Maritime Administration 

Annual Report to Congress 

Fiscal Year 2009
Maritime Administration at a Glance 

Established: 1950 

Headquarters: 1200 New Jersey Avenue, SE 

Washington, DC 20590 

Web Address: www.marad.dot.gov 

 

Fiscal Year 2009 Budget: $433,391,000. 

 

(Includes $100 million in American Recovery and Reinvestment Act of 2009 funds) 1

 

 

 

Total Full Time Positions 842

Headquarters 282 

United States Merchant Marine Academy 294 

Gateway Offices and Fleet Sites 266 

 

Mission: To improve and strengthen the U.S. marine transportation system to meet the 

economic, environmental and security needs of the Nation. 

 

1 American Recovery and Reinvestment Act of 2009 (Pub.L. 111-5), Division A – Appropriations Provisions, Title 

XII – Transportation and Housing and Urban Development, and Related Agencies, Department of 

Transportation, Maritime Administration, Supplemental Grants for Assistance to Small Shipyards. 
Table of Contents

A Message from the Secretary 1 

A Message from the Maritime Administrator 2 

Executive Summary 3 

Industry Overview 4 

Expanded Opportunities 10 

Security, Preparedness, and Response 15 

Environmental Stewardship 21 

Reduced Congestion 25 

Global Connectivity 30 

Financial Statements 36 - 78 

Appendix 1: Government Sponsored Cargoes for Fiscal Years 2008 - 2004 80 

Appendix 2: Presidential Proclamation 90 

Appendix 3: Organization Chart 91 

Appendix 4: List of MSP Participants, September 30, 2009 92 

Appendix 5: VISA Vessel Listing, September 30, 2009 93 

Appendix 6: List of Vessels Approved for Transfer to 101- 102 

 Foreign Registry in Fiscal Year 2009 

Appendix 7: List of Deepwater Port License Applications 103 

 Evaluated and Assessed During Fiscal Year 2009 

Appendix 8: Map of Deepwater Port Locations 104 

Appendix 9: List of Loan Guarantees in the Title XI Portfolio 105 -106 

 As of September 30, 2009 

Appendix 10: List of Pending Applications for Title XI Financing 107 

As of September 30, 2009
Maritime Administration 

Fiscal Year 2009 

Annual Report To Congress 

 

U.S. Department of Transportation Maritime Administration 

Secretary Maritime Administrator 

Ray LaHood David T. Matsuda 

 

U.S. Department of Transportation 

Headquarters 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

1 

A Message from the Secretary

Ray LaHood

From the very start of this Administration in January 2009, the U.S. Department of Transportation has 

focused on transportation policy goals that improve public health and safety, foster livable communities, 

ensure that transportation assets are maintained in a state of good repair, support the Nation’s longterm economic competitiveness, and work to achieve environmental sustainability. The Department has 

also historically been a strong advocate for a world-class Marine Transportation System, and 

understands that efficient water transportation relies on well-maintained navigational shipping channels 

and harbors that receive both systematic and market-driven attention. For this reason, the Department 

has been a proponent of public-private partnerships and has been committed to working with all 

Federal, State, local, tribal and private stakeholders to achieve consensus on improving the Marine 

Transportation System and its connections to the other components of the transportation system. 

The centerpiece of President Obama’s and Congress’s response to the 2007-2009 recession during fiscal 

year 2009, was the passage of the American Recovery and Reinvestment Act of 2009 (Recovery Act).2 

The Recovery Act provided a stimulus to the economy through a number of investments throughout the 

economy, but particularly ‘shovel-ready’ projects in the transportation sector. In addition, the Recovery 

Act provided funding for the Transportation Investments Generating Economic Recovery (TIGER) 

Grant program.3 This program represented an important step toward the flexible funding needed to 

establish a more dynamic national freight transportation system. Through this program, the 

Department was able to award funding to projects of the highest merit without regard to their modes. 

The Department received more than 1,400 applications to the TIGER Grant program requesting 

funding for almost $60 billion worth of projects. I am pleased that seven port-related projects were 

among the 51 award recipients, realizing $120 million in grants. These projects, in concert with other 

Recovery Act investments, will provide lasting improvements to our Marine Transportation System. 

 

2 Recovery Act (Pub.L. 111-5). 

3

 Ibid., Department of Transportation, Office of the Secretary, Supplemental Discretionary Grants for a National Surface 

Transportation System.
2 

A Message from the Maritime Administrator

David T. Matsuda

The Maritime Administration (MARAD) is the Operating Administration within the United States 

(U.S.) Department of Transportation (DOT) responsible for improving and strengthening the U.S. 

marine transportation system to meet the economic, environmental, and security needs of the Nation. 

Its programs promote the use of waterborne transportation and its seamless integration with other 

segments of the transportation system and the viability of the U.S. merchant marine. MARAD works in 

many areas involving ships and shipping, shipbuilding, port operations, vessel operations, national 

security, environment, and safety. 

MARAD is also tasked with maintaining the viability of the maritime industry. Commercial mariners, 

vessels, and intermodal facilities are vital for supporting national security. For this reason, the Agency 

provided support and information for current mariners, extensive support for educating future mariners, 

as well as programs to educate America's young people about the vital role the maritime industry plays 

in the lives of all Americans. 

In fiscal year 2009, MARAD helped provide for America’s economic recovery. The Agency issued 70 

grants totaling $98 million in American Recovery and Reinvestment Act of 2009 (Recovery Act) funds 

to improve small shipyards throughout the United States. 4 These funds, awarded through MARAD’s 

Assistance to Small Shipyards Program, helped create and preserve jobs, provided valuable employment 

training, and made much-needed improvements to shipyards across the country. MARAD staff also 

participated in the review of grant proposals submitted for consideration under the Department’s 

TIGER Grant program.5 In addition, the Agency played a leading role internationally in combating 

piracy in the Gulf of Aden, and increased awareness of the maritime domain. 

This annual report outlines the activities of MARAD in these areas and highlights other major 

accomplishments. It also satisfies the statutory requirements for a report to Congress on the Cargo 

Preference Program, the Maritime Guaranteed Loan Program (Title XI), and suits in admiralty law. 

 

4 Recovery Act (Pub.L. 111-5). The Act appropriated a total of $100 million with “up to two percent of the funds provided [$2 

million]...to fund the award and oversight...of grants made under this heading.” 5

 Ibid., Department of Transportation, Office of the Secretary, Supplemental Discretionary Grants for a National Surface 

Transportation System.
3 

Executive Summary 

• The Industry Overview section of this report provides context for the Agency’s work. 

MARAD’s activities are closely involved with the waterborne -transportation industry 

in all its aspects. This section outlines the magnitude of commercial trade, both foreign 

and domestic, the growth of the cruise industry and the overall financial and 

employment picture for the industry. 

• The Expanded Opportunities section outlines the agency’s activities with reference to 

our Nation’s economic recovery funded through the Recovery Act. The Small Shipyard 

Grants Program issued $98 million in grants6, and the Agency also has oversight 

responsibility for another $21.4 million in port infrastructure improvements funded 

from the Recovery Act’s highway funding.7

• The Security, Preparedness, and Response section outlines the Agency’s high-profile 

role in combating piracy off the Horn of Africa, marine domain awareness, the Ready 

Reserve Force (RRF), the Maritime Security Program (MSP), and other sealift 

programs. 

• The United States Merchant Marine Academy and the State Maritime Academies 

produced 715 graduates in fiscal year 2009. 

• The Environmental Stewardship section highlights two issues that are most prominent 

within the global maritime industry. The first issue is how to reduce the risk of 

environmental damage caused by invasive species that may be transported in a ship's 

ballast water. The second issue is how to dispose of obsolete ships in an 

environmentally sound manner when they are no longer worthy of retention. 

 

• The Reduced Congestion section describes the Agency’s contributions to alleviating 

congestion in the overall transportation system. In this regard, the agency’s Deepwater 

Ports Program works to provide a safe and efficient means for delivering liquefied 

natural gas and oil into the United States. The Marine Highways Program works to 

better use our Nation’s waterways to alleviate congestion on U.S. roadways. This 

section also provides a report on the Maritime Guaranteed Loan Program, which is 

mandated by Congress. 

• The Global Connectivity section describes the agency’s growing work in providing 

expertise and coordination to improve our Nation’s major ports, and gives a brief 

description of the Cargo Preference Program. 

• The Financial Statements section compares financial activities at the end of fiscal year 

2008 and fiscal year 2009. 

• Appendices 1-10 provide a wide variety of detailed information regarding MARAD’s 

various programs. 

 

6 Recovery Act (Pub.L. 111-5). 

7 Ibid., Division A – Appropriations Provisions, Title XII – Transportation and Housing and Urban Development, and Related 

Agencies, Department of Transportation, Federal Highway Administration, Highway Infrastructure Investment. 
4 

Industry Overview 

 “Since such, therefore, are the advantages of water-carriage, it is natural that the first improvements of 

art and industry should be made where this conveniency opens the whole world for a market to the 

produce of every sort of labour...” 

--Adam Smith 

An Inquiry into the Nature and Causes of the Wealth of Nations, 1776 

The U.S. water transportation industry serves the needs of both foreign and domestic commerce. The 

industry is comprised of companies that carry freight or passengers on the open seas or inland 

waterways, offer towing services, charter vessels, and operate canals and terminals. Because MARAD is 

assigned with maintaining the viability of the maritime industry, it is useful to set the agency’s work in 

the context of the current state of the industry. 

Commerce Trade 

In 2008, United States waterborne commerce amounted to 

about 2.3 billion metric tons. Foreign commerce accounted for 

61 percent of the total (Figure 1). In the mid 1990s, domestic 

and foreign trade was about 1 billion metric tons each. By 2008, 

foreign trade had increased to 1.4 billion metric tons while 

domestic trade had fallen to about 0.9 billion metric tons, due 

largely to import substitution in the oil trades. 

The domestic trades include cargoes moved on the oceans 

(including trade between the contiguous 48 states and Alaska, Hawaii, Puerto Rico, and Guam) and 

along the coasts (19 percent), on the inland waterways (61 percent), the Great Lakes (9 percent), and 

within ports or U.S. territories (11 percent).8 Domestic trades are largely primary commodities: coal, 

petroleum, grains, ores, and chemicals. In 2008, higher-value container shipments (manufactures) 

amounted to about 20 million metric tons or 2 percent of U.S. domestic trade by weight. U.S. foreign 

waterborne trades are generally categorized as container and non-container (Table 1).

 

8 Percentages are based upon 2008 figures. Note: There is no requirement for U.S.-flag shipping to the U.S. Virgin Islands. 

Table 1. U.S. Foreign Waterborne Trade 

 (Million Metric Tons)

Annual January-September 

 % Ch. % Ch.

 2003 2004 2005 2006 2007 2008 2003-08 2008 2009 2008-09

Trade 1,209.6 1,305.6 1,351.0 1,380.6 1,375.9 1,376.5 13.8 1,038.6 896.7 -13.7 

 Exports 329.7 351.1 355.4 380.2 426.0 484.4 46.9 367.9 324.0 -12.0 

 Imports 879.9 954.6 995.7 1,000.5 949.9 892.1 1.4 670.7 572.7 -14.6 

Container 174.0 187.6 205..8 220.6 231.6 235.1 35.2 181.3 146.7 -19.1 

 Exports 58.0 61.8 66.4 73.6 86.0 98.0 68.9 77.4 64.0 -17.3 

 Imports 116.0 125.8 139.3 147.0 145.6 137.2 18.3 103.9 82.7 -20.4 

Non-Container1,035.6 1,118.0 1,145.3 1,160.0 1,144.3 1,141.4 10.2 857.3 750.0 -12.5 

 Exports 271.7 289.2 288.9 306.6 340.0 386.4 42.2 290.5 260.0 -10.5 

 Imports 763.9 828.7 856.3 853.5 804.3 754.9 -1.2 566.8 490.0 -13.5 

Sources: Foreign trade – U.S. Bureau of Census. Real GDP – U.S. Bureau of Economic Analysis.
5 

In 2008, 80 percent of container trades (metric tons) were time-sensitive, higher-value food and 

manufactured products carried by vessels in scheduled service. Non-container trades were largely bulk 

commodities such as oil, ores, coal, and grains, which were moved in tramp or unscheduled service. As a 

result, the higher-value container trades tend to be more sensitive to real economic growth (decline) 

than non-container trades. For example, over the five years between 2003 and 2008, U.S. - container 

trades increased by 35 percent, compared to 10 percent for non-container trades. In 2009, a recession 

year, the container trades were off by more than 19 percent, compared to about 13 percent for noncontainer trades. 

To service container trades, carriers have 

deployed post-Panamax containerships in end-toend services, increased call frequencies, and 

reduced transit times. Over the years between 

2003 and 2008, containership calls at U.S. ports 

increased by 8 percent, while the average vessel 

size measured by twenty equivalent units (TEUs) 

per call increased by 19 percent (Table 2). While 

the largest containerships (10,000 to 14,000+ 

TEUs) in international service move in 

Asia/Europe, trades between deeper-draft ports 

have been available in the United States. In 

general, containerships calling at U.S. ports are 

still around 40 percent larger than those calling 

at foreign ports. 

During this same time period, calls by containerships of 5,000 TEUs or greater, which are largely postPanamax class, increased by 278 percent.9 In 2008, post-Panamax containerships accounted for 23 

percent of the containership calls at U.S. ports up from 7 percent from 5 years earlier. Post-Panamax 

containerships accounted for 69 percent of containership calls at West Coast ports. 

As of year-end 2008, the post-Panamax segment accounted for about 37 percent of the global 

containership fleet (TEUs), but 70 percent of the containerships on order. Based on existing orders, the 

post-Panamax segment could grow to more than 48 percent of the fleet over the next 3 years. The 

Panama Canal expansion will also accommodate post-Panamax vessels and, upon completion (scheduled 

for 2014), will facilitate post-Panamax shipments to and from Gulf and East Coast ports and reduced 

rail transshipment costs.10

To service post-Panamax size containerships, U.S. ports have invested heavily in post-Panamax and 

super post-Panamax gantry cranes, which are capable of unloading vessels carrying 18 to 22 containers 

across. However, over the next five years, U.S. container ports will need to make additional 

investments in infrastructure to accommodate the expansion of post-Panamax services. For example, 

the Port Authority of New York and New Jersey plans to invest $650 million in its express-rail

infrastructure by 2012. Even more critical, however, are plans to dredge U.S. shipping channels to the 

deeper depths (45+ feet) needed to accommodate the larger vessels. 

 

9 Panamax refers to the maximum dimensions of a vessel that can pass through the current lock dimensions of the Panama 

Canal: length – 965 feet, beam – 106 feet, and draft – 39.5 feet. Post-Panamax containerships exceed one or more of these 

dimensions. In the past, containerships that could transit the Canal were deployed in tri-continental services such as 

Europe/U.S./Far East. Now, most containerships operate in end-to-end services (transit one ocean). 

10 After the expansion, the maximum dimensions of a vessel that can pass through the Panama Canal will be: length – 1,401 

feet, beam – 180 feet, and draft – 60 feet. This will allow the Canal to accommodate the world’s largest containerships.

Table 2. Containership Calls at U.S. Ports by Size

 2003-2008

 % Ch.

Size (TEUs) 2003 2004 2005 2006 2007 2008 

2003-

07 

< 2,000 4,118 3,906 3,994 4,146 3,904 3,493 -15.2 

2,000 - 2,999 4,032 4,541 4,410 3,986 4,099 3,347 -17.0

3,000 - 3,999 4,050 3,888 3,624 3,333 2,866 2,460 -39.3

4,000 - 4,999 3,945 4,210 4,226 4,782 5,033 5,121 29.8 

> 4,999 1,142 1,734 2,288 3,344 3,961 4,314 277.8

Total Calls 17,287 18,279 18,542 19,591 19,863 18,735 8.4

U.S. 

TEUs/Call 3,145 3,235 3,314 3,502 3,597 3,744 19.0 

Foreign 

TEUs/Call 2,225 2,335 2,401 2,516 2,612 2,680 20.5 

Source: Maritime Administration, Vessel Calls at U.S. Ports. 
6 

Coastal feeder services are available to transship imports from major U.S. hub ports to other U.S. ports 

which cannot accommodate post-Panamax ships. Coastal container services are generally coastal legs of 

domestic short-sea services (lower 48 states to/from Alaska, Hawaii and Puerto Rico). Aside from the 

non-contiguous trade, the amount shipped on these legs is very small (0.3 million metric tons in 2008) 

because of additional transshipment costs and transit times. 

In the United States, the network of waterways was the primary means of interstate commerce and 

transportation for goods and people during our Nation’s early history. Over time, these services were 

largely replaced by rail, road and air transport. Under the Energy Independence and Security Act of 

2007, the U.S. Department of Transportation and MARAD are working to bring about a more robust, 

energy-efficient, and climate-friendly transportation system through the creation and expansion of 

domestic water-transportation services.11

North American Cruise Passengers 

In 2009, 64 million passenger nights were 

booked on North American cruises, down 

0.6 percent from a year earlier (Table 3). 

The North American cruise market has 

been capacity driven; that is, cruise lines 

have discounted fares to fill ships. From 

2008 to 2009, North American cruise fares 

declined by nine percent. The discounting 

helped maintain demand for port and 

other cruise-related services. 

 

The North American cruise market is 

highly concentrated, with the top four 

firms --Carnival, Royal Caribbean, 

Norwegian, and Disney accounting for 99 percent of 2009 passenger nights. By itself, Carnival 

accounted for 6 brands and 55 percent of the passenger nights. Competition between sellers in a 

concentrated market can be fierce with low prices and extreme levels of product differentiation (market 

segmentation), as appears to be the case in the North American cruise market. For example in 2009, for 

example, 17 cruise lines offered 619 different cruise products differentiated by ship, departure port, 

destination, and nights. The cruises involved 109 ships, 59 departure ports, 15 destinations, and ranged 

in length from 1-30 nights. 

Investment, Prices, and Employment 

As of year-end 2008, the U.S.-commercial fleet 

was comprised of about 40, 000 privately-owned 

cargo carrying vessels that were available for 

operation in U.S.-foreign and domestic trades 

(Table 4). U.S.-flag vessels accounted for about 35 

percent (238 vessels) of the U.S.-owned ocean and 

lakes fleet, 80 percent (551 vessels) of the offshore 

fleet, and all of the coastal and waterway fleets 

 

11 Energy Independence and Security Act of 2007 (Pub.L. 110-140), Title XI – Energy Transportation and Infrastructure, 

Subtitle C – Marine Transportation, Sec. 1121 – Short Sea Transportation Initiative. 

Table 3. North American Cruises, Key Statistics 

 2003-2009 

 (Capacity and Traffic in Million Passenger-Nights) 

Year Vessels Cruises Capacity Traffic Occupancy (%) 

2003 101 4,094 50.84 53.53 105

2004 112 4,465 57.61 61.63 107

2005 114 4,463 59.03 63.73 108

2006 110 4,435 60.21 65.03 108

2007 116 4,464 62.15 67.20 108

2008 118 4,212 58.99 64.01 109

2008 Jan.-Sep. 108 3,189 43.69 47.87 110

2009 Jan.-Sep. 106 3,102 43.66 47.62 109

Notes: The Cruise statistics cover seventeen major cruise lines that offer North American 

cruises with a U.S. port of call. Capacity is based on 2 passengers per stateroom. A double 

stateroom with 2 passengers is considered 100 percent occupied. Since many double 

staterooms can accommodate 3 or 4 people, occupancy can be more than 100 percent.

Source: Maritime Administration, North American Cruise Statistics Snapshot.

Table 4. U.S.-Owned Fleet by Segment, 2008

Ocean and Great Lakes Coastal & 

Ocean Lakes Total Waterways Offshore Total

U.S.-Owned 628 47 675 38,502 689 39,866

 U.S.-Flag 191 47 238 38,502 551 39,291

 Jones Act 98 47 145 38,502 551 39198

 Other 93 0 93 0 0 93

 For.-Flag 437 0 437 0 138 575

Sources: Ocean and Offshore—Clarkson Research, Clarkson Register, 

www.clarksons.net; Coastal and Waterways—U.S. Army Corps of 

Engineers, Vessel Detail Files, www.iwr.usace.army.mil/ndc. 

Information compiled by the Maritime Administration. 
7 

0

600

1,200

1,800

2,400

1968 1978 1988 1998 2008

Figure 3. U.S. Investm ent in Vessel Assets 

1968-2008

(Million Dollars) 

Source: U.S. Bureau of Economic Analysis, 

Detailed Fixed Asset Tables www bea gov

Source: U.S. Bureau of Economic Analysis, 

(Table 5). Jones Act vessels operating in domestic service accounted for 51 percent (98 vessels) of the 

ocean fleet and all of the lakes, offshore, coastal, and waterways fleets.12 

 

12 Jones Act vessels must be constructed in the United States, owned by U.S. citizens, and registered under the U.S. flag. 

Table 5. U.S. Producer Prices, Water Transportation and Related Industries

 2003-2009

 (Indices)

Annual January-September

 % Ch. % Ch.

Segment 2003 2004 2005 2006 2007 2008 2008-09 2008 2009 2008-09

Water Transportation (Freight) 100.0 101.3 106.4 111.1 113.5 127.4 27.4 125.6 115.4 -8.0

 Deep Sea 100.0 102.8 105.5 106.1 104.6 118.7 18.7 116.1 99.5 -14.3

 Coastwise 100.0 101.2 111.4 121.1 133.2 138.4 38.4 138.5 131.5 -5.0

 Great Lakes 100.0 101.3 105.4 113.2 125.3 145.0 45.0 144.2 145.4 0.8

 Inland 100.0 105.1 121.4 146.7 149.2 174.0 74.0 171.1 167.6 -2.0

Cruise Passenger Fares 100.0 98.3 99.4 99.2 98.6 97.0 -3.0 97.8 88.0 -10.0

Port Services 100.0 101.0 103.5 107.7 112.7 117.1 17.1 116.8 116.7 -0.1

 Cargo Handling 100.0 100.5 102.2 105.1 109.0 110.5 10.5 110.8 112.6 1.6

Shipbuilding and Repair 100.0 105.3 108.0 112.0 116.7 119.6 19.6 119.1 123.3 3.5

 Shipbuilding

 Self-Propelled 100.0 108.3 115.2 124.3 132.1 141.0 41.0 139.3 164.4 18.0

 Non-Self-Propelled 100.0 107.8 120.0 131.5 137.1 141.1 41.1 140.6 136.5 -2.9

 Repair 100.0 101.0 102.9 110.1 122.7 125.0 25.0 124.6 126.0 1.1

Other Related Prices

 Rail, Carload 100.0 105.2 117.5 127.7 132.1 147.7 47.7 147.2 139.0 -5.5

 Fuel

 Heavy Fuel Oil 100.0 99.0 147.1 159.2 171.4 227.0 127.0 249.2 141.5 -43.2

 Diesel 100.0 127.6 188.2 215.8 234.3 323.7 223.7 356.5 170.5 -52.2

Note: The Producer Price Index (PPI) is a family of indices that measures the average change over time in selling prices received by domestic 

producers of goods and services. Source: U.S. Bureau of Labor Statistics, www.bls.gov. 

Over the 5 years between 2003 and 2008, the asset value of 

vessels used in U.S.-water transportation increased by 23 

percent, the highest 5-year growth of the last 25 years (Figure 2).

During that 5-year period, carriers invested nearly $9 billion in 

new vessel assets, including 27 ocean vessels, 291 tugs, 855 tank 

barges, 3,370 dry-cargo barges, 118 offshore-supply vessels, 31 

supply vessels, and 31 ferries.

These new vessels are largely replacements for vessels built during 

the expansion of the 1970s that have been retired from service. 

There are, however, major differences between the two fleet 

construction booms. The investments of the 1970s were largely 

speculative: vessels were built to operate in spot markets because 

investors sought to take advantage of investment tax credits, 

loan guarantees, and construction subsidies. The recent burst of 

fleet construction has been largely market-driven, backed by 

long-term customer commitments. Having begun in the mid1990s, the vessels replacement process is now in its final stages 

(Figure 3).

0

10

20

30

40

1968 1978 1988 1998 2008

Figure 2. U.S. W ater-Transportation 

Vessel Assets, 1968-2008

(Billion Dollars) 
8 

Over the years between 2003 and 2008, 25,800 jobs were added in water-transportation and related 

industries, an increase of 20 percent (Table 6). Most of the gains were lost over the first nine months of 

2009. The decline in shipbuilding employment was smaller than that for other segments as shipyards 

worked off their 2008 orders. 

Table 6. U.S. Employment in Water Transportation and Related Industries 

 2003-2009 

 (Thousand Jobs) 

 Annual January-September 

 %Ch. %Ch. 

Segment 2003 2004 2005 2006 2007 2008 2003-08 2008 2009 2008-09

Transportation 54.5 56.4 60.6 62.7 65.5 65.2 19.6 66.1 57.8 -12.6 

Port Services 93.8 91.5 93.9 99.3 100.1 97.0 3.4 99.7 87.4 -12.3 

 Cargo Handling 40.8 40.8 42.8 45.6 46.2 44.9 10.0 45.4 38.6 -15.0 

 Other 53.0 50.7 51.1 53.7 53.9 52.1 -1.7 54.3 48.8 -10.1 

Shipbuilding and Repair 92.6 90.8 92.2 95.1 101.0 104.5 12.9 104.6 101.3 -3.2 

 Total 240.9 238.7 246.7 257.1 266.6 266.7 10.7 270.4 246.5 -8.8 

Note: The current employment survey series are estimates of nonfarm wage and salary jobs, not estimates of employed persons; an individual with two 

jobs is counted twice by the survey. Source: U.S. Bureau of Labor Statistics, Current Employment Statistics Survey, www.bls.gov. 
9 

Classroom training - photo courtesy of the USMMA 

Students at the United States Merchant Marine Academy receive classroom training. 

