The Maritime Minute - 9/23/2011
September 23, 2011
ANOTHER FEDERAL REPORT DEBUNKS MYTH JONES ACT INHIBITED CLEAN-UP OF GULF OIL SPILL: Compliance with the Jones Act did not impede the clean-up of the Deepwater Horizon spill, according to the On Scene Coordinator’s report to the National Response Team. The report found that, “Although there was significant media and some congressional interest in the Jones Act during the…response, at no time did compliance with the Jones Act actually impede the response operations…” The report also notes a foreign-flagged vessel engaged in skimming operations beyond three nautical miles could collect oil or oiled seaweed and then transit to a point in the United States without need of a waiver or exemption. Click here to read the report.
SENATE CRITICIZES DHS FOR FOR HANDLING OF JONES ACT WAIVERS: The U.S. Senate Appropriations Committee criticized the Department of Homeland Security for its handling of Jones Act waivers in a report accompanying the DHS Appropriations Act (H.R. 2017). The Committee found that U.S. vessels, mariners and shipyards were negatively impacted and underutilized as a result of lax enforcement of Congressional intent. “The committee is very concerned that more than 45 waivers of the Jones Act have been issued enabling foreign-flagged vessels to transport oil released from the Strategic Petroleum Reserve in response to extreme fluctuations in the price of gas. The committee is also concerned about the lack of transparency in conducting these waivers,” the report said. Click here to read more.
TANKER FLEET GROWS AGAIN: Another large tank vessel has joined the Jones Act fleet. On Aug. 30, Crowley Maritime Corporation took delivery of its 10th articulated tug/barge tanker, the VISION/650-10 from Halter Marine in Pascagoula, Miss. The 587-foot-long barge can carry 185,000 barrels of petroleum products each trip and will service West Coast ports. The tug carries a crew of 11 has an overall length of 689 feet when both vessels are coupled. If stood on end, the tug/barge unit would be as tall as a 50-story skyscraper. Later this year, Crowley will take delivery of the first of three even larger barges capable of carrying 330,000 barrels each trip.
ALASKA TANKER COMPANY SETS BAR FOR ENVIRONMENTAL PROTECTION, SHIPBOARD SAFETY: Through June of 2010, Alaska Tanker Company (ATC) ships have safely and efficiently carried over 1,272 million barrels of crude oil and its workforce has completed over 14 million man-hours without anyone being so hurt that they were unable to return to work the next day (lost-time injury). No tanker company in the world has ever achieved this safety record. For the past eight years, ATC vessels have moved BP’s oil from Valdez, Alaska, through the difficult North Pacific waters without spilling a drop of crude oil to sea. Credited for this exceptional record is the expertise of Alaska Tanker Company’s management and the skill and commitment of its workforce, which includes members of the Seafarers International Union (SIU) and the Marine Engineers Beneficial Association (MEBA). “The employees of ATC are committed to mitigating the risks we face every day, one day at a time, one job at a time,” said ATC CEO Anil Mathur. “Our goal is an entire generation of seafarers spending their entire working lives without an injury, whilst earning a decent living for their families and loved ones.”
MEET A MEMBER: Moran Towing Corporation, founded in 1860 and headquartered in New Canaan, Conn., has 16 operational bases located along the U.S. East and Gulf Coasts. This family-owned company has several lines of business, providing ship docking services, towing and transportation. The company transports commodities such as oil, coal, grain, fertilizer, alumina, scrap steel and aggregates; as well as cement for utilities, oil companies, trading houses and other industrial corporations. The company employs 993 professionals who reside in 38 different U.S. states. The company has a fleet of 105 tugboats and 31 barges, all of which have been built in the United States. Over the past decade the company has made significant investments in new tugs and barges, which provided continuous employment for hundreds of shipyard workers in Maine, Wisconsin, Louisiana, Florida and Alabama.
American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards and crewed by American mariners ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.
