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CONTENTS

1

111

HEARINGS:
Tuesday, July 16, 2002, U.S. Ownership and Control of Vessels Operating

in the Maritime Security Program
Tuesday, July 23, 2002, Commercial Shipbuilding and the Maritime Security

Program
Tuesday, October 8, 2002, Department of Defense Requirements for Vessels

Operating under the Maritime Security Program
APPENDIXES:
Tuesday, July 16, 2002
Tuesday, July 23, 2002
Tuesday, October 8, 2002

179

45 139 201

TUESDAY, JULY 16, 2002

U.S. OWNERSHIP AND CONTROL OF VESSELS OPERATING IN THE

MARITIME SECURITY PROGRAM

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS

1 2

2

12 12 10 8

Hunter, Hon. Duncan, a Representative from California, Chairman, Special

Oversight Panel on the Merchant Marine
Taylor, Hon. Gene, a Representative from Mississippi

WITNESSES
Alario, Robert J., President, Offshore Marine Operators' Association
Bowman,

Roy G., Vice President for Government Affairs, American President
Lines, Executive Vice President, American Automar Inc.
Clancey, John P., Chairman of the Board, Maersk Sealand
Johnsen, Erik F., President, International Shipholding Corporation
Keegan, Jay T., President, U.S. Ship Management
Sacco, Michael, President, Seafarers' International Union; Mr. Ron Davis,

President, Marine Engineers’ Beneficial Association; Mr. Mike Rodriguez,
International Organization of Masters, Mates and Pilots and Mr. Michael

R. McKay, National President, American Maritime Officers
Truchan, Jordan M., Chairman and CEO, American Ship Management

APPENDIX
PREPARED STATEMENTS:

Alario, Robert J.
Bowman, Roy G.
Clancey, John P.
Hunter, Hon. Duncan
Johnsen, Erik F.
Keegan, Jay T.
Sacco, Michael, Mr. Ron Davis, Mr. Mike Rodriguez, and Mr. Michael

R. McKay

Truchan, Jordan M.
DOCUMENTS SUBMITTED FOR THE RECORD:

Letter from the American Shipbuilding Association
Letter from the Military Traffic Management Command

36 6

52 74 81 49 68 65

91 61

104 103

Pe

QUESTIONS AND ANSWERS SUBMITTED FOR THE RECORD:

Taylor, Hon. Gene

109

TUESDAY, JULY 23, 2002

COMMERCIAL SHIPBUILDING AND THE MARITIME SECURITY

PROGRAM

124

111 112

121 116

113

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS
Allen, Hon. Tom, a Representative from Maine, Ranking Member, Special

Oversight Panel on the Merchant Marine
Hunter, Hon. Duncan, a Representative from California, Chairman, Special

Oversight Panel on the Merchant Marine
Taylor, Hon. Gene, a Representative from Mississippi

WITNESSES
McAlear, Ronald J., President, Kvaerner Philadelphia Shipyard, Inc.
Vinyard, Herschel T., Vice President, Atlantic Marine Holding Company
Vortmann, Richard H., President, National Steel and Shipbuilding, Chair-
man, American Shipbuilding Association

APPENDIX
PREPARED STATEMENTS:

Allen, Hon. Tom
Hunter, Hon. Duncan
McAlear, Ronald J.
Vinyard, Herschel T.

Vortmann, Richard H.
DOCUMENTS SUBMITTED FOR THE RECORD:

Letter dated July 19, 2002 from Andy Abbott, representing the Inter

national Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths,

Forgers and Helpers
QUESTIONS AND ANSWERS SUBMITTED FOR THE RECORD:

[There were no Questions submitted.]

146 143 164 159 147

175

TUESDAY, OCTOBER 8, 2002
DEPARTMENT OF DEFENSE REQUIREMENTS FOR VESSELS
OPERATING UNDER THE MARITIME SECURITY PROGRAM

180

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS
Allen, Hon. Tom, a Representative from Maine, Ranking Member, Special

Oversight Panel on the Merchant Marine
Hunter, Hon. Duncan, a Representative from California, Chairman, Special
Oversight Panel on the Merchant Marine

WITNESSES
Handy, Gen. John W., USAF, Commander in Chief, United States Transpor-

tation Command

179

180

APPENDIX PREPARED STATEMENTS:

Handy, Gen. John W.

Hunter, Hon. Duncan
DOCUMENTS SUBMITTED FOR THE RECORD:

[There were no Documents submitted.]
QUESTIONS AND ANSWERS SUBMITTED FOR THE RECORD:

Allen, Hon. Tom

208 205

217

U.S. OWNERSHIP AND CONTROL OF VESSELS OPERATING IN THE MARITIME SECURITY PROGRAM

HOUSE OF REPRESENTATIVES,

COMMITTEE ON ARMED SERVICES,
SPECIAL OVERSIGHT PANEL ON THE MERCHANT MARINE,

Washington, DC, Tuesday, July 16, 2002. The panel met, pursuant to call, at 3:54 p.m., in room 2212, Rayburn House Office Building, Hon. Duncan Hunter (chairman of the panel) presiding.

OPENING STATEMENT OF HON. DUNCAN HUNTER, A REP

RESENTATIVE FROM CALIFORNIA, CHAIRMAN, SPECIAL OVERSIGHT PANEL ON THE MERCHANT MARINE

Mr. HUNTER. Okay, folks, we apologize for the delay, here. That is the way the House works. When they are ready to vote, we vote. And hopefully we will have about an hour or so before we have to

go back.

The special panel will come to order.

And I would first like to welcome the witnesses that are scheduled before us today. And, again, thanks. And thanks for your patience.

Although we have some time before the current Maritime Security Program (MSP) expires, the panel wanted to get started right now with the hope that we can get something enacted well before the current expiration date of 2005.

I understand that getting agreement among all the disparate interests will be difficult and I also understand that paying for a new program will be equally challenging. What I hope the panel will do is work through each of the difficult issues, with a goal of getting agreement on a consensus package that we can all unite behind. It is clear to me at this point that we will not be able to satisfy each and every desire.

This is the first of what I hope will be several additional hearings relating to the Maritime Security Program. The next hearing will address issues related to commercial shipbuilding and the MSP program. I hope that hearing will also address additional incentive programs, such as needed changes to our tax laws. We may also need to hear from other components, such as the bulk operators.

Before we proceed to markup, I believe the panel will need to hear from those within the government who set the requirements for commercial reserve sealift capability. Accordingly, I will invite the head of the Transportation Command, General Handy, to testify.

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