IMPORTANT TO NATIONAL SECURITY:  The Jones Act is the “only” hundred-year-old law still critical to U.S. national security in the 21st century according to the Lexington Institute. A July 8 “Early Warning Blog” by Daniel Goure, Ph.D, declares the Jones Act “critical to the maintenance of a shipbuilding and repair industry, and associated skilled workforce to support the U.S. Navy.” He notes that without a flexible pool of skilled workers “the costs to the Navy of its repair and overhaul work would skyrocket.” Dr. Goure further stressed that the “Act’s requirement that vessels engaged in cabotage [the movement of cargo between two points in the United States] be U.S.-flagged and the crews be at least 75 percent U.S. citizens also supports both homeland security and environmental safety.” Click here to read more.
 
UTILIZATION RATE OF GREAT LAKES FLEET ON THE RISE:  With two U.S.-flag Great Lakes freighters recently activated, the fleet now has more than 93 percent of its available carrying capacity in service. Iron ore for the steel industry remains the foundation of Great Lakes shipping. Through June, iron ore cargos moved in U.S.-flag “lakers” total 18.3 million tons, an increase of 7.6 percent compared to a year ago.
 
THREE AMP MEMBERS RECEIVE SAFETY AWARDS:  Crowley Maritime Corporation, Keystone Shipping Co., and Liberty Maritime Corporation have been selected to receive prestigious safety awards from American Maritime Safety, Inc. Crowley will receive the Safe Working Practices Award. Keystone will be honored with the Responsible Carrier Award. Liberty will be presented the Quality Ship Management Award. The awards recognize these companies’ commitment to implementing innovative quality control and safety management systems that go beyond the compliance standards established by the U.S. Coast Guard.
 
STAMPS SALUTING U.S. MERCHANT MARINE AN HONOR WELL DESERVED:  The U.S. Postal Service issued a quartet of stamps that depict ships that helped establish the U.S. Merchant Marine as a world leader in innovation and efficiency. The stamps feature a clipper ship, an auxiliary steamship, a Liberty ship and a containership. “This is a proud moment for everyone in the U.S. merchant marine,” said James Henry, President of the Transportation Institute and Chairman of the Board of American Maritime Partnership. “Ships have played a vital role in the development and protection of our nation. It was no accident that one of the first laws passed by Congress focused on fostering a U.S.-flag fleet. Since 1920, the Jones Act has been the foundation of the domestic U.S.-flag fleet and its requirement that cargo moving between U.S. ports be carried in vessels that are U.S.-owned, -built, and -crewed has produced an industry second to none.” Click here to read more.
 

American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards and crewed by American mariners ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.