U.S. MARITIME ADMINISTRATOR PHILLIPS FACES CHALLENGES TO U.S. SHIPBUILDING,MARINER SAFETY, U.S. FLAG SHIPPING & U.S. NAVAL SECURITY

NATIONAL SECURITY MULTI-MISSION VESSEL (PHOTO: U.S. MARITIME ADMINISTRATION)

BY STAS MARGARONIS, RBTUS

In a far-ranging interview, Rear Admiral Ann C. Phillips, US Navy (Ret.), who was sworn in as the 20th Administrator for the Department of Transportation’s Maritime Administration (MARAD), discussed challenges facing U.S. shipbuilding, mariner safety, maritime commerce and U.S. naval leadership based on the following MARAD programs:

• Tanker Security Program
• Ready Reserve Fleet (RRF)
• Maritime Security Program (MSP)
• Cargo Preference
• Port Infrastructure Development Program Grants (PIDP)
• Capital Construction Fund 
• Small Shipyard Grants
• Title XI Shipbuilding Loan Guarantees
• Marine Highway Program
• Mariner Shortages
• Sexual Assault and the EMBARC Program.
• National Security Multi-Mission Vessels
• MARAD Centers for Excellence

In announcing the Phillips appointment, the U.S. Maritime Administration noted:

“Phillips advises and assists the Secretary of Transportation on commercial maritime matters, to include the movement of goods, supply chain, as well as the U.S. maritime industry, environment and compliance, ports and waterways infrastructure, and strategic sealift. She engages public and private stakeholders in the maritime industry and oversees the U.S Merchant Marine Academy.”

Phillips also oversees MARAD’s programs to “improve and modernize the nation’s maritime network by administering the … investment in ports and waterways made possible by the Bipartisan Infrastructure Law, including $2.25 billion to be awarded over the next five years through the Port Infrastructure Development Program and $25 million for the America’s Marine Highway Program.”[1]

Prior to this appointment, Phillips served as the first Special Assistant to the Governor of Virginia for Coastal Adaptation and Protection, where she built a government and community approach to address the impact of coastal flooding across the Commonwealth, including the development of Virginia’s first Coastal Resilience Master Plan.

Admiral Phillips served nearly 31 years as a surface warfare officer.  Her final tour of duty, as Commander, Expeditionary Strike Group TWO, included the direct oversight of 14 ships and 10 subordinate commands – all the Amphibious Expeditionary Forces on the East Coast of the United States. Earlier, she served on the Chief of Naval Operations’ Staff as Deputy Director and then Director of the Surface Warfare Division.

U.S. MARITIME ADMINISTRATOR ANN PHILLIPS (PHOTO COURTESY: U.S. MARITIME ADMINISTRATION)

In April 2023, Phillips was the subject of a criticism written by GCaptain Publisher John Konrad who concluded that:

“In the face of mounting challenges, increasing geopolitical risks, an aggressive China and deglobalization the US maritime industry is at a critical juncture. The future of our nation’s maritime strength, economic security, and global competitiveness hinges on the commitment and dedication of those entrusted with safeguarding it. The time for silence and invisibility is over.

Commandant Ann Phillips must step up, embody the true spirit of leadership, and become the steadfast advocate that the US maritime industry so desperately needs. It is not enough to merely occupy a title or fulfill a role behind closed doors. To truly make a difference, the ghost admiral must emerge from the shadows, bringing with her the passion, determination, and ingenuity that has made the American maritime industry the force it once was.”[2]

In the following interview, conducted on July 19^th, Phillips responds by her actions to initiatives that she has undertaken since becoming the U.S. Maritime Administrator in 2022:

