Purpose / Audience: You have been asked to provide remarks at the National Cargo Bureau annual Board of Directors luncheon. Approximately 60 attendees are expected, including NCB President - Mr. Ian Lennard and NCB Chair – Mrs. Deirdre Littlefield. Some representatives from OSHA are also expected to attend. Mrs. Littlefield will introduce you.
Background: The NCB was established in 1952 as a not-for-profit membership organization that assists the Coast Guard in the discharge of our responsibilities under SOLAS. In their role as maritime surveyors, NCB is authorized to assist with the administration of regulations pertaining to the safe loading and carriage of cargo; NCB authorized to issue certain certificates on behalf of the Coast Guard.
Key Message: Emphasize the value and benefits of the excellent working relationship between the Coast Guard and NCB.
Duration: 20-25 minutes followed by short / optional Q&A.
OPENING
Thank you Deirdre. Ian, Dierdre, it’s really my pleasure to be here today.
It’s always great to join the National Cargo Bureau at this historic venue to celebrate yet another year of excellent teamwork and partnership. A partnership that truly is invaluable to the Coast Guard and our Nation’s ports and waterways.
And by invaluable, I mean it.
You partnered with us on our container targeting programs to better pinpoint risk and use our limited resources wisely.
You shared your expertise in inspecting containers during our Multi-Agency Strike Force Operations (MASFO).
In 2015 alone, NCB personnel inspected over 26,000 [26,378] containers carrying dangerous goods. In the same timeframe, Coast Guard personnel inspected a little over 23,000 [23,298] containers.
You assisted us in the administration of hazardous and explosive cargo regulations. And you shined a spotlight on non-compliant practices like in New York where you discovered the dangerous practice of cars being loaded with fuel in their tanks.
You conducted examinations and issued documents on our behalf.
I could go on.
You truly are a critical force multiplier for the Coast Guard. And we have no greater partner in our efforts to ensure the safe and secure movement of cargo through our waterways!
MTS: IMPACT
As a direct result of your work, the Coast Guard is able to strategically focus our activities in high risk areas to ensure we maintain an efficient and resilient Maritime Transportation System. Our MTS…
It’s the lifeblood of our Nation’s economy. With 25,000 miles of waterways that connect approximately 1,000 harbor channels, over 300 ports, and 3,700 terminals.
It handled more than 68,000 vessel port calls in 2015, which represented over $4.5 trillion of our nation’s economic activity.
It directly supports 95% of our Nation’s exports, 13 million jobs, and 32% of the U.S. GDP.
So, sincerely, on behalf of a grateful nation. Thank you for all you do to facilitate a safe and secure MTS!
MTS: COMPLEXITIES
As you well know, managing our MTS in the 21st Century is a complex and challenging task. We are faced with increasing traffic, shifting markets, and technological complexities as we strive to facilitate the efficient movement of cargo through America's economic engine.
Container ships are now approaching 20,000 TEUs!
Two years ago, there were no LNG-fueled vessels in operation in the U.S. Today, there are five, with five more under construction and two planned conversions. It is predicted that by 2030, the U.S. will provide 20% of the global liquefaction capacity, making the U.S. the world's third largest exporter behind Australia and Qatar. And with eight LNG export projects pending approval, the U.S. has the potential of exporting 120 million metric tons of natural gas per year.
This summer I visited Sunoco Marcus Hook Industrial Complex, the largest LPG exporter on the East Coast. They converted from an oil refinery to an LPG export terminal in 2014 and are currently expanding their output and infrastructure.
The expansion of the Panama Canal has impacted vessel traffic in the United States. This summer, the biggest container ship to ever stop in Hampton Roads arrived in port, just two weeks after the opening of the expanded Panama Canal… but you are well aware of these impacts. Mr. Ahlborn, your VP of Liner Activities, gave an excellent interview with the Coast Guard and was a major contributor to a Proceedings article on the topic.
