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America's "Sleeper" Crisis?


By SCOTT C. TRUVER

Dr. Scott C. Truver is executive director of the center for security strategies and operations in the Techmatics Division of Anteon Corporation.


It is only one element of yet another complex multifaceted challenge confronting the United States at the dawn of the 21st century. With practically all agencies of government and industry, at home and abroad, worried about the "Y2K Millennium Bug," the U.S. Coast Guard announced in mid-June that it would not close American ports on 1 January 2000, reducing the likelihood that merchant shipping--the lifeblood of the U.S. economy--would be disrupted by the Year 2000 computer problem.

"We never wanted to put arbitrary limits on ships," Rear Adm. George N. Naccara, the Coast Guard's chief information officer, remarked about a suggestion to close ports around the New Year in response to concerns that foreign trade, generally, and oil imports, specifically, might be interrupted by the Y2K "bug." The Coast Guard already had concluded that computer "glitches" could affect critical electronic-navigation and engine-control systems, possibly causing mariners to lose track of their positions--and, possibly, control of their ships. The result--unless manual back-up systems could be brought on line quickly--could be a series of maritime disasters along U.S. coasts and in ports from Seattle, Wash., to Portland, Maine. The specter of another Exxon Valdez or New Carrissa grounding heightens the already well-known need for strong preventive measures and increased readiness.

Instead of closing ports, however, the Coast Guard will require all U.S.- and foreign-flag ships entering U.S. territorial seas and ports to prove that they are "Y2K-prepared" and ready to meet virtually any contingency. The Coast Guard's Captains of the Port are empowered to deny entry to any ship that fails the test.

"Action ... Now"

The Y2K challenge also hints at the vulnerability of America's Marine Transportation System (MTS)--which connects the U.S. heartland to the global economy--to disruption from computer "bugs," natural and man-made disasters, and terrorist attacks. "The physical distribution infrastructure is critical to the national security, economic well-being, global competitiveness, and quality of life in the United States," the President's Commission on Critical Infrastructure noted in its October 1997 Critical Foundations report. That infrastructure, the report continues, "includes 1,900 seaports and 1,700 inland river terminals on 11,000 miles of inland waterways carrying grain, chemicals, petroleum products, and import and export goods. ... Tomorrow--perhaps next year, perhaps in ten years--critical transportation systems could be vulnerable to such attacks and crippled unless action is taken now."

There are other--perhaps less dire, but no less important--concerns about the current state and future direction of the nation's MTS. Today, America's aging and fragmented MTS infrastructure is stressed, and that stress continues to increase steadily, as Adm. James M. Loy, the Coast Guard commandant, and Clyde J. Hart Jr., the administrator of the U.S. Maritime Administration (MARAD), emphasized during a 13 May 1999 hearing on near- and far-term future MTS needs. In testimony prepared for the Subcommittee on the Coast Guard and Maritime Transportation of the House Committee on Transportation and Infrastructure, Loy and Hart noted that "the challenge is clear. Ports must be prepared to respond to the mounting pressures of growing trade, more noncommercial waterways users, the development of new means to harvest and preserve marine resources, and increasingly aggressive efforts by criminals and adversaries intent on doing societal harm.

"At the federal level," the two officials asserted, "we must include eliminating the gaps, overlaps, and stovepipes among government agencies. Government and the private sector must continue to work together if we want the very best MTS possible for the future."

The MTS Defined

The U.S. MTS "is much more than the waterways and ports through which nearly all of America's foreign and domestic trade moves every day," Jeffrey P. High, the Coast Guard's director of waterways management, ex-plained in early June. "It is also the intermodal links to rail, truck, and pipeline services that support U.S. economic and military security. In particular," High said, "the marine infrastructure facilitates our global outreach into overseas markets and our engagement in world affairs, including protection of U.S. national security interests."

The MTS also includes the national and international regulatory framework that governs U.S. trade and commerce. In short, it is the intricate and in some instances delicate--albeit highly fragmented--web of relationships and systems that link the farmer in Iowa to customers in Russia, China, and other U.S. trading partners throughout the world.

There are over 330 seaports and more than 3,700 marine terminals in the United States. They are linked by some 25,000 miles of federal and privately maintained navigation channels, and serve the tens of thousands of miles of rail, highways, and pipelines that criss-cross the nation. More than 90 percent of the U.S. population is served in one way or another by domestic shipping, which moves approximately one-quarter of the nation's freight (as measured by ton-mile) for less than two percent of the total freight bill.

