New Maritime Threat Advisory System Established

By Mark Edward Nero

A group of US maritime and intelligence agencies have devised a new US Maritime Advisory System that they say establishes a single federal process to expeditiously provide maritime threat information to maritime industry stakeholders, including vessels at sea.

The US Maritime Administration, in partnership with the US Departments of State, Defense, Justice, Transportation, and Homeland Security, as well as the intelligence community, and maritime industry stakeholders played a part in the development of the system.

MarAd says that the new US Maritime Advisory System streamlines, consolidates and replaces maritime threat information previously disseminated in three separate government agency instruments: Special Warnings, MarAd Advisories, and global maritime security related Marine Safety Information Bulletins.

This new system establishes for the first time, a single, whole-of-government maritime security notification mechanism, and represents the most significant update to the issuance of U.S. government maritime security alerts and advisories since 1939, according to MarAd.

Zero Emission High-Speed Passenger Ferry Feasible: MARAD

By Mark Edward Nero

It’s technologically possible to build and to operate a 150-passenger, high speed, zero emission hydrogen-powered ferry and its associated hydrogen station in the current regulatory environment, according to a newly-released feasibility study by the US Maritime Administration.

However, the report also states that the current ferry design has a cost premium compared to a conventional diesel ferry.

The study examined the technical, regulatory, and economic feasibility of a high-speed passenger ferry powered solely by hydrogen fuel cells and its associated hydrogen fueling infrastructure in the San Francisco Bay.

Cost reduction strategies specific to the vessel design and strategies for leveraging developments in the fuel cell technology are now being explored, according to MARAD.

The study was funded through MARAD’s Maritime Environmental and Technical Assistance (META) Program and conducted by Sandia National Laboratories. It’s part of ongoing work by the Maritime Environmental and Technical Assistance Program and the maritime industry to conduct research, testing, validation and documentation of fuel cells for marine applications.

The full study can be found at: https://www.marad.dot.gov/wp-content/uploads/pdf/SF-BREEZE-Ferry-Feasibility-Study-Report-by-Sandia-National-Laboratory-2.pdf.

-->

Matson, TOTE, Crowley Win Defense Contracts

By Mark Edward Nero

Oakland-based Matson Navigation and Concord, Calif.-headquartered Patriot Contract Services were among seven U.S. maritime firms that have won contracts to manage, maintain and operate 48 National Defense Reserve Fleet (NDRF) vessels through January 2024, US Transportation Secretary Anthony Foxx announced Jan. 22.

“The US Merchant Marine and National Defense Reserve Fleet play a crucial role in our nation’s security,” Maritime Administrator Chip Jaenichen said in a prepared statement. “These contract awards will allow our commercial maritime companies to continue providing top-notch support to our troops who are stationed or deployed around the world.”

In total, the Dept. of Transportation has awarded contracts with a total award value of $1.96 billion over eight years to the seven US maritime firms, with the Maritime Administration contracts being funded by the Department of Defense (DoD) National Defense Sealift Fund to support DoD’s strategic sealift mission.

Patriot Contract Services received a $227 million contract to bear responsibility for seven vessels, while Matson won a $174.6 million deal to maintain three vessels. Other contract awardees include Crowley Technical Management of Jacksonville, Fla., which will received $149.7 million to maintain four vessels; and TOTE Services, also of Jacksonville, which won a $461.1 million contract for the care of nine vessels.

Pennsylvania-based Keystone Shipping Services (11 vessels, $411.6 million); Ocean Duchess Inc. of Houston (eight vessels, $342.2 million); and Pacific-Gulf Marine Corp. of Louisiana (six vessels, $194.2 million) were the other awardees.

Award amounts include firm-fixed fees for the four-year base contract and two 2-year options, without future economic price adjustment, plus estimated reimbursable costs for eight years.

The 18 contracts awarded total $953.5 million for the four-year base contract, which runs through January 2020. The two 2-year options bring the total award value to $1.96 billion.

Forty-six of the vessels are part of the Department of Transportation’s Ready Reserve Force, a fleet managed by the Maritime Administration that provides rapid mass movement of Department of Defense equipment and supplies to support our Armed Forces, and also responds to national and humanitarian emergencies. The other two vessels are used to support Missile Defense Agency operations.