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DOD Budget Update at VSRA Annual Meeting
September 23, 2011
At the annual meeting of the VSRA membership on Tuesday, September 20th, RDML(ret) Joe Carnevale, Senior Defense Advisor, Shipbuilders Council of America, addressed the members with a thoroughly researched and sobering analysis of the Department of Defense budget. His analysis included a recap of the budgets going back to the post-Vietnam War era up to the present. He focused the audience on the growing gap between spending and revenue, and also addressed the Budget Control Act of 2011 and what impact it can have on FY-12 and future funding.
Click on DOD Budget Analysis and Update to view the RDML Carnevale's presentation.
Metro Machine Acquired!
September 22, 2011
General Dynamics to buy Metro Machine
Large defense contractor hopes for more Navy work
By Robert McCabe
| The Virginian-Pilot
NORFOLK
General Dynamics Corp., one of the nation’s largest defense contractors, plans to buy Metro Machine Corp., a privately held ship-repair facility in Norfolk.
Metro Machine employs about 400 people on the Berkley riverfront across from downtown. It has been in the Navy ship-repair business since 1972 and is a prime contractor for work on frigates, dock landing ships and amphibious transport docks that are based at local U.S. Navy facilities.
The deal is subject to review by the U.S. Justice Department, in consultation with the Defense Department. It is expected to close in November.
An additional $16 million would be placed in escrow to serve as a fund to satisfy certain claims General Dynamics might have. Any remaining balance after 18 months would flow to the employee stock owners.
Although terms of the sale were not disclosed Wednesday, Richard Goldbach, Metro’s CEO, said the employee-owned stock-ownership plan would receive $148 million after repayment of Metro’s debt and other obligations. General Dynamics’ largest customers today, and we provide very similar-type services to the Navy on the West Coast. So we see this as an opportunity to expand our repair offerings to the Navy and hope to grow.” in the area to work with them.” bought by BAE Systems in 2005. General Dynamics intends to fold Norfolk-based Metro Machine Corp. – above – into the shipbuilding and repair operations of NASSCO, the largest shipbuilding and repair company on the West Coast.
General Dynamics is based in Falls Church and intends to fold Metro Machine into the shipbuilding and repair operations of NASSCO, a San Diego-based unit that employs 3,400 and is the largest shipbuilding and repair company on the West Coast.
“ We’re acquiring Metro Machine because we think it represents a growth opportunity,” Rob Doolittle, a spokesman, said Wednesday. “The Navy is one of
General Dynamics owns two other East Coast shipyards – Bath Iron Works in Bath, Maine, and Electric Boat in Groton, Conn.
“ We have a business group called Marine Systems that comprises those shipyards,” Doolittle said. “A majority of their work is new construction, but service and repair is a growing portion of that portfolio.”
R ichard Sobocinsk i, vice president/contracts at Colon na’s Shipyard in Norfolk and a former employee at Bath Iron Works, said he didn’t think the deal would change the repair “factor” in the port.
“I think it makes Metro a lot more stable than they were under small, private ownership,” he said. “Actually, there may be some opportunity for small businesses
Metro Machine is the second major Navy ship-repair yard in Hampton Roads acquired by a major defense contractor. Its neighbor in Berkley, Norshipco, was
In his letter to employee stock owners, Goldbach said he accepted the offer based on the advice of GreatBanc Trust Co.
“The combination of Metro’s superior workforce with General Dynamics’s considerable resources should solidify Metro’s ability to compete on U.S. Navy work for years to come,” Goldbach wrote.
General Dynamics’ businesses encompass the marine, aerospace, defense, communications and electronics industries, according to its website. While it sold off many of its defense-related companies in the early 1990s, it began expanding again in 1995.
Since 1997, it has acquired more than 50 companies, revenue has grown from $4 billion to about $32 billion, and its workforce has increased from 29,000 to about 90,000 workers, the website says.
Robert McCabe, (757) 446-2327, robert.mccabe@pilotonline.com
VIRGINIAN-PILOT FILE PHOTO
UPDATE - RAPIDGate Clarification from NSSA
September 06, 2011
The following message was recived from Dave Shutter, Security Manager, NSSA. It clarifies some of the mis-information that has been circulating about the Hampton Roads implementation of the Naval Commercial Access Control System (NCACS), formerly called RAPIDGate. If you have any specific questions about company registration and other aspects of NCACS, you are encouraged to call "RAPIDGate" directly at (877) 727-4342.