Tanker Security Program. Phillips said that the United States needs more ocean-going tankers to support U.S theater requirements in the Pacific: “And that is where Air Force General Jacqueline Van Ovost, head of the U.S. Transportation Command (USTRANSCOM) is very, very focused on. Can she maneuver enough fuel around … Pacific to meet the theater campaign requirements? No, she cannot. That need generated the Tanker Security Program among other things. And that continues to be a need.” In Congressional testimony (on March 28, 2023) Phillips explained: “The President’s budget requests $60 million at the authorized level for the Tanker Security Program (TSP). A study required by the FY 2020 National Defense Authorization Act (NDAA) found a substantial risk to the nation associated with heavy reliance on foreign-flagged tankers, particularly in a contested environment. The TSP will be comprised of active, commercially viable, militarily useful, privately owned product tank vessels. We anticipate announcing the first 10 ships selected for enrollment in the near term. The 10-ship TSP initiative will create new employment for approximately 500 U.S. mariners.”[3]

On July 25th, 2023 MARAD announced that nine ships have been enrolled in the Tanker Security Program (TSP). TSP establishes a fleet of active, commercially viable, militarily useful, privately owned product tank vessels of the United States that will meet national defense and other security requirements and maintain a United States presence in international commercial shipping.

The announcement said that  “TSP will strengthen the U.S. supply chain and improve the movement of liquid fuel products while creating good-paying jobs. The TSP will also support American-owned, American-flagged, and American-crewed commercial product tankers operating in international commercial shipping. The program will ensure the Department of Defense (DoD) has assured access to critically needed product tankers capable of loading, transporting, and storing on-station bulk petroleum refined products to support national economic security…”

The companies selected for enrollment are Overseas Shipholding Group, Inc. (three tank vessels); Crowley-Stena Marine Solutions, LLC. (three tank vessels); and Seabulk Tankers, Inc. (three tank vessels).

All of the companies have signed operating agreements. Of the enrolled vessels, four are under U.S. flag and are now operating in the program, and five are working with the assistance of the U.S. Coast Guard to expedite reflagging to U.S. registry to begin operating under TSP agreements. Each tank vessel enrolled will receive a maximum $6 million per year payment, prorated on a monthly basis for qualified service as participants in the program. The vessels will operate in U.S. foreign commerce and be available for use by the United States during times of war or national emergency.

MARAD published a solicitation in the Federal Register on July 25, 2023, seeking applications for enrollment in TSP from qualified companies. The program is authorized for up to ten tankers and MARAD seeks to fill the remaining operating agreement with a qualified vessel. MARAD published notices in the Federal Register seeking applications for enrollment from qualified participants. To qualify for the program, proposed vessels have to qualify as Medium Range product tankers between 30,000-60,000 deadweight tons with fuel carrying capacity of 230,000 barrels or more, be less than 10 years of age, and available to commit to an emergency preparedness agreement for the duration of the program’s authorization. All vessel operators selected for the TSP are required to be enrolled in MARAD’s sexual assault and sexual harassment prevention and response policy program Every Mariner Builds A Respectful Culture (EMBARC). (Please see: https://www.maritime.dot.gov/newsroom/us-department-transportation-announces-first-ships-enrolled-tanker-security-program)

 

Ready Reserve Fleet (RRF). Phillips previously noted that: “The President’s FY 2024 Budget requests $809.6 million from DOD budgetary authority for MARAD to acquire, upgrade, and maintain vessels in the NDRF and RRF … Today, the RRF is a fleet of 45 vessels, with an average age of more than 45 years, maintained in a reduced operating status to be ready to sail within five days of activation. The fleet will grow to 51 vessels after the planned transfer of additional surge sealift and prepositioning vessels from the Military Sealift Command is complete by the end of FY 2025. As part of the Navy’s overall plan for sealift recapitalization, MARAD is responsible for maintaining the existing RRF ships through the recapitalization period, including dozens of ships that are now nearly 50 years old or even older. In the FY 2023 NDAA, MARAD was directed to develop a Roll-On/Roll-Off ship design for the construction of 10 new vessels for the National Defense Reserve Fleet (NDRF) to begin construction in 2024. At this time, MARAD activity is limited to developing the implementation plan and the requirements for a concept design for new construction.” The Ready Reserve Force (RRF) is a subset of vessels within MARAD’s National Defense Reserve Fleet (NDRF) ready to support the rapid worldwide deployment of U.S. military forces. As a key element of the Department of Defense (DOD) strategic sealift, the RRF primarily supports transport of Army and Marine Corps unit equipment, combat support equipment, and initial resupply during critical surge periods, according to MARAD.[4]