 

Kings Point Graduation, official DOT/Kings Point photo 

Photo courtesy of the USMMA 

Secretary of Transportation Ray LaHood addresses the 2009 graduating class of the United States 

Merchant Marine Academy. 
10 

Expanded Opportunities 

WORKING TOWARD AMERICA’S RECOVERY 

The Recovery Act was signed into law by President Obama on February 17, 2009. It was an 

unprecedented effort to jumpstart our economy, create or save millions of jobs, and put a down payment 

on addressing long-neglected challenges so our Nation can thrive in the 21st century. The Recovery 

Act is an extraordinary response to an economic crisis unlike any since the Great Depression, and 

includes measures to modernize our Nation's infrastructure, enhance energy independence, expand 

educational opportunities, preserve and improve affordable health care, provide tax relief, and protect 

those Americans in greatest need. MARAD is directly involved in the Recovery Act through its Small 

Shipyards Grant Program and its participation in grants to ports. 

American shipyards provide an excellent opportunity to move the economy toward prosperity again. 

Shipyard workers are skilled and highly paid, and employment is more often available in shipyards that 

have modern equipment and well-trained workers. Since a vibrant shipbuilding industry is an 

important component in our Nation’s maritime industry, MARAD used the Small Shipyard Grant 

Program as a vehicle for economic recovery under the Recovery Act to give grants to shipyards to 

upgrade equipment and train workers. 

Small Shipyard Grants 

Under the terms of the Recovery Act, MARAD received a total of $100 million from Congress for the 

Small Shipyards Grant Program for fiscal year 2009. 13 This program provides 75 percent in Federal 

funds with 25 percent in matching funds from the shipyard for capital improvements and related 

infrastructure improvements, which will foster efficiency, competitive operations, and quality ship 

construction and repair. Grant funds may also be used for maritime training programs to enhance 

technical skills and operational productivity. 

On August 18, 2009, DOT announced 70 grants totaling $98 million in Recovery Act funds that will be 

used to improve small shipyards throughout the United States.14 The following is a detailed list of the 

grantees: 

• Aker Philadelphia Shipyard, Inc., Philadelphia, PA: $2,312,614, for the first year of a training 

program. 

• All American Marine, Inc., Bellingham, WA: $297,827 for painting equipment, welding equipment, 

shipyard machinery, and information technology upgrades. 

• Associated Naval Architects, Inc., Portsmouth, VA: $476,893 for surface preparation equipment and 

air-service upgrades. 

• Atlantic Marine Boston, LLC, Boston, MA: $412,688 for a drydock ship handling system. 

• Atlantic Marine Florida, LLC, Jacksonville, FL: $1,234,340 for steel fabrication upgrades. 

• Atlantic Marine Philadelphia, LLC, Philadelphia, PA: $988,687 for a 60-ton crane and a drydock 

ship handling system. 

• Austal USA, LLC, Mobile, AL: $1,807,500 for an overhead-bridge crane and a 225-ton mobile crane. 

 

13 Recovery Act (Pub.L. 111-5), Division A – Appropriations Provisions, Title XII – Transportation and Housing and Urban 

Development, and Related Agencies, Department of Transportation, Maritime Administration, Supplemental Grants for 

Assistance to Small Shipyards.

14 Ibid. 
11 

• BAE Systems San Diego Ship Repair (Marine Training Program), San Diego, CA: $410,874 for the 

first year of a training program. 

• BAE Systems San Francisco Ship Repair, San Francisco, CA: $1,783,175 for drydock strengthening 

and upgrades. 

• Bay Ship & Yacht Co, Alameda, CA: $1,452,526 for a 90-ton crane and high-reach equipment. 

• Blount Boats, Inc., Warren, RI: $868,186 for a hydraulic shear, brake press, and plate roller. 

• Bludworth Marine, LLC (Orange), Orange, TX: $124,875 for a 30-ton crane and a forklift. 

• Blue Danube Corporation, Georgetown, PA: $2,973,750 for a new drydock. 

• Blue Danube Incorporated, Dunlevy, PA: $365,115 for production enhancements. 

• Colonna's Shipyard, Inc. Norfolk, VA: $1,963,333 for a wastewater treatment barge, DAF watertreatment system, hydro-blast equipment, and a big-top enclosure. 

• Davis Boat Works, Inc., Newport News, VA: $612,097 for a blast enclosure and electrical upgrades. 

• Derecktor Shipyards Connecticut, LLC, Bridgeport, CT: $2,947,710 for drydock modifications. 

• Eastern Shipbuilding Group, Inc./Bay Fabrication, Inc., Panama City, FL: $2,986,620 for an Ogden 

panel line. 

• Ellicott Dredges, LLC, formerly known as Baltimore Dredges, LLC, Baltimore, MD: $1,755,330 for 

material handling, machining, welding, and information technology upgrades. 

• Everett Shipyard, Inc., Everett, WA: $439,497 for a mobile cover and a training program. 

• Fairhaven Shipyard Companies, Inc., Fairhaven, MA: $1,630,750 for a 400-ton travelift. 

• Foss Maritime Company (Rainer Yard), Rainier, OR: $707,550 for hydraulic dollies and a 90-ton 

crane. 

• Foss Maritime Company (Seattle Yard), Seattle, WA: $621,761 for lifts, forklifts, a brake press, 

bridge crane welding machines, and hydraulic dollies. 

• G&H Barge Repair & Fabrication, LLC, Houma, LA: $1,766,100 for a new drydock. 

• General Ship Repair Corporation, Baltimore, MD: $2,400,125 for a drydock expansion. 

• Guam Industrial Services, Inc., doing business as Guam Shipyard, Santa Rita, GU: $495,561 for a 

plasma cutting machine and a plate-roll machine. 

• Gulf Copper Manufacturing Group, Galveston, TX: $2,274,022 for a fabrication shop upgrade. 

• Gulf Marine Repair Corporation, Tampa, FL: $4,159,857 for a drydock expansion. 

• Horizon Shipbuilding, Inc., Bayou La Batre, AL: $99,000 for gas and air storage and a distribution 

system. 

• Houma Industries, LLC, Harvey, LA: $1,793,477 for a 275-ton crane. 

• ICE FLOE, LLC, doing business as Nichols Brothers Boat Builders, Freeland, WA: $841,077 for 

training, environmental coverings, and welding equipment. 

• International Ship Repair & Marine Services, Inc., Tampa, FL: $2,228,307 for a drydock life 

extension. 

• James Built, LLC, Calvert City, KY: $1,843,935 for a press brake, two rough-terrain cranes, a 

wheelabrator, and a computer numerical control (CNC) plasma table. 

• James Wickliffe (Division of James Marine, Inc), Wickliffe, KY: $620,025 for a 40-foot lathe, a 25-

ton crane, and a boom lift. 

• Jeffboat, LLC, Jeffersonville, IN: $2,301,837 for a slipway repair and aerial lifts. 

• Kvichak Marine Industries, Inc., Seattle, WA: $1,138,602 for a crane, aluminum plate processing, 

and training. 

• Lake Union Drydock Company, Seattle, WA: $184,217 for an information-technology upgrade and 

a steel-plate roller. 

• LEEVAC Shipyards, LLC, Jennings, LA: $3,733,517 for two cranes and other equipment. 

• Lyon Shipyard, Inc., Norfolk, VA: $4,542,123 for a drydock enhancement. 

• Marine Fluid Systems, Inc., Eastonville, WA: $744,244 for a railway trolley, a crane, a forklift, an 

ironworker, and welding machines. 
12 

• Marine Hydraulics International, Inc., Norfolk, VA: $259,650 for paint cure booth and a CNC 

plasma cutter. 

• Master Boat Builders, Inc., Bayou La Batre, AL: $2,326,683 for a 300-ton crawler crane and two 

rough-terrain cranes. 

• McGinnis, Inc., South Point, OH: $1,420,069 for a plasma table, welding items, a press brake, and an 

angle-bending roll. 

• National Maintenance and Repair, Inc., Hartford, IL: $1,180,707 for a 220-ton crane. 

• Navatek Ltd., Honolulu, HI: $902,634 for a movable fabrication bay and a CNC router. 

• Offshore Inland Marine & Oilfield Services, Inc., Mobile, AL: $330,618 for a forklift and other 

equipment. 

• P&R Water Taxi, LLC, Honolulu, HI: $876,745 for a 110-ton crane. 

• Pacific Shipyards International, LLC, Honolulu, HI: $3,964,362 for a waterjet cutting system, plate 

and angle rollers, a press brake, and a shear. 

• Paducah River Painting, (Subsidiary of James Marine, Inc.) Calvert City, KY: $453,000 for two 

rough-terrain cranes. 

• Paducah River Service (a Division of James Marine, Inc.) Calvert City, KY: $542,526 for a plasma 

cutting machine and a CNC lathe. 

• Platypus Marine, Inc., Port Angeles, WA: $73,780 for information technology upgrades. 

• RiverHawk Marine, LLC, Tampa, FL: $1,290,246 for a travelift and synchro-lift control upgrade. 

• SAFE Boats International, LLC, Port Orchard, WA: $1,097,495 for cranes, a travelift, and other 

equipment. 

• Scarano Boat Building, Inc., Albany, NY: $375,613 for a CNC router, a crane, and an epoxy 

dispensing system. 

• SeaArk Marine, Inc., Monticello, AR: $416,213 for a crane and a forklift. 

• Senesco Marine, North Kingtown, RI: $1,792,347 for a transporter and four overhead cranes. 

• Seward Ship's Drydock, Inc., Seward, AK: $1,088,078 for ship-transport cradles, synchro-lift 

controls, and compressed air upgrades. 

• Signal International, LLC, Pascagoula, MS: $1,893,087 for a profile cutting system, a semi-auto 

beveller, a 750-ton brake press, and a roll form press. 

• Signal International Texas, LP Orange, TX: $1,313,300 for a panel line. 

• St. John's Ship Building, Inc., Palatka, FL: $2,343,977 for a drydock and an air compressor. 

• Steiner Shipyard, Inc., Bayou La Batre, AL: $1,802,836 for a 400-ton travelift. 

• Stevens Towing Co., Inc., Younges Island, SC: $318,533 for a floating dock and equipment. 

• Tampa Ship, LLC, Tampa, FL: $2,270,172 for a panel line. 

• The Great Lakes Towing Company, Cleveland, OH: $845,407 for tooling and equipment. 

• Todd Pacific Shipyards Corporation, Inc., Seattle, WA: $1,945,981 for a training program. 

• Trinity Industries, Inc., Caruthersville, MO: $308,538 for a plasma cutter. 

• Union Dry Dock & Repair Company, Hoboken, NJ: $577,902 for welding equipment, lifting 

equipment, and blast and coating equipment. 

• Vigor Industrial, LLC, Portland, OR: $1,582,665 for an integrated thermal cutting system, a virtual 

paint system, a drydock automation system, a plural paint system, and a portable boiler system. 

• Washburn & Doughty Associates, Inc., East Boothbay, ME: $2,659,500 for a new drydock. 

• Yager Materials, LLC, Owensboro, KY: $1,407,612 for a panel line. 
13 

In addition to the Recovery Act grants, MARAD also awarded grants under its regular Assistance to 

Small Shipyards Program. 15 On July 9, 2009, DOT announced that 14 small shipyards in 10 states 

received a total of $17.1 million in fiscal year 2009 grants:

• Aker Philadelphia Shipyard, Inc., Philadelphia, PA: $1,951,022 for a thermal machining center. 

• Basic Marine, Inc., of Escanaba, MI: $1,376,187 for a cutting table, a press brake, and welders. 

• Bay Shipbuilding Co. (a division of Fincantieri Marine Group LLC) of Sturgeon Bay, WI: 

$2,894,972 for a 220-ton transporter, a micro panel line, a burning machine, a magnetic lift 

beam, and a brake press. 

• Bollinger Shipyards Lockport, LLC, Lockport, LA: $1,146,596 for a press, a plasma cutting 

table, and a 6 inch mill. 

• Duclos Corporation doing business as Gladding-Hearn Shipbuilding, Somerset, MA: $629,675 

for lifts, skylights, lighting upgrades, overhead cranes, and two 22-ton cranes. 

• Marinette Marine Company, Marinette, WI: $1,404,919 for bridge cranes, a deck straightener, 

a cable system, and panel line jib cranes. 

• North Florida Shipyards, Inc., Jacksonville, FL: $3,312, 369 for waterblast equipment and a 

600-ton travelift. 

• Pacific Ship Repair & Fabrication, Inc., San Diego, CA: $319,365 for a waterjet cutting machine, 

a press brake, and a shear. 

• Total Marine Services of Jefferson, Inc., of Harvey, LA: $640,264 for a 100-ton crawler crane 

and welding equipment. 

• VT Halter Marine (Pascagoula), Inc., Pascagoula, MS: $1,565,587 for a 450-ton transporter and 

a portable retractable-platen cover. 

• VT Halter Marine, Inc., Halter Moss Point, MS: $436,406 for a press brake and CNC burning 

table. 

• VT Halter Marine, Inc., Moss Point Marine, Moss Point, MS: $868,011 for a CNC burning 

table. 

• William E. Munson Co., Inc., Edmonds, WA: $150,585 for welders, a shear, and a press. 

• Zidell Corporation, Portland, OR: $454,042 for a plasma cutting machine, welding equipment, 

and a vacuum plate lifter. 

Port Grant Projects 

In keeping with its longtime commitment to promote the use of waterborne transportation and its 

seamless integration with other segments of the transportation system, MARAD has long provided port 

authorities with assistance and expertise in improving infrastructure and operational efficiency. The 

Agency has oversight responsibility for $21.4 million in grants under the Recovery Act’s highway 

infrastructure investment provision. 16 The grant funds are being used to improve existing 

infrastructure, increase efficiency, and reduce environmental effects of cargo handling operations. 

 

15 Omnibus Appropriations Act, 2009 (Pub.L. 111-8), Division I – Transportation, Housing and Urban Development, and 

Related Agencies Appropriations Act, 2009, Title I, Department of Transportation, Maritime Administration, Assistance to 

Small Shipyards. 

16 American Recovery and Reinvestment Act of 2009 (Pub.L. 111-5), Division A – Appropriations Provisions, Title XII – 

Transportation and Housing and Urban Development, and Related Agencies, Department of Transportation, Federal Highway 

Administration, Highway Infrastructure Investment. 
14 

During fiscal year 2009, MARAD signed grant agreements with the Port of Portland (Oregon), ToledoLucas County (Ohio) Port Authority, and Columbiana County (Ohio) Port Authority to undertake portdevelopment projects. The Agency will provide technical oversight and administrative support for 

container-crane modernization and marine-terminal upgrades in Portland, new mobile cranes for the 

Port of Toledo, and cargo handling equipment for Columbiana County Port Authority. These activities 

will increase port efficiency and reduce environmental effects of cargo handling activities. 

Under a new Recovery Act program, up to $1.5 billion was made available through September 30, 2011, 

for the Secretary of Transportation to make grants on a competitive basis for capital investments in 

surface-transportation infrastructure projects that will have a significant impact on a metropolitan area, 

region, or our Nation.17 Projects eligible for funding provided under this program include port 

infrastructure investments. Such investments include: improving passenger and/or freight throughput, 

storage, or processing capacity; increasing port efficiency, reliability and/or resiliency; increasing the 

ability to facilitate system recovery from natural or man-made disasters; and, providing security or 

national interest features for use by civilian and defense agencies. As of September 30, 2009, Maritime 

Administration staffs were participating in the related grant review process. 

American Recovery Act Announcement--Official DOT photo 

President Barack Obama announces DOT’s TIGER Program (a part of the American Recovery Act) to 

Federal employees as Vice President Joe Biden and Secretary of Transportation Ray LaHood look on. 

 

17 Recovery Act (Pub.L. 111-5), Department of Transportation, Office of the Secretary, Supplemental Discretionary Grants for 

a National Surface Transportation System. 
15 

Security, Preparedness, and Response 

The United States depends on its merchant mariners and commercial fleet of ships to transport goods 

and materiel overseas in any armed conflict or overseas emergency. Maintaining and improving the 

U.S. merchant marine is a significant national security role for MARAD and the Department of 

Transportation. To support these national security requirements, MARAD owns and maintains a ready 

fleet of cargo ships; administers programs that facilitate the use of U.S. commercial cargo ships and 

intermodal facilities; and ensures major strategic ports are available for use by the armed forces while 

minimizing impact to the flow of commerce. The Maritime Administration also plays a critical role in 

training merchant mariners and ensuring their employment in the fleets of the world. The agency also 

works with other federal agencies and international bodies to improve the safety of life at sea and in the 

industry as a whole. 

MARAD also has a significant role in responding to security challenges. In fiscal year 2009, a major 

security challenge was piracy off the Horn of Africa. 

PIRACY AND MARITIME DOMAIN AWARENESS 

MARAD serves as an industry facilitator to meet security challenges, and provides useful information to 

both the private and public sectors. This function is critical not only in the event of a transportation 

security incident, but also to facilitate the safety and security of the maritime domain at all times. The 

Agency has been at the forefront of outreach and interaction with the industry and other Federal 

agencies by hosting dozens of meetings in both national and international forums to help shape bestmanagement practices to counter piracy and to share industry concerns. 

The attack by pirates and subsequent recovery of the U.S.-flag cargo ship MAERSK ALABAMA in 

2009 elevated awareness of the problem of piracy in the waters off the Horn of Africa. Piracy in that 

region escalated in 2008, and continued to be a major concern during 2009, causing a significant 

disruption to the commercial shipping sector’s ability to safely transit those shipping lanes, as well as 

endangering the lives of merchant mariners crewing the vessels. 

MAERSK ALABAMA—photo courtesy Maersk Sealand 

MAERSK ALABAMA at sea. 
16 

The absence of the rule of law in or an effective central government in Somalia since 1991 has created 

conditions for sea jackings and piracy in the Horn of Africa region. Throughout 2008, 111 pirate attacks 

were reported off the coast of Somalia. While lulls in attacks occurred during monsoon periods, the 

number of attacks increased again later in 2009. In a 10-day period occurred in early April alone, 15 

such attacks occurred. 

According to statistics provided by the International Chamber of Commerce International Maritime 

Bureau’s Piracy Reporting Centre, there were 406 incidents of piracy and armed robbery reported in 

2009. This was the third consecutive year that attacks on ships increased in number, and more than half 

of the incidents were attributed to Somali pirates. 

MARAD has worked to establish and disseminate best-management practices to prevent piracy, by 

representing industry’s perspectives and ideas within interagency piracy working groups. The Agency 

provided assessments of security on U.S. vessels, and has been engaged in a network of international 

bodies and working groups to deal with policy, providing leadership and expertise to the U.S. delegation 

to the International Maritime Organization (IMO) Maritime Safety Committee in June 2009, as that 

forum deliberated on actions to counter piracy in the Horn of Africa region and ultimately produced 

IMO international guidelines to address piracy. The Agency also played a critical role in the creation 

and development of interagency anti-piracy assistance teams, which provide voluntary operational and 

physical-security assessments of U.S. flag vessels. 

The Horn of Africa piracy portion of the Agency’s website provides the latest information from 

international organizations and information on best practices, information gleaned from mariners and 

companies that have successfully thwarted pirate attacks. The Agency’s MarView website 

(www.marview.gov) provides real-time information on the locations of ships and conditions in ports 

and, combined with other Agency activities, systematically provides information on counter-piracy 

measures and awareness to commercial shipping throughout the world. 

SEALIFT AND EMERGENCY RESPONSE 

MARAD programs support an important function of the merchant marine, which is providing water 

transportation, or sealift, in support of the U.S. armed forces. In recent years, some of those programs 

have shown themselves to be increasingly important in times of natural disaster and other emergencies. 

MARAD owns and maintains a fleet of cargo ships, provides support for commercial ships and 

intermodal facilities that may be needed in an emergency and provides training for merchant mariners. 

Ready Reserve Force 

The Ready Reserve Force (RRF) is a group of cargo ships owned and maintained by the Maritime 

Administration. It is the active subset of the National Defense Reserve Fleet (NDRF). During fiscal 

year 2009, the RRF consisted of 50 ships, including roll-on/roll-off (RO/RO), breakbulk, auxiliary 

crane, heavy-lift barge carriers, special-mission tankers, and aviation logistic-support ships. These are 

maintained in various stages of readiness, are able to get underway in five or ten days, and are located in 

various ports along the United States’ East, West, and Gulf coasts. 

The addition of eight fast sealift ships (FSS) to the fleet over the past two years introduced significant 

challenges. While this addition gave the RRF eight large-capacity, high-speed ships; the FSS readiness 

standard was not met because the ships were placed in a rigorous drydock and boiler improvement 

regime to improve their overall material condition. The RRF management has subsequently identified 

and implemented best practices to improve the ships’ readiness. 
17 

FLICKERTAIL STATE (right) and the CAPE 

TEXAS (left) – photo courtesy the U.S. Navy 

The vessels are moored and fendered ‘skin-to-skin’ 

to test advanced crane control technologies. 

There were a total of 23 RRF ship activations during fiscal year 2009. Only one RRF ship, CAPE 

RISE, was activated to support Operations IRAQI FREEDOM for a total of 27 days underway. Six 

other RRF ships supported various exercises, and DOD requirements: CAPE JACOB, CHESAPEAKE, 

ADMIRAL CALLAGHAN, GRAND CANYON STATE, CAPE RISE, CAPE MAY, CORNHUSKER 

STATE, and CURTISS. These ships were underway for a combined 673 operating days, meeting all 

requirements. 

The U.S. Transportation Command periodically tests the ability of RRF ships to activate without prior 

advance notice. During fiscal year 2009, 16 such no-notice or “TURBO” activations took place to test 

RRR readiness, as identified below. All but one ship was able to activate on time and meet DOD’s 

requirements. Eleven of the “TURBO” activations started on the same day which created a significant 

test for the RRF ship managers and crews who met the challenges. These “TURBO” activations 

contribute to the overall readiness of the RRF as 72-hour sea trials follow the activation to allow a 

complete testing of all ship’s systems. 

CAPE DIAMOND; November 18, 2008, Successful 

CAPE INSCRIPTION; February 18, 2009, Successful 

CAPE WRATH; February 18, 2009, Successful 

CAPE FAREWELL; June 3, 2009, Successful 

CAPE HUDSON; September 15, 2009, Not successful 

CAPE DECISION, September 23, 2009, Successful 

CAPE DIAMOND, September 23, 2009, Successful 

CAPE DOMINGO, September 23, 2009, Successful 

CAPE DOUGLAS, September 23, 2009, Successful 

CAPE DUCATO, September 23, 2009, Successful 

CAPE INTREPID, September 23, 2009, Successful 

CAPE ISABEL, September 23, 2009, Successful 

CAPE ISLAND, September 23, 2009, Successful 

CAPE WASHINGTON, September 23, 2009, Successful 

CAPE WRATH, September 23, 2009, Successful 

CAPE GIBSON, September 23, 2009, Successful 

The RRF continued to support training of DOD, lawenforcement and safety personnel, and reservists. More 

than 4,615 persons were trained at 128 events held aboard 

or near RRF/NDRF vessels. 

The RRF has also historically provided platforms for 

research projects. The crane ship FLICKERTALE 

STATE was outfitted with a large vessel interface crane 

and conducted successful at-sea testing to move 

containers from the RRF ship CAPE TEXAS. This 

prototype development, sponsored by the Office of Naval 

Research, advances crane control technologies that will be 

used for future offshore replenishment of supplies to a 

mobile seabase. 

The offshore petroleum discharge ship CHESAPEAKE 

served its last months in the RRF, and its unique 
18 

equipment was offloaded and installed to support Department of Defense work on Masirah Island, 

Oman. After completing the mission, the CHESAPEAKE sailed for Beaumont, Texas, and was 

deactivated for long term storage at the NDRF anchorage facility. 

Maritime Security Program and Voluntary Intermodal Sealift Agreement 

 

Defense sealift continues to rely heavily on commercial ships, mariners, and port facilities. The 

Maritime Security Program (MSP) and Voluntary Intermodal Sealift Agreement (VISA) work together 

to provide militarily useful commercial vessels and the crews to operate them. MSP vessel operators 

receive financial support to partially offset the higher operating costs of keeping these vessels under the 

U.S. flag and, as VISA participants, obtain priority consideration in the award of DOD peacetime 

cargoes. 

Through MSP and VISA, U.S.-flag vessel operators have made an extraordinary commitment. More 

than 90 percent of all U.S.-flag, dry-cargo ships are enrolled in one or both programs, which obligate 

more than two-thirds of the carrying capacity of the entire commercial U.S.-flag, dry-cargo fleet to 

national security needs when necessary. 

The MSP also provides support for U.S.-flag tankers operating in international trade. Three MSP 

tankers participate in the MARAD-sponsored Voluntary Tanker Agreement (VTA). Like VISA, the 

VTA is a program designed to make commercial vessels (in this case, tankers) available to support 

contingency operations of the DOD. 

As of September 30, 2009, there were 59 ships enrolled in the MSP fleet, which was comprised of 38 

containerships, 17 RO/RO vessels, two heavy-lift vessels, and two tankers.18 One vacant slot was filled 

during fiscal year 2009. Nine MSP containerships were replaced with nine newer containerships, 

increasing the MSP fleet’s militarily useful capacity by approximately 1,942 TEUs. MSP ships 

continued to support U.S. troops in Iraq and Afghanistan by transporting military cargoes and other 

cargoes supporting the rebuilding of Iraq. To date, 72 MSP ships have contributed to this effort. MSP 

ships also continued to employ approximately 2,400 mariners, maintaining the pool of mariner positions 

that are critical to national security crewing requirements. 

