May 13-14, 2002
Windsor Court Hotel, New Orleans, LA
ORGANIZATION REPRESENTATIVE
AFL-CIO MaritimeTrades Department---Frank Pecquex---Member
American Association of Port Authorities---Bernard S.Groseclose, Jr.---Member
American Great Lakes Ports Association---Steve Pfeiffer---Member
American Pilots'Association---Scott Rainey---Alternate
Association of American Railroads---John Wetzel---Alternate
Boat Owners Assoc.of The U.S.---Robert Nelson---Member
Chamber of Shipping of America---Charles Kurz II---Member
Conference of Minority Transportation Officials---Gwendolyn Harris-Gale---Member
Dredging Contractors of America---Mark Sickles---Alternate
Inland Rivers,Ports and Terminals, Inc.---Jim McCarville---Member
Intermodal Association of North America---Tina Casgar---Alternate
International Longshore and Warehouse Union---Teri Mast---Member
INTERTANKO---Jonathan Benner---Alternate
MIT Center for Transportation Studies---Hank Marcus---Member
National Association of Regional Councils---Ron Achelpohl---Member
National Association of Waterfront Employers---Patrick Hall---Member
National Industrial Transportation League---Looman Stingo---Member
National Mining Association---Gary Dadisman---Alternate
North American---Export Grain Assoc., Inc.---Frank Sims, Vice Chair---Member
The Ocean Conservancy---Adm. Roger Rufe---Member
Organization of Women in Int'l Trade---Judie Hockman---Member
Pacific Maritime Association---Robert Dockendorff---Alternate
Passenger Vessel Association---Darrell Bryan---Member
U.S. Chamber of Commerce---Donald Tieken---Member
U.S. Pan Asian American Chamber of Commerce---Susan Allen---Member
United States Maritime Alliance, Ltd.---Chuck Raymond, Chair---Member
Chuck Raymond convened the meeting and welcomed the assembled group. He noted that much has happened since the last meeting in Baltimore held shortly after September 11th. He further remarked on the on-going work of the various Teams and that the full council will be asked to comment on the work of the SEA-21 Working Group.
The Chair welcomed Captain William Schubert, the Maritime Administrator and indicated that it appeared that Captain Schubert has a keen interest in the MTSNAC and is looking forward to working with us.
On behalf of the Council, the Chair thanked the Intermodal Association of North America (“IANA”) and its member, Tina Casgar for sponsoring the meeting coffee breaks and the Chamber of Shipping of America and its member, Charles Kurz II for sponsoring the continental breakfast. In addition, the Chair thanked the Port of New Orleans for sponsoring and arranging the Council reception to take place in the Port later that evening.
Captain Schubert delivered formal and informal remarks.
In his formal remarks, Captain Schubert noted that the City of New Orleans itself is a wonderful example of the intermodal system. He mentioned that he was with Secretary Mineta in St. Louis for National Transportation Week and that the Secretary sends the Council his regards and thanks the Council for its hard work.
The MTS initiative is a major project the scope of which is greatly appreciated by MARAD, DOT and the Secretary. He reminded the Council that the Secretary expects the SEA-21 proposals on his desk by November. Captain Schubert noted that it is important to maintain the pace of the project in order to turn ideas into concrete. He further discussed the new Coastal Shipping and Ship Building Team to be developed by the
Council and noted that these areas have been ignored for too long.
Captain Schubert stated that the U.S. MTS is the envy of the world with incredible capacity and flexibility. He cited the response of the Port of New York/New Jersey maritime community that assisted in evacuating over 700,000 people from lower Manhattan on September 11th.
In his informal remarks, Captain Schubert discussed his personal enthusiasm for the MTSNAC and his belief that it is a valuable resource for MARAD and the DOT. He also stated that the industry is very fortunate to have a Secretary who is a champion of maritime issues.
The Chair thanked the Administrator for his inspiring remarks and then introduced Ray Barberesi of MARAD. Ray announced that members of the public would be permitted to make statements during the public comment period and that they should sign the sheet indicating their interest in speaking. He then opened the floor to consideration of the minutes of the October 18-19, 2001 meeting.
Bernie Groseclose noted a misspelling in the word allegiance and requested that the term MITAGS be defined as the Maritime Institute of Training and Graduate Studies. John Wetzel asked that a correction be made in the fuel tax noted on page 7 to read 4.3 cents. Gwen Harris-Gale made a motion to approve the minutes which was seconded by Steve Pfeiffer. The minutes were approved.