Maritime Security Program (MSP). Phillips said, in the interview, there has not been much change in the MSP program: “… So (in) the Maritime Security Program there’s 60 vessels that … receive a payment. … I don’t see the size of that program changing, particularly near term. The slots are full. And … we are advertising for the two slots that were made available because the OSG (Overseas Shipholding Group) tankers that were in that program have shifted over to the Tanker Security Program. The US flag fleet is broadly …  60 are a part (of MSP),  Cable Security Program, … two vessels in that program. That’s 62 … vessels.”

According to the Maritime Administration, Congress originally established MSP in 1996 as a 10-year program for up to 47 vessels in U.S. registry. Expanded to 60 U.S.-Flag vessels in 2003, MSP is currently authorized through 2035:

• MSP maintains a core fleet of U.S.-flag, privately-owned ships operating in international commerce which are also available under agreement to provide capacity needed to meet Department of Defense requirements during armed conflicts and national emergencies.
• All MSP dry cargo ships are enrolled in the Voluntary Intermodal Sealift Agreement.
• MSP tankers are enrolled in the Voluntary Tanker Agreement.
• Approximately 130,000 twenty-foot foot equivalent units (TEUs) of container capacity, 3.4 million square feet of RO/RO and heavy-lift capacity, and 666,800 Bbls (barrels) of tanker capacity are committed to DOD through MSP obligations.
• MSP ship crews are a major source for the DOD surge fleet. The MSP contributes approximately 2,400 mariner positions to the U.S. deepwater seafarer base.[5]

Cargo Preference. Cargo Preference refers to U.S. laws, regulations and policies that require the use of U.S. flag vessels in the movement of cargo that is owned, procured, furnished, or financed by the U.S. Government. In her testimony, Phillips said: “One of the current challenges with meeting cargo preference requirements is ensuring we have both enough vessels and the wide mix of vessel types to carry the many types of cargoes that the government impels. To help attract additional vessels to our flag, last year, the Biden-Harris Administration proposed that Congress eliminate the 3-year period that vessels entering the U.S. flag must currently wait before they are eligible to carry civilian agency preference cargoes. This would ensure that vessels that choose to sail under the U.S.-flag can carry preference cargoes as soon as they enter the flag and provide opportunity to diversify the types of vessels available to civilian agencies to carry cargoes. In return the vessels would be required to remain under U.S. flag for 3 years. Unfortunately, this proposal was not adopted by the prior Congress and no new vessels have been added to the fleet capable of meeting civilian agency cargo needs
since 2019.”(Please see:  https://armedservices.house.gov/sites/republicans.armedservices.house.gov/files/Administrator%20Phillips%20Witness%20Statement.pdf page 4)

Port Infrastructure Development Program Grants (PIDP) Phillips testified that in 2022 “MARAD awarded more than $703 million in PIDP grants. This total included the first tranche of $450 million in funding provided by the Biden Administration’s Bipartisan Infrastructure Law (BIL) … The 2022 PIDP awards will fund 41 projects in 22 states and one territory. More than 60 percent of the PIDP awards made in 2022 benefit ports in historically disadvantaged communities. More than $150 million in the funding awarded last year focuses on port electrification to improve air quality, while nearly $100 million of the awarded funding supports projects that will advance offshore wind farm development. These efforts are helping to advance the important objectives of the Bipartisan Infrastructure Law … This year, thanks again to the BIL and the funding provided in the FY 2023 appropriations measure, more than $662 million in funding is available for PIDP grants.”[6]