The VISA program makes intermodal capacity available to DOD, including dry-cargo ships, equipment, 

terminal facilities, and intermodal management services. MSP participants commit all of their MSP 

vessel capacity to the VISA (or VTA) program. MSP participation represents more than 77 percent of 

VISA-capacity commitments. The remaining commitments are provided by other US-flag vessels 

operating in US domestic trade, international trade, or in carriage of commercial and DOD-preference 

cargoes. During fiscal year 2009, there were 133 ships enrolled in the VISA program.19

MARITIME EDUCATION 

MARAD funds, operates, and directly administers the training of merchant marine officers at the 

United States Merchant Marine Academy (USMMA) at Kings Point, New York and provides financial 

support and training vessels for the six State-operated maritime academies (SMA). The USMMA is a 

Federal service academy. The 169 men and 28 women of the USMMA’s Class of 2009 graduated on 

June 22, 2009. U.S. Secretary of Transportation Ray LaHood was the commencement speaker. The 

class represented 38 states, the District of Columbia, and the Republic of Panama. One hundred and five 

graduates received third-mate licenses and 92 graduates received third-assistant engineer licenses. In 

addition, 61 graduates were commissioned for active duty in the U.S. armed forces. About 70 percent of 

 

18 Appendix 4 provides a list of MSP participants as of September 30, 2009. 19 Appendix 5 provides a VISA vessel listing as of September 30, 2009. 
19 

the Class of 2009–some 138 midshipmen–spent all or part of their sea year assigned to Navy auxiliary 

vessels forward deployed to the Middle East and/or aboard commercial vessels chartered to carry 

military supplies in support of U.S. military operations in Afghanistan and Iraq. 

The six SMAs are located in Maine, Massachusetts, New York, Texas, California, and Michigan. The 

SMA graduations occurred between April and June 2009. Over the past five years, the SMAs have 

averaged 480 licensed graduates annually. The number of graduates and employment statistics for each 

of the academies is shown in the following table. 

Academic Year: Sept 2008 - Aug 2009 EMPLOYMENT DATA - TOTAL GRADUATES ACADEMY TOTAL GRADUATES TOTAL UNLIM. LICENSE GRADUATES NON-LICENSE GRADUATES MARITIME AFLOAT U.S. ARMED FORCES / NOAA MARITIME ASHORE NON-MARITIME GRAD SCHOOL 

OTHER 

CALIFORNIA* 159 102 57 66 19 11 31 7 25 

MAINE* 152 102 50 68 4 7 26 8 39 

GREAT LAKES* 19 19 0 13 0 1 0 0 5 

MASSACHUSETTS* 257 122 135 51 5 9 102 4 86 

TEXAS* 40 40 0 40 0 0 0 0 0 

NEW YORK* 306 172 134 58 12 39 30 13 154 

SMA Subtotal 933 557 376 296 40 67 189 32 309 

USMMA ** 196 196 0 112 61 19 0 0 4 

Grand Total 1,129 753 376 408 101 86 189 32 313 

 * The SMA figures reflect undergraduate and graduate cadets/students. 

 ** The USMMA figures reflect undergraduates only. 

SAFETY 

MARAD’s work in safety includes information gathering and dissemination, especially in conjunction 

with other U.S. agencies, international bodies, and commercial interests. 

In fiscal year 2009, the Agency worked with the maritime industry to develop an on-line, web-based 

system that provides industry with ready access to fatigue-management best practices, job-hazard 

analysis, and an evaluation tool to identify current safety metrics for the maritime industry. The 

Agency also launched a study to evaluate the development of the world’s first marine accident 

investigations network that will provide a comprehensive electronic database of marine accidents and 

incidents. Agency safety staff developed a Safety Manual Abstract that obtained approval from the Ship 

Operations Cooperative Program, an industry-government cooperative group, as well as from the 

International Chamber of Shipping. The manual is available on the agency web-site at 

(http://www.marad.dot.gov). 

A MARAD representative serves as chair of the interagency Ships Structure Committee. During fiscal 

year 2009, this body developed a Memorandum of Understanding with international bodies to 

collaborate in investigating corrosion prevention and structural preservation. 
20 

 Onboard Training Ship Golden Bear - photo courtesy California Maritime Academy 

A cadet gets a chance at the wheel during training at the California Maritime Academy. 

Splicing lesson - Photo courtesy Texas A&M Maritime 

Students at Texas A&M Maritime School practice marlinspike seamanship. 
21 

Environmental Stewardship 

The Agency is committed to good environmental stewardship, which is also a long-term strategic 

goal of DOT. Many of MARAD’s efforts to promote waterborne transportation have an 

environmental component. Since their primary function is relief of the congestion in the U.S. 

transportation system, those programs are dealt with in the Reduced Congestion section of this 

report. 

MARAD demonstrates its commitment to environmental stewardship in the everyday conduct of 

its business and in its work in the international arena. Most prominent are two environmental 

issues that vex the maritime industry worldwide: the disposal of obsolete ships and the transport of 

invasive species in ballast water. 

Ship Disposal 

MARAD maintains the National Defense Reserve Fleet (NDRF) as a reserve of ships for defense 

and national emergencies. The ships in the Ready Reserve Force (RRF) component of the NDRF 

are in active reserve, in ports stationed around the United States. 

The RRF is discussed in the Security, Preparedness, and Response section of this report. There are 

three NDRF sites: the James River Reserve Fleet at Fort Eustis, Virginia.; the Beaumont Reserve 

Fleet in Beaumont, Texas; and the Suisun Bay Reserve Fleet at Benicia, California. When ships are 

no longer considered useful for defense or aid missions, MARAD arranges for their responsible 

disposal. The reserve fleet sites hold ships that are being retained for defense purposes as well as 

those that have been declared obsolete. 

Environmental issues surrounding ship disposal have presented a serious challenge for more than a 

decade. Fiscal year 2009 brought recognition for the success of the ship disposal program. 

On July 3, 2009, 

USS Ortolan -Photo courtesy James River Reserve Fleet

The Ortolan being towed from James River Reserve for recycling in Brownsville, Texas. 
22 

In September 2009, Virginia Governor Tim Kaine held a news conference at the James River 

Reserve Fleet to acknowledge the progress made by MARAD and the Virginia Department of 

Environmental quality in protecting the water quality and fisheries of the James River. He noted 

that 84 vessels had been removed from the James River site since January 2001, and that all highand moderate-risk ships had been removed. 

As of the end of fiscal year 2009, MARAD made important progress in devising a ship-disposal plan 

for the Suisun Bay Reserve Fleet. Ship disposal efforts at Suisun Bay had been at a standstill for 

more than two years. New plans emphasize the cleaning of exfoliating paint from its worst 

condition vessels located in Suisun Bay. 

To evaluate the Ship Disposal Program, MARAD uses four annual performance measures and 

goals. The program was more than successful by each of the performance measures: 

 

• Number of obsolete vessels from the NDRF sites covered by disposal contract awards for 

subsequent disposal: The actual number of contracts awarded for obsolete, non-retention ships 

was 13, exceeding the fiscal year 2009 target by one. 

• Number of obsolete vessels removed from the NDRF sites for subsequent disposal. The target 

was 14 vessels; the actual number of vessels removed in fiscal year 2009 was 14, meeting the 

fiscal year target as planned. 

• Number of obsolete vessels disposed from the NDRF sites: The target was 15 ships. The actual 

number of vessels disposed in fiscal year 2009 was 23, exceeding the fiscal year 2009 target by 

eight, or more than 50 percent. 

• Cost-per-ton for obsolete vessel disposal actions from the NDRF: The target cost was $110 per 

ton. 

• While scrap steel prices were on the decline in 2009 relative to 2008, the market prices were 

still favorable and resulted in the sale of five ships and the $31 per ton disposal rate in 2009.

Nuclear Ship (NS) SAVANNAH

In fiscal year 2009, MARAD continued to maintain the NS SAVANNAH in accordance with 

Nuclear Regulatory Commission (NRC) regulations. The NS SAVANNAH is maintained in 

protective storage at a commercial layberth in Baltimore, MD. The NS SAVANNAH is a National 

Register/National Historic Landmark. 

Vessel Donation Program 

Not all obsolete ships are recycled. Sometimes they are repurposed. The Vessel Donation Program 

provides that excess or surplus vessels, shipboard equipment and other marine equipment owned by 

the United States may be made available by gift, loan, sale, lease, or charter to the Federal and State 

maritime academies and to any non-profit training institution that has been jointly approved by 

MARAD and the United States Coast Guard (USCG) as offering training courses, which meet 

federal regulations for maritime training. 

The excess or surplus items are obtained mostly from the USCG, the General Services 

Administration, and MARAD. Upon approval, the facility must complete a donation agreement, 

which requires that the facility must use the donated property for 36 months before it can be 

disposed. 
23 

In fiscal year 2009, MARAD approved the donation of a former National Oceanic and Atmospheric 

Administration (NOAA) ship, the ASSERTIVE, to the Seattle Maritime Academy for use in the 

school's maritime training program.

Aquatic Invasive Species/Ballast Water Testing 

Even as ships carry goods, they can also carry unwanted travelers—non-indigenous species that 

can be transported on hulls or other surfaces and in water used for ballast. Once introduced into a 

body of water, non-indigenous aquatic species can displace native species, causing harm to the local 

ecosystem. The transfer of species in this way is a worldwide concern. 

Procedures and treatments are needed that will kill or neutralize invasive species without harming 

the environment. While such treatments have been successfully used in laboratory conditions, there 

are challenges in using the technology aboard a working ship. 

MARAD has become a leader in testing and verifying technologies to treat ballast water in order to 

reduce the risk of transfer of aquatic invasive species. The Agency sustained its collaboration with 

Northeast-Midwest Institute in the Great Ships Initiative (GSI), based in the Port of Superior, WI. 

GSI scientists conducted six bench-scale tests on promising treatment technologies and conducted 

a single land-based test for International Maritime Organization (IMO) compliance in 2009. The 

Agency is also collaborating with the California Maritime Academy and the University of 

Washington to expand its ballast water treatment technology testing initiative to include the use of 

school ships. Funding for the modifications to the Training Ship Golden Bear to allow for testing of 

ballast water treatment technologies is being provided by MARAD, the California State Lands 

Commission, and NOAA. Verification testing of the modified system is scheduled to be completed 

prior to the vessel’s 2010 summer sea term. 

Foreign Transfers 

MARAD must approve the transfer of any U.S.-flag vessels of 1,000 tons or more to foreign 

ownership or registry, with primary consideration given to whether the vessel is militarily useful. 

During fiscal year 2009, MARAD approved the transfer of 45 ships, each over 1,000 gross tons, to 

foreign ownership and/or registry.20 

 

Three of the vessels approved for transfer to foreign registry in fiscal year 2009 were done so for 

the purpose of disposal: one to India and two to Canada. MARAD sends notification to EPA for all 

transfer/disposal requests prior to granting approval. EPA examines the transfer requests in order 

to ensure compliance with the Toxic Substance Control Act of 1976. 

Environmental Excellence 

In fiscal year 2009, MARAD continued to expand on its commitment to improve its own 

environmental performance. Building upon its efforts to reduce the Agency’s carbon footprint, 

MARAD joined a carbon cooperative through which it can track carbon emissions and progress 

toward emissions reduction. Through the cooperative, the Agency established a baseline against 

which to assess measures undertaken to improve energy efficiency and reduce carbon output. In 

 

20 Appendix 6 provides a list of all vessels approved for transfer to foreign registry in fiscal year 2009. 
24 

addition, in 2009, the Agency embarked upon energy audits of its fleet and facility operations to 

identify such measures. 

MARAD also expanded its Environmental Management System (EMS) implementation initiative 

in fiscal year 2009. The Agency anticipates that EMS programs will be fully implemented at each 

of its fleet sites and at the U.S. Merchant Marine Academy in fiscal year 2010. 

International Marine Environmental Regulations and Standards 

MARAD continued its work on international and domestic marine air emissions issues serving as 

technical advisors to the U.S. delegation to the IMO Marine Environment Protection Committee 

(MEPC) on greenhouse gases, ballast water, and ship recycling. With regard to greenhouse gas 

emissions, the MEPC has been developing an energy efficiency design index, an energy efficiency 

operational indicator, and market-based approaches to improve energy conservation and reduce 

carbon emissions. 

The Agency has also increased its role in working with industry to develop a consensus on 

voluntary international technical standards related to marine environmental protection. For 

example, the Agency has been working with an International Organization for Standardization 

working group to develop criteria for determining the effectiveness of ballast water treatment 

processes. 

World Maritime Day, Official MARAD photo 

Then Acting Maritime Administrator David Matsuda speaks with cadets from the U.S. Merchant 

Marine Academy in Kings Point, NY.
25 

Reduced Congestion 

MARAD supports DOT’s goal of reduced congestion in the U.S. transportation system by 

promoting the intelligent and responsible use of waterborne transportation, which can relieve 

congestion on the land-based transportation system. To this end, MARAD supports and assists the 

U.S. shipbuilding industry, promotes the use of the Marine Highways, and administers the 

deepwater ports program to promote a water-based alternative for landside liquefied natural gas 

(LNG) facilities. 

DEEPWATER PORTS 

MARAD plays a vital role in meeting Presidential energy directives, protecting the environment, 

building local economies, and improving mobility and safety in our Nation’s ports through the 

operation and licensure of deepwater port energy receiving facilities. 

Deepwater ports are offshore receiving facilities that provide a safe and efficient means for the 

delivery of LNG and oil into the United States. 

With the consultation and advice of the USCG, MARAD is responsible for rendering a record of 

decision for each deepwater port license application and for approving, approving with conditions, 

or denying a license application. 

During fiscal year 2009, the Agency’s Office of Deepwater Ports evaluated and assessed six license 

applications; conducted numerous public licensing hearings throughout the United States; 

participated in national and international public energy outreach forums; and partnered with the 

USCG in hosting a series of interagency meetings with various Federal and State agencies to 

discuss the oversight of offshore import energy facilities.21

The Maritime Administration approved Port Dolphin Energy’s license application for an offshore 

LNG facility to be located 28 miles southwest of Tampa, FL. Construction of the proposed port 

will begin in late 2012, and operations are planned to commence in 2013. As part of the final 

licensing process for the application, Port Dolphin Energy LLC signed a U.S. manning agreement 

to provide more than 100 employment and training opportunities to American officers, mariners, 

and cadets in the operation of the new facility. 

MARAD will continue to seek similar agreements with future applicants. As of September 30, 

2009, five deepwater-port license applications were under review, including projects proposed for 

construction and operation in the offshore waters of California, New York, New Jersey, Florida, and 

in the Gulf of Mexico.22

 

21 Appendix 7 provides a list of the Deepwater Port License applications evaluated and assessed during fiscal year 2009. 22 Appendix 8 provides a map showing the deepwater port locations for previously approved and pending applications, fiscal 

year 2009 and earlier. 
26 

MARINE HIGHWAYS 

America’s Marine Highway system accommodates the waterborne movement of passengers and 

freight between origins and destinations otherwise served solely by roads and railways. Its 

corridors run parallel to many of the Nation’s most important landbased routes and connectors. 

These corridors are important components of the Nation’s broader domestic marine transportation 

system, which consists of 25,320 miles of navigable waterways, including rivers, bays, and channels, 

and many thousands of additional miles on the Great Lakes Saint Lawrence Seaway System and 

coastal routes. 

U.S. Secretary of Transportation Ray LaHood highlighted the importance of marine highways in 

July 2009, when he stated that America’s Marine Highway system, “will help reduce land-based 

congestion and emissions, decrease our dependence on oil, and offer an alternative to building and 

maintaining costly new highway and rail systems.”23

MARAD continued to work with both public and private industry stakeholders to expand the use 

of America’s Marine Highway system, and integrate it into Federal, State, local and tribal 

transportation planning processes. 

During fiscal year 2009, MARAD collaborated with the Marine Highways Cooperative (MHC) to 

commission a study to identify the needs of Metropolitan Planning Organizations to assist them in 

considering marine highways as a complementary intermodal alternative for congested land 

transportation corridors, and to identify the initial requirements for the development of a short sea 

shipping benefits- analysis tool that can be used to support and integrate maritime transportation 

into their transportation plans. 

The Energy Act of 2007 required the U.S. Secretary of Transportation to create a short sea 

transportation program.24 MARAD published an Interim Final Rule in October 2008 outlining the 

program and soliciting corridor recommendations.25 In fiscal year 2009, MARAD received and 

processed these corridor recommendations and program comments resulting from the interim final 

rule. The resulting corridor proposals and the draft final rule have been submitted to the DOT for 

approval. 

MARAD continues to meet with its counterparts in Mexico and Canada through the Trilateral 

Working Group, to discuss opportunities for, and impediments to expanding marine highway 

services between the three countries. 

 

23 U.S. Department of Transportation Secretary LaHood, Remarks to the Marine Transportation System National Advisory 

Council, July 23, 2009. 

24 Energy Independence and Security Act of 2007 (Pub.L. 110-140), Title XI – Energy Transportation and Infrastructure, 

Subtitle C – Marine Transportation, Sec. 1121 – Short Sea Transportation Initiative. 25 “America’s Marine Highway Program,” Interim final rule with request for comments, 73 Federal Register 197 (9 October 

2008), pp.59530-59537; amended by “America’s Marine Highway Program, Corrections” Correcting amendment, 73 Federal 

Register 212 (31 October 2008), p. 64885. 
27 

SHIPBUILDING 

Maritime Guaranteed Loan Program – Title XI 

The Maritime Guaranteed Loan Program promotes the growth and modernization of U.S. 

shipyards. The program authorizes the Federal Government to guarantee the repayment of debt 

obligations, including unpaid interest, obtained in the private sector by: (1) U.S. or foreign ship 

owners for the purpose of financing or refinancing either U.S.-flag vessels or eligible export vessels 

constructed, reconstructed, or reconditioned in U.S. shipyards, and (2) U.S. shipyards for the 

purpose of financing advanced and modern shipbuilding technology of a privately owned, general 

shipyard facility located in the United States. 

 The program permits guarantees up to 87.5 percent of the actual cost of projects eligible for 

financing. The maximum guarantee period is 25 years. 

Title XI Activities 

During fiscal year 2009, the Maritime Administration issued two new commitments for ship 

financing loan guarantees. MARAD issued $267 million in loan guarantees to Vessel Management 

Services, Inc. for the construction of five articulated tug barges, built at VT Halter Marine, Inc. in 

Pascagoula, MS to carry petroleum products in the Jones Act trades. The Agency also issued a 

letter of commitment to Canal Barge Company, Inc. for $41 million for the construction of 30 

hopper barges, and nine asphalt barges being constructed at Trinity Marine Group, Inc. 

As of September 30, 2009, the ship financing loan guarantees portfolio consisted of $2.44 billion in 

loan guarantees outstanding. The portfolio consists of 65 projects, which include drill rigs, tankers, 

barges, containerships, RO/RO vessels, fast ferries, supply vessels, tugs, and shipyard 

modernization projects. 26 As of September 30, 2009, there were eight pending applications for an 

aggregate of $2.6 billion in new loan guarantees, and $43 million in subsidy appropriations 

remaining available to issue new guarantee commitments.27

All companies in MARAD Title XI portfolio undergo periodic financial reviews; however, 

companies with a higher potential for default receive additional monitoring. This activity involves 

the preparation of detailed financial reports for senior management review. Summaries of these 

reports are presented to the DOT Credit Council. The Credit Council is an oversight and financial 

guidance body that objectively reviews all discretionary loans and loan guarantees made by DOT 

credit programs. 

A total of $449 million in guaranteed projects, or 18.4 percent of the Title XI portfolio, has been 

identified as experiencing financial difficulties and, as such, is receiving the highest level of 

monitoring. MARAD incurred two defaults in fiscal year 2009 in the passenger cruise sector, for a 

total payout of $45 million. 

 

26 Appendix 9 provides a list of the 65 projects in the Title XI loan guarantee portfolio as of September 30, 2009. 27 Appendix 10 provides a list of the eight pending Title XI applications as of September 30, 2009. 
28 

With regard to the Title XI program, 46 USC 53718 requires the reporting of specific information 

in the Agency’s annual report to Congress: 

(1) The size, in dollars, of the portfolio of loans guaranteed: 

On September 30, 2009, a total of $2,441,098,361 in Title XI guarantees were 

outstanding. 

(2) The size, in dollars, of projects in the portfolio facing financial difficulties: 

On September 30, 2009 a total of $449,355,210 in loans were facing financial 

difficulties. 

(3) The number and type of projects covered: 

There were 65 loan guarantees outstanding, including two shipyard modernizations 

and over 300 vessels - including drill rigs, tankers, barges, containerships, RO/RO 

vessels, fast ferries, supply vessels, and tugs. 

(4) A profile of pending loan applications: 

As of September 30, 2009, there were eight pending loan guarantee applications, for 

a total of 37 vessels with a requested total guarantee amount of $2,564,839,223. 

These applications were for shuttle tankers, offshore support vessels, bunker barges, 

harbor tugs, jack-up drill rigs and articulated tug-barges. 

(5) The amount of appropriations available for new guarantees: 

As of September 30, 2009, a total of $42,907,257 was available for new guarantees. 

(6) A profile of each project approved since the last report: 

On January 9, 2009, the Acting Maritime Administrator approved $266,629,000 of 

loan guarantees for Vessel Management Services, Inc. for construction of five 

185,000 bbl articulated tug/barges. This amount was subsequently increased by 

$2,601,000 to $269,230,000. 

 

On September 30, 2009, the Acting Maritime Administrator approved $40,799,000 

of loan guarantees for Canal Barge Company, Inc. to support construction of nine 

asphalt tank barges and 30 hopper barges. 

(7) A profile of any defaults since the last report: 

In December 2008, AQ Boat LLC defaulted on $29,552,730 of Title XI guaranteed 

debt that was secured by a passenger cruise vessel. 
29 

In May 2009, Riverbarge Excursion Lines defaulted on $15,163,784 of Title XI 

guaranteed debt that was secured by a river cruise vessel. 

Construction Reserve Fund 

MARAD administers the Construction Reserve Fund (CRF), a financial assistance program that 

provides tax deferral benefits to U.S.-flag operators. The primary purpose of the CRF is to 

promote the construction, reconstruction, reconditioning, or acquisition of merchant vessels that 

are necessary for national defense and to the development of U.S. commerce. As of September 30, 

2009, there were 90 agreements in place for this program. 

Capital Construction Fund 

The Capital Construction Fund (CCF) Program was created to assist owners and operators of U.S.-

flag vessels in accumulating the large amounts of capital necessary for the modernization and 

expansion of the U.S. merchant fleet. The program encourages construction, reconstruction, or 

acquisition of vessels through the deferment of Federal income taxes on certain deposits of money 

or other property placed into a CCF. The program is jointly administered by MARAD and 

NOAA. As of September 30, 2009, there was approximately $2.6 billion in the CCF. 

Washington State Ferry, photo courtesy Derek Taff 

Washington State Ferry at Sunrise 
30 

Global Connectivity

DOT’s global connectivity strategic goal calls for facilitating an international transportation 

system that promotes economic growth and development. MARAD programs work in the 

international arena to bolster America’s maritime trade relationships, promote safe maritime 

commerce, and maintain the position of the U.S. merchant marine through cargo preference 

programs. In addition, an increasing area of activity in recent years has been providing expertise 

and coordination for large and complex port projects. Almost all of our Nation’s international 

commerce flows through its ports, and it is critical that they remain efficient, modern, and safe. 

PORT IMPROVEMENT PROJECTS 

Port of Anchorage Intermodal Expansion Project 

MARAD, working with the Port of Anchorage and its prime contractor, has completed a 

substantial portion of the marine terminal redevelopment as a part of the overall Port of Anchorage 

Intermodal Expansion Project. Environmental mitigation measures have also included underwater 

noise and marine mammal monitoring during all in-water construction activities and measuring 

sound levels to ensure marine mammal safety. The completion of the project is vital to the 

economy of Alaska, since the port supports 80 percent of the commerce for 90 percent of the State. 

Additionally, as a strategic port, the Port of Anchorage also supports numerous military facilities 

including the Stryker Brigade located at Fort Wainwright, near Fairbanks, Alaska. 

Hawaii Harbors Expansion Program 

MARAD, working with Hawaii Department of Transportation’s, Harbors Division and the Hawaii 

Harbors Users Group has completed a major renovation and improvement project for Pier 2A at 

Kawaihae Harbor, HI. The Agency has also awarded a $400 million contract to complete numerous 

improvements at Hawaii’s commercial harbors. 

This seven-year contract will provide the Harbors Division the ability to combine financial 

resources from various entities to leverage on a single contract to accomplish its priority projects. 

Several of the initial projects that Harbors Division has identified are focused on reducing the 

unemployment rate in the State of Hawaii while improving facilities that will benefit the cruise and 

tourism industries, which are mainstays of the Hawaiian economy. 

Port of Guam Improvement Enterprise Program 

MARAD is working with the Government of Guam and the Port Authority of Guam to manage all 

Federal, non-Federal, and private funds appropriated or otherwise made available for the port 

modernization program, manage all contracting functions, coordinate all environmental permitting 

requirements, and oversee all financial reporting. In December 2008, the Agency issued a 

solicitation for a program management firm to oversee the $200 million program. Successful 
31 

completion of the modernization is a key milestone necessary to meet the deadlines agreed upon 

with Japan for the relocation of military forces from Okinawa. 

Port of Port Arthur Drydock Transfer 

MARAD, working with the Port of Port Arthur, the U.S. Navy, and the DOD’s Office of Economic 

Adjustment has completed the remediation of polychlorinated biphenyls on a floating drydock 

owned by the Navy. The vessel was relocated from MARAD’s Beaumont Reserve Fleet to the 

Port of Port Arthur in fiscal year 2009, which allowed the remediation work to be completed. As of 

September 30, 2009, the Navy was in the process of transferring the ownership of the vessel to the 

Port of Port Arthur, which will then lease the vessel to a ship-repair facility to be placed into 

operation supporting the inland barge and offshore oil rig industries. 