Please know that the VSRA Security Committee meets the second Tuesday of every month at United Coatings Corporation, 650 Chautaqua Avenue, Portsmouth. The next meeting will be August 9th at 10:00 AM., at which NCASC will be a "hot topic".
"All -
Clarification on RapidGate, based on numerous questions/concernsfrom many companies! This applies to all Hampton Roads Naval Installations!
Effective Monday, 8/1/2011, the following ID's will get you access at NOB, JEBLCFS, Oceana, NWSY and their assoc annexes: CAC, NCAC (RapidGate), Current Regional Badge/Base Badge (Until 10/31/2011), and a day pass. Info on NNSY attached and below...
Regional badges WILL NOT be issued any longer effective 8/1/2011, only day passes for those not using RAPIDGate. A day pass can be obtained by providing a visit request to the government sponsor to be endorsed and forwarded to the appropriate pass office. This will be for a ONE DAY pass, they will not issue any temp passes for more than ONE Day!
The Kiosk's will be operational effective 8/1/2011 for use at all Hampton Roads Pass Offices. If you have not registered for Rapid Gate yet, and you do not want to have day passes issued daily, please do so soonest.
TWIC is an approved DOD access card and can be used to gain access if a specific requirements to the installation can be verified through documentation. Under most circumstances, the TWIC must be accompanied by a Government or Commercial Bill of Lading.
Ship's Visit request will still be required for access to all Naval Ship's. This will continue through the NSSA website and your Prime.
Sponsor is whoever is your contracting command, if NSSA is your contracting office, then I am your sponsor for RapidGate registration.
David Shutter
Security Manager (NSSA RMC)
9170 Second St Ste 120.
Norfolk, Va. 23511
CNRMA "Reasons for Denial" will remain in effect. CNRMA is also going to attempt to keep their CVS site up and operational to view if personnel are cleared to pick up their NCACS card.
NNSY will change their process effective 1 October, 2011,
NNSY Access Control Process. The three dark column headers read in order as follows: Credential Type, Valid for Perimeter Access, and Valid for Access into designated CIA's. They will be using Rapidgate for their perimeter access like all other installations, but will continue to use the spreadsheet submittals for their NAVSEA Badges, routed through your Trusted Agent.
As always, if there are any questions/concerns please let me know.
R/
David Shutter
NSSA Security Manager
NNSY C1123 Private Yard Security
Norfolk, VA 23511-2393
Phone: (757) 443-3872 ext.2592 DSN: 646
Cell: (757) 613-9094 Fax: (757) 443-3698
UPDATE - JINII Registration Form and Agenda Available HERE
August 23, 2011
The annual JINII (Joint Industry Navy Improvement Initiative) meeting will be held on Thursday, September 1st in conjunction with the ASNE Fleet Maintenance & Modernization Symposium 2011 in San Diego. The 2011 JINII Registration Form should be completed and submitted to register for the meeting.
The 2011 JINII Agenda can be accessed by this link.
25th Annual VSRF Golf Tournament - Sponsorships Available!
August 08, 2011
25th Annual VSRA Golf Tournament - UPDATE (8/8)
THE GOLFER SLOTS ARE FULL! There are still sponsorship opportunities. There are also MANY surprises planned as we celebrate our Silver Anniversary.
When: Tuesday, August 16, 2011 at Bayville Golf Club
Join us at the beautiful and challenging Bayville Golf Club in Virginia each, a short distance just off Shore Drive where a spacious 268-acre former daily farmland, open to capricious winds and salt air of the nearby Chesapeake Bay.
Bayville Golf Club
4137 First Colony Road, Virginia Beach, VA 23455
All proceeds to benefit the Virginia Ship Repair Foundation an IRS 501(c)(3) Education Foundation and are tax deductible. YOUR foundation focuses on the ship repair future workforce and incumbent training. This is the organizations principal way to raise funds for this important industry work.
