MARAD CHIEF OUTLINES MARITIME SECURITY PROGRESS FOR LAWMAKERS

MARAD CHIEF OUTLINES MARITIME SECURITY PROGRESS FOR LAWMAKERS    Capt. William G. Schubert, head of the U.S. Maritime Administration, told lawmakers on Capitol Hill late Monday that his agency is on target with the roll out of security improvements in the maritime and port sectors.
   “The Department of Transportation has always sought to maintain secure transportation within every mode,” said Schubert before the Senate Judiciary Committee’s Subcommittee on Technology, Terrorism and Government Information. “We continue to do so with a greater sense of urgency and with more focus through the newly created Transportation Security Administration.”
   As an active member of TSA, MarAd, along with the Coast Guard, was recently given authority to administer the $93.3 million emergency security funding in the 2002 Defense Department Appropriations Act. In this role, the agencies will act as “agents” of the TSA to distribute grants. A small portion of this funding will also go to fund “proof of concept” security projects in high-profile ports.
   “Determination of grant awards will be based on consideration of the most urgent needs from a homeland security perspective,” Schubert said. “It is anticipated that initial awards will commence in June 2002. We are moving very quickly to put this money to work.”
   MarAd is one of the main players in the DOT/Treasury-chaired Container Working Group. The working group focuses on four security areas: information technology, security technologies, business practices and international affairs. This month the working group sent recommendations to the Office of Homeland Security on ensuring security of cargo container transport.
   Recommendations included improving coordination between government and business in container security; improving data collection; enhancing physical security of containers; improving international relations; and developing technologies to profile containers.
   But Schubert warned: “Even with our best efforts, our current transportation system is groaning under capacity constraints and congestion in many ports is increasing. To further complicate matters, container traffic, even with the current economic slowdown, is predicted to double in the next 20 years.”
   DOT has also created an interagency Credentialing Direct Action Group (CDAG), co-chaired by MarAd, to study the feasibility and process to conduct background checks and issue identification cards to all transportation workers. The goal of the group is to create a national transportation worker identity system.
''The CDAG has already developed a “functional requirements” document, which identifies the main attributes that a credentialing system of this nature must have. “The most difficult issue is to define the appropriate levels of security for the broad spectrum of transportation facilities and operations and how these should be applied,” Schubert said.
   MarAd and the Coast Guard are also cooperating with international groups, such as the International Maritime Organization, International Labor Organization, and International Transport Workers’ Federation, to discuss security and credentialing issues.
   Lastly, MarAd is also administering insurance against terrorism-related losses. The Merchant Marine Act of 1936 authorizes the Transportation Secretary to ensure the availability of adequate insurance for vessels engaged in U.S. ocean transport. This authority provides coverage for vessels, their cargoes, crews and third-party liabilities against war risks, including acts of terrorism.
   The two basic war risk insurances types are Section 1202 of the Act, which addresses commercial vessels in commercial trade, and Section 1205, which pertains to vessels that are under charter or employed by the Defense Department.
   “Marine war risk/terrorism insurance is still available from the commercial market, although at much higher premium rates and with much more limited coverage liability side since Sept. 11,” Schubert said. “Insurance covering risks of terrorism is still in a state of flux and we expect this to continue for some time to come.”