Ray then reported on the past resolutions from the October meeting. His presentation was as follows:
1. Infrastructure Team Resolution 1: The Infrastructure Team will re-draft its SEA-21 paper incorporating appropriate comments submitted and present it to the full council for a vote at the next full council meeting.
Action: Due to the intervening report by the SEA-21 Working Group, the Infrastructure Team elected not to revise its paper.
2. Human Resources Team Resolution 1: That the MTSNAC authorize the Human Resource Team to approach the leader of the Seafarer Recruitment and Retention Group to seek to coordinate certain efforts for the betterment of the maritime community.
Action: This has been done and will be reported on later during the Team Reports.
3. Safety & Environment Team Resolution 1: That the Safety and Environment Team undertake further study on the issue of the decriminalization of marine accidents.
Action: This has been done and will be reported on later during the Team Reports.
4. Safety & Environment Team Resolution 2: That the Safety and Environment Team study and report on the issue of drug testing for mariners.
Action: This is still on the team's agenda and will be reported on later during the Team Reports.
5. Safety & Environment Team Resolution 3: The Safety and Environment Team should continue its work on a multi-modal approach to endurance, alertness and fatigue management and report to the full MTSNAC.
Action: This is still on the team's agenda and will be reported on later during the Team Reports.
6. Safety & Environment Team Resolution 4: The MTSNAC endorses the Safety and Environment Team's collaboration with the ICMTS Safety and Environment Team in reviewing and developing possible solutions for expediting and streamlining the permitting process associated with MTS infrastructure projects.
Action: The Team has continued to collaborate with the ICMTS Safety and Environment Team, and has developed a survey on the permitting process, which will be reported on later during the Team Reports.
7. Safety & Environment Team Resolution 5: The MTSNAC authorizes the Safety and Environment Team to collaborate with the ICMTS on the preparation of an outreach document entitled "The Marine Transportation System and the Environment."
Action: This will be reported on later during the Team Reports.
8. Safety & Environment Team Resolution 6: The MTSNAC approves the Safety and Environment Team's participation in the MTS Research and Technology Conference Panel.
Action: The Chair of the Team participated as a panelist at the MTS Research and Technology Conference. This will be reported on later during the Team Reports.
9. Safety & Environment Team Resolution 7: The MTSNAC will consider and agree on a process for coordination of SEA-21 activities among the MTSNAC teams and with the ICMTS.
Action: The Team has begun efforts in this area and it will be reported on later during the Team Reports.
After Ray delivered his report, it was requested that the sponsor check on the status of the Secretary’s response to the Council’s letter regarding NOAA.
The Chair introduced the SEA-21 discussion by noting the preliminary work that has been done by the Infrastructure Team and a special group consisting of the MTSNAC Team Leaders. The special SEA-21 development group met first on October 31-November 1, 2001 in Tyson’s Corner, Virginia and then reconvened on February 22, 2002. The recommendations presented represent the product of considerable brainstorming and activity. It represents the needs articulated by the six Teams. The Chair asked Ray Barberesi to describe the process. Ray gave a powerpoint presentation that incorporated Council comments on the draft report circulated. He noted that the 10 initial categories came out the MTSNAC White Paper and Team reports. The end product of this work is to be a paper for the Secretary who has challenged the council to develop issues that should be part of a SEA-21 initiative. An active debate over the contents of the paper ensued and comments were noted.
At the return from break, the Chair asked the Council members to introduce themselves. Council members were reminded about the upcoming National Maritime Day Marine Transportation System Exhibition and Reception to be held on May 22, 2002 at the Rayburn Office Building in Washington, DC. All council members are encouraged to attend. The highlight of the festivities is the reception for legislators and key agency personnel.
Plans for holding the next meeting of the Council in Long Beach, California in mid August were also announced.
Conceptual questions on the SEA-21 paper continued. It was stated that the paper would be re-drafted with consideration to the comments made and re-distributed to the Council for approval.
Margie Hegy of the United States Coast Guard gave the ICMTS report. She noted that the work of the ICMTS subcommittees is on-going and much of that work parallels the work of the MTSNAC Teams. She gave a powerpoint presentation that highlighted ICMTS issues and showed a video presentation.