Tournament Schedule
- 10:00-12:30 Registration and Practice Range
- 11:00 a.m. Lunch
- 12:30 p.m. Shotgun Start
- “After Golf” Social – Prizes and Awards Presentation
- Beverage carts, photos, snacks, goody bags, raffles
Sponsorship Packages Are Still Available
The specifics of the sponsorship packages will be available on the APPLICATION FORM.
Platinum (2 teams included) $5,000
Gold (1 teams included) $2500
Silver (2 golfers included) $1800
After Golf Social $750
Beverage Cart $750
Lunch Sponsor $600
Hole Sponsor $500
Longest Drive $400
Closest to Pin $400
2011 Golf Tournament Application is still available. This is a Word Document Form that can be completed electronically. Since the golfer slots are full, all reservations received will be added to the waiting list on a FIRST-COME FIRST-SERVE basis. Sponsorship packages with golfers (Platinum, Gold and Silver) had priority to fill the 144 golfer slots until JULY 16th.
For specific questions, please contact:
The Maritime Minute - 8/2/2011
August 02, 2011
LEXINGTON INSTITUTE SALUTES JONES ACT AS IMPORTANT TO NATIONAL SECURITY: The Jones Act is the “only” hundred-year-old law still critical to U.S. national security in the 21st century according to the Lexington Institute. A July 8 “Early Warning Blog” by Daniel Goure, Ph.D, declares the Jones Act “critical to the maintenance of a shipbuilding and repair industry, and associated skilled workforce to support the U.S. Navy.” He notes that without a flexible pool of skilled workers “the costs to the Navy of its repair and overhaul work would skyrocket.” Dr. Goure further stressed that the “Act’s requirement that vessels engaged in cabotage [the movement of cargo between two points in the United States] be U.S.-flagged and the crews be at least 75 percent U.S. citizens also supports both homeland security and environmental safety.” Click here to read more.
UTILIZATION RATE OF GREAT LAKES FLEET ON THE RISE: With two U.S.-flag Great Lakes freighters recently activated, the fleet now has more than 93 percent of its available carrying capacity in service. Iron ore for the steel industry remains the foundation of Great Lakes shipping. Through June, iron ore cargos moved in U.S.-flag “lakers” total 18.3 million tons, an increase of 7.6 percent compared to a year ago.
THREE AMP MEMBERS RECEIVE SAFETY AWARDS: Crowley Maritime Corporation, Keystone Shipping Co., and Liberty Maritime Corporation have been selected to receive prestigious safety awards from American Maritime Safety, Inc. Crowley will receive the Safe Working Practices Award. Keystone will be honored with the Responsible Carrier Award. Liberty will be presented the Quality Ship Management Award. The awards recognize these companies’ commitment to implementing innovative quality control and safety management systems that go beyond the compliance standards established by the U.S. Coast Guard.
STAMPS SALUTING U.S. MERCHANT MARINE AN HONOR WELL DESERVED: The U.S. Postal Service issued a quartet of stamps that depict ships that helped establish the U.S. Merchant Marine as a world leader in innovation and efficiency. The stamps feature a clipper ship, an auxiliary steamship, a Liberty ship and a containership. “This is a proud moment for everyone in the U.S. merchant marine,” said James Henry, President of the Transportation Institute and Chairman of the Board of American Maritime Partnership. “Ships have played a vital role in the development and protection of our nation. It was no accident that one of the first laws passed by Congress focused on fostering a U.S.-flag fleet. Since 1920, the Jones Act has been the foundation of the domestic U.S.-flag fleet and its requirement that cargo moving between U.S. ports be carried in vessels that are U.S.-owned, -built, and -crewed has produced an industry second to none.” Click here to read more.
American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards and crewed by American mariners ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.
OSHA Announces Measures to Improve Whistleblower Protection
August 01, 2011
WASHINGTON – In a continuing effort to improve the Whistleblower Protection Program, the U.S. Department of Labor’s Occupational Safety and Health Administration today announced that it is implementing additional measures to strengthen the program and is releasing an internal report detailing a recent top-to-bottom review of the program. OSHA enforces the whistleblower provisions of 21 statutes protecting employees who report violations of various workplace safety, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health care reform, nuclear, pipeline, public transportation agency, railroad, maritime and securities laws.