PORT CONVEYANCE PROGRAM 

MARAD conveys surplus Federal property to eligible applicants at no cost to support the DOD’s 

Base Realignment and Closure Program for port development purposes. Surplus Federal 

properties, when ultimately conveyed to local port authorities, serve an important role in 

expanding the capacity of our Nation’s marine transportation system and building capacity in our 

economy. Since the inception of MARAD’s Port Conveyance Program, approximately 2,700 acres 

of property have been conveyed to eligible entities. 

MARAD receives and evaluates applications for surplus property and recommends assignment of 

the property to the disposal agency, which is the DOD for military property or the General 

Services Administration for all other non-military Federal properties. If the disposal agency 

concurs with MARAD’s recommendation, the surplus property is conveyed to MARAD for reconveyance to the applicant. 

Recently, State and local governments have expressed interest in securing surplus property located 

in Orange, Texas; Tacoma, Washington; and Ceiba, Puerto Rico. MARAD has actively engaged in 

outreach to these communities in order to gauge their ability to benefit from port property and to 

offer assistance in completing applications to secure surplus Federal port properties. 

During fiscal year 2009, MARAD received one port conveyance application from the Orange 

County Navigation and Port District in Texas and processed that application in addition to 

applications for port properties from the Port of Tacoma, Washington and the Puerto Rico Ports 

Authority. Thirteen acres of former Federal land were conveyed to the Orange County Navigation 

and Port District, which will develop the former Navy Reserve Center to create a maritime 

industrial park and expand intermodal access to the port. 

PORT SECURITY GRANT PROGRAM 

MARAD, in cooperation with the Department of Homeland Security (DHS), assisted in the 

allocation of congressional funding of grants to U.S. ports as a means to enhance port security in 

the United States. The program is a Federal and private shared-cost arrangement administered in 

cooperation with DHS and other Federal agencies. MARAD helped to review 190 applications and 
32 

to distribute funding on a competitive bidding process. In addition, MARAD participated in the 

review of 420 applications funded under the provisions of the Recovery Act. 

MARAD has played a key role in the grant program since its inception in 2002 and it is the only 

non-DHS agency involved in the program. Unlike its partner agencies, MARAD brings a 

commercial viewpoint to the application review and approval process. It is also the principal 

Federal agency in the process that considers the impact of security measures on movement of our 

Nation’s commerce. MARAD’s gateway offices and headquarters have been actively involved in the 

Port Security Grant Program by reviewing and analyzing applications, recommending project 

selections and funding levels, as well as making policy recommendations. 

GATEWAY OFFICES 

MARAD provides a Federal presence at major U.S. gateway ports, starting with 10 of the largest 

ports on the West, East, and Gulf coasts; the Great Lakes; and the inland river system. These 

gateway offices seek ways to improve our Nation’s waterborne freight movement. The offices work 

with headquarters staff and State, local and tribal authorities on a broad range of environmental 

and community challenges in the ports and their intermodal connections. They also act as liaisons 

for the Agency to help ensure that measurable progress is made on specific projects and bring 

Agency and departmental expertise to the table. 

CARGO PREFERENCE 

MARAD programs strengthen and promote a viable U.S.-flag merchant marine. One such 

program is cargo preference. Cargo Preference law requires a certain percentage of U.S. 

Government sponsored cargo moving in ocean-borne international trade to be carried on U.S.-flag 

vessels employing U.S. citizen crews. Reserving these preference cargoes to for U.S. carriers in 

international trade provides a revenue base to induce operations under U.S registry. MARAD 

reimburses the U.S. Department of Agriculture (USDA) and the Agency for International 

Development (AID) for certain cost differentials that may result from the use of U.S.-flag vessels 

instead of foreign-flag vessels in the export of humanitarian food aid. 

On October 14, 2008, Cargo Preference legislation was significantly modified to enhance MARAD’s 

ability to enforce Cargo Preference requirements. This revised legislation was included in the 

Duncan Hunter National Defense Authorization Act for Fiscal Year 2009. 

On September 4, 2009, the Department of Transportation, and two major shippers of food aid 

cargo, the U.S. Department of Agriculture, and the United States Agency for International 

Development signed a significant Memorandum of Understanding detailing a unified U.S. 

Government position on the proper administration of the Cargo Preference laws. The shipper 

agencies are required to report the percentage of preference cargo they ship in U.S.-flag vessels 

computed separately by the type of vessel used. The inter-agency agreement provided a method for 

interpretation of the vessel type designations for "dry bulk carrier" and "dry cargo liner" as they 

are used in the Cargo Preference Act. 

Detailed data for the Cargo Preference program can be found in the tables in Appendix 1. 

The details in Appendix 1 are deemed to fulfill the Congressional reporting requirements that are 

contained in Cargo Preference legislation. 
33 

LEGAL ACTIVITIES 

Admiralty Personal Injury Matters 

As of September 30, 2009, the U.S. was the named defendant in 14 personal injury cases filed 

against MARAD in Federal District Court. Although liability for each case cannot be determined 

with precision, it is estimated that probable contingent liability for current cases may be up to $1 

million. This report fulfills the requirement that MARAD report to Congress on admiralty 

lawsuits. 

INTERNATIONAL ACTIVITIES 

MARAD actively participates in international maritime transportation matters because foreign 

economic and political developments have a substantial influence on U.S. marine transport 

interests. 

People’s Republic of China 

On December 16, 2008, an American delegation led by the Maritime Administrator welcomed 

officials from China’s Ministry of Transport to Memphis, TN for bilateral consultations held under 

the auspices of the two countries’ standing maritime agreement. Memphis was chosen as a meeting 

site to highlight its importance as a major inland maritime gateway and international shipping hub. 

The two governments discussed a range of important issues of concern to their maritime industries, 

including the effects of the global economic downturn on bilateral maritime commerce and relevant 

changes in competition policy, both in China and the European Union. The discussions also 

included explanations of the countries’ respective policies affecting the maritime transportation 

market, China’s re-flagging, and the U.S. cargo preference and maritime security programs. 

This was the third round of annual bilateral discussions held under the U.S.-China Maritime 

Agreement that was signed in 2003. The next one is in 2010. 

Also, in 2009, MARAD participated in the U.S.-China Transportation Forum by contributing to its 

Multimodal Freight Working Group (MFWG). The group brought together representatives of 

various DOT agencies and their counterparts from China’s Ministry of Transport to share 

information on freight mobility, data collection, and performance measures to better prepare the 

infrastructure of both countries for predicted growth in bilateral trade. Over the summer of 2009, 

MARAD contributed to the MFWG’s bilateral discussions and prepared a document on maritime 

freight performance measures in the U.S. as part of an exchange of information with China’s 

Ministry of Transport. A report to be finalized next year will compare multimodal freight mobility 

and performance measures in both countries. 
34 

The U.S.-China Transportation Forum is part of the larger U.S.-China Strategic and Economic 

Dialogue led by the U.S. Department of Treasury and the U.S. Department State and also includes 

agencies across the U.S. Government. 

Republic of the Philippines 

In response to increasing piracy off the coast of Somalia, MARAD Office of International Activities 

and the Embassy of the Philippines drafted a memorandum of cooperation between that nation and 

the U.S. on counter-piracy training and education. U.S. Secretary of Transportation Ray LaHood 

and Philippines Secretary of Foreign Affairs Alberto Gatmaitan Romulo signed the accord on July 

31, 2009 in Washington, D.C. 

The non-binding agreement calls upon both nations to develop best practices to enhance vessel 

security, conduct drills to ensure seafarers are prepared to respond to acts of piracy, and share 

information. The memorandum opens the door for academic, industry, and governmental 

exchanges to better prepare seafarers for the possibility of a pirate attack. The Philippines is the 

top source of seafaring labor in the world, and its seafarers have been disproportionately affected by 

the increase in piracy off the coast of Somalia. 

Philippine Signing, Official DOT photo 

U.S. Secretary of Transportation Ray LaHood and Philippines Secretary of Foreign Affairs Alberto 

Gatmaitan Romulo sign the counter-piracy accord on July 31, 2009 as Philippines President Gloria 

Macapagal-Arroyo witnesses the event. 
35 

Western Hemisphere 

MARAD continued its ongoing work promoting maritime trade security in the Western 

Hemisphere in fiscal year 2009, primarily as the lead agency in the U.S. delegation to the InterAmerican Committee on Ports (CIP) at the Organization of American States. 

The CIP, as the committee is known by its Spanish initials, brings together port authorities and 

maritime officials from Western Hemisphere nations to share information on various aspects of port 

management, security, environmental protection and other related issues. MARAD leads the CIP’s 

Technical Advisory Group (TAG) on Port Security, which works to promote safe commerce 

through the region’s ports. 

In September 2009, MARAD launched Safeports.org, an online clearinghouse and discussion forum 

on port security issues in the Western Hemisphere. The site, accessible in English, Spanish, and 

Portuguese, is intended to bolster the work of the TAG on Port Security by facilitating the 

exchange of information including best practices among regional port authorities, maritime 

officials, and industry. 
36 

FINANCIAL STATEMENTS 

For Periods Ended September 30, 2009 and 2008 

The Financial Statements include: 

Balance Sheet 

Statement of Net Cost 

Statement of Changes in Net Position – Cumulative Result of Operations 

Statement of Changes in Net Position – Unexpended Appropriations 

Statement of Budgetary Resources 

The financial statements presented here for MARAD are derived from information included in 

the Department of Transportation’s (DOT) audited financial statements for fiscal year 2009. 

The notes accompanying this presentation are an integral part of the audited statements. 

These notes are from DOT’s 2009 statements, but only apply to issues directly related to 

MARAD. Consequently, with non-applicable items missing, the notes are not consecutively 

numbered. Numbering corresponds to the notes as they appear in the DOT financial 

statements. 
37 

Maritime Administration Financial Statements 

Balance Sheet 

As of September 30, 2009 and 2008 

(Dollars in Thousands) 

FY 2009 FY 2008

Assets 

 Intragovernmental: 

 Fund Balance with Treasury (Note 2) $736,903 $592,281 

 Investments (Note 3) 29,856 42,052 

 Accounts Receivable, Net (Note 4) 15,945 37,808 

 Loans Receivable - -

 Other Assets (Note 5) 5,553 4,252 

 Total Intragovernmental Assets $788,257 $676,392 

 Cash and Other Monetary Assets - 10

 Investments (Note 3) - 28,707

 Accounts Receivable, Net (Note 4) 614 -

 Loans Receivable and Related Foreclosed Property, Net (Note 6) 47,946 38,960

 Inventory and Related Property, Net (Note 7) 229,362 247,163

 General Property, Plant and Equipment, Net (Notes 8 and 9) 485,513 526,872

 Other Assets (Note 5) ________- ________-

Total Assets $1,551,691 $1,518,104

Liabilities (Note 10) 

 Intragovernmental: 

 Accounts Payable $493 $291

 Debt (Note 11) 170,070 128,082

 Other Intragovernmental Liabilities (Note 15) 188,690 198,095

 Total Intragovernmental Liabilities $359,253 $326,469

 Accounts Payable 16,136 51,511

 Loan Guarantee Liability (Note 6) 310,593 257,929

 Federal Employee and Veterans' Benefits (Note 12) 21,282 22,219

 Environmental Cleanup and Disposal Liabilities (Note 13) 384,434 190,932

 Other Liabilities (Notes 15 and 17) 28,860 49,378

Total Liabilities $1,120,558 $898,437
38 

Maritime Administration Financial Statements 

Balance Sheet (continued) 

As of September 30, 2009 and 2008 

(Dollars in Thousands) 

FY 2009 FY 2008

Net Position 

 Unexpended Appropriations - Earmarked funds (Note 18) 

 Unexpended Appropriations - Other funds $282,389 $198,732

 Cumulative Results of Operations - Earmarked funds (Note 18) 73,468 130,003

 Cumulative Results of Operations - Other funds 75,276 290,933

Total Net Position 431,133 619,667

 

Total Liabilities and Net Position $1,551,691 $1,518,104

Statement of Changes in Net Position - Cumulative Results of Operations 

For Periods Ended September 30, 2009 and September 30, 2008 

(Dollars in Thousands) 

FY 2009 FY 2008

Beginning Balances $420,936 $196,844

Adjustments (+/-) 

 Changes in Accounting Principle - -

 Corrections of Errors _______- _______-

Beginning Balances, Adjusted $420,936 $196,848

Budgetary Financing Sources: 

 Other Adjustments (Rescissions, etc.) (+/-) 

 Appropriations Used 512,942 405,490

 Non-Exchange Revenue - 1

 Donations and Forfeitures of Cash and Cash Equivalents 1,102 1,557

 Transfers-In/Out Without Reimbursement (+/-) 15,956 6,500

 Other Budgetary Financing Sources (+/-) - -

Other Financing Sources: 

 Donations and Forfeitures of Property 

 Transfers-In/Out Without Reimbursement (+/-) - 21,000

 Imputed Financing From Costs Absorbed by Others 7,850 6,497

 Other (+/-) (73,263) (1,873)

Total Financing Sources $464,587 $439,171

Net Cost of Operations 736,778 215,079

Net Change (272,192) 224,092

Cumulative Results of Operations $148,744 $420,936

Statement of Net Cost 

For Periods Ended September 30, 2009 and September 30, 2008 

(Dollars in Thousands) 

FY 2009 FY 2008

Program Costs (Notes 19 and 20): 

Gross Costs $1,122,074 $823,452

Less: Earned Revenues 385,296 608,372

Net Cost of Operations $736,778 $215,080
39 

Maritime Administration Financial Statements 

Statement of Changes in Net Position - Unexpended Appropriations 

For Periods Ended September 30, 2009 and September 30, 2008 

(Dollars in Thousands) 

FY 2009 FY 2008

Beginning Balances $198,732 $99,031

Adjustments (+/-) 

 Changes in Accounting Principle - -

 Corrections of Errors _____- _____-

Beginning Balances, Adjusted $198,732 $99,031

Budgetary Financing Sources: 

 Appropriations Received 598,100 506,358

 Appropriations Transferred-In/Out (+/-) 0 7,746

 Other Adjustments (Rescissions, etc.) (+/-) (1,500) (8,914)

 Appropriations Used (512,942) (405,490)

Total Budgetary Financing Sources 83,658 99,700

Total Unexpended Appropriations $282,389 $198,732

Statement of Budgetary Resources 

For Periods Ended September 30, 2009 and 

September 30, 2008 

(Dollars in Thousands) 

FY 2009 FY 2008

Budgetary Resources: 

Unobligated Balance, Brought forward, October 1 (+/-) $499,972 $427,378

Adjustment to unobligated balance brought forward (8,139) 4,945

Recoveries of Prior Year Unpaid Obligations 59,833 52,851

Budget Authority: 

 Appropriations Received 599,202 597,088

 Borrowing Authority 209,000 219,000

 Contract Authority - -

 Spending Authority From Offsetting Collections: 

 Earned: 

 Collected 494,245 453,475

 Change in receivables from Federal Sources (21,835) (5,874)

 Change in Unfilled Customer Orders: 

 Advance Received 45,174 9,539

 Without Advance from Federal Sources 30,188 34,008

 Expenditure transfers from trust funds 15,956 6,500

 Anticipated for Rest of Year, Without Advances - -

 Previously unavailable ________- ________-

 Subtotal $1,371,930 $1,313,736
40 

Non Expenditure transfers, Net, Anticipated and Actual - 7,746

Temporarily Not Available Pursuant to Public Law - -

Permanently Not Available (234,067) (202,232)

Total Budgetary Resources $1,689,529 $1,604,425

Maritime Administration Financial Statements 

Statement of Budgetary Resources (continued) 

For Periods Ended September 30, 2009 and 

September 30, 2008 -- Cont. 

(Dollars in Thousands) 

FY 2009 FY 2008

Status of Budgetary Resources: 

Obligations Incurred: 

 Direct: $779,274 $646,991

 Reimbursable: ___367,068 ___457,461

 Subtotal $1,146,342 $1,104,453

Unobligated Balance: 

 Apportioned 247,781 178,515

 Exempt from apportionment 2,028 2,944

 Subtotal $249,809 $181,459

Unobligated Balance Not Available: 293,378 318,513

Total Status of Budgetary Resources $1,689,529 $1,604,425

Change in Obligated Balance: 

Obligated Balance, Net, 

 Unpaid obligations, brought forward, Oct 1st (+) $369,343 $298,285

 Adjustment to unpaid obligations, brought forward, October 1 (+/-) 8,139 

 Uncollected customer payments from Fed sources, brought forward, Oct 1(-) (144,757) (116,622)

 Adjustment to uncollected customer payments from Fed sources , brought forward, 

October 1 (+/-) - -

Total, unpaid obligated balance, brought forward, net 232,725 181,663

Obligations Incurred (+): 1,146,342 1,104,453

Gross Outlays (-) (1,061,790) (980,544)

Obligated Balance Transfers, Net: 

 Actual transfers, unpaid obligations (+ or -) - -

 Actual transfers, uncollected customer payments from Federal sources (+ or -) _________ ________

Total, unpaid obligated balance transferred, net $ - $ -

Recoveries of prior-year unpaid obligations, actual (-) (59,833) (52,851)

Change in uncollected customer payments from Federal sources (+/-) (8,354) (28,134)

Obligated Balances, Net, End of Period: 

 Unpaid Obligations (+) 402,202 369,343

 Uncollected Customer Payments from Federal Sources (-) (153,110) (144,757)

Total, unpaid obligated balance, net, end of period $249,092 $224,586

NET OUTLAYS 

Gross Outlays (+) 1,061,790 980,544

Less: Offsetting Collections (-) (555,375) (469,514)

Less: Distributed offsetting receipts _(39,806) (177,100)

Net Outlays $466,609 $333,930
41 

Notes to the Financial Statements

 

Note 2. Fund Balances with 

Treasury: 

 (Dollars in Thousands) 

 Entity Non-Entity September 30, 2009 

September 30, 

2008

Fund Balances: Assets Assets Total Total

 

 Trust Funds $ 22,779 $ - $ 22,779 $ 80,500 

 

 Revolving Funds 390,915 

 

- 390,915 

 

352,247 

 

 General Funds 323,057 

 

- 323,057 

 

159,323 

 

 Other Fund Types 151 - 151 

 

_____211 

 

 Total $ 736,903 $ - $ 736,903 $ 592,281 

 

 

Status of Fund Balance with 

Treasury: 

 

Unobligated Balance 

 Available $ 249,003 $ (67,933)

 Unavailable 293,378 

 

101 

Obligated Balance Not Yet 

Disbursed 251,582 

 

420,785 

Less: Borrowing remaining 

balance after converted to 

Cash (25,930) -

Less: Investments & 

Suspense Funds (31,131) -

Non-Budgetary FBWT (Credit Reform 

Financing Accounts or other FBWT that do not 

have budget authority) - 

 

239,328 

 

 Total $ 736,902 $ 592,281 

Fund Balances with Treasury are the aggregate amounts of the entity's accounts with Treasury or 

which the entity is authorized to make expenditures and pay liabilities. Other Fund Types should 

include balances in deposit accounts, such as for the collections pending litigation, awaiting 

determination of the proper accounting disposition (i.e. clearing and suspense accounts), or being held 

by the entity in the capacity of a banker or agent for others, including miscellaneous receipt accounts. 

 

 

 

 

 

Entity Assets are fund balances, which are available to finance the reporting entity's activities. 

Non-Entity Assets are fund balances in deposit, and clearing accounts that are not available to finance 

the reporting entity's activities. 

 

 

 
42 

Notes to the Financial Statements

 

Note 3. Investments: 

 (Dollars in Thousands) 

As of September 30, 

2009 

 Amortized Market

 (Premium) Investments Other Value

 Cost Discount (Net) Adjustments Disclosure

Intragovernmental 

Securities: 

Marketable $ 29,402 $ 122 $ 29,524 $ - $ 29,524 

Non-Marketable, 

Par Value - - - - - 

Non-Marketable, 

Market-Based - - - - -

Subtotal $ 29,402 $ 122 $ 29,524 $ - $29,524 

 Accrued Interest 332 332 332 

Total 

Intragovernmental 

Securities $ 29,734 $ 122 $ 29,856 $ - $ 29,856 

 

 Amortized Market

 (Premium) Investments Other Value

 Cost Discount (Net) Adjustments Disclosure

Securities with the 

Public : 

 Marketable $ - $ - $ - $ - $ -

 

Non-Marketable, 

Par Value - - - - - 

Non-Marketable, 

Market-Based - - - - -

 

 Subtotal $ - $ - $ - $ - $ -

 

 Accrued Interest - - -

 Total Securities with 

the Public $ - $ - $ - $ - $ -
43 

Note 3. Investments 

(continued):

As of September 30, 

2008 

 Amortized

(Dollars in Thousands)

 Market

 (Premium) Investments Other Value

 Cost Discount (Net) Adjustments Disclosure

Intragovernmental 

Securities: 

 

 Marketable $ 41,402 $ (546) $ 40,856 $ 1,196 $ 42,052 

Non-Marketable, Par 

Value - - - - 

 

- 

Non-Marketable, 

Market-Based - - - - -

 

 Subtotal $ 41,402 $ (546) $ 40,856 $ 1,196 $42,052 

 

 Accrued Interest - - -

Total 

Intragovernmental 

Securities $ 41,402 $ (546) $ 40,856 $ 1,196 $ 42,052 

 

Securities with the 

Public : 

 Marketable $ 28,535 $ 106 $ 28,641 $ (356) $ 28,285 

 

 Non-Marketable: 

 Par Value - - - - -

 

 Market-Based - - - - -

 

 Subtotal $ 28,535 $ 106 $ 28,641 $ (356) $ 28,285 

 

 Accrued Interest 422 422 422 

 Total Securities with 

the Public $ 28,957 $ 106 $ 29,063 $ (356) $ 28,707 
44 

Notes to the Financial Statements 

 

Note 4. Accounts Receivable: 

 (Dollars in Thousands) 

As of September 30, 2009 

 Gross Allowance for Net

 Amount Uncollectible Amount

Intragovernmental: Due Amounts Due

 

 Entity 

 Accounts Receivable $ 15,945 $ - $ 15,945 

 Accrued Interest - - ____ -

 Total Intragovernmental $ 15,945 $ - $ 15,945 

 

 Non-Entity: 

 Accounts Receivable $ - $ - $ -

 Accrued Interest - - -

 Total Non-Entity Intragovernmental $ - $ - $ -

 

 Total Intragovernmental Receivables $ 15,945 $ - $ 15,945 

Public: 

 Entity 

 Accounts Receivable $ 614 $ - $ 614 

 Accrued Interest - - -

 Total Public $ 614 $ - $ 614 

 

 Non-Entity: 

 Accounts Receivable $ - $ - $ -

 Accrued Interest __ - _ - -

 Total Non-Entity Public $ ___ - $ - $ -

 

 Total Public Receivables $ _ 614 $ - $ 614 

 Total Receivables $ + 16,559 $ - $ 16,559 

As of September 30, 2008 

 Gross Allowance for Net

 Amount Uncollectible Amount

Intragovernmental: Due Amounts Due

 

 Entity 

 

 Accounts Receivable $ 37,808 $ - $ 37,808 

 Accrued Interest - - -

 Total Intragovernmental $ 37,808 $ - $ 37,808 

 
45 

 Non-Entity: 

 

 Accounts Receivable $ - $ - $ -

 Accrued Interest - - ___ -

 Total Non-Entity Intragovernmental $ - $ - $ ___ -

 

 Total Intragovernmental Receivables $ 37,808 $ - $ 37,808 

Note 4. Accounts Receivable (continued): 

Public: 

 Entity 

 Accounts Receivable $ - $ - $ -

 Accrued Interest _____ - - -

 Total Public $ - $ - $ -

 

 Non-Entity: 

 Accounts Receivable $ - $ - $ -

 Accrued Interest _ - - -

 Total Non-Entity Public $ - $ - $ -

 

 Total Public Receivables $ _____ - $ - $ -

 Total Receivables $ 37,808 $ - $37,808 

 

Entity Accounts Receivable are collected by the reporting entity for use in its operations. Non-Entity Accounts Receivable are

collected by the reporting entity, but are not available to the agency, such as when amounts collected must be transferred to the 

General Fund. 

 

 

 

 

 
46 

Notes to the Financial Statements

Note 5. Other Assets

 (Dollars in Thousands) 

Intragovernmental: 

September 30, 2009 September 30, 2008

 Advances and Prepayments $ 5,553 $ 4,252 

 Undistributed Assets and Payments - - 

 Total Entity Intragovernmental $ 5,553 $ 4,252 

 Non-Entity: 

 Advances and Prepayments $ - $ - 

 Undistributed Assets and Payments - - 

 Total Non-Entity Intragovernmental $ - $ -

 Total Intragovernmental Other Assets $ 5,553 $ 4,252 

Public: 

 Advances to the States for Right of Way $ - $ - 

 Other Advances and Prepayments - - 

 Undistributed Assets and Payments - - 

 Total Entity Public $ - $ -

 Non-Entity: 

 Advances and Prepayments $ - $ - 

 Undistributed Assets and Payments - - 

 Total Non-Entity Public $ - $ -

 Total Public Other Assets $ - $ -

Entity Assets are available to the reporting entity in its operations. Non-Entity Assets are held by the reporting entity but not 

available, such as when amounts must be transferred to the General Fund. 
47 

Notes to the Financial Statements 

Note 6. Direct Loans and Loan Guarantees, Non-Federal 

Borrowers: 

 (Dollars in Thousands)

The Federal Credit Reform Act of 1990 divides direct loans and loan guarantees into two groups: 

 (1) Pre-1992 the direct loan obligations or loan guarantee commitments made prior to FY 1992 and the resulting direct loans 

obligations or loan 

 guarantees, and 

 (2) Post-1991 the direct loan obligations or loan guarantee commitments made after FY 1991 and the resulting direct loans or loan

guarantees. 