Each certified, mission-ready vessel is maintained so that it can be fully activated and deployed quickly. The 46 Ready Reserve Force vessels have been activated hundreds of times since 2002, according to MARAD.

More information on the ships is available at www.marad.dot.gov.

MARAD Announces Small Shipyard Grant Program

By Mark Edward Nero

The US Maritime Administration on Dec. 31 announced the 2016 funding availability for its Small Shipyard Grant Program.

There’s currently $4.9 million available for grants for capital and related improvements to shipyard facilities that will foster “efficiency, competitive operations, and quality ship construction, repair, and reconfiguration,” according to MARAD.

“Potential applicants are advised that it is expected, based on past experience, that the number of applications will far exceed the funds available and that only a small percentage of applications will be funded,” MARAD stated in its announcement.

It’s anticipated that between five and 10 applications will be selected for funding, with an average grant amount of about $1 million.

Grants under the program can’t be used to construct buildings or other physical facilities, or to acquire land unless such use is specifically approved by the Maritime Administration as being consistent with, and supplemental to, capital and related infrastructure improvements.

Grant funds can be used, however, for maritime training programs to build technical skills and operational productivity in communities where the economies are related to or dependent upon the maritime industry.

The period for submitting grant applications began in mid-December and the deadline for applications is Feb. 16. Grants are expected to be awarded by April 18.

Complete information about the grant program, including full submission requirements and the mailing address for grant applications, can be found in the MARAD funding notice: https://d3dkdvqff0zqx.cloudfront.net/groups/sca/attachments/small%20shipyard%20grants%20nofa%202016.pdf

MARAD: US Shipbuilding Generates $37 Billion

By Mark Edward Nero

The private shipbuilding and repair industry in the US provided more than 110,000 jobs across all 50 states in 2013 and contributed more than $37 billion to the gross domestic product, according to a newly released study by the Maritime Administration.

In 2013, the US private shipbuilding and repairing industry directly provided 110,390 jobs, $9.2 billion in labor income, and $10.7 billion in gross domestic product to the national economy, according to the study, which was released the first week of November.

Including direct, indirect, and induced impacts, on a nationwide basis, total economic activity associated with the industry reached 399,420 jobs, $25.1 billion of labor income, and $37.3 billion in GDP in 2013, the document states.

The states with the highest reported levels of overall direct, indirect, and induced employment associated with the industry were Virginia, California, Mississippi, Louisiana and Texas.

There are currently 124 shipyards in the United States, spread across 26 states, that are classified as active shipbuilders. There are also more than 200 shipyards engaged in ship repairs or capable of building ships but not actively engaged in shipbuilding.

Employment in shipbuilding and repairing is concentrated in a relatively small number of coastal states, with the top five states accounting for 63 percent of all private employment in the shipbuilding and repairing industry.

“Everything that shipbuilding meant in 1789, it still means today,” US Transportation Secretary Anthony Foxx said. “In 2015, American shipbuilders ensure that our nation can build and maintain the vessels that our military needs to keep our nation secure. In 2015, American shipbuilders still provide essential commercial vessels (that) enable domestic commerce on our inland waterways and link to our domestic energy supplies.”

The full MARAD report is available at http://www.marad.dot.gov/wp-content/uploads/pdf/MARAD_Econ_Study_Final_Report_2015.pdf

TOTE, MARAD Partner on LNG Study

By Mark Edward Nero

The US Maritime Administration (MARAD) said Oct. 5 that it has entered into a $900,000 cooperative agreement with TOTE Maritime to develop knowledge regarding the costs and benefits of vessel conversions to liquefied natural gas propulsion.

The demonstration project on the use of LNG for containership propulsion is a part of an ongoing program to promote increased use of alternative fuels and technology in the maritime industry.

TOTE is converting the containership M/V Midnight Sun to operate on LNG and will work with MARAD to obtain pre and post-conversion air emissions data, and operational information to assist maritime stakeholders in assessing the potential of LNG conversions.

The study is expected to be completed by 2018.

The M/V Midnight Sun is a roll-on/roll-off (ro/ro) cargo ship that provides round-trip shipping service between the Port of Tacoma and the Port of Anchorage. TOTE signed a contract with Finnish corporation Wärtsilä in late 2013 for the conversion of the Midnight Sun and its sister ship, the M/V North Star, to run on LNG. The conversions are expected to be among the largest ever undertaken in North America.

