Sea Powerless

“Speak softly, and carry a big stick.”

Teddy Roosevelt uttered the famous phrase in a speech in 1901, and for better or worse, the “Big Stick” theory dominated his foreign policy, and colored the foreign policy of the US going forward.

John F. Kennedy used the phrase in 1960 in describing his governing style of being liberal at home and careful abroad. The former naval officer demonstrated the practice during the Cuban Missile Crisis, when he used the US Navy to establish a blockade of Cuba, keeping the Soviets from establishing ballistic nuclear missiles on the island. Ronald Reagan also subscribed to the big stick theory, which is credited with having helped the US win the Cold War. During their presidencies, both Kennedy and Reagan gave rousing speeches at Berlin’s Brandenburg gate, pledging America’s might to help defeat the forces of communism.

Last month, President Obama also spoke at the Brandenburg Gate, speaking softly, but without the big stick. The President said the defeat of communism came not from “all the power of militaries” but instead from “the yearning of justice,” which was “supported by an airlift of hope” and the values of “openness” and “tolerance.” The Berlin Wall came down, he said, because the German people wanted it to.

He then told the crowd of Germans something he hadn’t yet mentioned to his own country: “So long as nuclear weapons exist, we are not truly safe,” and pledged to reduce US deployed strategic nuclear weapons by up to one-third, thereby reducing the US big stick to a medium stick, at best, and surrendering US nuclear superiority for the first time since the invention of atomic weapons.

Meanwhile the US fleet is less than half as large as it was during the Cold War. The defense budget since 9/11 has averaged 4.1% of GDP, but under the budgets projected by the Obama administration, the figure will drop to 2.5% in less than a decade. Last month, Rep. Randy Forbes (R, VA), chairman of the House Armed Services subcommittee on sea power, told a group at Washington’s Hudson Institute, “In 2007, the Navy was able to meet about 90 percent of America’s combatant commanders’ need [for ships]. This year that figure will fall to 51 percent.”

The White House has been embarrassed by a long list of scandals, the latest involving the defection of an NSA employee to China with a USB key full of US State secrets. Meanwhile, China, which remains a communist superpower, wielding a big stick and making no effort at conciliatory speech, continues to increase the size and capability of its Navy. And yet, for the first time in history, the Obama administration has invited China’s People’s Liberation Army to participate in the 2014 Rim of the Pacific (RIMPAC) exercise, an annual maritime exercise of US ally nations, where the superpower is likely to learn even more about US military strategy, tactics and procedures.

With participation in the RIMPAC exercise, China’s military and naval intelligence agencies will continue to add to their growing operational and intelligence arsenal, while the US continues to whittle away the stick of naval power in exchange for “yearning, hope, openness and tolerance.”

Port of Pasco Picks New Executive Director

Port of Pasco Director of Planning and Engineering Randy Hayden has been chosen to become the port’s new executive director, and will take over for current director Jim Toomey, who is retiring at the end of 2013.

Hayden, who’s been with the port since 2000, was chosen via a unanimous decision vote by the Port of Pasco Commission on June 27. Under the Commission’s action, Hayden was appointed deputy executive director effective July 1, and will then move up to fill the executive director seat upon Toomey’s retirement.

Under the plan, Hayden’s salary now increases from $117,000 annually to $120,000.

“I am humbled and honored by your decision,” Hayden told the three-member Commission June 27.

The Port of Pasco, located in the Tri-Cities region of Washington State, manages a 28-acre marine terminal, 15-acre multi-modal rail/barge terminal, 600-acre industrial center, the Tri-Cities Airport and numerous other properties, with the assets worth more than $130 million dollars.

Hayden’s priorities, according to the Commission, will include industrial development and business recruitment, as well as a major airport expansion.

The Tri-Cities Airport is currently planning the largest expansion project in its history: a $36 million project that would nearly double the size of the existing terminal. Construction’s slated to begin in early 2014.

 

Litigation Fear Led to Port Angeles Rehiring, Commissioner Says

It was the fear of a lawsuit being filed that led the Port of Port Angeles Commission to rehire executive director Jeff Robb to a different job at the same pay after he resigned June 24, according to one port commissioner.

In a June 27 interview with the Peninsula Daily News, which covers Washington state’s North Olympic Peninsula, Port Commissioner John Calhoun said Robb was awarded a one-year contract to become the port’s environmental affairs director because the relationship between Robb and senior members of port staff had become so dysfunctional that it had become possible that either party could sue.

 

“To avoid that, we settled on this course of action,” Calhoun told the newspaper.

Robb submitted his resignation as executive director on June 24 citing health problems.

