Maersk points to citizenship, American military in USSM takeover

Maersk points to citizenship, American military in USSM takeover    Maersk Line Ltd. defended its status as a U.S. citizen company and commitment to the American military during times of war.
   “MLL’s commitment to the United States is unquestionable, and is best evidenced by our long-standing history of successfully operating ships for the U.S. Department of Defense, supporting U.S. military operations and troops worldwide, including sending seven of our own ships into the Iraq theater to support U.S. troops,” said Ken Gaulden, senior vice president of Maersk Line Ltd., in a statement Thursday.
   Maersk Line Ltd. has been engaged in a battle of words with U.S. Ship Management (USSM), the operator of 15 U.S.-flag vessels in the federal government’s Maritime Security Program (MSP). Maersk Line Ltd. operates four ships in MSP, but seeks direct control of USSM’s 15 vessels.
   Maersk Line Ltd., a subsidiary of A.P. Moller/Maersk Sealand, recently won approval from the Maritime Administration to take over the 15 USSM ships. The company claimed that under its 1999 MarAd-approved time charters that USSM agreed to transfer direct operations of the former Sea-Land Service vessels to Maersk should the company elect to become the sole MSP contractor. USSM, a U.S. section 2 citizen company, was set up after Maersk acquired Sea-Land as a way to keep the 15 ships enrolled in MSP.
   MSP was created under the 1996 Maritime Security Act and is managed by MarAd. The program provides the federal government with immediate access to 47 militarily useful commercial container and roll-on/roll-off ships during times of war or national emergency. To help offset the higher vessel operations costs of these U.S.-flag vessels, the government pays the MSP operators $2.1 million per ship per year. Last year, MSP was reauthorized by Congress with 13 additional vessel slots and increased payments to the operators.
   Maersk Line Ltd. made its request to MarAd to transfer the USSM vessels to its direct control in November 2001. USSM has vigorously fought the transfer, openly questioning Maersk Line Ltd.’s U.S. citizenship status.
   Gaulden said USSM’s statements “leave a significantly mistaken impression and require clarification.”
   He said Maersk Line Ltd. is a U.S. citizen company, incorporated in Delaware, and with headquarters in Norfolk, Va. The company has an independent board of directors comprised of U.S. citizens, including Adm. Harold W. Gehman, chairman and former vice chief of naval operations and supreme allied commander in the Atlantic, and (Ret) Vice Adm. William H. Rowden, former commander of the Naval Sea Systems Command.