President’s budget proposal fully funds MSP

PresidentÆs budget proposal fully funds MSP    President Obama's fiscal year 2012 budget proposal, which was released this week, calls for full funding of the Maritime Security Program at the authorized level of $186 million for 60 U.S.-flag militarily useful vessels.

Obama

   The funding consists of a $174 million request coupled with $12 million in previously unobligated funds from the Maritime Administration to reach the authorized amount.
   The program was reauthorized by the 2005 Maritime Security Act and is administered by the U.S. Transportation Command and MarAd. MSP provides the federal government with immediate access to 60 modern U.S.-flag container, roll-on/roll-off, and heavy-lift vessels operating in commercial service in the international trades.
   The three largest carriers in MSP are Maersk Line Ltd., APL Ltd., and American Roll-on/Roll-Off Carrier LLC (ARC). MSP carriers have been instrumental in transporting equipment and supplies in support of U.S. military operations in Iraq and Afghanistan, including all surface-borne transport for Operation Enduring Freedom in Afghanistan.
   On Dec. 22, in recognition that MSP is 13-times more cost-effective than the Defense Department owning and operating an equivalent capability, Congress extended MSP beyond its 2015 expiration to 2025 as part of the 2011 National Defense Authorization Act (H.R. 6523).
   Government payments to participating operators were $2.6 million per ship per year for fiscal years 2006 to 2008, followed by $2.9 million for fiscal years 2009 to 2011, and $3.1 million for fiscal years 2012 to 2015. MSP payments are subject to the annual appropriations process.
   The U.S. Maritime Coalition, a group of U.S.-flag international and domestic ocean carriers, terminal operators and labor union representatives, is expected to highlight the benefits of MSP and U.S.-flag shipping during its annual congressional 'Sail-In' on Capitol Hill, May 4.
   The purpose of the Sail-In is to increase congressional awareness of the importance of America's maritime industry to the economic and national security of the United States, and to generate support for programs and policies important to the survival and growth of the U.S.-flag merchant marine and related jobs. ' Chris Gillis