The Act provides that, for direct loan obligations or loan guarantee commitments made after FY 1991, the present value of subsequent 

subsidy costs (which arises from interest rate differentials, interest subsidies, delinquencies and defaults, fee offsets, 

An analysis of loans receivable, allowance for subsidy costs, liability for loan guarantees, foreclosed property, modifications and 

reestimates associated with direct loans and loan guarantees is provided in the following sections: 

Defaulted Guaranteed Loans from Pre-1992 Guarantees (Allowance for Loss 

Method) Value of 

Assets

Defaulted Related to

Guaranteed Defaulted

Loans Guaranteed

Receivable, Interest Foreclosed Loans

Gross Receivable Property Allowance

Receivable, 

Net

Fed Ship Liquidating Fund 

(Title XI) $ - $ - $ - $ - $ -

Total $ - $ - $ - $ - $ -

Defaulted Guaranteed Loans from Post-1991 Guarantees

Value of 

FY 2009 Assets

Defaulted Related to

Guaranteed Default

Loans Guaranteed

Receivable, Interest Foreclosed Allowance Loans

Loan Guarantee Programs Gross Receivable Property for Subsidy Receivable, 

Net

Federal Ship Financing Fund 

(Title XI) $ 68,945 $ 1,974 $ 28,110 $(51,083) $ 47,946 

 Total $ 68,945 $ 1,974 $ 28,110 $ 51,083) $ 47,946 
48 

Note 6. Direct Loans and Loan 

Guarantees, Non-Federal Borrowers

(continued) 

2008

Value of

Assets

 Defaulted Related to

 Guaranteed Default

 Loans Guaranteed

 Receivable, Interest Foreclosed Allowance Loans

Loan Guarantee Programs Gross Receivable Property for Subsidy

Receivable, 

Net

Federal Ship Financing Fund (Title XI) $ 43,680 $ 600 $ - $ (5,320) $ 38,960 

 Total $ 43,680 $ 600 $ - $ (5,320) $38,960 

 

Guaranteed Loans Outstanding

 Outstanding 

Principal

 of Guaranteed 

Loans,

Amount of 

Outstanding

 Face Value Principal 

Guaranteed

Loan Guarantee Programs $2,441,098 $2,441,098 

Federal Ship Financing Fund (Title XI) $ 2,441,098 $ 2,441,098 

 Total 

FY 2009

New Guaranteed Loans Disbursed 

Outstanding 

Principal

 

of Guaranteed 

Loans,

Amount of 

Outstanding

 Face Value Principal Guaranteed

Loan Guarantee Programs $ 269,230 $ 269,230 

Federal Ship Financing Fund (Title XI) $ 269,230 $ 269,230 

 Total 

 FY 2008

Outstanding 

Principal

 

of Guaranteed 

Loans,

Amount of 

Outstanding

 Face Value Principal Guaranteed

Loan Guarantee Programs $ 2,430,760 $ 2,430,760 

Federal Ship Financing Fund (Title XI) $ 2,430,760 $ 2,430,760 

 Total 
49 
50 

Note 6. Direct Loans and Loan Guarantees, Non-Federal Borrowers: 

(Continued) 

Liability for Loan Guarantees (Present Value Method Post-1991 Guarantees): 

 

 FY 2009 

 

Liabilities for 

Post-1991 

Loan Guarantee Programs 

Guarantees, 

Present Value 

Federal Ship Financing Fund (Title XI) $ 310,593 

 Total $ 310,593 

 

Subsidy Expense for Loan Guarantees by Program and 

Component 

 

Subsidy Expense for New Loan Guarantees Disbursed 

 FY 2009

Loan Guarantee Programs

Interest 

Supplements Defaults

Fees and Other 

Collections Other Total

Federal Ship Financing Fund (Title XI) $ - $ 31,257 $ (15,669) $ - $ 15,588 

 Total $ - $ 31,257 $ (15,669) $ - $ 15,588 

 FY 2008

Loan Guarantee Programs

Interest 

Supplements Defaults

Fees and Other 

Collections Other Total

Federal Ship Financing Fund (Title XI) $ - $ 38,599 $ (23,108) $ - $ 15,491 

 Total $ - $ 38,599 $ (23,108) $ - $ 15,491 

Modifications and Re-estimates 

 

 FY 2009

 Total Interest Rate Technical Total 

Loan Guarantee Programs Modifications Re-estimates Re-estimates Re-estimates 

 Federal Ship Financing Fund (Title XI) $ - $ - $ 51,761 $ 51,761 

 Total $ - $ - $ 51,761 $ 51,761 

 FY 2008

 Total Interest Rate Technical Total 

Loan Guarantee Programs Modifications Re-estimates Re-estimates Re-estimates 

Federal Ship Financing Fund (Title XI) $ - $ - $ (106,400) $ (106,400)

 Total $ - $ - $ (106,400) $ (106,400)
51 

Note 6. Direct Loans and Loan 

Guarantees, Non-Federal Borrowers: 

(Continued) 

Total Loan Guarantee Subsidy Expense 

Loan Guarantee Programs FY 2009 FY 2008 

Federal Ship Financing Fund (Title XI) $ 67,349 $ (90,909)

 Total $ 67,349 $ (90,909)

 

Budget Subsidy Rates for Loan Guarantees for the Current 

Year Cohort 

 FY 2009

Loan Guarantee Programs Interest Fees and Other

 Supplements Defaults Collections Other Total

Federal Ship Financing Fund (Title XI) 0.00% 11.14% (4.89%) 0.00% 6.25%

 Total 0.00% 11.14% (4.89%) 0.00% 6.25%

 

Schedule for Reconciling Loan Guarantee Liability Balances (Post-1991 Loan Guarantees) 

Beginning Balance, Changes, and 

Ending Balance FY 2009 FY 2008

 

Beginning Balance of the loan guarantee 

liability $ 257,929 $ 336,410 

Add: subsidy expense for guaranteed loans disbursed 

during the 

reporting years by component: 

Interest Supplement Costs - 

 

- 

Default costs (net of recoveries) 15,588 

 

38,599 

Fees and other collections - 

 

(23,108)

Other subsidy costs - -

Total of the above subsidy expense components 

 

$15,588 

 

$15,491 

Adjustments: 

Loan Guarantee Modifications - 

- 

Fees Received - 

- 

Interest Supplements Paid - 

- 

Foreclosed Property and Loans 

Acquired 

 - 

- 

Claim Payments to Lenders - 

- 

Interest accumulation on the liability 

balance 

 13,749 

11,905 
52 

Other (28,435) 523 

Ending balance of the loan guarantee liability before 

reestimates 

 258,831 364,329 

Note 6. Direct Loans and Loan 

Guarantees, Non-Federal Borrowers: 

(Continued) 

Add or subtract subsidy reestimates by 

component: 

Interest Rate Reestimate - -

Technical/default reestimate 51,761 (106,400)

Total of the above reestimate 

components 51,761 (106,400)

Ending balance of the loan guarantee 

liability $ 310,592 $ 257,929

 
53 

Notes to the Financial Statements

Note 7. Inventory and Related Property: 

(Dollars in Thousands) 

September 30, 2009 Allowance

 Cost for Loss Net

Inventory by Category: 

 Inventory Held for Current Sale $ - $ - $ -

 Inventory Held in Reserve for Future Sale 

 

- 

 

- - 

 Excess, Obsolete and Unserviceable Inventory 

 

- 

 

- - 

 Inventory Held for Repair 

 

- 

 

- - 

 Inventory Work In Process 

 

- 

 

- - 

 Other - - -

 Total Inventory $ - $ - $ -

Operating Materials and Supplies by Category: 

 Items Held for Use $ 183,592 $ 1,881 $ 181,711 

 Items Held in Reserve for Future Use 

 

45,299 

 

- 45,299 

 Excess, Obsolete and Unserviceable Items 

 

- 

 

- - 

 Items Held for Repair 

 

2,352 

 

- 2,352 

 Other - - -

 Total Operating Materials & Supplies $ 231,243 $ 1,881 $ 229,362 

 Total Inventory and Related Property $ 229,362 

September 30, 2008 Allowance

 Cost for Loss Net

Inventory: 

 Inventory Held for Current Sale $ - $ - $ -

 Inventory Held in Reserve for Future Sale 

 

- 

 

- - 

 Excess, Obsolete and Unserviceable Inventory 

 

- 

 

- - 

 Inventory Held for Repair 

 

- 

 

- - 

 Inventory Work In Process 

 

- 

 

- - 

 Other - - -

 Total Inventory $ - $ - $ -
54 

Note 7. Inventory and Related Property (continued):

Operating Materials and Supplies: 

 Items Held for Use $ 180,045 $ 4,856 $ 175,189 

 Items Held in Reserve for Future Use 

 

65,903 

 

- 65,903 

 Excess, Obsolete and Unserviceable Items 

- 

- 

- 

- - 

 Items Held for Repair 

 

6,071 

 

- 6,071 

 Other - - -

 Total Operating Materials & Supplies $ 252,019 $ 4,856 $ 247,163 

 Total Inventory and Related Property $ 247,163 

Additional Disclosure: 

 September 30, 2009 September 30, 2008

Gross Inventory - Balance beginning of year $ 252,019 $ 253,559 

Prior-period adjustment (not restated) 

 

- - 

Adjusted beginning balance 

 

252,019 253,559 

Capitalized acquisitions from the public during fiscal year 

 

- - 

Capitalized acquisitions from federal agencies during fiscal year

 

- - 

Inventory Sold or used 

 

17,801 6,396 

Gross Inventory - Balance end of year 

 

234,218 247,163 

Total Allowance for inventories and related property 

 

- - 

Inventory, Net - balance end of year $ 234,218 $ 247,163 

Capitalized acquisitions from Federal agencies by trading partner categories.

General Service Administration $ - $ -

Department of Defense 

 

- - 

Department of Interior 

 

- - 

Department of Justice 

 

- - 

National Aeronautics and Space Administration 

 

- - 

All other departments 

 

- - 

Total Capitalized assets from federal agencies $ - $ - 
55 

Notes to the Financial Statements 

 

Note 8. General Property, Plant and Equipment: 

 (Dollars in Thousands) 

 Service Acquisition Accumulated September 30, 2009

Major Classes Life Value Depreciation Net Book Value

 Land and Improvements Not Depreciable $ 3,962 $ - $ 3,962 

 Buildings and Structures 20 SL

 

172,361 66,487 105,874 

 Furniture and Fixtures 

 

- - - 

 Equipment 5-10 SL

 

28,175 26,758 1,418 

 ADP Software 

 

1,012 935 78 

 Electronics 5-10 SL

 

738 738 - 

 Assets Under Capital Lease 

 

- - - 

 Leasehold Improvements 

 

- - - 

 Aircraft 

 

- - - 

 Ships and Vessels 25 SL

 

1,639,129 1,289,052 350,077 

 Small Boats 10 SL

 

295,542 291,554 3,988 

 Other Vehicles 

 

- - - 

 Construction in Progress Not Depreciable

 

20,117 - 20,117 

 Property Not in Use 

 

- - - 

 Other Miscellaneous Property - - - 

 Total $ 2,161,036 $ 1,675,523 $ 485,513 

 

 
56 
57 

Note 8. General Property, 

Plant and Equipment 

(continued): 

 Service Acquisition Accumulated September 30, 2008

Major Classes Life Value Depreciation Net Book Value

 Land Not Depreciable $ 3,962 $ - $ 3,962 

 Buildings and Structures 20 SL

 

150,943 59,798 91,145 

 Furniture and Fixtures 

 

- - - 

 Equipment 5-10 SL

 

23,647 23,431 216 

 ADP Software 

 

1,012 735 277 

 Electronics 5-10 SL 738 - 

 Assets Under Capital Lease 

 

- - - 

 Leasehold Improvements 

 

- - - 

 Aircraft 

 

- - - 

 Ships and Vessels 25 SL

 

1,656,764 1,241,137 415,627 

 Small Boats 10 SL

 

17,724 15,180 2,544 

 Other Vehicles 

 

- - - 

 Construction in Progress Not Depreciable

 

13,101 - 13,101 

 Property Not in Use 

 

- - - 

 Other Miscellaneous Property - - -

 Total $ 1,867,891 $ 1,341,019 $ 526,872 

 

Additional Disclosure: 

 

PP& E 

Acquisition Accumulated FY 2009

 Value Depreciation Net Book Value

Gross PP&E - Balance beginning of year $ 1,867,891 $ 1,341,019 $ 526,872 

Prior-period adjustment (not restated) 

 

- - - 

Adjusted beginning balance 

 

1,867,891 1,341,019 526,872 

Capitalized acquisitions from the public during current 

fiscal year 

 

- - - 

Capitalized acquisitions from federal agencies during 

current fiscal year 

 

311,298 278,414 32,884 

Deletions from the Balance 

Sheet 

 

18,153 16,402 1,751 
58 

Revaluations 

 

- - - 

Note 8. General Property, 

Plant and Equipment 

(continued): 

Stewardship reclassifications 

 

- - - 

Depreciation/amortization Current Year Expense - 

(Enter amount in Accumulated Depreciation column 

only) ________- 72,491 (72,491)

PP&E - balance end of year ( Must Agree to PPE, net 

on Balance Sheet) $2,161,036 $ 1,675,522 $ 485,514 

 

 Acquisition Accumulated FY 2008

 Value Depreciation Net Book Value

Gross PP&E - Balance beginning of year $1,853,233 $ 1,270,010 $ 583,223 

Prior-period adjustment (not restated) 

 

- - - 

Adjusted beginning balance 

 

- - - 

Capitalized acquisitions from the public during current 

fiscal year 

 

- - - 

Capitalized acquisitions from federal agencies during 

current fiscal year 

 

14,443 70,794 (56,351)

Deletions from the Balance 

Sheet 

 

- - - 

Revaluations 

 

- - - 

Stewardship reclassifications 

 

- - - 

Depreciation/amortization Current Year Expense 

 

________- ________- _______- 

PP&E - balance end of year ( Must Agree to PP&E, net 

on Balance Sheet $1,867,676 $ 1,340,804 $ 526,872 

 

Provide capitalized asset amounts from Federal agencies amounts by the following trading partner categories 

 FY 2009 FY 2008 

General Service Administration $ - $ - 

Department of Defense 

 

275,801 2,751 

Department of Interior 

 

- - 

Department of Justice 

 

- - 

National Aeronautics and Space Administration 

 

- - 

All other departments 

 

35,497 - 

Total Capitalized assets from federal agencies (Total 

amount must agree w/ total capitalized acquisitions 

from federal agencies above $ 311,298 $ 2,751 
59 

Notes to the Financial Statements

Note 9. Stewardship Property, Plant and Equipment (Heritage Assets): 

1) Explain in a concise statement how the stewardship assets relate to the mission of the entity

Implied within the agency's mission is the promotion of the nation's rich maritime heritage. One aspect of this entails the 

collection, maintenance and distribution of maritime artifacts removed from MARAD ships prior to their disposal. These artifacts 

are sought for public display in museums, aboard memorial ships, and in facilities used by government organizations and issued on 

a long-term loan basis for this purpose. 

2) Provide a description of the stewardship policies for the heritage assets. Stewardship policies 

for heritage assets are goals and principles the entity established to guide its acquisition, maintenance, 

use, and disposal of heritage assets consistent with statutory requirements, prohibitions, and limitations 

governing the entity and the heritage assets. 

MARAD has established a list of artifact-type items that are typically found aboard agency-owned ships. As ships are assigned to a 

non-retention status in preparation for disposal, artifact items are collected, inventoried, photographed and relocated to secure 

shoreside storage facilities. This resulting inventory of artifacts is made available for long-term loan to qualified organizations for 

public display purposes. Qualified organizations have access to the artifact inventory via web-based system. The artifact loan 

process is also managed on-line via this system. The program is also supports required NHPA processing prior to vessel disposal. 

Funding for the maintenance of heritage items is typically the responsibility of the organization requesting the loan. As all items 

are durable and restorable, disposal is not a consideration. 

 Heritage Assets should be fully disclosed as a footnote per SFFAS 29 

 

 HERITAGE ASSETS SUMMARY 

 NUMBER OF PHYSICAL UNITS 

 

September 30, 2009 

 

 Units as of Units as of 

Heritage Assets: 09/30/08 Additions Withdrawals 9/30/2009

 

Personal Property: 

 Collections: 

 Artifacts 

 

41 

 

- 

 

- 

 

41 

 Museum 

 

516 

 

12 4 

 

524 

 Other Collections 

 

101 

 

_-

 

20 

 

81 

 

Total Collections 

 

658 

 

12 

 

24 

 

646 

 

Total Personal Property 

 Heritage Assets 

 

658 

 

12 

 

24 

 

646 

 
60 

Note 9. Stewardship Property, Plant 

and Equipment (Heritage Assets): 

 

 

Heritage Assets: Units as of Units as of 

 09/30/08 Additions Withdrawals 9/30/2009

Real Property: 

 

 Buildings and Structures 

 

- 

 

- 

 

- 

 

- 

 

Total Real Property 

 Heritage Assets - - - - 

 

Artifacts are those of the Maritime Administration. Maritime Administration artifacts are generally on loan to single purpose 

memorialization and remembrance groups, such as AMVets and preservation societies. 

Museum and Other Collections are owned by the Maritime Administration. They are merchant marine artifacts, composed of 

ships’ operating equipment, obtained from obsolete ships. They are inoperative and in need of preservation and restoration. 

Museum items are on loan to organizations whose purpose is historic preservation, education, and remembrance, open to the public 

during regularly scheduled hours. Other collections are on loan to public and private entities, the display of which is incidental to 

maritime affairs, such as county and state buildings, port authorities, pilots associations, public and college libraries, and other 

organizations. 
61 

Notes to the Financial Statements

Note 10. Liabilities Not Covered by Budgetary Resources: 

 

 (Dollars in Thousands) 

 

Intragovernmental: September 30, 2009 September 30, 2008

 Accounts Payable $ - $ - 

 Debt - - 

 Other Liabilities 78,383 96,690 

Total Intragovernmental $ 78,383 $ 96,690 

 Accounts Payable $ - $ - 

 Federal Employee and Veterans' Benefits Payable 21,282 22,219 

 Environmental and Disposal Liabilities 384,434 190,932 

 Other Liabilities 17,226 36,888 

Total Liabilities Not Covered by Budgetary Resources $ 501,325 $ 346,729 

Total Liabilities Covered by Budgetary Resources 619,233 551,708 

 Total Liabilities $ 1,120,558 $ 898,437 

 

Liabilities Not Covered by Budgetary Resources are Liabilities incurred which are not covered by realized budgetary resources as of the 

Balance Sheet date. 
62 

Notes to the Financial Statements 

 

Note 11. Debt: 

Intragovernmental Debt: 

(Dollars in Thousands) 

As of September 30, 2009 

 2008 2008 2008 2009 2009 2009

 Beginning Net Ending Beginning Net Ending

 Balance Borrowing Balance Balance Borrowing Balance

 Covered by Budgetary 

Resources: 

 Debt to the Treasury $ 198,408 $ (70,326) $128,082 $128,082 $ 41,988 $170,070 

 Debt to the Federal Financing 

Bank - - - - - -

 Debt to Other Federal 

Agencies - - - - - -

 Total Covered by Budgetary 

Resources $ 198,408 $ (70,326) $128,082 $128,082 $ 41,988 $170,070 

 

 Not Covered by Budgetary 

Resources: 

 Debt to the Treasury $ - $ - $ - $ - $ - $ - 

 Debt to the Federal Financing 

Bank 

 

- 

 

- 

 

- 

 

- 

 

- 

 

- 

 Debt to Other Federal 

Agencies - - - - - -

 Total Not Covered by 

Budgetary Resources $__ - $ - $ _____ - $ _____ - $ _____ - $ _ -

 Total Intragovernmental 

Debt $ 198,408 $ (70,326) $128,082 $128,082 $ 41,988 $170,070 

 
63 

Notes to the Financial Statements 

Note 12. Federal Employee Benefits Payable: 

 (Dollars in Thousands) 

2009 2008

 Intragovernmental Liability for FECA (Note 15) $ 4,188 $ 4,535 

 Expected Future Liability for FECA _ 21,282 22,218 

 Total Federal Employee Benefits Payable $ 25,470 $ 26,753 

 

The Department of Labor calculates the FECA liability for DOT as a whole. FECA liabilities include the expected 

liability for death, disability, medical and miscellaneous costs for approved compensation cases, plus a component for 

incurred but not reported claims. The estimated liability is not covered by budgetary resources and thus will require 

future appropriated funding. 

 

The intragovernmental FECA liability represents amounts billed to DOT by the DOL for FECA payments made on 

DOT's behalf. Funding for the liability will be made provided by future appropriations. The intragovernmental 

amount is not an actuarial liability. 
64 

Notes to the Financial Statements

 

Note 13. Environmental and Disposal Liabilities: 

 (Dollars in Thousands) 

 

September 30, 2009 September 30, 2008

 Public 

 Environmental Liabilities: 

 Environmental Remediation (Describe Below) $ 202,434 $ 79,700 

 Asset Disposal (Describe Below) _ 182,000 _ 111,232 

 Total Public $ 384,434 $ 190,932 

 Not Covered by Budgetary Resources: 

 Environmental Liabilities: 

 Environmental Remediation (Describe Below) $ - $ -

 Environmental Cleanup (Describe) - -

 Asset Disposal (Describe Below) - -

 Total Not Covered by Budgetary Resources $ - $ -

 Total $ 384,434 $ 190,932 

 

Components of the Liability 

MARAD Environmental Remediation Liability 

MARAD’s environmental remediation liability generally occurs under the Resource Conservation and Recovery Act of 1976 (RCRA), the 

Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA or Superfund) or the Toxic Substances 

Control Act (TSCA) Environmental remediation includes the fuel storage tank program, fuels, solvents, industrial, and chemicals, and 

other environmental cleanup associated with normal operations or as a result of an accident. Cost estimates for environmental cleanup and 

asset disposal liabilities are not adjusted for inflation and are subject to revision as a result of changes in technology and environmental 

laws and regulations. 