The Chair invited Patrick Gallway of the Port of New Orleans to address the council. He provided a general overview of the Port of New Orleans and its significant contributions to maritime commerce.
The Chair reconvened the meeting. Margie Hegy was asked to show the ICMTS Awareness Video again because of the technical problems that occurred in its first viewing.
The Chair opened a floor discussion concerning potential funding sources for a SEA-21 initiative. Jim McCarville commented that while some suggest that the funds for SEA-21 projects should come from a designated portion of customs duties, those funds are spoken for and that a new revenue source should be designated. In the alternative, we should not designate a source at all and let the government address the issue. Chuck Carroll noted that there is a problem with preserving existing funds that are already out there without creating alarm in those constituencies. However, he stated that there must be a way to provide necessary assurances without loosing sight of the system-wide needs. Don Tieken stated that these funds should come out of general revenues because the benefit goes to the entire country. Chuck Carroll replied that this would be difficult because it would not provide the steady revenue stream that is needed and that the projects would be dependent on the appropriations process. He further stated that maritime needs a separate dedicated funding source similar to the Highway Trust Fund. Jim McCarville stated that we must identify what would be sellable to Congress.
Chuck Raymond noted Senator Breaux’s request for an assessment of what revenues return to the marine transportation system from the over $22 billion dollars it generates for the general fund. The government must invest in maritime infrastructure in order to guarantee the future generation of these assets. The Chair requested that the Infrastructure Team address this issue again at its next meeting and report back to the Council.
Jonathan Benner stated that he would hate to lose the principle of funding SEA-21 through general revenues because it is not politically astute. John Wetzel remarked that the nation has under-invested in maritime infrastructure and the industry should not be embarrassed about discussing this lack of investment. Bob Nelson noted that the public needs education on our position—they understand AIR. Maritime needs are not in the public domain. Steve Pfeiffer remarked that 95% of cargo moves by water and it is a growing business that needs funding. Chuck Carroll noted that if a dedicated portion of customs duties go to a trust fund that is essentially coming from general funds. He reiterated his statement about the problems with relying on general funds that is the yearly appropriations process. Looman Stingo suggested that we look to the TEA-21 for guidance on how to approach funding.
Tina Casgar suggested an exercise to look at a road map for funding. We need to understand the flow of revenues including user fees and how they are allocated and applied to the entire system. Bernie Groseclose noted that the AAPA has gone through this exercise with the Harbor Maintenance Tax and the problem is that often trust funds are dedicated but the funds are not released for projects. Including the discussion, Chuck Raymond stated that the DOT needs to step up and focus its thinking on intermodal issues and this was one of the areas identified by the working group in Tyson’s Corner.
The minutes of the Team’s November 7, 2001, meeting were offered for the approval of the Council. Charles Kurz II moved that they be approved, Chuck Raymond seconded and the minutes were approved. Bob indicated that the Team discussed a number of the issues presented today at its meeting the day before and discussed a resolution that would be presented to the Council at its next meeting.
Human Resources—Scott Rainey for Michael Watson
Scott indicated that the Team has not met since its meeting in Baltimore in October but noted that the Team’s work links to the work of other teams in the area of Recruitment and Retention. He offered the minutes of the Team’s meeting in Baltimore for approval by the council. Jim McCarville moved that they be approved, Looman Stingo seconded and the minutes were approved. Scott also indicated that the Team is reviewing the SEA-21 Working Group paper and feels that it is a good product. The Team is also coordinating activities with the ICMTS.
Chuck Raymond indicated that Charles Kurz and the Safety and Environment Team have been doing a good job on the recruitment issue and that it is an important issue to Admiral Pluta and Captain Regalbuto. Charles Kurz mentioned that the Ship Operator’s Cooperative Program (“SOCP”) is sponsoring informational pieces and a television program on the issue. He further suggested that the sponsor link the SOCP website to the MTSNAC website.
Info Tech and R & D—Hank Marcus and Bernie Groseclose
Since the last meeting, this Team has been working closely with the SEA-21 Working Group. It has also been exploring ways that technology can be applied to broader seaport security issues. Chuck Raymond asked Hank Marcus about the status of electronic seals. Hank responded that at the present time there are no standards yet and that the big picture has not been defined. He mentioned that Admiral Seiberlich is trying to shorten the process for the promulgation of standards and that the Coast Guard led discussions on this issue at the IMO conference. The Team will continue its work and report as more information on viable technologies becomes available.