“I have had a number of serious health issues for a number of months that have not improved with time,” he told the commission during the meeting.

Calhoun said Robb’s health problems were caused by stress.

Immediately after his resignation, Robb was hired by the port commission at the same salary -- $138,000 annually -- to fill the newly-created, previously unadvertised environmental affairs director position.

The vote was 2-1, with Commission President Jim Hallett against. Robb’s one-year contract that is effective July 31. The hiring has been characterized as “a sweetheart deal” because Robb is one year away from retirement and from qualifying for state retirement benefits.

Robb, who has been with the Port of Port Angeles since 1984, was promoted to executive director in August 2009. If he completes his upcoming one-year contract, he’ll have 30 years of service with the port.

Port Angeles has retained executive-search firm Waldron & Co. to find candidates for the executive director position, and the commission says it hopes to name an interim director at its July 8 meeting.

 

Camas-Washougal Port Awards Marina Contract

The Port of Camas-Washougal has awarded a contract for a reconstruction and maintenance project at the port’s 350-slip marina in Washougal to an Oregon-based company, Legacy Contracting.

Legacy secured the contract with a bid of just under $404,000. The work to be done includes reconstruction and replacement of aging walkways, floats and pilings.

Floats for the docks, the plumbing, pilings and electrical installation will be provided by four Washougal-based subcontractor businesses.

According to port executive director David Ripp, the window for in-water work that was approved by the Washington State Department of Fish and Wildlife is Oct. 1 through Nov. 30. Work done during this time includes replacement of deteriorated wood pilings with 65-foot steel pilings to help anchor the floating dock system.

“We will be able to complete this project with minimal inconvenience to our tenants and boaters during the less busy fall and winter seasons,” Ripp said.

Substantial completion of the project is scheduled for Jan. 31, 2014.

The port says it anticipates intermittent power outages during the project that will affect tenants in the upper and lower portions of the marina and that there will also be limited access to the docks during the headwalk section replacement.

 

Detailed information is expected be provided to marina tenants throughout the process, according to the port. Written notices of construction plans are expected to be supplemented by signage in the marina as well as information on the website project page at http://portcw.com/index.php/projects/2013_marina_projects/.

 

Shipping Industry Confidence Rising, Study Says

Overall confidence in the shipping industry rose to its highest level in two and a half years during the three months that ended May 2013, according to a new survey by shipping adviser Moore Stephens.

According to the survey, there was evidence of increased enthusiasm for new investment, although doubts persisted about the availability of bank finance.

In May 2013, the average confidence level expressed by respondents in the markets in which they operate was 5.9 on a scale of 1to 10, compared to the figure of 5.8 recorded in the previous survey in February 2013.

It marks the highest figure since a 6.0 recorded in November 2010. The survey was launched in May 2008 with a confidence rating of 6.8.

The likelihood of survey respondents making a major investment or significant development over the next 12 months was up marginally from the previous survey. On a scale of 1 to 10, the number rose from 5.5 to 5.6 – the highest level since a 5.7 was recorded in February 2011.

Demand trends, competition and finance costs were the top three factors cited by respondents overall as those likely to influence performance most significantly over the coming year.

For demand trends, the overall numbers were down one percentage point to 22 percent; competition numbers were static at 20; and finance costs were also unchanged at 16 percent, according to Moore Stephens.

After the top three, tonnage supply was in fourth place at 12 percent, a decrease of one percentage point from the previous three month period.

The number of respondents overall who expressed an increased expectation of higher rates in the tanker sector over the next 12 months was up by two percentage points to 37 percent. For the dry bulk sector, there was a 10 percentage-point fall, from the highest figure in the life of the survey three months ago to 40 percent this time, in the overall numbers of those anticipating rate increases.

In the container ship market, there was an eight percentage-point fall in the overall numbers expecting rates to go up, to 26 percent from 34 percent.

 

USCG 13th District: The Maritime Imperative

It is hard to believe almost two years have passed since I took command of US Coast Guard District Thirteen in the Pacific Northwest. While my Change of Command and Retirement after 34 years of service is upon me, I wanted to share with you my observations about the state of “our” maritime community. First and foremost, I could not be more proud of the dedicated and heroic work the men and women of the Coast Guard do each and every day in our very challenging environment. From the outer Pacific Coast, up the Columbia and Snake River systems, through the Straits of Juan de Fuca, into the Puget Sound, and across the rivers and lakes of Washington, Oregon, Idaho and Montana - they stand the watch and do it incredibly well. Second, this region is all about the maritime. All of the work you perform on the water and along the waterfront, in distant waters, and in support of those that put to sea is phenomenal and has an incredible economic impact on our Nation. You are, much like your Coast Guard, part of the fabric of the Pacific Northwest. However, it is clear more needs to be done to tell the maritime story in this region, as too few people truly understand its importance. For the last two years I have been amazed at how quickly the understanding and appreciation for the impact maritime activity has on this region fades as you move away from the waterfront.