 

MARAD Asset Disposal Liability 

The National Maritime Heritage Act requires that the Maritime Administration dispose of certain merchant vessels owned by the U.S. 

government, including non-retention ships in the National Defense Reserve Fleet. Residual fuel, asbestos, and solid polychlorinated 

biphenyls (PCB) sometimes exist onboard MARAD’s non-retention ships. MARAD is reporting future costs for disposing existing nonretention ships as unfunded asset disposal liabilities. 
65 

Notes to the Financial Statements

Note 15. Other Liabilities: (Dollars in Thousands) 

Intragovernmental: 

NonCurrent Current FY 2009 

 Liabilities Liabilities Total 

 Covered by Budgetary Resources: 

 Advances and Prepayments $ - $ 141,114 $ 141,114 

 Accrued Pay and Benefits 

 

- - - 

 Undisbursed Loans 

 

- - - 

 Federal Employees Compensation Act Billings 

 

- - - 

 Uncleared Disbursements and Collections 

 

- 102 102 

 Deferred Credits 

 

- - - 

 Deposit Funds 

 

- - - 

 Other - Employer Contribution & Payroll Taxes 

Payable 

 

- - - 

 Other Liabilities 

 

_______- 5,970 5,970 

 Total Intragovernmental Covered by 

 Budgetary Resources $ - $ 147,186 $ 147,186 

 

 Not Covered by Budgetary Resources: 

 Federal Employees Compensation Act (FECA) 

 2008 Bill (Current) $ - $ 1,913 $ 1,913 

 2009 Bill (Non-Current) 

 

1,829 - 1,829 

 4th Quarter of FY 2009 (Non-Current) 

 

446 - 446 

 Unbilled Accrued Benefits (Non-Current) - - - 

 Total FECA Liabilities $ 2,275 $ 1,913 $ 4,188 

 Other Accrued Liabilities - Ocean Freight 

Differential 

 

- - - 

 Other - Deferred Credit 

 Other - Advances and Prepayments 

 Other Accrued Liabilities - Custodial Liabilities 

 

1 - 1 

 Other Unfunded Employment related Liabilities 

 

36,878 438 37,316 

 Liability for Non-Entity Assets Not Reported on 

the Statement of Custodial Activity 36,878 - 36,878 

 Total Intragovernmental Not Covered by 

 Budgetary Resources $ 76,032 $ 2,351 $ 78,383 

 

 Total Intragovernmental Other Liabilities $ 76,032 $ 149,537 $ 225,569 

 

Public: 

 

 Covered by Budgetary Resources: 

 Accrued Unbilled State Payments $ - $ - $ - 

 Other Accrued Unbilled Payments 

 

- - - 
66 

 Accrued Pay and Benefits 

 

- 5,780 5,780 

 Uncleared Disbursements and Collections 

 

- 50 50 

 

Note 15. Other Liabilities (continued):

 Advances and Prepayments 

 

- 

 

3,583 

 

3,583 

 Deposit Funds 

 

- - - 

 Deferred Credits 

 

- 2,220 2,220 

 Capital Leases - - - 

 Total Public Covered by Budgetary 

 Resources $ - $ 11,633 $ 11,633 

 

 

 

 Not Covered by Budgetary Resources: 

 Accrued Pay and Benefits $ - $ - $ - 

 Deposit Funds 

 

- - - 

 Legal Claims 

 

10,004 - 10,004 

 Capital Leases 

 

- - - 

 Other - Unfunded Leave 

 

7,222 - 7,222 

 Other - Other Deferred Revenue 

 Other - Custodial Liabilities - - - 

 Total Public Not Covered by Budgetary 

 Resources $ 17,227 $ - $ 17,227 

 

 Total Public Other Liabilities $17,227 $ 11,633 $ 28,860 

 

As of September 30, 2008 

 

Intragovernmental: 

NonCurrent Current FY 2008 

 Liabilities Liabilities Total 

 Covered by Budgetary Resources: 

 Advances and Prepayments $ - $ 95,949 $ 95,949 

 Accrued Pay and Benefits 

 

- - - 

 Undisbursed Loans 

 

- - - 

 FECA Billings (Note 12) 

 

- - - 

 Uncleared Disbursements and Collections 

 

- (499) (499) 

 Deferred Credits 

 

- (15) (15) 

 Deposit Funds 

 

- - - 

 Other Liabilities (2990) - 5,970 5,970 

 Total Intragovernmental Covered by 

 Budgetary Resources $ - $ 101,405 $ 101,405 

 2,162 2,162 
67 

Not Covered by Budgetary Resources: 

 Federal Employees Compensation Act (FECA) 

 2007 Bill (Current) 

-

 2008 Bill (Non-Current) $ 1,913 $ - $ 1,913 

 Note 15. Other Liabilities (continued) NonCurrent Current FY 2008 

 Liabilities Liabilities Total 

 

 Quarter of FY 2008 (Non-Current) 

 

460 - 460 

 Unbilled Accrued Benefits (Non-Current) - - - 

 Total FECA Liabilities $ 2,373 $ 2,162 $ 4,535 

 Other Accrued Liabilities - Ocean Freight 

Differential 

 

91,696 - 91,696 

 Other - Deferred Credit 

 

- - - 

 Other - Advances and Prepayments - - - 

 Other Accrued Liabilities - Custodial Liabilities 

 

3 - 3 

 Other Unfunded Employment related Liabilities 

 

456 - 456 

 Total Intragovernmental Not Covered by 

 Budgetary Resources $ 94,528 $ 2,162 $ 96,690 

 

 Total Intragovernmental Other Liabilities $ 94,528 $ 103,567 $ 198,095 

 

Public: 

 

 Covered by Budgetary Resources: 

 Accrued Unbilled State Payments $ - $ - $ - 

 Other Accrued Unbilled Payments 

 

- - - 

 Accrued Pay and Benefits 

 

- 3,859 3,859 

 Uncleared Disbursements and Collections 

 

- 615 615 

 Advances and Prepayments 

 

- 3,575 3,575 

 Deposit Funds 

 

- - - 

 Deferred Credits 

 

4,440 - 4,440 

 Capital Leases 

 

- - - 

 Total Public Covered by Budgetary 

 Resources $ 4,440 $ 8,049 $ 12,489 

 

 Not Covered by Budgetary Resources: 

 Accrued Pay and Benefits $ - $ - $ - 

 Deposit Funds 

 

- - - 

 Legal Claims 

 

2,901 - 2,901 

 Capital Leases 

 

- - - 

 Other - Unfunded Leave 

 

7,201 - 7,201 

 Other - Other Deferred Revenue 

 

26,789 - 26,789 

 Other - Custodial Liabilities (3) ______- (3) 
68 

Notes to the Financial Statements 

 

Note 17. Contingencies and Commitments: 

Describe any contingencies. A loss contingency is an existing condition, situation, or set of circumstances involving 

uncertainty as to possible loss to an entity. The uncertainty should ultimately be resolved when one or more future events 

occur or fail to occur. The likelihood that the future event or events will confirm the loss or the incurrence of a liability can 

range from probable to remote. 

Statement of Federal Financial Accounting Standards (SFFAS) No. 5, as amended by SFFAS No. 12, contains the criteria for 

recognition and disclosure of contingent liabilities. In addition to the contingent liabilities required by SFFAS No. 5, the 

following shall also be disclosed: (1) An estimate of obligations related to canceled appropriations for which the reporting 

entity has a contractual commitment for payment, and (2) Amounts for contractual arrangements which may require future 

financial obligations (commitments), e.g., undelivered orders. 

 

 

(Dollars in Thousands) 

 

1. Legal Claims 

 Federal Tort Claim $ 4 

 Refund Midshipmen Fees 9,000 

 Seaman Injury 1,000 

 Total $ 10,004 

 

 Total Public Not Covered by Budgetary 

 Resources $ 36,888 $ - $ 36,888 

 

 Total Public Other Liabilities $ 41,328 $ 8,049 $ 49,377 
69 

Notes to the Financial Statements 

Note 18. Earmarked Funds: 

Section A: A description of each fund's purpose, how the entity accounts for and reports the fund, and its authority to use those 

revenues and other financing sources. 

War Risk Insurance Fund - MARAD is authorized to insure against loss or damage from marine 

war risks until commercial insurance can be obtained on reasonable terms and conditions. This 

insurance includes war risk hull and disbursement interim insurance, war risk protection and 

indemnity interim insurance, second seaman's war risk interim insurance and war risk cargo 

insurance standby program. 

Special Study, Services & Project Fund - All payments for work or services performed or to be 

performed under the Act shall be deposited in this separate account which may be used to pay 

directly the costs of such work or services. 

Gifts and Bequests Fund - The Secretary is authorized to accept, hold, and 

administer gifts and bequests of property, both real and personal for the purpose 

of aiding or facilitating the work of Department of Transportation. 

Section B: The sources of revenue or other financing for the period and an explanation of the extent to which they are inflows

of resources to the Government or the result of intragovernmental flows. 

Section C: Any change in legislation during or subsequent to the reporting period and before the issuance of the financial 

statements that significantly changes the purpose of the fund or that redirects a material portion of the accumulated balance. 

 None. 

(Dollars in Thousands)

Section D: 

 FY 2009

Balance Sheet as of September 30, 2009 

MARAD Earmarked 

Funds 

Assets 

Fund Balance with Treasury $ 39,791 

Investments, Net 29,856 

Accounts Receivable, Net -

Property, Plant & Equipment 3,831 

Other -

Total Assets $ 73,478 

Liabilities and Net Position 

Accounts Payable $ 10 

FECA Liabilities -

Grants Accrual -

Other Liabilities -

Unexpended Appropriations - 

Cumulative Results of Operations 73,468 

Total Liabilities and Net Position $ 73,478 

Statement of Net Cost for the Period Ended 

September 30, 2009 

Program Costs $ 58,843 

Less Earned Revenue 1,206 

Net Program Costs 57,637 

Costs Not Assigned to Programs (OST and OIG only) -
70 

Less Earned Revenues Not Assigned to Programs -

Net Cost of Operations $ 57,637 

Note 18. Earmarked Funds (continued): 

Statement of Changes in Net Position 

For the Period Ended September 30, 2009 

Beginning Net Position $ 130,003 

Budgetary Financing Sources 1,102 

Other Financing Sources -

Net Cost of Operations 57,637 

Net Position End of Period $ 73,468 

 FY 2008

MARAD Earmarked 

Funds 

Balance Sheet as of September 30, 2008 

Assets 

Fund Balance with Treasury $ 83,736

Investments, Net 42,473 

Accounts Receivable, Net -

Property, Plant & Equipment 3,794 

Other ___ -

Total Assets $ 130,003 

Liabilities and Net Position 

Liabilities (explain the types of liabilities) $ -

Accounts Payable -

FECA Liabilities -

Grants Accrual -

Other Liabilities -

Unexpended Appropriations -

Cumulative Results of Operations __130,003 

Total Liabilities and Net Position $ 130,003 

Statement of Net Cost for the Period Ended 

September 30, 2008 

Program Costs $ 20,118 

Less Earned Revenue 90,206 

Net Program Costs (70,088)

Costs Not Assigned to Programs -

Less Earned Revenues Not Assigned to Programs __ -

Net Cost of Operations $ (70,088)

Statement of Changes in Net Position 

For the Period Ended September 30, 2008 

Beginning Net Position $ 58,358 

Budgetary Financing Sources 1,557 

Other Financing Sources -

Net Cost of Operations _ (70,088)

Net Position End of Period $ 130,003 
71 

Notes to the Financial Statements 

Note 19. Intragovernmental Costs 

and Exchange Revenues: 

(Dollars in Thousands)

 Intragovernment With the Public 

FY 2009 

Total 

Maritime Transportation: 

 Gross Costs 

 

$70,163 $1,051,911 $1,122,074 

Less Earned 

Revenue 

 

378,422 

 

6,874 

 

385,296 

Net Program 

Costs 

 

($308,259)

 

$1,045,037 $736,778 

 
72 

Notes to the Financial Statements 

Note 21. Statement of Budgetary 

Resources: 

(Dollars in Thousands) 

 

The amount of direct and reimbursable 

obligations incurred against amounts FY 2009 FY 2008 

apportioned under Category A, B and 

Exempt from apportionment 

as of the end of the period: Direct Reimbursable Total Direct Reimbursable Total 

 Category A $ 111,459 $ 363,627 $ 475,086 $116,709 $ 456,517 $573,226 

 Category B 

 

632,880 

 

3,441 

 

636,321 

 

442,863 

 

945 

 

443,808 

 Exempt from apportionment 

 

34,935 -

 

34,935 

 

87,419 -

 

87,419 

 Total $779,274 $367,068 $1,146,342 $646,991 $457,462 $104,453 

 FY 2009 FY 2008 

Available Contract Authority as of the end 

of the period: $ - $ - 

Available Borrowing Authority as of the 

end of the period: $ 209,000 $ 219,000 

Undelivered orders, Unpaid at the end of 

the period $ 379,809 $ 312,910 

Adjustments during the fiscal year to 

Beginning Balance of Budgetary 

Resources: 

 FY 2009 FY 2008 

 Cumulative Authorizations in Excess of 

Obligation Limitation $ - $ - 

 Rescissions 

 

- 

 

- 

 Prior Year Recoveries 

 

- 

 

- 

 Temporarily Not Available 

 

- 

 

- 

 Cancelled Authority 

 

- 

 

- 

 Permanently Not Available 

 

- 

 

- 

 Other Adjustments (Fully Describe 

Below) - _ - 

 Total Adjustments to Beginning 

Balance of Budgetary Resources $ - $ - 
73 

Notes to the Financial Statements 

 

Note 23. Reconciliation of Net Cost of Operations to Budget

(Dollars in Thousands)

Line Description Amount 

1. Obligations Incurred 1,146,342 

2. Less: Spending Authority from Offsetting Collections and Recoveries 623,561 

3. Obligations Net of Offsetting Collections and Recoveries 522,781 

4. Less: Distributed Offsetting Receipts (39,806) 

5. Net Obligations 482,975 

Other Resources 

6. Donations and Forfeitures of Property - 

7. Transfers In/Out Without Reimbursement (+/-) - 

8. Imputed Financing From Costs Absorbed by Others 7,850 

9. Other Resources (+/-) (73,263) 

10. Net Other Resources Used to Finance Activities (65,413) 

11. Total Resources Used to Finance Activities 417,562 

Resources Used to Finance Items Not Part of the Net Cost of Operations 

12. Change in Budgetary Resources Obligated for Goods, Services and Benefits Ordered 

but not yet Provided 68,200 

13. Resources That Fund Expenses Recognized in Prior Periods 93,793 

14. Budgetary Offsetting Collections and Receipts That Do Not Affect Net Cost of 

Operations - 

14a. Credit Program Collections That Increase Liabilities for Loan Guarantees or 

Allowances for Subsidy (102,386) 

14b. Other/Change in Unfilled Customer Orders (76,464) 

14c. Anticipated Resources not yet realized - 

15. Resources That Finance the Acquisition of Assets (102,970) 
74 

Note 23. Reconciliation of Net Cost of Operations to Budget (continued):

16. Other Resources or Adjustments to Net Obligated Resources That Do Not Affect 

Net Cost of Operations (18,931) 

17. Total Resources Used to Finance Items Not Part of the Net Cost Of Operations (138,758) 

18. Total Resources Used to Finance the Net Cost of Operations 556,320 

Components of the Net Cost of Operations that will not Require or Generate Resources 

in the Current Period: 

Components Requiring or Generating Resources in Future Periods: 

19. Increase in Annual Leave Liability (21) 

20. Increase in Environment and Disposal Liability (193,502) 

21. Upward/Downward Reestimates of Credit Subsidy Expense (+/-) (39,360) 

22. Increase in exchange revenue receivable from the public - 

23. Change in Other Liabilities (+/-) (48,061) 

24. Total Components of Net Cost of Operations That Will Require or Generate 

Resources in Future Periods 106,103 

Components Not Requiring or Generating Resources: 

25. Depreciation and Amortization 72,430 

26. Revaluation of Assets or Liabilities (+/-) 1,751 

27. Other Expenses and Adjustments not Otherwise Classified Above (+/-) - 

28. Total Components of Net Cost of Operations That Will Not Require or Generate 

Resources 74,181 

29. Total Components of Net Cost of Operations That Will Not Require or Generate 

Resources in the Current Period 180,284 

Other Adjustments (un-reconciled difference to SNC) ____174

30. Net Cost of Operations 736,778 
75 

Notes to the Financial Statements 

 

Note 24. Fiduciary Activities 

The Title XI Escrow Fund was authorized pursuant to the Merchant Marine Act of 1936, as amended. The fund was 

originally established to hold guaranteed loan proceeds pending construction of MARAD approved and financed vessels. 

The Act was recently amended to allow the deposit of additional cash security items such as reserve funds or debt 

reserve funds. Individual shipowners provide funds to serve as security on MARAD guaranteed loans. Funds 

deposited and invested by the Maritime Administration (MARAD) remain the property of individual shipowners. 

In the event of default, MARAD will use the escrow funds to offset the shipowners’ debt to the Government. 

Fund investments are limited to U.S. Government securities purchased by MARAD through the Treasury. 

 

Schedule of Fiduciary Activity 

For the quarter ended September 30, 2009 

(Dollars in Thousands) 

FY 2009 

Fiduciary Net Assets, beginning of year $ 141,681 

Fiduciary revenues - 

Contributions - 

Investment earnings - 

Gain (Loss) on disposition of investments, net - 

Administrative and other expenses - 

Disbursements to and on behalf of beneficiaries - 

Increases/(Decreases in fiduciary net assets - 

Fiduciary net assets, end of period $ 141,681 

Fiduciary Net Assets 

As of September 30, 2009 

Fiduciary Assets 

Fiduciary Fund Balance with Treasury $ 75 

Investments in Treasury Securities 141,681 

 - 

Other Assets - 
76 

Fiduciary Liabilities

Less: Liabilities 141,756 

Total Fiduciary Net Assets - 

Note 24. Fiduciary Activities (continued):

Contributions increase fiduciary net assets. Contributions include cash collected from beneficiaries and directly 

increase a beneficiary's equity. 

 

Disbursements to and on behalf of beneficiaries decrease fiduciary net assets. Disbursements are equity 

distributions to or on behalf of beneficiaries. 

Fiduciary net assets, end of period should equal Total Fiduciary Net Assets. 

Deferred Maintenance: 

 (Dollars in Thousands) 

 DOT Asset Cost to Return to

Entity Major Class of Asset Method of Measurement Condition* Acceptable Condition

MARAD Vessels, Ready Reserve Condition Assessment 2 6,285 

 Force (Various Locations) Survey 

 

 Real Property, Anchorage Condition Assessment 2 40 

 Survey 

 

 Other - Real Property, Buildings Condition Assessment 2 &3 350 

 Survey 

 

 Other (Pier and Berthing Surveys and Studies) Estimate 2 35 

 

 Other Other (Heritage Assets) 

 Condition Assessment 3 & 4 200 

 Survey 

 Total $ 6,910 

*Asset Condition Rating Scale: 

 1 - Excellent 

 2 - Good 

 3 - Fair 

 4 - Poor 

 5 - Very Poor 

This Non-Appropriated Fund Instrumentality (NAFI) data is provided in accordance with the Department of Defense Authorization Act of 

2001, Public Law 106-398, which contains the following section on a report to be submitted to the Congress. 
77 

Report to Congress 

Funds Administered by the Maritime Administration 

Not appropriated to the Maritime Administration 

For Fiscal Year Ended September 30, 2009 

(Dollars in Thousands) 

The Department of Defense Authorization Act of 2001, Public Law 106-398, which contains the following section on a 

report to be submitted to the Congress: 

SEC. 3506. REPORTING OF ADMINISTERED AND OVERSIGHT FUNDS.

The Maritime Administration, in its annual report to Congress under Section 208 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1118), 

and in its annual budget estimate submitted to 

Congress, shall state separately the amount, source, intended use, and nature of any funds (other than those appropriated to the Administration 

or to the Secretary of Transportation 

for use by the Administration) administered, or subject to oversight, by the Administration. 

 

Fund Source Intended Use 

FY 2009

Amount

Funds Credited in Vessel Operating Revolving Fund (VORF) 

Commerce, Economic Dev. Admin. (EDA) Port Authority of Guam investment $2,000 

Commerce, NOAA 

Support of miscellaneous buoy - Pay & 

Benefits 8 

Defense Advanced Research Project Agency Support of Falcon HTV-2A program 1,933 

Defense Energy Support Center Support of CHESAPEAKE-SALM & SPMS 5,000 

Department of the Navy Ex-TRIPOLI Pay & Benefits 6 

Department of the Navy 

Hurricane Ike repairs at Beaumont Reserve 

Fleet 2,798 

Department of the Navy Support of ADM CALLAGHAN 843 

Department of the Navy Support of CAPE DIAMOND 578 

Department of the Navy Support of CAPE DUCATO 542 

Department of the Navy Support of CAPE FAREWELL 2,320 

Department of the Navy 

Support of CAPE 

GIB/WAS/DCS/DMG/DGL 3,449 

Department of the Navy Support of CAPE HUDSON 588 

Department of the Navy Support of CAPE JACOB 12,311 

Department of the Navy Support of CAPE MAY 3,038 

Department of the Navy Support of CAPE WRA/DIA/INT/ISB/ISL 3,241 

Department of the Navy Support of CAPE WRATH & INSCRIPTION 1,189 

Department of the Navy Support of CORNHUSKER STATE 2,103 

Department of the Navy Support of CURTISS 1,604 

Department of the Navy Support of GRAND CANYON STATE 890 

Department of the Navy Support of NDRF & RRF vessels 277,176 
78 

 FY 2009

Fund Source Intended Use Amount 

Department of the Navy Support of SS CURTISS 2,503 

Department of the Navy 

Support of SS WRIGHT Carolina Hornet 

exercise 27 

Department of the Navy 

Support of Title XI ship loan guarantee 

program IAW 48,000 

Department of the Navy Support of TS KENNEDY conversion 10,000 

Dept of Homeland Security (DHS) Support of CAPE CHALMERS 50 

DOD, Office of Economic Adjustment Port of Anchorage-Intermodal Marine Facility 10,000 

DOT, NHTSA Support of NCCIPS at Stennis Space Center 288 

MDA Support of Pacific Collector 3,382 

MDA Support of Pacific Tracker 8,000 

MDA 

Support of Pacific Tracker -

Maintenance/Outporting 3,998 

MDA 

Support of Pacific Tracker (formerly Beaver 

State) 10,877 

Military Sealift Command Support of SS CAPE JACOB 286 

Missile Defense Agency (MDA) Pacific Collector - Operation & Maintenance 3,887 

Naval Air Systems Command Support of CAPE RACE 63 

Naval Sea Systems Command (NAVSEA) 

INACTIVE vessels in NDRF for required 

shipboard maintenance 536 

Naval Surface Warfare Center (NSWC) Support of Shipboard tests aboard RRF vessels 250 

NAVSPECWARDEVGRU DELMONTE training range 682 

NAVSPECWARDEVGRU Support of DEL MONTE 175 

Navy Expeditionary Combat Command (NECC) 

Keystone State/Grand Canyon State/Gem 

Stone/MARAD TAC ship training 209 

NCHB TAC vessel training 30 

NECC CAPE ANN training & evaluation of tools 43 

NECC Misc Crane ship training 103 

NSWC Crane ship pendulation control system project 30 

NSWC Large Vessel Interface-Lift On/Off 100 

U.S. Air Force Large Vessel Interface-Lift On/Off 2,900 

U.S. Air Force Support of Pacific Collector 2,500 

U.S. Army 80th training command at Fort Eustis 20 

U.S. Army Barge repair at Beaumont Reserve Fleet 1,500 

U.S. Army Crane ship training at Cheatum Annex 6 

U.S. Army Support of CAPE MAY 994 

U.S. Army Support of NDRF-STURGIS Pay & Benefits 32 

U.S. Coast Guard (USCG) Training onboard CAPE TEXAS 1 

U.S. Marine Corps SS WRIGHT LOADEX training 37 

U.S. Marine Corps Support of USS CURTIS 20 

U.S. Navy Cargo Handling Battalion (NHCB) TAC Vessel training 100 

USCG 

Salary support for 

IRIS/PLAINTREE/STORIS 45 
79 

Total Vessel Operating Revolving 433,287

Fund Source Intended Use

FY 2009

Amount

Funds Credited in Operations & Training 

(O&T): 

Alaska Dept of the Environmental Conservation Marine Board-Aleutians Risk Assessment $30 

CG ISC Boston Administrative services 88 

Department of the Navy 

Marine Cargo Terminal Grant with Philadelphia Regional Port 

Authority 250 

DOT, Federal Transit Administration Team One Solutions, Inc service contract 1 

DOT, RITA-VOLPE Center Support of MARAD hydrogen projects 50 

Military Sealift Command SOCP membership fee 5 

Military Surf Deployment & District Command 

(MSDDC) ICODES project 220 

NAVSEA Systems engineering efforts/travel for PEO ships 50 

NAVSPECWARDEVGRU Marine grade gasoline during training 3 

NOAA Ships Operation Cooperative Program (SOCP) 5 

Office of Naval Research MARAD Domain Awareness Public Facing Web Portal 12 

Office of the Secretary Special Achievement Award 1 

U.S. Army Cost associated with travel & contractual services. 10 

U.S. Coast Guard (USCG) 

Administrative support services to International Standards Org

Technical Advisory Group 95 

USCG SOCP membership fee 5 

USCG Support of Marine Board 120 

Total Operations and Training Reimbursables 

(O&T) $945 

Operations & Training Transfers 14,246 

Federal Highway Allocations 7,183 

USMMA Collections 234 

Total Operations and Training (O&T) $22,608 
80 

NAFI REVENUES: 

 

FY 2009

Amount 

Gifts and Bequests Trust Fund 

(GF) 

 

GF USMMA $1,102 

 

 Gifts & Bequests 

 

 

MARAD receives gifts and bequests from 

external contributors, individuals and 

organizational donors. The agency receives 

restricted gifts specify the purpose for the 

contributed funding. Unrestricted gifts can 

be applied to agency priorities. The large 

share of gifts and bequests received by 

MARAD are for the USMMA. 

 

Total Gifts and Bequests Trust 

Fund (GF) $1,102 

 

 

Special Studies, Services, and 

Projects Trust Fund (SSSP) $10,122 

 

 Federal, State and Local 

 Government Sources 

 

 

MARAD may receive funding from nonFederal sources, including states, 

municipalities, and private entities for 

collaborative, cost-sharing efforts 

advancing maritime missions. 

 

Total Special Studies, Services, 

and Projects Trust Fund (SSSP) $10,122 

 

 

FY 2009 

Amount 

SUMMARY: 

 

Total Vessel Operating Revolving 

Fund $433,287 

Total Operations & Training 22,608 

Total Gifts and Bequests 1,102 

Total Special Studies, Services, 

and Projects 10,122 

Total FY 2008 Funding Authority $467,120 
81 

(In Thousands of Dollars) 

Operating 

Revenue Midshipman Fees Total Revenues/1 Cash Balances/2 NAFI 

1 Athletic Association $ 50 $ 502 $ 552 $ 6 

2 Chapel 

 

25 

 

- 25 8 

3 Cultural Events 

 

1 

 

33 34 18 

4 Employees Association 

 

6 

 

- 6 37 

5 Faculty & Staff Housing 

 

24 

 

- 24 28 

6 Fiscal Control Office 

 

- 

 

1,974 1,974 4,313 

7 Melville Hall 

 

1,617 

 

- 1,617 105 

8 Midshipmen Publication 

 

42 

 

87 129 79 

9 Morale 

 

70 

 

207 276 99 

10 Museum 

 

3 

 

- 3 6 

11 Music Program 

 

1 

 

- 1 1 

12 

Sail, Power & Crew 

Association 

 

5 

 

161 166 - 

13 Ship's Service 120 951 1,071 423 

Sub-Total $1,963 

 

3,915 5,878 5,122 

14 GMATS 7,500 - 7,500 5,000 

Grand Total $ 9,463 $ 3,915 $ 13,378 $ 10,122 

1/ NAFI revenues are reported on an academic year July 1, 2008 to June 30, 2009. 