Infrastructure—Chuck Carroll
Chuck noted that the Team has not met since its last meeting in October. While the Team was requested to revise its SEA-21 paper, it did not because that work was melded into the paper produced by the SEA-21 Working Group. Chuck indicated that the Team will reconvene as directed by the Council to address the issue of funding.
Safety and Environment—Charles Kurz II
Charles asked for approval of the minutes of the Team’s December 11, 2002 meeting. Scott Rainey moved and Teri Mast seconded and the minutes were approved. He also reported that the Team has been quite busy working on the seven resolutions previously endorsed by the Council. The Team is working closely with its ICMTS counterpart on a permitting survey to be distributed to MTSNAC members.
Charles Kurz reintroduced the Team’s resolution concerning the decriminalization of certain maritime accidents. The issue was discussed by the Council and opportunity for questions about the resolution was provided. Chuck Raymond moved that the resolution be approved, Frank Sims seconded and the resolution was adopted without opposition.
Security—Carol Lambos for Chuck Raymond
Carol asked for approval of the Team’s minutes from its January 25, 2002, meeting. Frank Sims moved that the minutes be accepted and Teri Mast seconded and the minutes were approved. The container security report prepared by the Security Team in response to the request of the Container Security Working Group was presented to the Council for discussion. It was noted that this report does not address the issue of empty containers as that is an area that warrants further study and consideration. The Security Team will address the issue of empties at its next Team meeting. A discussion of the container security paper ensued and it was agreed that the paper’s adoption would be put to a vote by the full Council by email after additional comments from the Council were solicited.
BREAK
MTS Regional Reports
John Carnes, MARAD’s Central Region Director discussed the Gulf River Intermodal Partnership (“GRIP”). He noted that the program was seven years old and it was addressing the increased demand for freight services in the area and the renewed role that waterborne transportation will have in commerce. He stated that coastwise shipping is a viable alternative to long distance over-the-road container transport. GRIP is actively promoting this premise and seeing greater interest.
South Atlantic Marine Transportation System Regional Council Report—John Simonson, Hampton Roads Maritime Association, Norfolk, Virginia
John’s remarks concerned the considerable progress that this regional MTS council has made. They are working on SEA-21 funding mechanisms and John Hassel is the Chairman of this initiative. They are looking to explore the possibility of tapping unassigned projected increased in customs revenues. They are opposed to increased taxes on cargo. The group is also formulating its positions on how funds should be spent and how other federal agencies such as the Department of Commerce can assist in this effort. He noted that the Department of Transportation should not have to carry this burden alone.
Pacific Coast Marine Transportation System Regional Activities—Ray Barberesi
Ray Barberesi made a presentation based on comments sent in by several west coast MTS organizations. One of these is the California Marine Intermodal Transportation System Advisory Council (“CALMTSAC”) and the other is the Southern California MTS Advisory Council. Both of these entities espouse the principles that the MTS is a valuable national asset that must be enhanced in order to meet the challenges of the future. He also noted that a group from the Pacific Northwest requested permission to establish a more formal MTS group.
MTS Security Update
Captain Kevin Dale, United States Coast Guard, who reports to Rear Admiral Paul Pluta, Chief of Port, Vessel and Facility Security provided a briefing on the Coast Guard’s recent homeland security initiatives. Some of the highlights of Coast Guard activity include: the Sea Marshals Program; reserve augmentation ; the 96 hour Notice of Arrival Rule; work on the Automatic Identification System; working with the IMO; port vulnerability assessments; maritime safety and security teams; secure information systems; intelligence; and navy support.
Captain Dale also took questions from the Council. Pat Hall asked if the Coast Guard monitors foreign workers. Captain Dale indicated that this was a big issue and the Coast Guard was aware of certain problems arising. Looman Stingo asked about overlapping authority. Captain Dale noted that the Coast Guard was working on streamlining the information flow between agencies to avoid redundancies.
U.S. Department of Justice—National Drug Intelligence Center
Mary Lou Rogers of the Department of Justice gave a presentation about how her agency’s efforts with regard to drug interdiction also serve a seaport security purpose. She explained the three divisions of her department: intelligence support; document exploitation division; and intelligence. Ms. Rogers explained that this work was focused on strategic seaports and that there appears to an opportunity for cooperation in the area of seaport security strategies.