Capital Construction Fund. MARAD notes the Capital Construction Fund (CCF) program was created to counterbalance lower foreign flag carrier costs by helping U.S. owners and operators “secure the capital necessary to modernize and expand the U.S. merchant marine. The program encourages construction, reconstruction, or acquisition of vessels through the deferment of Federal income taxes on certain deposits of money or other property placed into a CCF. Participants must meet U.S. citizenship requirements. The CCF Program was significantly expanded in December 2022 with the passage of the National Defense Authorization Act for Fiscal Year 2023 which expanded the use of the program to all U.S. built vessels which are engaged in the domestic or foreign commerce of the United States, doing away with limitations on the availability of the CCF program to certain geographic trades that had been in effect. As a result, Phillips said in the interview: “due to changes that … removed a geographic restriction or requirement … that particular opportunity to any kind of vessel … Now it can be used for anything … It’s essentially a 401k. … You get a tax break for money that you deposit in year A, you can then use it anytime in the future, but you have to use it for the designated purpose, which is repairing your vessel, maintaining your vessel, building new capacity for your vessel, or building a new vessel. There is a heavy penalty if the money is withdrawn for any other purpose, a very heavy penalty … If you use it for the matter in which it was intended, it is a very good tax break. A lot of small vessels that they wanted to re-engine, they put their money in the end of last year, they got their tax break, they re-engine their vessels, took the money out, re-engine their vessels, they’re done. We don’t handle their money, we just handle them being a part of this program, getting the tax benefits, registering that with the IRS, and then letting the IRS know if they’ve moved forward. And as we have gone around this summer … talked to the tug industry, the towing industry, the small passenger vessel industry … We’re really seeing an uptick in this program … We need to do everything we can to reduce carbon emissions and more efficient engines are a way to do that.”

Small Shipyard Grants. In May, the Maritime Administration announced $20.8 million in grant awards to 27 small shipyards in 20 states through the Small Shipyard Grant Program. The funds will help shipyards modernize, increase productivity, and expand local job opportunities while competing in the global marketplace. Since 2008, MARAD’s Small Shipyard Grant Program has awarded $303 million to nearly 350 shipyards in 32 states and territories throughout the U.S.[7] In the interview, Phillips said: “This program is typically over-subscribed by four or five times. The amount of money in the program every year, gets lots of interest from Congress …  because they have a small shipyard in their district and they want them to get money … In addition to helping small yards upgrade their equipment, upgrade their capacity, we can also pay for … apprenticeship training or training to operate that new equipment.

Title XI Shipbuilding Loan Guarantees.  Title XI Loan Guarantee program was once perceived as the federally backed credit card for a small number of U.S. flag carriers and as such cited as a corporate welfare by the late U.S. Senator John McCain.

In 2020, the program underwent a major change when MARAD “completed the implementation of significant changes in the Federal Ship Financing Program commonly known as Title XI, as a result of which the program offers improved economic features. The changes leave behind the traditional commercial private bond structure and place the Federal Financing Bank (FFB) in the role of buyer of the Title XI guaranteed debt. MarAd sought these program improvements and Congress made the FFB the lender of choice for the program in 2019. Henceforth, all government guaranteed debt issued by shipowners that have successfully undergone MarAd’s exhaustive and rigorous application process will be purchased by the FFB.( Please see:https://www.klgates.com/major-changes-in-title-xi-the-federal-ship-financing-program-5-15-2020)

In 2023, there are both  national security and commercial maritime imperatives for the United States to finance and build more U.S. flag ships at U.S. shipyards and the simplest means to to achieve this end is to finance more shipbuildings through increased funding of  the Maritime Administration’s Title XI Loan Guarantee program.

U.S. House and Senate leaders are discussing a proposed ‘Ships Act’ to dramatically upgrade U.S. naval and commercial shipbuilding along the lines of the $52 billion CHIPS Act supporting U.S. semiconductor manufacturing, according to Luke Lorenz, Director of Legislative Affairs, Navy League of the United States.