Thanks again for the warm welcome you extended me when I arrived, and how you always embrace the Pacific Northwest Coast Guard team. I have worked closely with many of you in our local communities, industry, government and the private sector over the last two years, and I am proud to call you my friends. We have been brought together by business and we have been bonded by a special passion for the sea. In the opinion piece I wrote in this magazine at the beginning of my tour I covered several topics, such as the tremendous value that maritime activity in the Pacific Northwest brings to not only our region, but to the country and the world. I described the important role the Coast Guard plays, and how essential it is to collaborate with industry, elected officials, state, local, federal, international and tribal partners. I also talked about Safety. It is the key to everything the Coast Guard does, and it must be part of your operating culture as well. Our waters are unforgiving and we must all be rigorous in our attention to detail and our unwillingness to compromise - we have all lost too many shipmates, friends and family to the sea. 

The Pacific Northwest is home to the third largest container port (Seattle/Tacoma), the second largest grain export complex (Portland/Vancouver/Seattle/Tacoma), the largest vehicle import operation on the West Coast (Portland), the largest ferry system (Washington), a large portion of our Navy’s fleet (Bangor/Bremerton/Everett), and a large, complex international maritime border. This region is also home to one of the largest and most advanced commercial fishing fleets in the world. These ships harvest locally off the coast of Washington and Oregon, as well as in the distant waters of Alaska and in the Bering Sea. The wonder, beauty and bounty of this region is tremendous and is equaled only by extremely tough weather, harsh coastal conditions and treacherous breaking bars along the coast. Collectively we must work to ensure the safety, security and viability of the waterways in the Pacific Northwest. For the Coast Guard there is no shortage of work as we serve the public, and all of you, each and every day. Last year we conducted 1,631 search and rescue cases, saved 184 lives, assisted another 2,390 people in distress, and saved property valued at over $8 million.

While some Coast Guard members are heralded for their heroic rescues, or critical response and prevention actions; others are hard at work behind the scenes, in concert with all of you, to ensure that maritime activity is conducted safely and securely. In 2012, we conducted more than 2,000 vessel examinations and 530 facility inspections, all with an eye towards safety, security and environmental compliance. These efforts are critical to maritime business and commerce. In meeting many maritime professionals at Harbor Safety Committee meetings, professional seminars, industry meetings, and in discussions with elected leaders, there are a wide range of plans and ideas that may significantly increase commercial traffic in our ports, on our rivers and along our coast. It is also apparent there is concern about what these potential changes may mean. As many of you know, the Coast Guard stands the watch daily overseeing our region’s precious waterways. Whether it is in our regional Command Centers, at our Stations along the coast or from our Cooperative Vessel Traffic Service (VTS) here in Seattle; we are on watch and ready. VTS Puget Sound celebrated its 40th birthday in the fall of 2012, and the men and women who stand the watch monitor the Straits of Juan de Fuca and Puget Sound, an area of more than 3,500 square miles. VTS Puget Sound is the nations’ only Vessel Traffic Service working cooperatively with the Canadian Coast Guard to protect our waters and allow traffic to travel seamlessly in our shared and challenging waterways. 

The Coast Guard’s partnership with Canada is extensive and covers the full spectrum of our various mission demands - Aids to Navigation, Search and Rescue, Pollution Prevention and Response, and National Defense to name a few. We work together daily and we recently regularized “Shiprider” operations under a regional agreement I signed with my counterpart from the Royal Canadian Mounted Police (RCMP). Prototyped several times since 2005, and signed into law last year, the goal of “Shiprider” is to make the border transparent for law enforcement purposes. RCMP Officers and USCG Officers will work together on the same boats to enforce the laws of both Nations and deter, disrupt and apprehend criminals who look to exploit our maritime boundary.  

