Prepared Remarks of

Sean T. Connaughton

Maritime Administrator

Navy League Dinner

Marriott Key Bridge

Saturday, November 4, 2006

Good evening. It is a great pleasure to be speaking in front of so many people who share both an interest in the sea and an understanding of how vital the sea is to America’s well-being and prosperity.

I thank John Panneton for the invitation to address you all tonight and my thanks to former Maritime Administrator Admiral Al Herberger for firming up the invitation.

I am here tonight with one simple message: ‘We’re in this together’.

We share a common respect for both the risks and the opportunities our oceans and waterways have given us. And we, as America’s sailors on ships of war and on ships of trade, have achieved great feats of daring, ingenuity, and engineering as America has forged its merchant marine and its navy.

I stand before you not only as the new Administrator for the Maritime Administration, but also as a sailor and mariner who has proudly served in three of the four sea service areas of our country, the U.S. Coast Guard, Kings Point, and the Navy Reserve.

In fact, I believe that my current position is the culmination of these experiences. I have learned valuable lessons both as a sailor in defense of this nation and as a merchant mariner doing my part to see America’s economy thrive and grow through our extensive trade.

That’s why one of my foremost priorities is to conform the Maritime Administration’s organization and priorities to changes in the industry and the challenges it faces. I want to position my agency to be a partner in the overall mission of the Department of Transportation and an advocate for rational responses to modern challenges.

As currently envisioned, the Maritime Administration will be organized to address four areas: national and international transportation facilitation, compliance, domestic industry development, and national security.

As members of the Navy League, you know all too well and have witnessed over time the importance of remaining strong in our commitment to build and enhance our maritime industry.

Support from the Navy League for the efforts of the U.S. Coast Guard and other federal, state, and local agencies, is and will continue to be crucial to ensure that the Marine Transportation System (MTS) remains strong enough to support maritime commerce and U.S. armed deployments.

You know, as do I, that our economic prosperity is dependent on international trade, and 95 percent of that trade by volume moves by sea. Specifically, America’s network of waterways moves more than 2.2 billion tons of domestic and foreign commerce each year, while the top 50 ports in the U.S. account for about 84% of all waterborne domestic and cargo tonnage.

That’s why I have made addressing the issue of port congestion one of my top priorities. We cannot allow our ports to become overwhelmed and our distribution network to get mired down in transportation entanglements and contagious inefficiency. When goods and services are not flowing, the economy suffers. And this economic slowdown erases any efficiency gained from improved training methods or vessel and cargo handling designs.

There are good grounds for hope. All of you here are in favor for improved marine terminal capacity and access to rail and roads. And everyone here knows that this is only one part of the big picture. Short Sea Shipping is another.

I know, as do you, that the Maritime Administration’s Short Sea Shipping initiative is another way to address the congestion issues facing our nation.

I believe that “the days of conferences are over.”

My agency will identify where Short Sea Shipping is happening today and where it is succeeding in various parts of the country. Additionally, we are looking to a few “model” programs to show the potential and will seek funding.

Budgetary and legislative measures—including capital and operations-related changes in U.S. tax and maritime regulations—that are needed to maintain a viable U.S.-flag merchant marine is another endeavor you endorse. I commend you for your efforts.

As you well know, the labor shortage confronting our industry is a source of concern. I know that with the help of the Navy League we will successfully address this issue.

I appreciate your leadership role in this effort and want you to know that I have already instructed my staff to conduct a survey of U.S. seafaring employment opportunities to help ease the employment crunch.

To ensure that we will have an adequate supply of mariners available in the event of a national sealift emergency, the Maritime Administration has recently created the New Mariner Outreach System. This online system allows participating mariners an opportunity to review their U.S. Coast Guard qualifications and to provide up-to-date changes to their contact information through a secure web site.

Of course, one of the primary sources of trained mariners is our own USMMA. The Academy provides a pool of trained seagoing merchant marine professionals who are capable of quickly and effectively teaming up with naval forces when necessary. Indeed, many graduates from USMMA go on to join in the Navy reserves—just another way that “we’re in this together.”

The global situation in which we find ourselves today proves that the merchant marine continues to be an indispensable logistical tool for projecting and sustaining American military might and its economic strength.

The Maritime Administration’s Ready Reserve Force (RRF) has been adaptive, versatile, and successful with strategic sealift capability during operations in Afghanistan and Iraq.

More than 90% of the materiel in combat theaters since 2001 has been carried to the Middle East by water. Augmented by commercial U.S.-flagged ships under the Maritime Administration’s initiative, our RRF vessels are transporting food, machinery, and equipment to Iraq, meeting vital needs of our troops during their mission.

This support is critical to our troops’ ability to procure the peace that will bring true freedom to Iraq. And when that happens, our ships will be ready to bring our soldiers back home.

Let me add that the Bush Administration has shown an appreciation of the Maritime Security Program which provides sustained sealift capability whenever required. The President’s fiscal year 2006 budget called for a fully funded fleet expansion and the program was fully funded in the Presidents 07 budget as well.

And let me say that in my time in my office, I will work hard to make sure Congress funds the program—each and every year.

The Department of Transportation and the U.S. Navy have always had a shared interest in our country’s overall strength, be it measured in terms of military power or economic influence. We have a solid tradition of cooperation. Time and time again, our partnership has been both tested and strengthened.

And right from the beginning, my agency and the Navy League forged a strong working relationship—we are proud of the trusted partnership we share with you. In fact, our cooperation is vital to the freedom of the United States.

Let me express my sincere appreciation for the efforts you put forth to support the Maritime Administration in the endeavors I outlined earlier. I hope that we will continue to work together toward these aims.

I thank all of you for your time and your kind attention.

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