In peacetime, more than 95 percent of America's trade tonnage is carried in ships, including the nine million barrels of oil per day that fuel the American economy--more than half of the nation's daily consumption. In time of war--as was most recently demonstrated during the Gulf War--approximately 95 percent of all of the supplies, equipment, weapons, ammunition, and other consumables carried to and from the combat theater is moved by ships. At the height of the unprecedented 12,000-mile shipping effort required for Operation Desert Shield, a "Steel Bridge" of ships linked U.S. ports with in-theater facilities in an almost continuous movement of the "beans, bullets, and black oil" needed to defeat Saddam Hussein's forces.

Billions and Trillions

Projections for 1999 indicate that as much as three billion metric tons of export and import cargo, valued at more than one trillion dollars, will transit U.S. waters and pass through U.S. ports. In addition, some 78 million recreational users, 140 million passengers, and 110,000 fishing vessels will compete for access to relatively limited U.S. water space. Looking forward to the next 20 years, the Coast Guard's 1998 strategic vision publication, Coast Guard 2020, identified the most likely challenges facing America's MTS in the next two decades. Specifically focusing on "economic globalization," CG2020 forecast that:

America will become more dependent upon international trade ... [almost all] of which will be transported on the water. U.S. maritime trade will double, if not triple, by 2020. Trade with Asian-Pacific and Latin American countries will increase more than with other regions. Efficient maritime transportation will become more critical to America's economy and competitiveness. Global seaborne trade will bring larger numbers of ultralarge, deep-draft, and minimally crewed ships. America's inland and coastal commerce will experience increased barge and tow traffic. Higher volumes of oil, hazardous materials, and bulk commodities are likely. Just-in-time delivery of raw materials and finished goods will become the norm, magnifying the consequences of disruptions and emphasizing the importance of the marine transportation system's reliability. Furthermore, growing numbers of people will have the resources and leisure time to spend on cruises and recreational boating. Collectively, this congestion on America's waterways will create a greater need for a well-integrated intermodal transportation system with close links among the sea, land, and air components.

"We have been told to expect a threefold increase in cargo volumes--to nine billion tons annually--[as well as] 10 percent annual growth in passenger ferry service, millions more recreational users vying for use of the waterways with 'megaships' carrying 6,000-plus containers or over 5,000 passengers," High wrote in an MTS "Problems and Trends" white paper. "We are at a critical juncture with respect to our MTS future," he commented in June. "We know that there will be increasing demand on our ports and waterways. We know that there is no coordinated public and private-sector plan in place to address the challenge.

"National leadership is needed now," he said, "to ensure our waterways keep pace with the shoreside infrastructure."

Other officials agree that a failure to plan now for the challenges of the future will significantly reduce U.S. competitiveness and increase risks to safety, security, and the marine environment.

The same points were emphasized by Loy and Hart in their May testimony before Congress. "These challenges will continue to require both public- and private-sector efforts," the two marine transportation leaders said.

Those same "challenges" are exacerbated by competing interests and demands, which often have pitted one element of the MTS against another, and by the fragmented responsibility for management, oversight, and promotion of the overall system--if, indeed, "system" is not an oxymoron in this context. High acknowledges that "varied jurisdictions, overlapping responsibilities, and a lack of overall leadership for the development of a national maritime transportation system vision, plan, or policy characterize the situation today."

But there is hope for the future, he was quick to point out, if a series of regional "listening sessions" that culminated last fall in the convening of a National MTS Conference bear fruit. "For the first time," he said, "we got every element of the MTS community together, talked with them, [and] allowed all participants to air concerns and identify possible solutions."

In Search of a Vision

The seven "listening sessions" that MARAD and the Coast Guard conducted at various coastal and inland ports during the spring and summer of 1998, High continued, resulted in the identification of "several key issues and imperatives. These include: the need to develop consensus on a vision for the Marine Transportation System of 2020; interagency coordination at the national, regional, and local levels; and recommendations to improve safety, security, global competitiveness, infrastructure, and environmental protection of the marine transportation system."

Those issues and imperatives were the focus of the 17­19 November 1998 National MTS Conference, during which 144 representatives from all sectors of the national MTS community participated. "Two overriding concerns were cited time and again," Loy and Hart acknowledged during their testimony: "the lack of a shared national vision for the MTS, and the lack of leadership and coordination among government agencies."

