Copyright 2001 Journal of Commerce, Inc.  
Journal of Commerce - JoC Online
April 9, 2001
SECTION: OCEAN TRANSPORTATION and PORTS/INTERMODAL; Pg.WP

LENGTH: 669 words

HEADLINE: Budget shifts MSP to Defense

BYLINE: BY R.G. EDMONSON - JOC ONLINE

BODY:
The Department of Transportation will shift $98 million to the defense department for the Maritime Security Program, according to budget figures released today.Transfer of the MSP money would cut the Maritime Administration's budget to $103 million in the 2002 fiscal year, down from $219 million in this fiscal year. The new fiscal year will begin Oct. 1, 2001.

The budget also allows $4 million to administer existing loans in the Title XI program, but no additional funding for the program. Transportation Secretary Norman Mineta noted that there is still some $10 million left in the Title XI fund, but that wasn't much when it came to shipbuilding.

"The administration is looking at whether (Title XI) is to be continued," Mineta said during a press briefing this morning. He noted there is also "counterpressure" from industry to continue support of Title XI.

Other major portions of the Marad budget request show modest increases: $2 million ( $89 million total) for operations and training programs, and $10 million for the demolition of three obsolete ships in the National Defense Reserve Fleet.

James Caponiti, Marad associate administrator for national security, said that that the administration's staff will begin to work this year with their counterparts in the defense department to assure a smooth transition of MSP. He also noted that transfer of Marad would require congressional approval.

Despite the budget cuts, Caponiti said that "Marad is safe" as a part of DOT.

During the press briefing Mineta acknowledged that he had not yet found a candidate for Marad administrator. He said that recruiting for the position had been difficult but intends to interview more candidates this week.

Mineta also said that the new budget proposed more than doubling the number of truck inspectors along the border with Mexico, from 60 to 140. Bolstering the inspection force would help the U.S. that Mexican trucks and drivers complied with U.S. laws.

The Department of Transportation will shift $98 million to the defense department for the Maritime Security Program, according to budget figures released today.

Transfer of the MSP money would cut the Maritime Administration's budget to $103 million in the 2002 fiscal year, down from $219 million in this fiscal year. The new fiscal year will begin Oct. 1, 2001.

The budget also allows $4 million to administer existing loans in the Title XI program, but no additional funding for the program. Transporatation Secretary Norman Y. Mineta noted that there is still some $10 million left in the Title XI fund, but that wasn't much when it came to shipbuilding.

"The administration is looking at whether (Title XI) is to be continued," Mineta said during a press briefing this morning. He noted there is also "counterpressure" from industry to continue support of Title XI.

Other major portions of the Marad budget request show modest increases: $2 million ($89 million total) for operations and training programs, and $10 million for the demolition of three obsolete ships in the National Defense Reserve Fleet.

James Caponiti, Marad associate administrator for national security, said that that the administration's staff will begin to work this year with their counterparts in the defense department to assure a smooth transition of MSP. He also noted that transfer of Marad would require congressional approval.

Despite the budget cuts, Caponiti said that "Marad is safe" as a part of DOT.

During the press briefing Mineta acknowledged that he had not yet found a candidate for Marad administrator. He said that recruiting for the position had been difficult. He intends to interview more candidates this week.

Mineta also said that the new budget proposed more than doubling the number of truck inspectors along the border with Mexico, from 60 to 140. Bolstering the inspection force would help the U.S. that Mexican trucks and drivers complied with U.S. laws.END

LOAD-DATE: April 10, 2001