MARAD Funding Vessel Emissions, Energy Projects

By Mark Edward Nero

The US Maritime Administration is making about $2 million in federal funding available to help fund projects that support vessel emissions reductions and alternative energy.

The funding is being made available under two separate requests for applications. One is focused on exhaust gas cleaning demonstration projects on US-flagged vessels that remove pollutants from the stacks of ships and other marine vessels.

Estimated funding for the program is $750,000. Closing date for applications is July 19.

The other request for applications focuses on projects that demonstrate vessel emissions reductions through the use of alternative fuels or energy sources such as LNG or fuel cells, and improvements in vessel energy efficiency through use of conservation technology and practices.

Estimated funding is $1.3 million, with a closing date for applications set for June 11.

The agency said it intends to use the results of the data demonstration projects to support further work related to air emissions reduction and alternative energy research and o assess the public benefit of possible incentives to encourage adoption of emissions reduction and alternative energy in the maritime sector.

Additional information about these requests for applications can be found on the US government grants website: http://www.grants.gov/search-grants.html?agencies%3DDOT|Department%20of%20Transportation

MARAD Sued Over Anchorage Port Project

By Mark Edward Nero

The city of Anchorage, Alaska announced March 3 that it has filed a lawsuit in US Federal Claims Court against the Department of Transportation Maritime Administration (MARAD) regarding MARAD’s alleged mishandling of a project to expand the Port of Anchorage.

In the lawsuit, which was filed Feb. 28, the city seeks monetary relief as a result of what it calls MARADs breach of its contract regarding the expansion.

“We won’t throw a (specific monetary) number out just yet,” Anchorage Mayor Dan Sullivan said during a March 3 press conference.

The port expansion project, which has been in the works for more than a decade, was overseen by MARAD until the US Army Corps of Engineers took control in May 2012. The expansion was originally estimated to cost $360 million and was supposed to be complete by 2011. Instead, cost estimates have jumped to about $1 billion and climbing and completion isn’t expected for another decade.

“It is extremely important that all those responsible for the project not being completed in a timely and cost effective manner be held responsible,” Sullivan said. “The Port of Anchorage is too important for the economy of this entire state to accept the level of mismanagement that occurred.”

Three of four new sections built at the Port of Anchorage were not constructed correctly, and due to shifting land, could fail during an earthquake, according to a $2.2 million sustainability study that was conducted by engineering firm CH2M Hill on behalf of the US Maritime Administration and the Army Corps of Engineers.

The study, which was released in November 2012, was requested by the Corps after it assumed control of the Port of Anchorage expansion project from MARAD in 2012.

According to the study, the danger from the construction comes mainly from a foundation system called Open Cell Sheet Pile, or OCSP, where instead of building a traditional dock on piling, interlocking sheets of steel are hammered into the sea floor to form U-shaped cells, which are then backfilled with dirt and gravel.

The suitability study determined that the OCSP system is not adequately designed to meet global stability and seismic displacements based on the design criteria.

“The management of the project was not handled competently,” Sullivan said. “With a project as important as this, any of those involved with the project need to be held accountable for what their actions were.”

Engineering firm CH2M Hill, which conducted the sustainability study, has since been named project manager for the expansion and Sullivan said that the company is expected to begin work by the end of March on the development of a new project management plan.

The management plan is expected to take about 12 weeks to complete, according to the city.

The archived video of Sullivan’s press conference on the lawsuit can be watched in full at http://www.ustream.tv/recorded/44483341.

MARAD Gives $7 Million to Maritime Academies

By Mark Edward Nero

The US Maritime Administration (MARAD) on Jan. 29 revealed that America’s six state maritime academies and the United States Merchant Marine Academy in Kings Point, NY, will each receive $1 million from a government program that recycles obsolete vessels.

Grant recipients include the California Maritime Academy, Great Lakes Maritime Academy, Maine Maritime Academy, Massachusetts Maritime Academy, SUNY Maritime College and Texas Maritime Academy.

In a statement, MARAD said the funding is expected to help ensure US Merchant Marine officers “are available to meet our nation’s national security and economic needs.”

