President Approves Funding For MSP, Title XI

President Approves Funding For MSP, Title XI

      The President approved full funding for the Maritime Security Program and other vital aspects of the Maritime Administration when he signed the 2002 appropriations bill for the Commerce, Justice and State Departments into law.
      A conference committee between the Senate and House of Representatives sent the White House the appropriations package, which includes full funding of the Maritime Security Program (MSP) at $98,700,000. The conferees appropriated $89,054,000 for other Maritime Administration (MARAD) expenses, training programs and maritime academies. The Title XI shipbuilding loan guarantee program received nearly $37 million in funding, $33 million of which is earmarked for backing new projects in U.S. shipyards.
      The MSP provides approximately $2 million per year to each of 47 commercial U.S.-flag cargo ships to offset the expense of complying with U.S. maritime laws while competing in international trades against flag-of-convenience ship operators. The program was authorized by the ten-year Maritime Security Act of 1996. It requires approximately $100 million in appropriations each year.
      In exchange, the ships and the seafarers that work aboard them are available to the U.S. military for sealift support operations during conflicts and times of war. The program has been cited by military and political leaders as a great success that saves tax dollars. If the government were to build and maintain the ships participating in the MSP itself, the cost would be significantly greater.
      American Maritime Officers fills the licensed positions aboard seven of the 47 ships that participate in the MSP: the Maersk containerships California, Colorado, Texas and Tennessee, and the car carriers Faust, Fidelio and Tanabata.
      The White House Office of Management and Budget earlier this year proposed shifting some of MARAD's responsibilities, including the MSP, to the Department of Defense and the administration proposed eliminating funding for Title XI loan guarantees. American Maritime Officers is among the organizations that oppose these changes.
      Due to the efforts of key Senators and Representatives, funding was allotted for Title XI and the MSP remained under MARAD's management.

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