“The ability of workers to speak out and exercise their legal rights without fear of retaliation is crucial to many of the legal protections and safeguards that all Americans value,” said OSHA Assistant Secretary Dr. David Michaels. “The new measures will significantly strengthen OSHA’s enforcement of the 21 whistleblower laws that Congress charged OSHA with administering.”
The Government Accountability Office audited OSHA’s whistleblower program in 2009 and 2010, highlighting challenges related to transparency and accountability, training for investigators and managers, and the internal communications and audit program. OSHA also conducted an internal review that examined national and regional program structures, operational procedures, investigative processes, budget, equipment and personnel issues.
“OSHA is committed to correcting the issues brought to light by the GAO report and our own review,” said Dr. Michaels.
The significant changes to the Whistleblower Protection Program announced by OSHA include:
Restructuring
OSHA’s Whistleblower Protection Program will report directly to the assistant secretary instead of being housed in the Directorate of Enforcement. In addition, changes in field structure are currently being pilot tested. Commencing with its fiscal 2012 budget, OSHA established a separate line item for the whistleblower program to better track and hold accountable its activities and accomplishments. These changes, in addition to the 25 new investigators added, should significantly improve the administration and stature of the program.
Training
OSHA will hold a national whistleblower training conference in September which will be attended by all whistleblower investigators from both federal and state plans, as well as by Labor Department solicitors who work on whistleblower cases. In addition, OSHA will offer several other investigator training events, and will strive to ensure that all investigators and supervisors who have not received the mandatory training courses will receive them by the end of the calendar year.
Program Policy
OSHA revised and will soon issue a new edition of the Whistleblower Investigations Manual that updates current procedures and includes information on the new laws enacted since the manual was last updated in 2003. This new manual will provide further guidance on the enforcement program to help ensure consistency and quality of investigations.
Internal Systems
The data collection system has been modified and the audit program is being strengthened and expanded to ensure that complaints are properly handled on a timely basis.
The whistleblower provision laws enacted by Congress prohibit employers from retaliating against employees who raise various protected concerns or provide protected information to the employer or to the government. Employees who believe they have been retaliated against for engaging in protected conduct may file a complaint with the secretary of labor for an investigation by the Whistleblower Protection Program. Detailed information on employee whistleblower rights, including fact sheets, is available online at:
http://www.whistleblowers.gov.
The 21 whistleblower statues enforced by OSHA include: Section 11(c) of the Occupational Safety and Health Act; Asbestos Hazard Emergency Response Act; International Safe Container Act; Surface Transportation Assistance Act; Clean Air Act; Comprehensive Environmental Response, Compensation and Liability Act; Federal Water Pollution Control Act; Safe Drinking Water Act; Solid Waste Disposal Act; Toxic Substances Control Act; Energy Reorganization Act; Wendell H. Ford Aviation Investment and Reform Act for the 21st Century; Corporate and Criminal Fraud Accountability Act, Title VIII of the Sarbanes-Oxley Act; Pipeline Safety Improvement Act; Federal Railroad Safety Act; National Transit Systems Security Act; Consumer Product Safety Improvement Act; Affordable Care Act; Consumer Financial Protection Act of 2010, Section 1057 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; Seaman’s Protection Act, as amended by Section 611 of the Coast Guard Authorization Act of 2010; and the Food and Drug Administration’s Food Safety Modernization Act.
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RAPIDGate Implementation and SOP
July 27, 2011
The Commander, Navy Installations Command has issued the
NCACS (RAPIDGate) Implementation Plan and SOP. This is of great interest to any VSRA company who will need access to a DOD installation in the future. The Navy Commercial Access Control System (NCACS) is the new name for what has been referred to as RAPIDGate.
Member Companies Win IB Best Places to Work 2011!
July 20, 2011
Congrats to our member companies who were awarded Best Places to Work 2011 honors! Valkyrie Enterprises, Towne Bank, W R Systems, and Vandeventer Black. We are rpoud of our industry and the impact our members have on positive community growth in the region!