Page 94: of Maritime Reporter Magazine (October 1998)

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Circle 265 on Reader Service Card mercial ships in the U.S.

Thomas A. Danjczek, president of the Steel Manufacturers

Association (SMA), concurs with Quartel on many fronts. Mr. Danjczek said that the SMA — and its 62 "mini-mill" member companies — sup- ports S. 2930 because "the Jones Act is an outdated, protectionist mea- sure ... that distorts waterborne transportation markets." More impor- tantly, Mr. Danjczek contends that the Jones Act prohibits his industry from using the full range of transportation options available to foreign competitors.

While the cost of transport in any industry is an issue, Mr. Bollinger refers to a recent analysis of shipping costs conducted by Mercer

Management Consulting which found the actual impact of U.S. vessel construction on the delivered cost of goods in oceangoing coastwise trades represents only .29 percent of the total value of goods transport- ed in those trades.

While the hearings, held September 15 in Washington, D.C., includ- ed several speakers for each side of the Jones Act fence, the content, nature and intensity of testimony encompassed the full scale of "issues" wrapped up in the Jones Act conundrum, from shipyard employment to changing fleet dynamics to national security. The following are select excerpted quotes from several of the testimonies.

Pro Jones Act

Name Donald T. Bollinger

Affiliation Bollinger Shipyards, Inc.

National Shipyard Association

Comments My company and the rest of the U.S. shipyard industry are unit- ed in our opposition to S. 2390. 1 believe that this legislation is misguided because it is founded on two faulty assumptions: that the U.S. shipbuilding industry is not competitive and that repeal of the U.S.-build provision will lead to less expensive shipping rates.

Name Cynthia L. Brown

Affiliation American Shipbuilding Association

Comments With many ships in the Jones Act fleet reaching the end of their useful lives, and with the environmental construction standards of double-hulls imposed by the Oil Pollution Act of 1990, orders for Jones Act ships are on the rise. Over the next 12 years, an estimated 40 double hulled tankers will be built, and replacement orders for approximately 34 dry cargo ships are expected to be placed with American yards.

Name Thomas A. Allegretti

Affiliation AWO

Comments Let me place the U.S. barge and towing industry in the context of the Jones Act fleet. The Jones Act sustains employment for 124,000

Americans, more than one-fourth — 33,000 — of whom are employed in the inland and coastal barge and towing industry. At no cost to the U.S. taxpayer, the unsubsidized Jones Act fleet and the jobs it creates supports livelihoods for indi- viduals and families across the nation.

Pro S.2930

Name Rob Quartel

Affiliation Jones Act Reform Coalition

Comments The truth is that the Act distorts shipping and national inter- modal transportation markets, taking perhaps as much as $14 billion or so in 1998 dollars out of the national economy annually and eliminating some $4 bil- lion in federal tax revenues in the process.

Circle 344 on Reader Service Card

Name Thomas A. Danjczek

Affiliation Steel Manufacturers Association

Comments The Jones Act has distorted shipping costs to such an extent that anomalies occur. For example, it is cheaper to ship a load of scrap from an East

Coast port to Turkey than to another port in the U.S. because of the Jones Act.

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