First, let me congratulate Marine Log and members of my staff for putting together this outstanding program.

I also want to thank each of you for making time in otherwise busy schedules to participate in this thorough review of the health, vitality and potential for the U.S. shipbuilding, ship repair and vendor supply industry.

For the better part of two days, we have had the privilege of hearing from Members of Congress (the Honorable David Vitter, from the First District of Louisiana, and the Honorable Gene Taylor representing the Fourth District of Mississippi), from prominent officials of the Departments of Defense and Homeland Security, and from an impressive cross-section of senior industry executives.

Each examined one or more of the drivers affecting industry growth - for the better or worse.

And, while every speaker discussed this subject from different vantage points, all carried the same message.

That message was and is that, in all its aspects, the American shipbuilding industry is essential to the economic well-being and national defense of our great Nation.

Congressman Vitter emphasized this yesterday in his presentation where he described the major challenges facing the maritime industry. The two that come to mind vividly is his support of the Jones Act and his encouraging stance on year-to-year construction activity in U.S. shipyards. These two advances, if successful, will surely help revitalize our industrial base for shipbuilding and seafarers.

Where Congressman Vitter emphasized legislative steps to be taken, Allison Stiller of the U.S. Navy provided useful suggestions that can be pursued within current budgets. Surely, she will have my enthusiastic support to seek service life extensions for auxiliary ships. We will help all that we can to facilitate collaborative efforts between the Navy and the shipyards.

This conference also served up some useful ideas in regard to commercial shipbuilding, ship markets, and operations.

On the other hand, most of the speakers provided a realistic perspective on the future of the industry. The challenges are real, and it is our responsibility to find ways to seize opportunities that exist both now and in the near term to improve and strengthen our maritime heritage.

I wish to add some additional observations to that overall consensus assessment.

Let me assure you, however, that, in doing so, I will be brief. This is, after all, the final or concluding portion of an elaborate program. After 20 speakers and the debate that followed many of the presentations, it is time for all of us to return to our respective places of business to carry out our principal responsibility – making this industry work and work profitably.

Well, that’s the good news. Now for my thoughts on how the Maritime Administration (MARAD) is working to support this goal.

We recently announced the National Defense Tank Vessel Construction (NDTVC) Program. This program provides financial assistance for construction in the United States of a fleet of up to five privately owned product tank vessels.

The construction of these vessels focuses attention on the need to develop profitable, niche shipbuilding markets through series construction of efficient, competitively priced (to the buyer) product carriers to be flagged and used in U.S. foreign commerce. Hopefully, the impact of this program will be the concurrent development of series construction of Jones act tonnage enjoying the same pricing and efficiencies as their sister ships built under NDTVC.

As for the current status of the program, you are no doubt aware that MARAD has already issued requests for NDTVC proposals from industry with responses due on July 2, 2004.

We are also pleased to announce that MARAD and the National Science Foundation (NSF) have signed a Memorandum of Agreement (MOA) to collaborate on the creation of a new generation of Polar Research Vessels (PRV) to be built in the United States. This new and innovative vessel will establish global, state-of-the-art, criteria for polar exploration and ice breaking operations.

And, most significantly, the United States will be in the forefront of this naval architectural and environmental break-through.

In addition, in an effort to further strengthen all aspects of the Nation's maritime industry, Secretary of Transportation Mineta, in partnership with MARAD, began to work on an important initiative called SEA-21.

Among others, it includes a Short Sea Shipping (SSS) element.

Let me describe Short Sea Shipping.

Fundamentally, Short Sea Shipping is all about using our system of rivers and inland waterways to move more freight by water. It is designed to work in partnership with other intermodal transportation systems to ease congestion on our major interstates, roads, highways and rails. It must also provide complementary and supplemental support to our currently overburdened transportation system.

Moreover, Short Sea Shipping should assist in increasing the quality, capacity, and efficiency of our multi-modal transportation system while significantly improving air quality in and around our large centers of population.

Overall, MARAD, indeed the Department of Transportation and the Bush Administration, support the American merchant marine, including its shipbuilding and related components.

We recognize that it is imperative that our shipbuilders, repairers and their supply chain flourish and prosper.

And this requires support and encouragement.

Our challenge is to work together to achieve this goal so that shipyards can be revitalized to serve our country in the future as they have done so ably in the past.

The Maritime Administration is determined to work with you, to resolve problems, to promote progress, and to achieve prosperity.

And thank you again for attending Shipyard USA.

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