Page 23: of Maritime Reporter Magazine (April 1993)

New DOT Secretary

Discusses Future With

Marine Industry Executives

During a two-hour exchange with some 30 senior executives from maritime labor, shipbuilders and carriers, Department of Transpor- tation (DOT) Secretary Federico

Pena indicated that the Clinton

Administration intends to address maritime issues with the same ur- gency that it is applying to the U.S. airline industry, and will soon of- fer a legislative program to revital- ize the U.S.-flag fleet. However, according to the Secretary, the

White House does not plan to sup- port the 15-year, $4 billion subsidy program called for by several mari- time industry groups.

During the meeting, Secretary

Pena demonstrated the

Administration's reservations about the liner company's subsidy plan by questioning the length and cost of their proposal. In response,

U.S.-liner executives reiterated threats to transfer their fleets to foreign-flag registries if the gov- ernment did not introduce a new program by 1995.

While Secretary Pena does not support the anti-shipbuilding-sub- sidy Gibbons Bill, he expressed a strong interest in ensuring the fu- ture of the domestic shipbuilding industry through financial incen- tives and continued efforts to end foreign subsidies.

John Stocker, president of the

Shipbuilders Council of America, together with four presidents of shipbuilding companies, presented the viewpoints and concerns of the

U.S. shipbuilding industry to the

Secretary. Referring to the "level playing field" theory, they ex- plained that U.S. yards could be internationally competitive if for- eign subsidies were eliminated.

Presenting the liner proposals to Secretary Pena was John M.

Lillie of Oakland-based American

President Lines, who described the higher capital and operating costs of U.S.-flag companies and the pro- posed 15-year subsidy program, with a renewal option for an addi- tional 15 years.

At the conclusion of the confer- ence, attending executives said that they were impressed with the

Secretary's obvious interest in maritime issues and received a strongimpression that the Clinton

Administration is very serious about making a revitalized U.S. maritime industry a national pri- ority. One source remarked that unlike previous DOT chiefs, Secre- tary Pena seems equally commit- ted to both U.S.-flag shipping and shipbuilding.

Of particular interest to the in- dustry representatives was the

Secretary's intention to send a maritime legislative proposal to

Capitol Hill by the middle of April or early May.

The proposal is to be drawn-up by an industry-government com- mittee consisting of three DOT of- ficials and two representatives each

April, 1993 115 from the marine labor, shipbuilding and liner sectors of the industry.

Vessel and Facilities

Response Plans Deadline

The February 18, 1993 deadline for tank vessels carrying oil in bulk as cargo in U.S. waters and most

U.S. marine transportation facilities to file response plans has already passed, and the Coast Guard has begun to review the plans. To date, 672 plans covering2,770 vessels had been submitted. The Coast Guard is forecasting that more than 4,000 individual vessel response plans, which will cover 6,000 vessels, will be submitted. Upon receipt, plans are date stamped and entered into a vessel response plan tracking sys- tem. Each plan is assigned an I.D. number to be used to track all future actions on the plan. Letters are be- ing sent to owners acknowledging receipt of the plans, but not telling whether the plans meet the require- ments of OPA '90. Next, a prelimi- nary review of the plans will deter- mine overall compliance with the statutory requirements mandated by

OPA'90. If a plan is found to contain all pertinent information, it is the intention of the Coast Guard to allow continued operation of the vessel or facility pending a more detailed re- view of the plan. These continua- tions are for up to two years. Indi- viduals with specific questions re- garding their plan can call (202) 267- 6490 and leave a message.

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