In May,  Lorenz told a Propeller Club of Northern California audience that the outline of a possible Ships Act is still a work in progress in the House and Senate, but it might involve reactivating older or shuttered shipyards and would have implications for California because of the need to focus shipbuilding assets on the Pacific Ocean. Aside from building or rebuilding shipyards, an almost equal challenge will be finding and training American workers who can be deployed to perform the welding, painting, engineering, and other steel fabrication skils required to build ships: “So, this is still being cobbled together. It’s still happening kind of behind the scenes. Nobody has stepped forward yet to really say we are going (to) put forward a Ships Act. … The Navy League is consulting with various relevant offices to see if something like that could be beneficial and could potentially become a reality … Now, this would have, significant implications for California. Obviously, we want to have that presence in the Pacific. So, some of the shipyards and docks that have fallen into disrepair or … lack of use, in recent years … might come back online…”

Lorenz also said  that the focus of U.S. shipbuilding workforce development is getting high priority with leaders in the House and Senate for the next National Defense Authorization Act: “The second priority is workforce development. This is an enormous issue across every sector of the American economy, but it’s certainly very, very … clear in the shipbuilding industrial base.”

Unfortunately, MARAD currently has no means to support such an effort without a dramatic change in funding and political support from Congress.  As of June, 2023 MARAD reported  that “The approximate subsidy available for Title XI is $35.4 million, as of June 2023 … based on the average risk for projects MARAD previously guaranteed could support approximately $475 million in loan guarantees.” This program is designed to manage loans that help to promote the U.S. shipyard industry by providing additional opportunities for vessel construction and modernization, including repowering, that may otherwise be unavailable to ship owners. The program has suffered from underfunding for years.

Title XI funding amounts by year. [9]

Source: MARAD

On the issue of underfunding, Phillips said: “The challenge with Title XI is we now have a lot more interest in loans in the program than we have funding support to buy down that risk. So, Congress knows this, the Department of Transportation knows this. And what we are doing is we are processing loan applications and we’re going to keep going until we run out of money. And then, we’re going back and ask for more .” Furthermore, “There is bipartisan interest from both sides. I get asked about this a lot in testimony by everybody: ‘Is there enough money in this program for the loan applications that we have? No, there is not. And so, they all go: ‘mm-hmm’. And they walk away. So, there’s a lot of interest here. And we absolutely want to be able to take advantage of this opportunity and help industry … to increase their capacity.”

The reality, Phillips noted, is that the FY 2024 Budget request for MARAD includes $3 million for the Maritime Guaranteed Loan Program (Title XI) to provide the salaries and overhead support to manage the loan portfolio, currently at $1.5 billion in outstanding loan guarantees.”

In her March testimony Phillips said that in June 2022 MARAD designated vessels constructed or reconstructed for use to support offshore wind facilities as Vessels of National Interest: “This is the first time that this authority has been used since it was added to Title XI statute in 2019. With this designation, applications for projects qualifying as Vessels of National Interest have priority for review and funding. Since this designation, there has been a significant increase in interest in the Title XI Program to support offshore wind vessels. The program has applications for seven projects under credit worthiness review, including five projects for Jones Act-qualified windfarm vessels:”[10]

in the interview, Phillips said: “One good thing about Title XI is we are able to work with companies whose credit is not Triple A …. And we provide … funding to help basically buy down risk for loans in that circumstance, because this is a volatile industry, and things change based on people’s business models and the business they are planning on … acquiring. And of course, if you are building a vessel for the offshore wind industry, you’re able to get moving on the vessel. You are going to start to get contracts for that vessel and work for it in the future, … which is great.”

Phillips said the program can also be extended to shipyards: “…We certainly can loan money to shipyards. Now, we don’t have any loan applications for ship yards pending, but … we can do that. We can refinance vessels; we can finance new construction. There’s some interests and legislation that has been proposed that would allow Title XI to support ship maintenance and ship repair.”

Marine Highway. Phillips told Congress that the Fiscal Year 2024 Budget “requests $11 million for the United States Marine Highway Program. Marine Highways support our maritime supply chains and enable more cost-effective transportation options for U.S. shippers and manufacturers. The FY 2023 NDAA made significant changes to this program, including renaming it from the “America’s Marine Highway Program” to the new “United States Marine Highway Program” and expanding the types of cargo that projects receiving funding under the program can support.