2/ Cash balances in Commercial Bank Accounts as of 9/30/09 
82 

Appendix 1

Government Sponsored Cargoes For Fiscal Years 2008 - 2004

GOVERNMENT SPONSORED CARGOES -

FY 2008

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Metric Tons Metric Tons Metric Tons

HUMANITARIAN FOOD AID

Agency for International Development (AID) 

--PL 480 - Title II 369,063 2,499,775 1,941,382 77.7%

Department of Agriculture 

--PL 480 - Title I 8,442 44,200 44,200 100%

--Food for Progress 27,583 135,520 132,270 97.6%

--Food for Education 23,462 113,432 95,129 83.9%

--Section 416(b) 309 1,895 1,895 100.0%

TOTALS 428,859 2,794,822 2,214,876 79.2% 

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

 ($1,000) Metric Tons Metric Tons Metric Tons

CIVILIAN AGENCIES 

Congressional Supplementary 

--Iraq Reconstruction 14,071 14,724 14,681 99.7%

Defense Security Cooperative Agency 

--Foreign Military Funding 6,301 27,019 15,046 55.7%

--Fuel: Israel 19,434 350,115 350,115 100.0%

Department of Defense 

--USACE/Civilian 887 3,843 152 4.0%

Department of Energy 19 10 10 100.0%

--Western Area Power Administration - - - 0.0%

--Bonneville Power - - - 0.0%

Department of Health and Human Services 

--Public Health - - - 0.0%

Department of State 

--International Narcotics & Law Enforcement - 765 - 0.0%

--Overseas Building Office 149 857 400 46.7%

--Transportation Travel Management 550 639 409 64.0%

--U.S. Dispatch Agencies 7,280 15,944 7,331 46.0%

Department of Transportation 

--Federal Transit Administration 18,028 19,063 11,717 61.5%

--MARAD Title XI 215 245 230 93.9%

Export-Import Bank 

--Public Resolution 17 10,355 16,573 13,352 80.6%

General Services Administration 20 10 10 100.0%
83 

GOVERNMENT SPONSORED CARGOES -

FY 2008 (Continued)

Independent Federal Agencies 

--National Science Foundation 

U.S. Agency for International Development 

(AID) 

 

--AID Loans and Grants 3,709 35,192 25,238 71.7%

--AIDS Prevention 885 1,856 1,355 73.0%

U.S. Economic Support Fund 

--Israeli Grain: Side Letter - - - 0.0%

TOTALS 81,903 486,855 440,046 90.4% 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Revenue Tons Revenue Tons Revenue Tons

MILITARY CARGOES 

Military Cargoes (Measurement Tons - Dry 

Cargo) 

662,309 10,843,639 9,197,876 84.8%

Military Cargoes (Metric Tons - Dry Cargo) 135,557 82,749 80,442 97.2%

Military Cargoes (Metric Tons - Petroleum) 17,515 5,570,260 3,361,256 60.3%

TOTALS 815,381 16,496,648 12,639,574 76.6% 
84 

GOVERNMENT SPONSORED CARGOES -

FY 2007

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Metric Tons Metric Tons Metric Tons

HUMANITARIAN FOOD AID

Agency for International Development (AID) 

--PL 480 - Title II 237,781 1,989,124 1,618,474 81.4%

Department of Agriculture 

--PL 480 - Title I 3,895 42,500 42,500 100.0%

--Food for Progress 59,556 421,639 365,779 86.8%

--Food for Education 15,751 88,065 83,383 94.7%

--Section 416(b) 2,777 12,436 11,965 96.2%

TOTALS 319,760 2,553,764 2,122,101 83.1% 

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

 ($1,000) Metric Tons Metric Tons Metric Tons

CIVILIAN AGENCIES 

Congressional Supplementary 

--Iraq Reconstruction 3,706 4,326 3,740 86.5%

Defense Security Cooperative Agency 

--Foreign Military Funding 14,460 37,866 26,794 70.8%

--Fuel: Israel 17,464 323,526 323,526 100.0%

Department of Defense 

--USACE/Civilian 48 2,044 190 9.3%

Department of Energy 

--Western Area Power Administration - - - 0.0%

--Bonneville Power - - - 0.0%

Department of Health and Human Services 

--Public Health - 2 - 0.0%

Department of State 

--International Narcotics & Law Enforcement - 204 - 0.0%

--Overseas Building Office 2,241 6,896 2,701 39.2%

--Transportation Travel Management 527 1,064 274 25.8%

--U.S. Dispatch Agencies 7,024 13,554 6,752 49.8%

Department of Transportation 

--Federal Transit Administration 6,906 14,514 7,108 49.0%

--MARAD Title XI 459 1,247 965 77.4%

Export-Import Bank 

--Public Resolution 17 24,724 66,964 28,319 42.3%

General Services Administration 22 34 25 73.5%

Independent Federal Agencies 

--National Science Foundation - - - 0.0%

U.S. Agency for International Development 

(AID) 

--AID Loans and Grants 3,198 56,973 41,896 73.5%
85 

GOVERNMENT SPONSORED CARGOES 

- FY 2007 (Continued)

 

--AIDS Prevention 762 1,994 1,292 64.8%

U.S. Economic Support Fund 

--Israeli Grain: Side Letter - - - 

TOTALS 81,541 531,208 443,582 83.5% 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Revenue Tons Revenue Tons Revenue Tons

MILITARY CARGOES 

Military Cargoes (Measurement Tons - Dry 

Cargo) 

734,315 13,099,685 10,282,858 78.5%

Military Cargoes (Metric Tons - Dry Cargo) 181,856 98,749 96,847 98.1%

Military Cargoes (Metric Tons - Petroleum) 3,194 5,677,832 3,580,545 63.1%

TOTALS 919,365 18,876,266 13,960,250 73.9% 
86 

GOVERNMENT SPONSORED CARGOES 

- FY 2006

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Metric Tons Metric Tons Metric Tons

HUMANITARIAN FOOD AID

Agency for International Development 

(AID) 

--PL 480 - Title II 318,742 2,830,361 2,067,251 73.0%

Department of Agriculture 

--PL 480 - Title I 5,952 92,709 70,000 75.5%

--Food for Progress 69,233 624,300 431,217 69.1%

--Food for Education 19,309 103,094 87,935 85.3%

--Section 416(b) 1,167 4,433 4,395 99.1%

TOTALS 414,403 3,654,897 2,660,798 72.8% 

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

 ($1,000) Metric Tons Metric Tons Metric Tons

CIVILIAN AGENCIES 

Congressional Supplementary 

--Iraq Reconstruction 48,922 43,428 41,321 95.2%

Defense Security Cooperative Agency 

--Foreign Military Funding 12,123 34,779 28,130 80.9%

--Fuel: Israel 16,922 353,607 353,607 100.0%

Department of Defense 

--USACE/Civilian 970 25,620 3,835 15.0%

Department of Energy 

--Western Area Power Administration - - - 0.0%

--Bonneville Power 65 192 192 100.0%

Department of Health and Human Services 

--Public Health - - - 0.0%

Department of State 

--International Narcotics & Law Enforcement - - - 0.0%

--Overseas Building Office 1,760 11,170 4,418 39.6%

--Transportation Travel Management 35 14 12 85.7%

--U.S. Dispatch Agencies 6,154 11,446 6,782 59.3%

Department of Transportation 

--Federal Transit Administration 4,341 8,409 5,153 61.3%

--MARAD Title XI 110 909 667 73.4%

Export-Import Bank 

--Public Resolution 17 16,657 26,734 18,966 70.9%

General Services Administration 19 9 9 100.0%

Independent Federal Agencies 

--National Science Foundation - - - 0.0%

U.S. Agency for International Development 

(AID) 

 

--AID Loans and Grants 2,330 21,560 12,963 60.1%
87 

GOVERNMENT SPONSORED CARGOES 

- FY 2006 (Continued)

 

--AIDS Prevention 172 1,383 240 17.4%

U.S. Economic Support Fund 

--Israeli Grain: Side Letter 2,473 61,820 61,820 100.0%

TOTALS 113,053 601,080 538,115 92.6% 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Revenue Tons Revenue Tons Revenue Tons

MILITARY CARGOES 

Military Cargoes (Measurement Tons - Dry 

Cargo) 

574,557 9,796,536 8,435,100 86.1%

Military Cargoes (Metric Tons - Dry Cargo) 210,292 113,892 111,941 98.2%

Military Cargoes (Metric Tons - Petroleum) not available 5,281,932 4,865,821 92.1%

TOTALS 784,849 15,192,360 13,412,862 88.2% 
88 

GOVERNMENT SPONSORED CARGOES -

FY 2005

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Metric Tons Metric Tons Metric Tons

HUMANITARIAN FOOD AID

Agency for International Development (AID) 

--PL 480 - Title II 293,996 2,961,100 1,910,397 64.5%

Department of Agriculture 

--PL 480 - Title I 14,547 245,588 186,263 75.8%

--Food for Progress 44,508 432,983 335,258 77.4%

--Food for Education 10,699 64,235 58,772 91.5%

--Section 416(b) 15,645 74,937 68,228 91.0%

TOTALS 379,395 3,778,843 2,558,918 67.7% 

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

 ($1,000) Metric Tons Metric Tons Metric Tons

CIVILIAN AGENCIES 

Congressional Supplementary 

--Iraq Reconstruction 10,748 26,285 15,393 58.6%

Defense Security Cooperative Agency 

--Foreign Military Funding 14,370 45,881 34,681 75.6%

--Fuel: Israel 15,158 330,774 330,774 100.0%

Department of Defense 

--USACE/Civilian 4,391 71,909 11,453 15.9%

Department of Energy 

--Western Area Power Administration 8 233 27 11.6%

--Bonneville Power - - - 0.0%

Department of Health and Human Services 

--Public Health - - - 0.0%

Department of State 

--International Narcotics & Law Enforcement - - - 0.0%

--Overseas Building Office 1,273 6,440 3,252 0.0%

--Transportation Travel Management - - - 

--U.S. Dispatch Agencies 7,643 12,361 9,259 74.9%

Department of Transportation 

--Federal Transit Administration 4,364 7,628 3,647 47.8%

--MARAD Title XI 4 76 4 5.3%

Export-Import Bank 

--Public Resolution 17 10,943 30,037 16,722 55.7%

General Services Administration - - - 0.0%

Independent Federal Agencies 

--National Science Foundation 214 342 322 94.2%

U.S. Agency for International Development 

(AID) 

 

--AID Loans and Grants 6,437 45,651 30,504 66.8%

--AIDS Prevention 546 1,901 834 43.9%
89 

U.S. Economic Support Fund 
90 

GOVERNMENT SPONSORED CARGOES -

FY 2005 (Continued)

 

--Israeli Grain: Side Letter 13,993 349,818 349,818 100.0%

TOTALS 90,090 929,336 806,690 86.8% 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Revenue Tons Revenue Tons Revenue Tons

MILITARY CARGOES 

Military Cargoes (Measurement Tons - Dry 

Cargo) 

559,735 11,427,869 10,659,354 93.3%

Military Cargoes (Metric Tons - Dry Cargo) 288,771 147,444 144,506 98.0%

Military Cargoes (Metric Tons - Petroleum) 4,581 5,467,132 4,868,053 89.0%

TOTALS 853,087 17,042,445 15,671,913 91.9% 
91 

GOVERNMENT SPONSORED CARGOES -

FY 2004

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Metric Tons Metric Tons Metric Tons

HUMANITARIAN FOOD AID

Agency for International Development (AID) 

--PL 480 - Title II 318,738 3,123,701 2,247,075 71.9%

Department of Agriculture 

--PL 480 - Title I 18,986 253,669 209,208 82.5%

--Food for Progress 81,802 678,257 561,377 82.8%

--Food for Education 20,854 132,317 113,472 85.8%

--Section 416(b) 14,558 74,511 65,919 88.5%

TOTALS 454,938 4,262,455 3,197,051 75.0% 

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

 ($1,000) Metric Tons Metric Tons Metric Tons

CIVILIAN AGENCIES 

Congressional Supplementary 

--Iraq Reconstruction 688 992 812 81.9%

Defense Security Cooperative Agency 

--Foreign Military Funding 16,043 49,766 38,838 78.0%

--Fuel: Israel 16,750 383,059 383,059 100.0%

Department of Defense 

--USACE/Civilian 117 20,728 519 2.5%

Department of Energy 

--Western Area Power Administration 2 346 14 4.1%

--Bonneville Power - - - 0.0%

Department of Health and Human Services 

--Public Health - - - 0.0%

Department of State 

--International Narcotics & Law Enforcement - - - 0.0%

--Overseas Building Office 2,885 14,896 8,224 55.2%

--Transportation Travel Management - - - 

--U.S. Dispatch Agencies 6,766 14,375 11,528 80.2%

Department of Transportation 

--Federal Transit Administration 8,348 84,503 81,709 97.3%

--MARAD Title XI - 36 - 0.0%

Export-Import Bank 

--Public Resolution 17 14,865 72,688 49,087 67.5%

General Services Administration - - - 0.0%

Independent Federal Agencies 

--National Science Foundation - 30 - 0.0%

U.S. Agency for International Development 

(AID) 

--AID Loans and Grants 4,824 74,808 51,514 68.9%

--AIDS Prevention 101 561 142 25.3%
92 

U.S. Economic Support Fund 

--Israeli Grain: Side Letter 14,463 361,563 361,563 100.0%

TOTALS 85,852 1,078,351 987,009 91.5% 

GOVERNMENT SPONSORED CARGOES -

FY 2004 (Continued)

 

U.S.-Flag 

Revenue Total U.S.-Flag % U.S.-Flag 

($1,000) Revenue Tons Revenue Tons Revenue Tons

MILITARY CARGOES 

Military Cargoes (Measurement Tons - Dry 

Cargo) 

344,694 8,967,128 8,637,743 96.3%

Military Cargoes (Metric Tons - Dry Cargo) 508,700 341,897 338,328 98.9%

Military Cargoes (Metric Tons - Petroleum) 10,428 5,499,708 3,607,556 65.6%

TOTALS 863,822 14,808,733 12,583,627 84.9% 
93 

Secretary of Transportation Ray 

LaHood advances with a wreath and 

military escort to honor U.S. merchant 

mariners and America’s armed services 

at the World War II Memorial in 

Washington, D.C., on Veterans Day, 

Nov. 11, 2009. Official DOT photo 

Appendix 2 

Presidential Proclamation 

National Maritime Day is a United States day of observance created to recognize the maritime industry and often used to 

recognize the work and the sacrifices of the U.S. Merchant Marine. It is observed on May 22, the date that the American 

steamship Savannah set sail from Savannah, Georgia, on the first-ever transoceanic voyage under steam power. The 

observance was created by the United States Congress on May 20, 1933, and has been honored with a Presidential 

proclamation every year since. 

BARACK OBAMA 

XLIV President of the United States: 2009-Present 

383 - Proclamation 8384 - 

National Maritime Day, 2009 

May 20, 2009

Americans have long looked to the sea as a source of security and prosperity. Bounded by two oceans and the Gulf 

of Mexico and criss-crossed by a myriad of inland waterways, America's destiny as a maritime nation was a story 

foretold. 

The Merchant Marine took up arms alongside the Continental Navy to help defeat the British Navy during the 

American Revolution. Since then, they have served bravely as the United States has faced threats ranging from 

war to piracy, and our seafaring fleet has proven instrumental in protecting our safety. In times of conflict and 

crisis, the Armed Forces rely on the Merchant Marine's sealift capability to transport critical equipment and 

supplies. Time and again, mariners have demonstrated their willingness and ability to meet daunting challenges. 

Waterways have also enabled much of the commerce that has expanded America's economy. Domestic and 

international commerce occurred along rivers and coasts even before our Nation's birth. Great cities have sprouted 

near waterways, and maritime activity remains crucial to our economy today. 

The men and women of the U.S. Merchant Marine and the many other workers who have supported the maritime 

industry have made significant contributions to our leadership in the global 

marketplace, and to our security. 

On this National Maritime Day, we also mark the opening of a permanent 

exhibition at the Smithsonian Institution, "On the Water." It demonstrates the 

importance of the maritime industry and chronicles our history as a maritime 

nation. 

The Congress, by a joint resolution approved May 20, 1933, has designated May 

22 of each year as "National Maritime Day" and has authorized and requested the 

President to issue annually a proclamation calling for its appropriate observance. 

NOW, THEREFORE, I, BARACK OBAMA, President of the United States of 

America, do hereby proclaim May 22, 2009, as National Maritime Day. I call upon 

the people of the United States to mark this observance by honoring the service of 

merchant mariners and by displaying the flag of the United States at their homes 

and in their communities. I also request that all ships sailing under the American 

flag dress ship on that day. 

IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of 

May, in the year of our Lord two thousand nine, and of the Independence of the 

United States of America the two hundred and thirty-third. 
94 

BARACK OBAMA 

Appendix 3 

Organization Chart 
95 

Appendix 4 

List of MSP Participants 

September 30, 2009 

MSP Contract 

No. Vessel Name Company Name Ship Type

MA/MSP-48 LIBERTY Fidelio Limited Partnership RO/RO 

MA/MSP-49 APL KOREA APL Marine Services, Ltd. Containership 

MA/MSP-50 APL PHILIPPINES APL Marine Services, Ltd. Containership 

MA/MSP-51 APL SINGAPORE APL Marine Services, Ltd. Containership 

MA/MSP-52 APL THAILAND APL Marine Services, Ltd. Containership 

MA/MSP-53 PRESIDENT ADAMS APL Marine Services, Ltd. Containership 

MA/MSP-54 PRESIDENT JACKSON APL Marine Services, Ltd. Containership 

MA/MSP-55 APL CHINA APL Marine Services, Ltd. Containership 

MA/MSP-56 PRESIDENT POLK APL Marine Services, Ltd. Containership 

MA/MSP-57 PRESIDENT TRUMAN APL Marine Services, Ltd. Containership 

MA/MSP-58 GREEN COVE Central Gull Lines, Inc. RO/RO 

MA/MSP-59 GREEN POINT Central Gull Lines, Inc. RO/RO 

MA/MSP-60 GREEN LAKE Central Gull Lines, Inc. RO/RO 

MA/MSP-61 GREEN RIDGE Central Gull Lines, Inc. RO/RO 

MA/MSP-62 ALLIANCE NORFOLK Farrell Lines Incorporated RO/RO 

MA/MSP-63 ALLIANCE ST. LOUIS Farrell Lines Incorporated RO/RO 

MA/MSP-64 MAERSK OHIO Farrell Lines Incorporated Containership 

MA/MSP-65 MAERSK MONTANA Farrell Lines Incorporated Containership 

MA/MSP-66 MAERSK IOWA Farrell Lines Incorporated Containership 

MA/MSP-67 PATRIOT Fidelio Limited Partnership RO/RO 

MA/MSP-68 FREEDOM Fidelio Limited Partnership RO/RO 

MA/MSP-69 HONOR Fidelio Limited Partnership RO/RO 

MA/MSP-70 RESOLVE Fidelio Limited Partnership RO/RO 

MA/MSP-71 INTEGRITY Fidelio Limited Partnership RO/RO 

MA/MSP-72 COURAGE Fidelio Limited Partnership RO/RO 

MA/MSP-73 ALLIANCE NEW YORK Liberty Global Logistics, LLC RO/RO 

MA/MSP-74 CHARLESTON EXPRESS Hapag-Lloyd USA, LLC Geared Containership 

MA/MSP-75 ST LOUIS EXPRESS Hapag-Lloyd USA, LLC Geared Containership 

MA/MSP-76 WASHINGTON EXPRESS Hapag-Lloyd USA, LLC Geared Containership 

MA/MSP-77 YORKTOWN EXPRESS Hapag-Lloyd USA, LLC Geared Containership 

MA/MSP-78 PHILADELPHIA EXPRESS Hapag-Lloyd USA, LLC Geared Containership 

MA/MSP-79 MAERSK MISSOURI Maersk Line, Limited Containership 

MA/MSP-80 MAERSK VIRGINIA Maersk Line, Limited Containership 

MA/MSP-81 MAERSK GEORGIA Maersk Line, Limited Containership 

MA/MSP-82 MAERSK CAROLINA Maersk Line, Limited Containership 

MA/MSP-83 MAERSK WYOMING Maersk Line, Limited Containership 

MA/MSP-84 SEA-LAND EAGLE Maersk Line, Limited Containership 

MA/MSP-85 SEA-LAND CHAMPION Maersk Line, Limited Containership 

MA/MSP-86 MAERSK UTAH Maersk Line, Limited Containership 

MA/MSP-87 SEA-LAND MERCURY Maersk Line, Limited Containership 

MA/MSP-88 MAERSK WISCONSIN Maersk Line, Limited Containership 

MA/MSP-89 SEA-LAND CHARGER Maersk Line, Limited Containership 
96 

MA/MSP-90 SEA-LAND LIGHTENING Maersk Line, Limited Containership 

MA/MSP-91 SEA-LAND METEOR Maersk Line, Limited Containership 
97 

List of MSP Participants 

September 30, 2009 

(Continued) 

MSP Contract No. Vessel Name Company Name Ship Type

MA/MSP-92 SEA-LAND INTREPID Maersk Line, Limited Containership 

MA/MSP-93 SEA-LAND COMET Maersk Line, Limited Containership 

MA/MSP-94 MAERSK IDAHO Maersk Line, Limited Containership 

MA/MSP-95 MAERSK KENTUCKY Maersk Line, Limited Containership 

MA/MSP-96 MAERSK CALIFORNIA Maersk Line, Limited 

Geared 

Containership 

MA/MSP-97 SEA-LAND RACER Maersk Line, Limited Containership 

MA/MSP-98 INDEPENDENCE II American International Shipping, LLC RO/RO 

MA/MSP-99 OVERSEAS MAREMAR Maremar Tanker LLC Tanker 

MA/MSP-101 OVERSEAS LUXMAR Luxmar Tanker LLC Tanker 

MA/MSP-102 M/V OCEAN ATLAS Patriot Shipping LLC Heavy Lift 

MA/MSP-103 M/V OCEAN TITAN Patriot Titan LLC Heavy Lift 

MA/MSP-104 GREEN BAY Waterman Steamship Corporation RO/RO 

MA/MSP-105 GREEN DALE Waterman Steamship Corporation RO/RO 

MA/MSP-106 MAERSK ALABAMA Waterman Steamship Corporation 

Geared 

Containership 

MA/MSP-107 MAERSK ARKANSAS Waterman Steamship Corporation 

Geared 

Containership 
98 

Appendix 5 

VISA Vessel Listing 

September 30, 2009 

Program

Vessel Name Company Name Vessel Type Type

STRONG MARINER America Cargo Transport Corp. ITB International

THUNDER & LIGHTNING America Cargo Transport Corp. ITB International

INDEPENDENCE II American International Shipping, LLC RO/RO MSP

LTC CALVIN P. TITUS American President Lines, Ltd. Cont-RO/RO International

APL CHINA APL Marine Services, Ltd. Containership MSP

APL KOREA APL Marine Services, Ltd. Containership MSP

APL PHILIPPINES APL Marine Services, Ltd. Containership MSP

APL SINGAPORE APL Marine Services, Ltd. Containership MSP

APL THAILAND APL Marine Services, Ltd. Containership MSP

PRESIDENT ADAMS APL Marine Services, Ltd. Containership MSP

PRESIDENT JACKSON APL Marine Services, Ltd. Containership MSP

PRESIDENT POLK APL Marine Services, Ltd. Containership MSP

PRESIDENT TRUMAN APL Marine Services, Ltd. Containership MSP

SP5 ERIC G. GIBSON APL Maritime, Ltd. Cont-RO/RO International

APL BALBOA APL Maritime, Ltd. Cont-SS International

APL CYPRINE APL Maritime, Ltd. Geared Container International

APL AGATE APL Maritime, Ltd. Geared Container International

APL PEARL APL Maritime, Ltd. Geared Container International

APL JAPAN APL Maritime, Ltd. Geared Container International

GREEN COVE Central Gulf Lines, Inc. RO/RO MSP

GREEN LAKE Central Gulf Lines, Inc. RO/RO MSP

GREEN POINT Central Gulf Lines, Inc. RO/RO MSP

GREEN RIDGE Central Gulf Lines, Inc. RO/RO MSP

COASTAL NAVIGATOR Coastal Transportation, Inc. Breakbulk Jones

COASTAL TRADER Coastal Transportation, Inc. Breakbulk Jones

COASTAL VENTURE Coastal Transportation, Inc. Containership Jones

ALLIANCE NORFOLK Farrell Lines Inc. RO/RO MSP

ALLIANCE ST. LOUIS Farrell Lines Inc. RO/RO MSP

MAERSK OHIO Farrell Lines Inc. Containership MSP

MAERSK MONTANA Farrell Lines Inc. Containership MSP

MAERSK IOWA Farrell Lines Inc. Containership MSP

LIBERTY Fidelio Limited Partnership RO/RO MSP

HONOR Fidelio Limited Partnership RO/RO MSP

FREEDOM Fidelio Limited Partnership RO/RO MSP

INTEGRITY Fidelio Limited Partnership RO/RO MSP

PATRIOT Fidelio Limited Partnership RO/RO MSP

RESOLVE Fidelio Limited Partnership RO/RO MSP

COURAGE Fidelio Limited Partnership RO/RO MSP

DELTA MARINER Foss Maritime Company RO/RO USAF

ST LOUIS EXPRESS Hapag Lloyd, USA , LLC Geared Container MSP

WASHINGTON EXPRESS Hapag Lloyd, USA , LLC Geared Container MSP

CHARLESTON EXPRESS Hapag Lloyd, USA , LLC Geared Container MSP

YORKTOWN EXPRESS Hapag Lloyd, USA , LLC Geared Container MSP

PHILADELPHIA EXPRESS Hapag Lloyd, USA , LLC Geared Container MSP

HORIZON ANCHORAGE Horizon Lines, LLC Containership Jones

HORIZON CHALLENGER Horizon Lines, LLC Containership Jones

HORIZON CONSUMER Horizon Lines, LLC Containership Jones/Intl
99 

HORIZON CRUSADER Horizon Lines, LLC Containership Jones
100 

VISA Vessel Listing 

September 30, 2009 

(Continued) 