According to some conference participants, the development of a unifying vision for the 2020 MTS proved somewhat more difficult than had been expected, but a general consensus eventually was crafted that reconciles most differences and balances most if not all competing interests. At the outset of the conference, Secretary of Transportation Rodney E. Slater emphasized the need for a clear and focused final statement--which, he said, "will enable us to move forward to create a marine transportation system for the 21st century--one that continues to be safe, secure, and environmentally sound."

The final result, High asserted, is what he de-scribed as an "excellent" vision statement: "The U.S. Marine Transportation System will be the world's most technologically advanced, safe, secure, efficient, effective, accessible, globally competitive, dynamic, and environmentally responsible system for moving goods and people."

Several steps to meet that ambitious goal have already been taken, but it will not be an easy, or low-cost, proposition. Hundreds of millions of dollars, perhaps much more, will be needed to build a truly world-class MTS. Simply by raising the visibility of the MTS, however, especially within the administration and on Capitol Hill, increases the prospects for cooperation and the sharing of information among all MTS players.

Progress and Controversy

MARAD and the Coast Guard started the long-term effort by creating an MTS Task Force of 46 representatives from industry and 20 leaders from within government to prepare a report assessing the current state and future direction of the U.S. MTS. Two related proposals--to establish a National Council on Maritime Transportation that would be responsible for supporting and coordinating the development of a national MTS strategy and policy; and to create local and regional committees, to build grass-roots support for the MTS, and to address maritime issues and recommend improvements--are being addressed actively within the Coast Guard and MARAD.

An Assessment of the U.S. Marine Transportation System, mandated by the Coast Guard Authorization Act of 1998, the final draft report of these efforts, achieved a wide consensus on numerous complex issues, but also has generated a certain amount of controversy as well. Two participants at the MTS summit, Joseph Cox, president of the Chamber of Shipping of America, and George Ryan, president of the Lake Carriers' Association, were reported to have been "caught off guard" at a 21 May MTS Task Force meeting when a White House OMB (Office of Management and Budget) official said that the report had to receive the OMB seal of approval before it could be submitted to Congress. Several members of the Task Force felt that this requirement amounts to an OMB veto, and would result in the submission of a report that does not accurately reflect the majority view of the Task Force. Cox, quoted in The Journal of Commerce, said that his group was disappointed to learn that any view inconsistent with the administration's would be deleted. "The report should not simply become an administration position paper," he commented.

"We are trying to craft the best, most consensus-based report that we can," High said--but he conceded that there "are bound to be some issues where we do not agree entirely."

A Responsibility to Lead

The Coast Guard and the Maritime Administration, the most obvious key players in the current and future structure of the U.S. MTS, have bound together to help craft a vision for the system that they hope will generate widespread political and public support, much as President Dwight D. Eisenhower's vision of the interstate highway system was instrumental in galvanizing the nation into action. Working closely with all components of America's MTS, the Coast Guard-MARAD team continues to seek a strategy, plan, and cost-effective series of programs that will integrate America's waterways, ports, and intermodal connections into a truly national system. Slater also has made the creation of an integrated national MTS a matter of personal high priority. What remains now is for other administration leaders to work together with the Congress to turn the MTS vision into reality.

The Coast Guard's military, multimission, and maritime character will enable it to manage and provide the disciplined partnering framework needed for an extremely complex and interconnected system that adds great economic value to the national infrastructure. The service's unique humanitarian and civilian law-enforcement mandates also will enhance safety on the water by reducing the potential for and occurrences of marine incidents, and by mitigating the consequences of those that do occur.

The trends outlined by the Coast Guard in CG2020 portend an even more central and expansive role for the service in the next century. In U.S. ports and coastal waterways, and in America's territorial seas and exclusive economic zones, the Coast Guard--working in close partnership with the Maritime Administration and other federal, state, and local agencies, as well as various commercial entities and international organizations--will help to ensure that a national MTS agenda is developed, pursued, and achieved. "We do not have all the answers, and are not the primary user of the MTS," a senior Coast Guard official admitted--"but we do have the responsibility to lead, coordinate, facilitate, adjudicate, and, frankly, stay out of the way when it is in America's best interest, to help reach these national goals."

But when it comes down to the key question--which agency to call when there is a major emergency in any of America's waterways--odds are that the answer will continue to be, as it has been for the past two centuries, "the United States Coast Guard." 

 



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