“The most important element in our US Merchant Marine fleet is our people,” US Transportation Secretary Anthony Foxx said. “This funding will help ensure that dedicated men and women of our maritime academies continue to have the resources that make them the best educated and most highly trained mariners anywhere.”

The money for the funding came from the sale of obsolete vessels from the Maritime Administration’s National Defense Reserve Fleet, which were purchased for recycling. Federal law requires that 25 percent of the profit from sales is distributed to maritime academies for facility and training ship maintenance, repair, and modernization, and for the purchase of simulators and fuel.

Fifty percent funds the acquisition, maintenance, and repair of vessels in the National Defense Reserve Fleet; and the other 25 percent is provided to the National Park Service, which provides grants for maritime heritage activities through the National Maritime Heritage Grants Program.

Since 2009, MARAD has provided almost $9 million in funding generated from vessel sales to the state academies and the US Merchant Marine Academy.

MARAD Study: Panama Canal Expansion to Have Substantial Effect

The expansion of the Panama Canal is expected to have more of an impact on shippers, ports and freight corridors on the East and Gulf coasts than the West Coast, according to a newly released study by the US Department of Transportation’s Maritime Administration (MARAD).

The study, which was released in late November, reports on shipping patterns and industry costs that could help the United States prepare for the anticipated impact on its ports, waterways and intermodal freight systems from the Panama Canal expansion.

The expansion, scheduled for completion in 2015, will give much larger vessels, specifically “Post Panamax” vessels, greater access to the US ports on the East and Gulf coasts.

The Panama Canal Expansion Study, the first of a two-part report, found the integration of Post-Panamax vessels into US trade lanes will have substantial implications for the nation’s shippers, ports and surface freight corridors, particularly along the East Coast, Gulf Coast and inland states located east of the Mississippi River.

The report also found that more cost-effective service generated by the larger vessels could improve the ability of some US exports, such as grain, coal, petroleum products and liquefied natural gas, to compete in global markets.

However, shifts in shipping patterns impacting the national transportation system are expected to occur slowly and over time.

“Preparation is the key, and we’re already seeing it,” Acting Maritime Administrator Chip Jaenichen said. “Increased cargo means expanded capacity, and forward-looking ports are deepening their harbors and improving their intermodal connections.”

The full Panama Canal Expansion Study can be found at http://www.marad.dot.gov/library_landing_page/maritime_publications/Library_Publications.htm.

MARAD Announces LNG Project Grants

The US Department of Transportation’s Maritime Administration (MARAD) announced Nov. 7 that it’s providing a total of $1.4 million for two projects supporting the increased use of alternative fuels and technology in the maritime industry.

The funds are expected be used to collect information on the use of liquefied natural gas as a marine propulsion and to study the issues and challenges associated with shore side storage and fueling of LNG vessels.

MARAD says it will provide Horizon Lines with $900,000 to assist in conversion and monitoring of its vessel, Horizon Spirit, to operate on LNG. The Horizon Spirit is an 892-foot long, 115-foot wide ocean going container ship that operates between Long Beach, California, and Honolulu.

The conversion is anticipated to be completed by late 2015, according to MARAD.

The second project is a $500,000 MARAD funded LNG study conducted by the US subsidiary of Norwegian technical standards development company Det Norske Veritas to analyze the issues and challenges associated with the process of supplying fuel for ships and the landside infrastructure needed to store and distribute LNG. MARAD says it anticipates the study will be complete by spring 2014.

The two recipients were chosen via a competitive process to partner with MARAD as part of a new program to demonstrate innovative technologies and practices and share data on the results.

“Fuel-efficient ships appeal to the maritime industry for the exact same reasons that fuel-efficient cars appeal to consumers – they’re easy on the environment and their pocketbooks,” US Transportation Secretary Anthony Foxx said in a statement.

Stockton-to-Oakland Barge Service Dedicated

The US Maritime Administration (MARAD) on Nov. 1 held an official dedication ceremony at the Port of Stockton for the M-580 barge service, also known as the California Green Trade Corridor.

The Corridor is expected to help take freight traffic off California’s congested I-580 by offering shippers an option to move cargo along the waterways between the ports of Oakland, Stockton and Sacramento. The project received a $30 million grant from the Department of Transportation, as well as $5 million from local sources.