In the interview, Phillips said: “What changed was … we are no longer limited to container transport. Any product can be transported … so liquid, bulk, break, bulk, you name it,  grant applications can be made in support of any of these … products. So, I think that’s opened up the program tremendously and that we’re going to see even more need … and interest. We see plenty of interest and (MARAD) Gateway directors have made sure that I get to places like Fort Smith, Arkansas, … and St. Louis and other places to look at inland ports and talk to the folks that are part of the inland port world.”

Thanks to another change made in the FY 2023 NDAA, “any eligible project along any of the 29 designated Marine Highway Routes— which encompass 41 states—is eligible to apply for funding. In 2022, MARAD awarded nearly $39 million in marine highway projects: “This unprecedented level of funding was made possible by the BIL, which provided a one-time infusion of $25 million to support the expansion of marine highways.”

Phillips added that Marine Highway grants could also be obtained through Port Infrastructure Development Program grants: “Just as a reminder, the Port Infrastructure Development Program grants can help support Marine Highways. We can award small grants there. We do award small grants there. They do help. And we get a lot of folks coming in the door and saying: Thank you” for grants “that also happens to be on a Marine Highway program. So, we are able to provide assistance through PIDP as well.”

Mariner Shortages. In Congressional testimony, Phillips reported: “In a 2017 study, MARAD estimated that we are approximately 1,800 mariners short of the number of licensed and unlicensed mariners needed to operate the commercial fleet and the RRF (Ready Reserve Fleet) in the … event of a full mobilization exceeding 4-6 months. Based on MARAD’s meetings with the industry and maritime labor unions, it appears that the shortage may have worsened in the post-COVID work environment.” [11]

As a result Phillips added: “MARAD is partnering with our stakeholders, both Federal and non-Federal, to work to identify strategies to help address the mariner shortage and ensure their readiness. Last fall, I hosted a summit with industry and federal stakeholders to discuss the mariner shortfall. Participants identified the need to address barriers to entry in the merchant marine as well as the need to ensure quality of life aboard ships such as ensuring internet connectivity for crew members.” Phillips has also noted shortfalls in the U.S. Coast Guard’s ability to process licenses for mariners “… the existing Coast Guard licensing system (Merchant Mariner Licensing and Documentation system) relies on labor-intensive paper copies and manual entries and is not set up to provide critical data regarding the number of and availability (of) mariners with various credentials. We fully support the Coast Guard’s ongoing efforts to modernize the system to enable efficient issuance of mariner credentials and provide enhanced querying capabilities.”

In the interview, Phillips noted that companies are trying to make living spaces more attractive on board vessels so as to attract new mariners: “The other thing we’re seeing across industry broadly is it’s competition that brings people in for internet, quality of life …, consistent hours, good pay. And … those in industry that have taken that to heart are finding it easier to fill their billets when they need them. And those that haven’t are finding it harder … I actually had a company last week send … a US flag carrier send me their crew living space design, so I could see all the things they’re doing to improve their crew living spaces.”

Sexual Assault and the EMBARC Program. Hope Hicks’ disclosure as “Midshipman X”,  that she was raped while she was a midshipman at  the U.S. Merhcant Marine Academy (USMMA) focused national attention on the continued problems of sexual assaults against women at sea and at U.S. maritime schools. In a 2021 blog post, she said she was raped on a Maersk ship during the Academy’s ‘Sea Year’ program: ” In our class of approximately 50 women, I know of at least 5 women who were forcibly raped during Sea Year. And I am one of them. When I returned to the Academy after completing my Sea Year, I became a Victim’s Advocate (VA), and the number of girls who have come to me to report a case of sexual assault is absolutely sickening.” (Please see: https://www.maritimelegalaid.com/blog/i-was-raped-aboard-a-maersk-ship-during-sea-year)

