Maritime Update

Published in the interest of the waterborne transportation industry by the Transportation Institute

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March 31, 2006

VADM Allen Confirmed as Coast Guard Commandant

On March 29, the U.S. Senate confirmed the nomination of VADM Thad W. Allen to succeed ADM Collins as Commandant of the U.S. Coast Guard. ADM Collins four year tour of duty as Coast Guard Commandant concludes in May.

VADM Allen assumed primary coordinating responsibilities on September 9, 2005 for the federal response to Hurricanes Katrina and Rita, taking over the mission from then-Director of the Federal Emergency Management Agency Michael D. Brown. VADM Allen served in that capacity until January 27, and received wide praise for the improved federal response to the disaster, and is credited for the rescue of an estimated 33,000 individuals.

Earlier this month, the Senate Commerce, Science and Transportation Committee approved his nomination to the full Senate. A brief hold was put on his nomination by Senator John Ensign (R-NV), a veterinarian, in order to foster a renewed emphasis on animal welfare concerns in disaster relief efforts.

Transportation Institute Letter in Support of Existing Food Aid Practices

The Transportation Institute has signed a letter in support of existing food aid distribution practices to the House and Senate Appropriations and Agriculture Committees. Similar to a failed effort last year, the Administration, in its Fiscal Year 2007 budget submission, proposed diverting up to 25 percent of Title II funding to foreign-based commodity purchases and to the total elimination of Title I market promotional program.

In the March 23, 2006 letter, the Institute commented that the diversion of up to $305 million in Title II funding to foreign-sourced commodity suppliers “would undermine and reduce the longstanding, broad-based domestic support in this country for international food aid, provide less assurance

 

 



that funds are being used appropriately and effectively, and disrupt local agricultural markets in recipient countries.” In regard to the elimination of Title I funding, the Institute expressed concern that “voluntarily eliminating the Title I program erodes the U.S. bargaining position in current World Trade Organization (WTO) negotiations by giving into European demands without extracting any corresponding concession.” The Institute concluded by urging Congress to once again reject the Administration’s proposal.

Sanborn Nomination to be Maritime Administrator Withdrawn

David Sanborn, President Bush’s nominee to succeed Captain William Schubert as Administrator of the Maritime Administration, has requested that his name be withdrawn from consideration for the appointment. On March 27, the Administration notified the Senate that it had honored Mr. Sanborn’s request and his nomination was pulled from the Senate calendar. The Administration has yet to name a new nominee to fill the vacancy.

The withdrawal announcement reflects the cumulative impact of the political controversy of the proposed DP World acquisition of the U.S. port terminal holdings of P&O Ports, an initiative that has since been abandoned. Mr. Sanborn currently serves as the Director of Operations for Europe and Latin America for DP World.

Chairman King Addresses Washington DC Propeller Club

On March 30 th House Homeland Security Committee Chairman Peter King (R-NY) delivered remarks at the Propeller Club of Washington DC’s luncheon. Rep. King’s comments were emphatic in his support of the maritime industry, especially his interest in protecting U.S. ports. He stated that the U.S. economy could potentially lose $1 trillion should a major port suffer a terrorist attack. Rep. King stated that it would take the support and cooperation of the entire maritime community to secure the ports and U.S. bound cargo.