Keeping the waterways in our region safe and open for navigation is also one of the Coast Guard’s prime responsibilities. Two years ago the derelict vessel Davy Crocket began to spill oil into the Columbia River and required a very large, complex response led by the Coast Guard. It was difficult, it took a long time, and it was very costly. The take away from that experience is nothing new, but something we must all remember – these waters belong to all of us and we have a shared responsibility to protect them. In the Davy Crocket response the Coast Guard teamed with Federal, state, local and tribal partners to direct the effort that resulted in the recovery of approximately 33,491 gallons of oil, 4.5 million pounds of steel, and 841,796 pounds of debris. To do this type of work, to do it well, and to do it safely requires incredible professionalism. Everyone approached this work with skill, precision and passion, and I ask each of you to bring that same level of professionalism to everything you do in the maritime. We must always grow our collective expertise as professional mariners, maritime management experts, policy makers and law enforcement officers – together we can make the maritime safe and ensure these waters remain productive for generations to come. 

That said, I cannot divorce myself from the fiscal challenges and uncertainty the Coast Guard faces today, as I can only imagine many of you face. We push ourselves every day to be creative, shepherd the resources we have and meet our full array of mission demands. My job is to make sure we remain ready to meet the most urgent of mission needs, that we continue to train our people, and that we always strive for excellence. Given our limited resources, I must manage risk and allocate our ship days, patrol boat hours and flight hours to those activities that address the highest risk we face on and around the water. As I look out of my window here in Seattle, I see our aging fleet of large ships at Pier 36 - they are indispensable to our Nation’s maritime safety, security and environmental stewardship, and we must recapitalize the Coast Guard to ensure our ability to serve the Nation in the future, while at the same time meeting the many mission demands we have today. This is a very tough balance, and it must be done with great planning, a clear eye to the future and strong support for the Coast Guard.

As I said last time, strong relationships, collaboration on the toughest of issues and honest dialogue have long been the trademark here. This has been my personal experience, and has helped move several key initiatives forward over the last two years. But, like most things, much more can, and should be done. The Pacific Northwest maritime story needs to be told, and it is imperative that we protect the waters of the “Great” Pacific Northwest - they are our highways of commerce, the fertile grounds that feed us, the source of much enjoyment, part of our cultural DNA and absolutely critical to the economic vitality of our region and country.

Thank you and Semper Paratus –Always Ready! 

Rear Admiral Keith A. Taylor, Commander of the Thirteenth Coast Guard District headquartered in Seattle, Washington, is responsible for US Coast Guard operations covering 4 states, more than 4,400 miles of coastline, 600 miles of inland waterways, and a 125-mile international border with Canada. Rear Admiral Taylor is a career aviator with over 4,700 flight hours. He holds a Bachelor of Science degree with honors from the US Coast Guard Academy, a Master of Science in Industrial Administration degree from Purdue University and a Master of Business Administration degree from the Massachusetts Institute of Technology where he was a Sloan Fellow.

 

Report: California 5th Biggest Shipbuilding State in US

California ranks fifth in shipbuilding and repair among US states, while Washington is ranked in the top 10, according to a new report.

The report, compiled by the US Maritime Administration, states that California has 7.6 percent of the country’s shipbuilding market, behind Virginia with 24.9 percent, Louisiana with 12.1 percent, Mississippi at 9.4 percent and Connecticut with 8.3 percent.

California employs 8,100 dockworkers in shipbuilding and ship repair, accounting for $777 million in gross domestic product, according to the report.

Washington state ranks ninth on the list with 3.3 percent of the shipbuilding market, according to the MARAD data.

Currently there are 117 shipyards spread across 26 US states that are classified as active shipbuilders. In addition, there are over 200 shipyards engaged in ship repairs or capable of building ships but not actively engaged in shipbuilding, according to MARAD. The majority of shipyards are located in the coastal states, but there are also active shipyards on major inland waterways such as the Great Lakes, the Mississippi River, and the Ohio River.

Employment in shipbuilding and repairing is concentrated in a relatively small number of coastal states, with the top five states accounting for 62 percent of all private employment in the shipbuilding and repairing industry.

The nation’s shipyards support $36 billion in gross domestic product, the report says. It also notes that although most shipbuilders are located in coastal areas, the direct and indirect economic benefits reach all 50 states.

For example, in 2011 the nation’s more than 300 shipyards directly provided more than 107,000 jobs, $7.9 billion in labor income to the national economy and contributed $9.8 billion in gross domestic product.

The average income for these industry jobs is $73,000, 45 percent higher than the national average, according to the report.

From 2010 to 2012, deliveries of vessels of all types -- including tugs and towboats, passenger vessels, commercial and fishing vessels, and oceangoing and inland barges -- exceeded 1,200 vessels per year, reaching 1,457 vessels in 2011.

The report, titled The Economic Importance of the U.S. Shipbuilding and Repairing Industry, can be seen at http://www.marad.dot.gov/documents/MARAD_Econ_Study_Final_Report_2013.pdf.