MINETA SEES MARITIME SUBSIDY PROGRAM GOING TO DEFENSE DEPARTMENT
Secretary of Transportation Norman Y. Mineta told American Shipper Tuesday that he foresees the transfer of the Maritime Security Program to the U.S. Department of Defense, from the Maritime Administration.
The Maritime Security Program, a successor to the long-standing Operating Differential Subsidy program, supports 47 commercial U.S.-flag liner ships, which are on call during times of national emergencies.
Mineta made his comment on the transfer following a luncheon address at the American Association of Port Authorities' spring meeting.
The liner programs have been housed in MarAd since the agency was established under the Merchant Marine Act of 1936.
A loss of MarAd’s major program to DOD would greatly weaken or possibly lead to the dismantling of the agency.
Sending the MSP over to DOD was proposed recently in the Bush Administration’s fiscal year 2002 budget outline.