US Transportation Secretary Anthony Foxx, Acting Maritime Administrator Paul Jaenichen and state and local leaders were on hand for the dedication.

“This $30 million investment in public infrastructure is an important part of President Obama’s national initiative to double America’s exports by 2015,” Foxx said. “This Marine Highway will help get cargo off the highways and onto our waterways, improving traffic on our roads while providing an efficient, environmentally-friendly option within our freight system.”

The M-580 Marine Highway roughly parallels the I-580 corridor between California’s Central Valley and Oakland, one of the most heavily congested highways in the country. It is estimated that about 1,600 containers currently move per day between the Stockton and Oakland ports along I-580.

Running two barges per week between Oakland and Stockton is expected to eliminate about 200 trucks per day from the highway. When the corridor is fully operational, it’s expected that barges would make three round-trips along the corridor weekly.

Officials estimate that eventually the M-580 could eliminate 180,000 truck trips from I-580, I-80, and I-205 freeways annually, saving about seven million gallons of fuel and reducing air emissions in the process.

“The Green Trade Corridor is a win-win solution for Northern California and the millions of Americans and businesses who rely on it to send and receive goods,” Jaenichen said. “This new efficient and environmentally friendly transportation alternative is also creating jobs in Stockton.”

The barge system, which had been in the planning for years, was technically launched over the summer.

MARAD to Hold National Maritime Strategy Meeting

The Maritime Administration (MARAD) is inviting marine transportation system stakeholders to participate in a January 2014 discussion to gather ideas for improving the country's cargo opportunities and sealift capacity while ensuring future sustainability.

The public meeting is planned for 9 am to 4:30 pm daily from Jan. 14 through Jan. 16, 2014 in the US Department of Transportation (DOT) West Atrium, 1200 New Jersey Avenue SE., Washington, DC 20590.

The public is invited to propose agenda topics and to comment on the ideas submitted by others at http://www.regulations.gov, DOT Docket Number MARAD-2013-0101.

Proposed agenda items should focus on, but are not limited to: fostering and improving the US-flag fleet; improving transportation efficiency, speed, availability and cost-effectiveness; methods to improve overall US economic competitiveness though improvements to the Marine Transportation System; improving transportation efficiency through interoperability with existing infrastructure systems and other modes of transportation; reduction of marine transportation pollution and adverse environmental impact; expansion of the pool of skilled and available US mariners; developing strategically valuable capacity; increasing economical waterborne carriage for US businesses; improving US port operations and related businesses; improvement of global business and employment opportunities for the US; and fostering the construction and repair of vessels in US shipyards.

Written proposals for agenda items can be submitted at http://www.regulations.gov. Parties must submit their input identified by DOT Docket Number MARAD-2013-0101. All submissions must include the agency name and docket number.

The public meeting will be broadcast via live streaming link from http://www.MARAD.dot.gov.

The deadline to submit agenda topics and ideas for discussion is Nov. 29, 2013. Registration for the event opens Dec. 17, 2013 and closes Jan. 3, 2014.

More information on the event can be found at https://www.federalregister.gov/articles/2013/10/28/2013-25396/national-maritime-strategy-symposium-cargo-opportunities-and-sealift-capacity.

MARAD Reveals Shipyard Grant Recipients

Twelve shipyards across the United States, including one in Washington state, have been awarded a total of $9.46 million in grants for a variety of projects including infrastructure improvements and equipment upgrades to increase operational competitiveness and quality vessel construction.

Out of the dozen shipyards announced as award recipients by the U.S. Department of Transportation’s Maritime Administration (MARAD) on July 24, only All American Marine is located on the West Coast.

Bellingham, Washington-based All American Marine was awarded $999,100, which the company says it will use for overhead cranes, welding machines, a CNC router, scissors lifts, painting area upgrades and ventilation upgrades.

The federal grants are provided through MARAD’s Small Shipyard Grant Program, which is designed to foster efficiency and modernizations that allow shipyards to compete more effectively in the global marketplace.

“Improvements at our shipyards mean more ships can be built right here in the United States, which means more jobs for hard-working Americans,” US Transportation Secretary Anthony Foxx said in a prepared statement. “These grants are about creating new opportunities in our local communities, as well as competing in the global economy.”

For the latest round of awards, MARAD said it received 113 grant applications requesting a total of $96 million in assistance, over 10 times more than the $9.46 million available.