In November 2022, Phillips announced the appointment of  Rear Admiral Joanna Nunan, retired from the U.S. Coast Guard, to be the Merchant Marine Academy’s first female Superintendent. At the Coast Guard, Nunan served as the Assistant Commandant for Human Resources. In that role, she helped spearhead efforts to expand diversity and inclusion in the Coast Guard, including formulating policy changes focused on increasing the retention of women in the service. She also served as a member of the Coast Guard’s Sexual Assault Prevention, Response, and Recovery Committee. (Please see: https://www.usmma.edu/about/communications/vice-admiral-joanna-nunan-makes-history-14th-superintendent-usmma)

At that time, Phillips stated: “Rear Admiral Nunan is uniquely prepared to lead and strengthen USMMA on every front. She understands both the critical role USMMA plays in our economic and national security and the organizational transformations that are essential to ensuring USMMA prepares students in a safe and respectful environment to excel in a maritime industry undergoing rapid change.” (Please see: https://www.maritime.dot.gov/newsroom/rear-admiral-joanna-nunan-announced-as14th-superintendent-us-merchant-marine-academy)

In the interview, Phillips saiid MARAD has to do more to protect mariners and cadets at maritime schools: “What we are trying to do is to change the culture in the maritime industry. That is what we are about. The goal is to ensure safety at sea for all mariners. Since we are the owners of the (U.S. Merchant Marine Academy at) Kings Point and overseers of Kings Point, we have responsibilities to ensure first and foremost the safety of our cadets at sea. Sailing on commercial vessels ensuring the safety of mariners at sea … so that they are not operating or working in an environment where they fear bullying, assault, harassment, or other criminal activity … that makes their experience and really the experience of the entire crew unsafe … We gave every midshipman a voice activated satellite phone so that they had a way of communicating privately with anyone they wanted to. We still pay the bill …They can call their mother, they can call their boyfriend, they can call their girlfriend, they can call the Coast Guard. They can call anyone they feel they need to. Should they feel threatened they can call back to the Academy.”

As a result, Phillips said that MARAD established the EMBARC (Every Mariner Builds a Respectful Culture) program in December 2021 “to help prevent sexual assault and sexual harassment during the Sea Year (cadet program), to support survivors, strengthen a culture of accountability, and improve safety for all mariners.” The FY 2023 NDAA gave MARAD the authority to withhold payments from companies participating in federal programs “if they do not comply with the policies and requirements established by MARAD for the protection of cadets from sexual assault and sexual harassment.” [12]&[13]

The new rules also apply to Maritime schools: Phillips said MARAD will be looking at how enforcement is working at each institution: “We meet monthly with the six State Maritime Academy superintendents.”

In addition, Phillips referred to incidents reported by The Los Angeles Times that allegedly occurred on the training vessel Golden Bear operated by the California State University Maritime Academy: “We are working with the schools to ensure that we … embark on a place that (ensures enforcement) of rules on … the vessels that we provide to them … We have a responsibility under the law to ensure that their Title IX programs (which prohibits discrimination based on gender) are adhered to  … There were reports of things happening on Golden Bear in the past: …What were those things? Who knew? When did they know? Who did they report to?”

Phillips also noted new responsibilities placed on vessel captains: “There is now a requirement for a Master of a vessel to report harassment, in addition to assault or any other criminal activity on the ship to the Coast Guard, which is different. … and the Coast Guard will then decide how they’re going to take action.”

National Security Multi-Mission Vessels. Phillips told Congress:“ The FY 2024 Budget request also includes funding for vessel management, logistics, and maintenance oversight to prepare the (state maritime academies) schools to receive and operate the National Security Multi-Mission Vessels (NSMV). Funding would also be available to address unanticipated increases in steel costs for the NSMVs …There are now four NSMVs under construction. The first ship—the EMPIRE STATE—is already launched and we anticipate taking delivery of the ship in June of this year. ”[14] MARAD says the delivery of new training vessels for the maritime schools (6 will eventually be delivered) will provide modern vessel technology with which to train and attract cadets. MARAD will provide ships from the National Defense Reserve Fleet (NDRF) as training vessels for the six state maritime academies. The agency is “currently working to replace these older ships with new, purpose-built training vessels that will better meet the academies training needs while also providing the U.S. with ships that can support disaster response and other critical national needs and promote (the) United States’ ability to construct world-class National Security Multi-Mission Vessels to be delivered on time, as designed, and at a fixed price for advancing the education of future merchant marine officers.”[15]

