Welcoming Remarks for
Captain William Schubert
Maritime Administrator

June 15, 2004

It is a pleasure to welcome you to the Shipyard USA conference. I feel fortunate to be a part of these proceedings and to be here on behalf of President George W. Bush and Secretary of Transportation Norman Y. Mineta.

I am delighted to join you this morning, particularly since I will have the privilege of introducing today’s keynote speaker, the Honorable David Vitter, Member of the U.S. House of Representatives from the First District of Louisiana. Representative Vitter is one of two members of Congress who you will hear from at this conference.

I am equally pleased to announce that another champion of the maritime industry, Congressman Gene Taylor representing the Fourth District of Mississippi, will be delivering tomorrow’s keynote address.

Both congressmen have been vocal strong supporters of our industry, which we sincerely appreciate.

And their voices are most welcome as we enter a particularly important and defining time for the maritime industry.

 Getting the economy moving has always been, and remains, a top priority for the President and his entire team.

And today, our nation’s economy is strong and getting stronger. More than 1.1 million jobs have been added since last August, and April alone saw the creation of 288,000 new jobs.

We’re seeing the economy’s impact on commerce as well. The U.S. transportation system annually carries more than 16.3 billion tons of freight — valued at over $12 trillion.

And, as the economy continues to take off, we project freight volume will increase by more than 50 percent in the next 20 years.

Much of that freight travels, at some point over water, so we need to prepare now to ensure that the maritime industry can do its part to support our growing economy.

Before going further, allow me to share a little background information pertaining to my own career in the maritime industry.

I was privileged to attend and graduate from one of the world's foremost institutions in the field of maritime education, the United States Merchant Marine Academy at Kings Point, New York.

Prior to my confirmation as the Maritime Administrator, I served 12 years as an officer aboard U.S.-flag vessels, ten years as a commissioned officer in the U.S. Navy Reserve, and from 1990 to 1995 as MARAD’s regional representative for all MARAD program interests in the southwestern region of the United States.

As you can see, waterborne commerce is in my blood.  Almost every day, I talk about the value of the maritime industry to our nation, about the commercial benefits derived from it, and about the challenges and problems we face in connection with it.

Informing the public, other government agencies, and commercial enterprises about the many ways in which our U.S. maritime industry currently serves our country, the many potential ways in which it can be further utilized, and, in general, promoting the interests of our maritime assets is what the Maritime Administration is all about.

Is it any wonder, then, that I am pleased to participate in a conference that addresses and seeks to identify solutions to the challenges of our nation’s shipyards and their support vendor/supply components?

We are a maritime nation.

Vast arrays of oceangoing vessels secure our borders – over half of which are along coastlines – and to fuel our economy and secure our defense. Nearly 95 percent of the nation’s overseas commerce travels by water, and foreign trade and freight volumes at our ports are expected to double or even triple by 2020.

We must ask ourselves several basic questions.

Is it prudent to ignore the needs of our maritime industry?

Is it wise to allow America’s rapidly expanding international trade to be transported almost exclusively in foreign-owned ships?

Should we put ourselves in the position of having to rely heavily on foreign-owned ships to carry logistical support to our armed forces in the event of a future crisis?

In short, are we willing to tolerate a gradual but continuing erosion in the vitality of America’s maritime strength?

Or, can we find ways to reverse that trend and seize opportunities that exist both now and in the near term to improve and strengthen our maritime heritage? 

Make no mistake about it. In my view, there are great opportunities ahead.

I believe all of you here today agree with me on that point.

Your presence here at the Shipyard USA conference testifies to your conviction that U.S. shipyards and their vendor/supplier support must and can enhance the efficiency, productivity, technical expertise and quality of your goods and services.

And, it is a conference such as this that moves us all in the right direction.

We at MARAD know that these are trying times for U.S. shipbuilders, repairers, and suppliers.  Budget restrictions, unfair foreign competition, foreign subsidies, and an excess of shipbuilding capacity worldwide – all take their toll.  To put it mildly, the last years have been challenging. 

However, I believe, as I am sure most of you do, that our shipbuilding industry is resilient.

 Considerable investments are being made in large and small shipyards around the country.

And, important research and development, funded by a combination of public and private sector support, are ongoing. 

We all know that shipbuilding is an essential industry for both the national defense and our Nation’s industrial economic base. 

With this in mind, we are pleased to welcome the distinguished industry leaders who will be speaking here over the next two days. Their views will add valuable insights into our shipbuilding industry’s strengths and weaknesses.

Please know also that MARAD considers your collective assessment and efforts to improve our long-term maritime interests to be vitally important. We appreciate and support them.

Moreover, we are ready and willing to be an active partner to U.S. shipbuilders, repairers and vendors by lending our steadfast support to finding ways to make the industry more efficient and more of a significant presence both domestically and internationally.

To that end, I wish to emphasize that MARAD is working to boost U.S. shipbuilding competitiveness with programs such as:

• Title XI Loan Guarantee Program,
• the National Maritime Resource and Education Center,
• the Capital Construction Fund, the Construction Reserve Fund, and
• the Maritime Energy Technologies Program.

In addition, we continue to work on an important initiative called SEA-21.

In closing, let me say that I am looking forward to the next two days as a chance to interact and share information and as an opportunity to find innovative ways to maintain and enhance our shipbuilding industry.

Now I would like to introduce the Honorable David Vitter of the Great State of Louisiana.

As a member of the House Appropriations Committee, David Vitter has shown strong support for the Maritime Security Program, as well as other vital maritime initiatives.

He understands the importance of the shipbuilding industry as it relates to our national defense and economic industrial base.  Congressman Vitter’s district has a large maritime component. Many tug and barge companies are located in his state of Louisiana, as well as over 60 shipyard facilities, Northrop Grumman Ship Systems Avondale Operations being the largest one. 

In his keynote address, Congressman Vitter will discuss the industry’s opportunities and challenges.  I know that you are as excited as I am to meet welcome a Member of the U.S. House of Representatives who has been and is instrumental in providing jobs in the maritime industry - well paying and permanent jobs, located right here in the United States.

 Please welcome, Congressman Vitter.

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