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Copyright 2001 Singapore Press Holdings Limited  
The Business Times Singapore

October 4, 2001, Thursday

SECTION: Pg. SHIP1

LENGTH: 522 words

HEADLINE: Defence plan in which commercial ships take part

BODY:
THE Maritime Security Program (MSP) is a US defence programme aimed at ensuring a continuing presence of a viable US-flagged merchant marine fleet in international commercial shipping and to ensure it is available for military use in case of war or national emergency.

A product of the Maritime Security Act signed into law by former president Bill Clinton in 1996, the MSP makes the ships and crew as well as intermodal transport and communication network of the ship operator available to the US Department of Defence upon request. The programme has not been activated to date.

There are three categories of sealift vessel: dedicated Department of Defence sealift ships; standby reserve ships operated by the Department of Transportation's Maritime Administration (Marad); and US-flagged merchant ships. Through the Maritime Security Program (MSP) the US government contracts with commercial shipowners of containerships, conventional dry cargo vessels and ro-ro (roll-on, roll-off) vehicle carriers, for service when needed.

Nearly US$100 million in annual funding is set aside for subsidies to the shipping lines at US$2.1 million per ship, to partially offset the higher operating costs of keeping their vessels in the US flag registry.

In return for these subsidies, carriers must commit 100 per cent of the capacity of these vessels and other transportation resources to the Voluntary Intermodal Sealift Agreement (Visa), the emergency preparedness programme jointly run by the departments of defence and transportation.

Speaking of APL's involvement in transporting cargo to US forces during the 1991 Operation Desert Storm/Shield, NOL spokeswoman Sarah Lockie said: "Many of the complex issues that we faced in providing the appropriate level of support to the alliance partners during the Iraq war had not been worked out in advance. The Visa programme is designed to deal with those issues before the fact, which also assists us greatly in minimising the impact on our commercial customers."

According to Marad: "These ships would carry cargo such as ammunition, tanks, military equipment, vehicles, spare parts and food needed to sustain the deployment of American armed forces."

Currently there are 47 vessels from 10 shipping lines with a total capacity equivalent to 118,000 TEUs (20-ft container), including eight ro-ro vessels. If requested, shipping lines are compensated at commercial rates, according to Marad.

The Visa programme is divided into three stages with the first two stages designed to provide intermodal capacity for a single-theatre war while stage three provides additional lift for unforecasted requirements.

Other commercial US flag operators can volunteer ad hoc capacity in Visa stages one and two, but in stage three, participants must commit at least 50 per cent of their capacities. Currently there are an estimated 55 operators with 114 ocean-going ships and 397 other vessels including tugs and barges, enrolled in the Visa programme.

All Visa participants are given priority for the peacetime award of defence department contracts for cargo carriage.

LOAD-DATE: October 9, 2001




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