PHOTO: MARAD

MARAD Centers for Excellence. Phillips cited the Centers for Excellence (CoE) in which MARAD may designate certain eligible and qualified training entities as Centers of Excellence for Domestic Maritime Workforce Training and Education (CoE). Centers of Excellence designations serve to assist the maritime industry in obtaining and maintaining the highest quality workforce: “The Maritime Administration (MARAD) developed the CoE Program to support maritime workforce training and education at designated CoEs, including efforts of the designees to admit additional students; recruit and train faculty; expand facilities; create new maritime pathways; and award students’ credit for prior experience, including military service. MARAD will review and consider all applications it receives and may contact applicants with questions to assist in reviewing their applications. The CoE Program is a voluntary program and, therefore, any eligible and qualified training entity is free to decide whether it wishes to participate in the program and apply for a CoE designation.[16]

Applicants for Center of Excellence are invited to submit applications to the Maritime Administration (MARAD) for designation as a 2023 CoE by the September 18, 2023 deadline: “Applications including all supporting information and documents, must be submitted by 8:00 p.m. E.T. on September 18, 2023.”[17]

FOOTNOTES

[1] https://www.maritime.dot.gov/office-administrator/key-personnel/rear-admiral-ann-c-phillips-us-navy-ret

[2] https://gcaptain.com/us-maritime-crisis-uncovering-the-ghost-admiral-steering-the-us-governments-most-secretive-agency/

[3] STATEMENT OF ANN C. PHILLIPS MARITIME ADMINISTRATOR MARITIME ADMINISTRATION BEFORE THE COMMITTEE ON ARMED SERVICES SUBCOMMITTEE ON READINESS & SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES U.S. HOUSE OF REPRESENTATIVES HEARING ON “POSTURE AND READINESS OF THE MOBILITY ENTERPRISE” MARCH  28, 2023

[4]https://armedservices.house.gov/sites/republicans.armedservices.house.gov/files/Administrator%20Phillips%20Witness%20Statement.pdf

[5] https://www.maritime.dot.gov/sites/marad.dot.gov/files/2022-08/MSP%20Brochure%208-2022.pdf

[6] STATEMENT OF ANN C. PHILLIPS MARITIME ADMINISTRATOR MARITIME ADMINISTRATION BEFORE THE COMMITTEE ON ARMED SERVICES SUBCOMMITTEE ON READINESS & SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES U.S. HOUSE OF REPRESENTATIVES HEARING ON “POSTURE AND READINESS OF THE MOBILITY ENTERPRISE” MARCH  28, 2023

[7] https://cms.marad.dot.gov/newsroom/press-releases/usdot-announces-funding-27-small-shipyards-20-states-help-increase

[8] https://news.usni.org/2023/04/07/u-s-maritime-industry-needs-better-business-case-to-offer-more-support-to-dod-says-panel

[9] https://www.maritime.dot.gov/grants-finances/title-xi/subsidy-availability-history

[10]https://armedservices.house.gov/sites/republicans.armedservices.house.gov/files/Administrator%20Phillips%20Witness%20Statement.pdf, page 8

[11] Phillips Testimony, March 2023

[12] https://www.maritime.dot.gov/sites/marad.dot.gov/files/2022-09/EMBARC%20Update%20%28Sep.%2013%2C%202022%29.pdf

[13] https://www.maritime.dot.gov/education/sea-year-training-program-criteria/embarc-update-building-safe-maritime-industry

[14] Phillips Testimony March 2023

[15] https://www.maritime.dot.gov/national-security/nsmv-%E2%80%93-national-security-multi-mission-vessels

[16] https://www.maritime.dot.gov/education/maritime-centers-excellence

[17] https://www.govinfo.gov/content/pkg/FR-2023-07-20/html/2023-15382.htm