In addition to All American Marine, funding recipients include Seacraft Shipyard, LLC in Amelia, Louisiana, which received the largest portion of the funding -- $1.1 million -- for a marine travelift; and C&C Marine and Repair of Belle Chasse, Louisiana, which was granted $999,920 for a 220-ton hydraulic crane.

Other grant recipients are based throughout the U.S., including in New Jersey, Florida, Texas and Maryland. A full list of recipient shipyards and award amounts can be downloaded at http://www.marad.dot.gov/documents/Grant_Awards.doc.

 

 

Port of Anchorage Dock Construction Could Be Undone

Most of the work to build new dock areas at the Port of Anchorage as part of an expansion project could be undone because of improper construction, the city and port officials say.

The deconstruction option was one of three possibilities discussed by officials during a three-day session regarding the project.

The mid-December work session came weeks after a report found that three of four new sections built at the port were not constructed correctly, and due to shifting land, could fail during an earthquake.

The $2.2 million, 2,200-page sustainability study was conducted by engineering firm CH2M Hill on behalf of the US Maritime Administration (MARAD) and the US Army Corps of Engineers. It says the danger comes mainly from a foundation system called Open Cell Sheet Pile, or OCSP, where instead of building a traditional dock on piling, interlocking sheets of steel are hammered into the sea floor to form U-shaped cells, which are then backfilled with dirt and gravel.

Due to the problems, most construction of the project was halted in 2010.

The Corps requested the study be conducted after it assumed control of the Port of Anchorage expansion project from MARAD on May 31.

Officials from the port, Corps of Engineers and MARAD were present during the study session. One option discussed over the course of the three days was that two major port tenants, Horizon Lines and Totem Ocean Trailer Express (TOTE), would remain at their current berths and that a new deep water berth and a barge berth would be built after the damaged material now there is removed.

Another option was the temporary movement of TOTE and Horizon from their existing terminals while the old terminals are demolished and rebuilt. A third, so-called hybrid option would be to replace two of the existing terminals on the old dock and build a new deep-water berth.

The expansion, which has been in the works for more than a decade, was originally estimated to cost $360 million, and was supposed to be complete by 2011. Instead, cost estimates have jumped to more than $1 billion and continue to climb. A completion date is at least a decade away, according to port estimates.

Anchorage Mayor Says Port Expansion Back on Track

A Port of Anchorage expansion project that’s been beset with funding, design and construction problems for years is now back on track, according to the city’s mayor.

“Shortly before I took office in July 2009, it was reported that there may be significant construction problems with the expansion project,” Mayor Dan Sullivan said. “For the last two-and-a-half years, my administration has worked diligently to first determine the extent of the problem and chart a path forward.”

Difficulties with the expansion have included the August 2011 death of a bulldozer operator who drowned when his machine accidentally slid into gravel fill; the discovery in 2009 that steel sheets used to form a new dock face bent and separated during installation; and cost overruns.

The project’s now estimated to cost about $1 billion to finish, triple the original 2005 projection.

But Sullivan says some solutions to issues have been found, including:

• The full-time assignment of a Maritime Administration representative to the project, to allow better direct oversight and communication with federal agencies.
• Formation of a project oversight committee, consisting of officials from MARAD, the city and the port. The committee, which will meet weekly, is tasked with approving work schedules and budgets, setting benchmarks, and approving changes.
• Formation of a technical committee to review project documents and make recommendations to the project oversight committee.
• Creation of a quality control and quality assurance program to ensure the work is done correctly.
• A review of the expansion’s design, and of the construction to date, by the Army Corp of Engineers.

“With the project back on track, the only remaining component is funding,” Sullivan said, noting that Alaska Gov. Sean Parnell included $200 million for the port in his recently proposed state budget.

“I will be working with our Legislature to provide any additional information they may need to support the governor’s proposal, and give this critical project the fiscal certainty it needs going forward,” Sullivan said.

$400 Million Guam Port Upgrade Contract Awarded

The US Department of Transportation's Maritime Administration, or MARAD, has awarded Maryland-based engineering firm EA Engineering, Science and Technology Inc., a seven-year, $400 million contract to modernize the commercial port of Guam.