Seaport Security Legislative Updates
Carol Lambos was asked to make a presentation on the current status of federal seaport security legislation. She gave a powerpoint presentation that highlighted some of the key differences between the Senate and House versions of seaport security legislation.
Chuck Raymond announced that because of an unbreakable commitment, after the lunch break, the Vice Chair, Frank Sims would be chairing the meeting. He thanked all those who participated.
LUNCH
Frank Sims brought the meeting to order after the lunch break and announced the public comment period.
Public Comment Period
G. Wayne Parrish of the Mississippi Department of Transportation (“MDOT”) was the first commenter. He expressed his support of the work of the MTSNAC. He then discussed the work of the MDOT and its efforts to partner with other entities to improve the transportation infrastructure to meet current and future demands. The agency recently completed two major research projects using TEA-21 funds, a statewide port assessment and one on intermodal transportation facilities.
Peter Peyton of the ILWU commented on an issue raised by some of the MTSNAC Teams relating to the conflicts arising from different visions for port communities. He noted that the dynamics of community interest groups with a zero growth mindset are a serious threat to the viability of port-generated commerce. He commented that more effort should be placed in this area then port security. He further noted that SEA-21 is vital and that public awareness of this issue is critical.
Lindsay McLaughlin of the ILWU also provided comments. He spoke of the need to balance port security concerns with civil liberties.
With no other commenters, Frank Sims closed the public comment period.
New MTSNAC Initiatives
Coastal Shipping
Paul Bea the Washington representative of the Port Authority of New York/New Jersey and Chair of the Coastwise Council gave a presentation entitled “The Coastwise Challenge.” The key point of the presentation was there is a real need to develop a new generation of coastwise commerce and that this appears to be the appropriate time to do it. In this vision, maritime is not seen as an exclusive solution to highway congestion but as an intermodal solution to long distance over-the-road cargo transportation. It is envisioned that coastwise services can expand capacity. Water is an underutilized mode and it is very unlikely that highway capacity will increase. There are challenges to this movement which involve the need for fast vessels and appropriate intermodal terminals. The environmental benefits alone justify this initiative.
The Coastwise Coalition requests:
MTSNAC support for research and demonstration of coastal vessels;
Creation of a MTSNAC Team on Coastal Shipping; and
Partnership with the government and others to share in-kind assets and sea-trials of new techniques.
Charles Kurz asked about Jones Act implications and Paul Bea indicated that the Coastwise Coalition is not suggesting changes to the Jones Act. Carol Lambos asked about the availability of vessels and Paul Bea replied that they would be using existing equipment until new equipment became available. John Wetzel asked about the reaction of the highway community. Paul Bea stated that this initiative is not intended to undercut highway interests but to shift travel patterns from long distance over-the-road hauling to shorter trips.
Frank Sims thanked Paul Bea for his presentation.
A member of the public, Rick Crouch from Osprey Line which runs a container on barge inland operation asked to address the coastwise issue. He noted his company’s success in its gulf operations without government support. They are getting trucks off the road and feels that they would be more successful if the federal government got out of the way. He opined that the Jones Act is harmful to this business. The requirement that the vessels be built in the U.S. increases the costs to a level that is prohibitive. He noted that there is no requirement that truckers use domestically manufactured trucks to haul cargo but coastwise vessels must be made in the U.S.
Inland Waterway Challenges
Jim McCarville gave a presentation on challenges to the inland waterway system. He noted that it is critical that the basic inland infrastructure must be maintained and improved. The aging infrastructure has resulted in considerable operating inefficiencies. Recommended actions include: forming a new interest group for supporting infrastructure improvements; partnering projects to explore new technologies; and development of Inland Best Management Practices.
Ship Building
Frank Sims asked Ray Barberesi to report on the status of the Ship Building Team. Ray indicated that this Team is being set up and that more information would be provided at the next meeting.
The Meeting is Adjourned
Frank Sims noted that there are tentative plans for the next meeting to be held on August 13 and 14 in Long Beach, California. In addition, he also reminded the Council about May 22 and National Port Day. Having no further business, he thanked all attendees and members of the public and adjourned the meeting.