Due to the growing demand for grain in the global markets, we are seeing a significant increase in traffic on the Western Rivers earlier in the season than usual. We’ve been seeing 50+ barge tows (with a footprint the size of a Nimitz class aircraft carrier) loaded with grain – a huge beast eating up most of the width of the river. While the size of the tows are not all that uncommon in these areas, they are not usually seen until later in the year – after the low water season.
We are already bringing 5000+ more inspected vessels into the U.S. fleet through the new Subchapter-M regulations for towing vessels. Starting June 20, 2018, any additional tugs involved in this grain export will be added to that number. Given this impact, I’m thankful we have NCB to assist us, having been delegated the authority to issue Documents of Authorization for the carriage of grain and as we use your Certificates of Loading as evidence of compliance with the SOLAS Grain Code.
We are also seeing increased numbers of dry bulk ships coming into ports to receive grain for export, which in turn increases the demand signal for our Port State Control examiners as well as other Prevention and response resources.
I could stand up here all day giving examples… But, I wouldn't be telling you anything you aren’t already aware of.
The Coast Guard will remain ready to answer the call as we prepare for the next shift in export and import patterns. But make no mistake, shifts in this area strain our Coast Guard resources, simply reinforcing the need for critical partnerships like ours!
INFRASTRUCTURE / CLIMATE IMPACTS / ARCTIC
Part of our commitment to be Semper Paratus – Always Ready - means taking a hard look at our needs of tomorrow - including our infrastructure needs.
Last month I visited Greenland. I personally observed the receding Jakobshavn Glacier. I saw and heard, first hand, the impacts of sea-level rise. I’ll tell you, seeing that glacier left an impression on me. Before going to Greenland, it wasn’t lost on me that the Arctic is changing at unprecedented rates. And with less ice coverage we see increased human activity.
Be sure, tourists aren’t the only industries interested in the Arctic. Energy exploration… Scientific research… Shipping… There is activity in all these areas… So the Coast Guard is strategically focused on the Arctic. We are planning for the inevitable and that includes doing everything we can to acquire new heavy Polar Icebreakers.
But the sea level rise has farther reaching implications… It’s not just an issue for the Polar Regions.
If we don’t factor in rising sea levels in our infrastructure decisions along all of our Coastlines, we’re missing the mark. It might not happen in our lifetimes, but when I look at the ports of Miami… Port Fourchon… New Orleans… all that is needed is a decent storm surge, on top of rising sea levels, and those communities may have some issues.
In the Coast Guard, we are carefully examining where to invest in long-term infrastructure. Industry should be doing the same.
CYBER
In today’s world, you can’t mention infrastructure without addressing cyber.
Moore’s Law essentially says technology doubles, and costs are cut in half, every two years. Most importantly, it means that technology innovation will not slow down but instead continues to speed up, requiring us all to keep pace.
But that technology comes with risk.
In 2012, over 120 ships reported malicious jamming of their GPS signals and a number of major Asian Coast Guard vessels were impacted.
Mobile Off-Shore Drilling Units have driven off-station due to disruption to their Dynamic Positioning Systems.
I read that organized crime in Europe exploited a container terminal’s system to facilitate drug smuggling.
The good news is that I’m seeing industry really take this issue head on. Industry has demonstrated they know full well their automation and advancements are only as good as they are secure… and they are investing accordingly! A prime example is the Port of Long Beach.
We are working with industry to solidify an information sharing process. The International Association of Classification Societies has made cyber risk management a cornerstone of its agenda. And you know that the Interim Guidelines approved by IMO last May are all about this concept of sharing best practices as we work to tackle this issue together.
While cyber presents a safety issue, it’s also a matter of security. I encourage NCB to participate in Area Maritime Security Committee meetings and report all security concerns, cyber and otherwise, in alignment with our Partnership Agreement. This is yet another area where NCB is an incredible force multiplier for the Coast Guard! So thank you for your support!
CONCLUSION:
Let me finish by saying once again how thankful we are to have such a great partner in the NCB. As our world of work grows more and more complex. As we face new challenges. It is great to have partners like you, working by our side, to ensure a safe, secure, and resilient MTS!
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