Under the terms of the contract, EA will oversee and with its partners, conduct all work required under the Port Authority of Guam-adopted 2008 modernization plan.

"The timely completion of this major infrastructure improvement program is necessary to provide modern and efficient transportation access to the island of Guam, and to meet the Department of Defense requirements for the Guam buildup," said EA officials in a statement.

The PAG modernization plan is part of an effort by the island to prepare for the transfer of about 8,000 Marines and 9,000 from Okinawa, Japan to Guam by 2014. Nearly 75 percent of the modernization plan's called-for $207 million in port improvement projects are directly related to meeting the requirements of the military buildup on the island.

The PAG is still trying to find funds to begin the modernization program. Earlier this year, the port was denied $50 million in recovery funds by the United States Department of Transportation – funds that would have been used by PAG to obtain an additional $49 million low-interest loan from the U.S. Department of Agriculture.

The PAG is now hoping to receive $50 million from the US Department of Defense to begin work on the modernization program – a move encouraged by a recent letter from President Barack Obama to members of Congress requesting support of the funding.
PAG officials said they believe that the awarding of the EA contract by MARAD signals a commitment from the federal government to move forward on the modernization program.

Exact terms of the EA contract were not immediately released and MARAD and PAG officials plan to meet Wednesday on Guam to discuss preliminary details.

Bellingham Shipyard, Others, Benefit from MARAD Grants

The Fairhaven Shipyard located at the Washington state Port of Bellingham has been awarded $1.3 million in federal grant money that is scheduled to be used to improve the yard's floating drydock.

Fairhaven, owned by Puglia Engineering, plans to use the funds to outfit the firm's Faithful Servant drydock with an 80-ton crane and coating equipment, according to the firm's grant request.

The Fairhaven award is part of $14.7 million in grant awards announced Monday by the US Department of Transportation’s Maritime Administration to help improve 17 small shipyards in 16 states.

“These grants will help modernize small shipyards and strengthen our economy by making sure we maintain the ability to build and repair ships in the United States,” said US Transportation Secretary Ray LaHood in announcing the awards.

Other West Coast ports benefiting from the grants include: Kapolei, Hawaii where ship maintenance and repair firm Marisco, Ltd. was awarded just over $1 million for cranes, forklifts, welding machines, compressors and dust collector equipment; Coos Bay, Oregon where Sause Bros. subsidiary tug and barge shipbuilder Southern Oregon Marine, Inc. was awarded $173,749 for a water blast system, sandblasting equipment and big top shelter; and, Seattle, Washington, where Pacific Fishermen Shipyard and Electric LLC was awarded $643,095 for a worker training program, sand blast and paint booths, sand blast grit recovery systems, man lifts and a 15-ton crane.

“Small shipyards are an important part of our nation’s shipbuilding industry,” said David Matsuda, Acting Maritime Administration Administrator. “Shipyards on both coasts, the Great Lakes and our inland waterways will be able to increase productivity and be more competitive as a result of these grants.”

The grants, part of the Assistance to Small Shipyards program, were available to shipyards around the country that provide essential services to commercial and government ships. MARAD received over 160 grant applications requesting $180 million in assistance.

Obama Names Matsuda to Head MarAd

The White House has announced that President Obama will promote David Matsuda to the top executive slot at the Maritime Administration. Matsuda has been serving as the Acting Administrator of the Maritime Administration since he was appointed as Deputy Maritime Administrator on July 28.

The Maritime Administration, or MarAd, is the agency within the US Department of Transportation dealing with waterborne transportation. It is charged with promoting the use of waterborne transportation and its seamless integration with other segments of the transportation system. It is also tasked with securing the viability of the US Merchant Marine.

Prior to joining MarAd, Matsuda served as the US DOT’s Acting Assistant Secretary for Transportation Policy from March thru July. Prior to that, Matsuda spent seven years on Capitol Hill. While working in the US Senate he was engaged in the formulation and debate of most major federal transportation legislation as senior counsel and primary transportation advisor to US Senator Frank R. Lautenberg of New Jersey.

In 2002, Matsuda was named a Georgetown University Government Affairs Institute Fellow serving on the staff of the US Senate Committee on Commerce, Science and Transportation. From 1998 to 2002, he worked as an attorney with the safety law division of the U.S. DOT’s Federal Railroad Administration.