EXPANDED MSP TO BE SOUGHT IN DEFENSE AUTHORIZATION BILL MARKUP

EXPANDED MSP TO BE SOUGHT IN DEFENSE AUTHORIZATION BILL MARKUP    House Armed Services Committee Chairman Duncan Hunter, R-Calif., is expected to include language to expand the Maritime Security Program during the May 13 markup session for the 2004 National Defense Authorization Act.
   MSP, established by the 1996 Maritime Security Act, expires on Sept. 30, 2005. However, efforts are already underway to reauthorize and increase the number of ships in the program.
   MSP provides the federal government with immediate access to 47 military-useful commercial container and roll-on/roll-off vessels during times of war or national emergency. The government pays the vessel operators $2.1 million per ship to help offset the higher U.S.-flag operations costs.
   In the Defense authorization bill (H.R. 1588), the House Armed Services Committee plans to propose an increase in the MSP fleet to 60 U.S.-flag vessels, “grandfathering” in the current 47 MSP vessels.
   The committee wants to include five 40,000 to 60,000-deadweight-ton double-hulled product tankers for 13 of the proposed new MSP slots. The committee also plans to include “construction assistance” payments in the form of “$50 million or 75 percent of the differential between U.S. and foreign construction (whichever is less) for each of the five product tankers.”
   The Defense and Transportation Departments will determine the types of vessels for the other eight ships, the committee said.
   The committee’s proposal will call for the extension of MSP for 10 years at a payment of $2.6 million per ship enrolled in the program. In oversight hearings last year, the industry lobby had requested a MSP payment of $3.5 million for 20 years.
   U.S. maritime union leaders said they’re onboard with Hunter’s MSP reauthorization proposal. “Based on the proposal as described to us, we applaud your intention to extend the Maritime Security Program and to expand the authorized size of the maritime security fleet,” said four union leaders in a recent letter to Hunter.
   The letter was signed by Capt. Timothy A. Brown, president of the International Organization of Masters, Mates & Pilots; Ron Davis, president of the Marine Engineers’ Beneficial Association; Michael McKay, president of the American Maritime Officers; and Michael Sacco, president of the Seafarers International Union.