Program

Vessel Name Company Name Vessel Type Type

HORIZON DISCOVERY Horizon Lines, LLC Containership Jones

HORIZON ENTERPRISE Horizon Lines, LLC Containership International

HORIZON FAIRBANKS Horizon Lines, LLC Containership Jones/Intl

HORIZON HAWAII Horizon Lines, LLC Containership Jones/Intl

HORIZON KODIAK Horizon Lines, LLC Containership Jones

HORIZON NAVIGATOR Horizon Lines, LLC Containership Jones/Intl

HORIZON PACIFIC Horizon Lines, LLC Containership International

HORIZON PRODUCER Horizon Lines, LLC Containership Jones/Intl

HORIZON RELIANCE Horizon Lines, LLC Containership International

HORIZON SPIRIT Horizon Lines, LLC Containership International

HORIZON TACOMA Horizon Lines, LLC Containership Jones

HORIZON TRADER Horizon Lines, LLC Containership Jones/Intl

HORIZON HAWK Horizon Lines, LLC Containership International

HORIZON EAGLE Horizon Lines, LLC Containership International

HORIZON FALCON Horizon Lines, LLC Containership International

HORIZON HUNTER Horizon Lines, LLC Containership International

HORIZON TIGER Horizon Lines, LLC Containership International

ALLIANCE NEW YORK Liberty Global Logistics, LLC RO/RO MSP

LIBERTY EAGLE Liberty Shipping Group Bulk Carrier International

LIBERTY GLORY Liberty Shipping Group Bulk Carrier International

LIBERTY GRACE Liberty Shipping Group Bulk Carrier International

LIBERTY SPIRIT Liberty Shipping Group Bulk Carrier International

LIBERTY STAR Liberty Shipping Group Bulk Carrier International

LIBERTY SUN Liberty Shipping Group Bulk Carrier International

MAERSK CAROLINA Maersk Line, Limited Containership MSP

MAERSK GEORGIA Maersk Line, Limited Containership MSP

MAERSK MISSOURI Maersk Line, Limited Containership MSP

MAERSK VIRGINIA Maersk Line, Limited Containership MSP

MAERSK WYOMING Maersk Line, Limited Containership MSP

MAERSK WISCONSIN Maersk Line, Limited Containership MSP

SEA-LAND CHARGER Maersk Line, Limited Containership MSP

SEA-LAND COMET Maersk Line, Limited Containership MSP

SEA-LAND MERCURY Maersk Line, Limited Containership MSP

SEA-LAND INTREPID Maersk Line, Limited Containership MSP

SEA-LAND LIGHTNING Maersk Line, Limited Containership MSP

SEA-LAND METEOR Maersk Line, Limited Containership MSP

MAERSK IDAHO Maersk Line, Limited Containership MSP

MAERSK KENTUCKY Maersk Line, Limited Containership MSP

MAERSK CALIFORNIA Maersk Line, Limited Geared Container MSP

SEA-LAND RACER Maersk Line, Limited Containership MSP

MAERSK CONSTELLATION Maersk Line, Limited RO/RO International

MAERSK TENNESSEE Maersk Line, Limited Cont & RO/RO International

MAERSK TEXAS Maersk Line, Limited Cont & RO/RO International

SEA-LAND CHAMPION Maersk Line, Limited Containership MSP

MAERSK UTAH Maersk Line, Limited Containership MSP

SEA-LAND EAGLE Maersk Line, Limited Containership MSP

LIHUE Matson Navigation Company, Inc. Containership Jones

KAUAI Matson Navigation Company, Inc. Containership Jones
101 

VISA Vessel Listing 

September 30, 2009 

(Continued) 

Program

Vessel Name Company Name Vessel Type Type

MAHI MAHI Matson Navigation Company, Inc. Containership International

MANOA Matson Navigation Company, Inc. Containership International

MANUKAI Matson Navigation Company, Inc. Containership Jones

MAUI Matson Navigation Company, Inc. Containership Jones

MAUNAWILI Matson Navigation Company, Inc. Containership Jones

MAUNALEI Matson Navigation Company, Inc. Containership Jones

MOKIHANA Matson Navigation Company, Inc. Containership International

MANULANI Matson Navigation Company, Inc. Containership Jones

R.J. PFEIFFER Matson Navigation Company, Inc. Containership Jones

LURLINE Matson Navigation Company, Inc. Cont-RO/RO Jones

MATSONIA Matson Navigation Company, Inc. Cont-RO/RO Jones

NATIONAL GLORY National Shipping of America, LLC Containership Jones

JEAN ANNE Pasha Hawaii Transport Lines, LLC RO/RO International

OCEAN ATLAS Patriot Shipping, LLC Heavylift breakbulk MSP

OCEAN TITAN Patriot Titan, LLC Heavylift breakbulk MSP

BLACK EAGLE Red River Holdings, LLC Containership International

EL MORRO Sea Star Line, LLC RO-RO/LO-LO Jones

EL YUNQUE Sea Star Line, LLC RO-RO/LO-LO Jones

EL FARO Sea Star Line, LLC RO/RO Jones

ADVANTAGE Sealift Inc. Breakbulk International

CLEVELAND Sealift Inc. Breakbulk International

HARRIETTE Sealift Inc. Bulk Carrier International

MARILYN Sealift Inc. Bulk Carrier International

NOBLE STAR Sealift Inc. Breakbulk International

ASCENSION Sealift Inc. Containership International

TSGT JOHN A. CHAPMAN Sealift Inc. Breakbulk International

SAGAMORE Sealift, Inc. Containership International

GREAT LAND Totem Ocean Trailer Express RO/RO Jones

MIDNIGHT SUN Totem Ocean Trailer Express RO/RO Jones

NORTH STAR Totem Ocean Trailer Express RO/RO Jones

MV GEYSIR TransAtlantic Lines, LLC Containership DOD PREF

GREEN BAY Waterman Steamship Corp. RO/RO MSP

MAERSK ALABAMA Waterman Steamship Corp. Geared Container MSP

MAERSK ARKANSAS Waterman Steamship Corp. Geared Container MSP

GREEN DALE Waterman Steamship Corp. RO/RO MSP

TUGS AND BARGES

BARGE #15 A Way to Move, Inc. Barge 

TUG WHITE HILL A Way to Move, Inc. Tug

Z BIG 1 America Cargo Transport Corp. Barge

AMERICAN TRADER America Cargo Transport Corp. Barge

MOBRO 2300 Beyel Brothers, Inc. Barge

GUS J HENRICH Beyel Brothers, Inc. Tug

SEAMARK III Beyel Brothers, Inc. Tug

COLUMBIA BALTIMORE Columbia Coastal Transport, LLC Barge

COLUMBIA CHARLESTON Columbia Coastal Transport, LLC Barge

COLUMBIA ELIZABETH Columbia Coastal Transport, LLC Barge

COLUMBIA HOUSTON Columbia Coastal Transport, LLC Barge
102 

VISA Vessel Listing 

September 30, 2009 

(Continued) 

Program

Vessel Name Company Name Vessel Type Type

COLUMBIA NEW YORK Columbia Coastal Transport, LLC Barge

COLUMBIA NEWARK Columbia Coastal Transport, LLC Barge

PFE-LB CRC Marine Services, Inc. LASH Barge 

CRIMSON ACE Crimson Shipping Co., Inc. Barge-RO/RO 

CRIMSON CLOVER Crimson Shipping Co., Inc. Barge-RO/RO 

CRIMSON TIDE Crimson Shipping Co., Inc. Barge-RO/RO 

EL CONQUISTADOR Crowley Liner Services, Inc. Barge

EL REY Crowley Liner Services, Inc. Barge

FORTALEZA Crowley Liner Services, Inc. Barge

JACKSONVILLE Crowley Liner Services, Inc. Barge

LA PRINCESA Crowley Liner Services, Inc. Barge

LA REINA Crowley Liner Services, Inc. Barge

MIAMI Crowley Liner Services, Inc. Barge

PONCE Crowley Liner Services, Inc. Barge

SAN JUAN Crowley Liner Services, Inc. Barge

DEFENDER Crowley Marine Services, Inc. Tug

ENSIGN Crowley Marine Services, Inc. Tug

EXPLORER Crowley Marine Services, Inc. Tug

MONITOR Crowley Marine Services, Inc. Tug

ADVENTURER Crowley Marine Services, Inc. Tug

PATRIARCH Crowley Marine Services, Inc. Tug

PILOT Crowley Marine Services, Inc. Tug

PIONEER Crowley Marine Services, Inc. Tug

SENTINEL Crowley Marine Services, Inc. Tug

SENTRY Crowley Marine Services, Inc. Tug

BARGE 240-1 Crowley Marine Services, Inc. Barge

BARGE 250-6 Crowley Marine Services, Inc. Barge

BARGE 408 Crowley Marine Services, Inc. Barge

BARGE 410 Crowley Marine Services, Inc. Barge

BARGE 411 Crowley Marine Services, Inc. Barge

BARGE 416 Crowley Marine Services, Inc. Barge

BARGE 420 Crowley Marine Services, Inc. Barge

BARGE 500-1 Crowley Marine Services, Inc. Barge

ISLA BONITA Crowley Marine Services, Inc. Barge

ISLA DEL SOL Crowley Marine Services, Inc. Barge

CAVALIER Crowley Marine Services, Inc. Tug

CENTURION Crowley Marine Services, Inc. Tug

COMMANDER Crowley Marine Services, Inc. Tug

CRUSADER Crowley Marine Services, Inc. Tug

GAUNTLET Crowley Marine Services, Inc. Tug

HUNTER Crowley Marine Services, Inc. Tug

INVADER Crowley Marine Services, Inc. Tug

MARINER Crowley Marine Services, Inc. Tug

PATHFINDER Crowley Marine Services, Inc. Tug

RANGER Crowley Marine Services, Inc. Tug

SATURN Crowley Marine Services, Inc. Tug

SEA BREEZE Crowley Marine Services, Inc. Tug

SEA SWIFT Crowley Marine Services, Inc. Tug
103 

VISA Vessel Listing 

September 30, 2009 

(Continued) 

Program

Vessel Name Company Name Vessel Type Type

SEA VICTORY Crowley Marine Services, Inc. Tug

SENECA Crowley Marine Services, Inc. Tug

SIOUX Crowley Marine Services, Inc. Tug

SPARTAN Crowley Marine Services, Inc. Tug

FOSS 185-C1 Foss Maritime Company Barge

FOSS 185-C2 Foss Maritime Company Barge

FOSS 185-C3 Foss Maritime Company Barge

FOSS 185-C4 Foss Maritime Company Barge

KAHOLO Foss Maritime Company Barge

DREW FOSS Foss Maritime Company Tug

JUSTINE FOSS Foss Maritime Company Tug

CORBIN FOSS Foss Maritime Company Tug

LAUREN FOSS Foss Maritime Company Tug

GRAYSON LAB Laborde Marine, L.L.C. OSV

RED LAB Laborde Marine, L.L.C. OSV

JOHN P. LAB Laborde Marine, L.L.C. OSV

LOCKWOOD 2002 Lockwood Brothers, Inc. Barge

MARY BENNETT Lockwood Brothers, Inc. Tug

STICKEEN Lynden Incorporated Barge

ALASKA PROVIDER Lynden Incorporated Barge-Deck 

BARANOF PROVIDER Lynden Incorporated Barge-Deck 

CHATHAM PROVIDER Lynden Incorporated Barge-Deck 

CHICHAGOFF PROVIDER Lynden Incorporated Barge-Deck 

SOUTHEAST PROVIDER Lynden Incorporated Barge-Deck 

TAKU PROVIDER Lynden Incorporated Barge-Deck 

TONGASS PROVIDER Lynden Incorporated Barge-Deck 

NANA PROVIDER Lynden Incorporated Barge-Deck 

ANCHORAGE PROVIDER Lynden Incorporated Barge-Railcar 

FAIRBANKS PROVIDER Lynden Incorporated Barge-Railcar 

WHITTIER PROVIDER Lynden Incorporated Barge-Railcar 

ARCTIC BEAR Lynden Incorporated Tug

HALEAKALA Matson Navigation Company, Inc. Container Barge (SS) 

ISLANDER Matson Navigation Company, Inc. Container Barge (SS) 

MAUNA LOA Matson Navigation Company, Inc. Container Barge (SS) 

WAIALEALE Matson Navigation Company, Inc. Container-RO/RO Barge 

ATLANTIC TRADER McAllister Towing & Transp. Co. Container Barge 

CHESAPEAKE TRADER McAllister Towing & Transp. Co. Container Barge 

MAC 4000 McAllister Towing & Transp. Co. Barge

MAC 4001 McAllister Towing & Transp. Co. Barge

AMY McALLISTER McAllister Towing & Transp. Co. Tug

BARBARA McALLISTER McAllister Towing & Transp. Co. Tug

BRIDGET McALLISTER McAllister Towing & Transp. Co. Tug

BRUCE A McALLISTER McAllister Towing & Transp. Co. Tug

CHRISTINE McALLISTER McAllister Towing & Transp. Co. Tug

COLLEEN McALLISTER McAllister Towing & Transp. Co. Tug

EILEEN McALLISTER McAllister Towing & Transp. Co. Tug

ELIZABETH McALLISTER McAllister Towing & Transp. Co. Tug

IONA McALLISTER McAllister Towing & Transp. Co. Tug
104 

VISA Vessel Listing 

September 30, 2009 

(Continued) 

Program

Vessel Name Company Name Vessel Type Type

JUSTINE McALLISTER McAllister Towing & Transp. Co. Tug

KATIE G McALLISTER McAllister Towing & Transp. Co. Tug

MARIANNE McALLISTER McAllister Towing & Transp. Co. Tug

MARJORIE B McALLISTER McAllister Towing & Transp. Co. Tug

MARK McALLISTER McAllister Towing & Transp. Co. Tug

McALLISTER BOYS McAllister Towing & Transp. Co. Tug

McALLISTER GIRLS McAllister Towing & Transp. Co. Tug

McALLISTER SISTERS McAllister Towing & Transp. Co. Tug

MEGAN McALLISTER McAllister Towing & Transp. Co. Tug

MICHAEL J. McALLISTER McAllister Towing & Transp. Co. Tug

MICHAELA McALLISTER McAllister Towing & Transp. Co. Tug

RELIANCE McAllister Towing & Transp. Co. Tug

RESOLUTE McAllister Towing & Transp. Co. Tug

RON G. McAllister Towing & Transp. Co. Tug

ROWAN McALLISTER McAllister Towing & Transp. Co. Tug

SUSAN McALLISTER McAllister Towing & Transp. Co. Tug

VICKIE M. McALLISTER McAllister Towing & Transp. Co. Tug

BARGE BRISTOL BAY 

TRADER Northland Services, Inc. Barge 

LANA ROSE Resolve Towing & Salvage, Inc. Tug

RMG 400 Resolve Towing & Salvage, Inc. Barge

ANNAHOOTZ Samson Tug & Barge Company Barge Combo Deck/Tank 

POWHATAN Samson Tug & Barge Company Tug

SAMSON MARINER Samson Tug & Barge Company Tug

HO'OMAKE HOU Sea Star Line, LLC Barge

CHEMCARIBE Sea Star Line, LLC Barge

FOSS 343 Sea Star Line, LLC Barge

HALLE FOSS Sea Star Line, LLC Tug

SEATAC 300 SeaTac Marine Services, LLC Barge

T/V ISLAND TRADER Stevens Towing Co., Inc. Coastal Tug

SJ-214 Stevens Towing Co., Inc. Hopper Barge 

T/V ISLAND BOY Stevens Towing Co., Inc. Push Boat

T/V ISLAND EXPRESS Stevens Towing Co., Inc. Push Boat

T/V ISLAND TIDE Stevens Towing Co., Inc. Push Boat

T/V ISLAND PROGRESS Stevens Towing Co., Inc. Push Boat

T/V ROYAL ENGINEER Stevens Towing Co., Inc. Push Boat

ISLAND FOX Stevens Towing Co., Inc. Tug

SJ-160 Stevens Towing Co., Inc. Barge-Hopper 

SJ-170 Stevens Towing Co., Inc. Barge-Hopper 

SJ-199 Stevens Towing Co., Inc. Barge-Hopper 

SJ-208 Stevens Towing Co., Inc. Barge-Hopper 

SJ-212 Stevens Towing Co., Inc. Barge-Hopper 

SJ-213 Stevens Towing Co., Inc. Barge-Hopper 

SJ-215 Stevens Towing Co., Inc. Barge-Hopper 

N-103 Superior Marine Services, Inc. Barge

BETTY Superior Marine Services, Inc. Tug

BARANOF Totem Ocean Trailer Express Barge

SITKA Totem Ocean Trailer Express Barge-Tank 
105 

VISA Vessel Listing 

September 30, 2009 

(Continued) 

Program

Vessel Name Company Name Vessel Type Type

EMMA FOSS Totem Ocean Trailer Express Tug

COLUMBIA BOSTON Totem Ocean Trailer Express Barge

ATLANTA BRIDGE Trailer Bridge, Inc. Barge-LO/LO 

BROOKLYN BRIDGE Trailer Bridge, Inc. Barge-LO/LO 

CHARLOTTE BRIDGE Trailer Bridge, Inc. Barge-LO/LO 

CHICAGO BRIDGE Trailer Bridge, Inc. Barge-LO/LO 

MEMPHIS BRIDGE Trailer Bridge, Inc. Barge-LO/LO 

JAX SAN JUAN BRIDGE Trailer Bridge, Inc. Barge-RO/RO 

SAN JUAN JAX BRIDGE Trailer Bridge, Inc. Barge-RO/RO 

GUANTANAMO BAY 

EXPRESS TransAtlantic Lines, LLC Barge 

SPENCE TransAtlantic Lines, LLC Tug

MOBRO 1007 Troika International, Ltd. Barge

MOBRO 2501 Troika International, Ltd. Barge

BARGE 250-8 Troika International, Ltd. Barge

MOBRO 1008 Troika International, Ltd. Barge

MOBRO 2007 Troika International, Ltd. Barge

MOBRO 2503 Troika International, Ltd. Barge

CHEETAH Troika International, Ltd. Tug

EL PUMA GRANDE Troika International, Ltd. Tug

YBOR CITY Troika International, Ltd. Tug
106 

Appendix 6 

List of Vessels Approved for Transfer 

To Foreign Registry in Fiscal Year 2009 

VESSEL NAME TYPE OF 

VESSEL U.S. OWNER PURCHASER 

COUNTRY 

OF FLAG 

AND 

REGISTRY 

PROPOSED USE 

OVERSEAS 

AMBERMAR 

Tanker Ambermar Tanker 

Corp. 

Ambermar Product 

Carrier Corp. 

Marshall 

Islands 

To transport petroleum

PR 3 Barge Port Richmond Marine 

3 

Marinol Servicious 

Maritimas 

Mexico Bunkering service

B NO 105 Barge B NO 105 Corporation No sale involved St. Kitts & 

Nevis 

Use for oil storage

E M FORD Cargo American Transport 

Leasing Inc. 

Purvis Marine Ltd. Canada For scrapping Canada

TRADER II Barge Ferouz Amin No sale involved Guyana To transport molasses

PEACE RIVER Barge Puerto Rico Maritime 

Consulting 

Patchway Group Inc. Panama To operate in South 

America 

BARANOF 

TRADER 

Barge NVLC Freight LLC North Arm 

Transportation 

Canada To operate in Canada

ATC 12000 Barge Allied Transportation 

LLC 

Velmore Group S.A. Honduras To transport cement

ITB 

JACKSONVILLE 

Towing/barge ITB Jacksonville LLC Platinum Fleet Ltd. Panama To transport petroleum

SAHARA Ind. Vessel SMY & S Inc. Venice Lagoon Italy Convert to yacht-hotel

ENSCO 68 Drilling unit ENSCO Offshore 

Company 

No sale involved Liberia Drilling

ENSCO 89 Drilling unit ENSCO Offshore 

Company 

No sale involved Liberia Drilling

ENSCO 7500 Drilling unit ENSCO Offshore 

Company 

No sale involved Liberia Drilling

GROTON Towing/barge ITB Groton LLC Platinum Fleet Ltd. Panama To transport petroleum

COLUMBIA 

NEW YORK 

Barge Compass Marine 

Leasing LLC 

CMA Ships France To operate in France

MAUNA KEA Barge Matson Navigation 

Company 

CMA Ships France Operate international 

waters 

OVERSEAS 

INTEGRITY 

Tanker Overseas Integrity LLC Twin Oilfield Services Belize Use for oil storage

RIG 8 Drilling unit Blake Offshore LLC No sale involved Panama Drilling

BISCAYNE Barge Production Barge LLC Brittania U Equity Nigeria To operate in Nigeria

DELAWARE 65 Barge SLS Services LLC Brittania U Equity Nigeria To operate in Nigeria

CLEVELAND Tanker Victory Maritime 

Company 

Snow-Drop Co. Ltd. B.V.I For scrapping in India

OCEAN 

TOWER 

Drilling unit Diamond Offshore 

Services Co. 

MMEER Marshall 

Islands 

Marshall 

Islands 

Drilling

OCEAN 

SUMMIT 

Drilling unit Diamond offshore 

Services Co. 

Kennebec Services 

Corp. 

Panama Drilling

ENSCO 90 Drilling unit ENSCO Offshore 

Company 

No sale involved Liberia Drilling

ENSCO 98 Drilling unit ENSCO Offshore 

Company 

No sale involved Liberia Drilling

M-300 Barge OSG 300 LLC Adedapo Abiodua St. Kitts Use for storage in 

Nigeria 

Barge 450-11 Barge Crowley Marine 

Services Inc. 

Island Tug & Barge 

Ltd. 

Canada To operate in Canada

CB-3 Barge Global Movible 

Offshore LLC 

Barada Marine Services St. Vincent Marine operations

KTC 71 Barge K-Sea Operating

Partnership 

Black Stallion 

Enterprise 

Panama To operate in 

Dominican Republic 

HOS 

DEEPWATER 

Supply Vessel Hornbeck Offshore 

Services 

No sale involved Mexico Offshore support work
107 

HTCO 2515 Barge Ceres Consulting LLC Rain CII Carbon LLC U.S. Moored on the Ohio 

River in Moundsville, 

West Virginia, 

List of Vessels Approved for Transfer 

To Foreign Registry in Fiscal Year 2009 

(Continued) 

VESSEL NAME TYPE OF 

VESSEL U.S. OWNER PURCHASER 

COUNTRY 

OF FLAG 

AND 

REGISTRY 

PROPOSED USE 

CPL LOUIS J 

HAUGE 

Freighter Wilmington Trust 

Company 

No sale involved Marshall 

Islands 

Marine operations

D B 

BREMERTON 

Barge General Construction 

Company 

Kiewit/Flatiron Gen 

Partnership 

Canada Heavy lift marine 

operation 

ZBO 260 Barge Barge Leasing

Company 

Amix/Salvage & Sales 

Co. 

Canada Waterfront crane 

operation 

MAKAHANI Barge Young Brothers Ltd Pacific Cachalot Ltd. Canada Log carrier 

VB 53 Barge Vane Line Bunkering Porteadores del 

Noroeste 

Mexico To operate in Mexico

BONNY Freighter Star Maritime 

Corporation 

No sale involved St. Kitts & 

Nevis 

Marine transportation

ANDERS RORO Star Maritime 

Corporation 

No sale involved St. Kitts & 

Nevis 

Marine transportation

HOLOKAI Barge Southbay Barge, Inc. Porteadores del 

Noroeste 

Mexico To operate in Mexico

ENERGY 1110 Barge Hornbeck Offshore 

Services 

Upton Maritime Panama To be used as storage 

for fuel 

T/B PELICAN Barge Louisiana Marine 

Transport Inc. 

Hapeg Shipping Corp. Netherlands Commerical use

MAKAH Barge American Construction 

Co. 

Humphries Tug & 

Barge 

Canada Commerical use

PERE 

MARQUETTE 

Barge Escanaba & Lake 

Superior 

Dean Construction Co. Canada For scrapping in 

Canada 

STATIA 

HORIZON 

Barge Seabulk Towing Inc. Wiesbaden Technical 

Dredging Corp. 

Panama Bunkering in 

Venezuelan 

PENN NO. 400 Barge Caribbean Marine, Inc. Leasing Advisory & 

Services 

Colombia To be used as storage in 

Colombia 
108 

Appendix 7 

List of Deepwater Port License Applications 

Evaluated and Assessed during Fiscal Year 2009 

# Project Name Applicant (Parent Company) Location 

1 

Bienville Offshore 

Energy Terminal TORP Technology, LP 

63 miles south of Mobile Point, 

Alabama 

2 Calypso LNG 

Calypso LNG (GDF SUEZ 

Energy North America) 

12 miles northeast of Port Everglades, 

Florida 

3 Clearwater Port Northern Star Natural Gas 10.5 miles west of Oxnard, California 

4 

Oceanway Secure 

Energy Woodside Natural Gas 

28 miles southwest of Los Angeles, 

California 

5 Port Dolphin 

Port Dolphin Energy (Höegh 

LNG) 28 miles southwest of Tampa, Florida 

6 Safe Harbor Energy Atlantic Sea Island Group 

13.5 miles south of Long Beach, New 

York and 19 miles east of Highlands, 

New Jersey 

7 Texas Offshore Oil Port Oiltanking Houston, LP 30 miles southeast of Freeport, Texas 
109 

Appendix 8 

Map of Deepwater Port Locations 
110 

Appendix 9 

List of Loan Guarantees in the Title XI Portfolio 

As of September 30, 2009 

SHIPOWNER VESSELS MA. 

NUMBER 

TOTAL 

MORTGAGE 

BALANCE 

AHL SHIPPING COMPANY DOWNING/ANAZI/NEW 

RIVER/MONSIGNOR 

MA-13011 $87,590,000

ALTER BARGE LINE INC 88 COVERED HOPPER BARGES MA-13710 $13,687,000

ASTRO OFFSHORE CORPORATION ASTRO BARRACUDA/1 SUPPLY 

VESSEL 

MA-13478 $8,459,000

BILLYBEY FERRY COMPANY LLC 16 FERRY VESSELS MA-13988 $15,008,201

CAL DIVE I TITLE XI INC DEEPWATER MULTI-SERVICE 

VESSEL 

MA-13599 $119,235,197

CANAL BARGE COMPANY INC CBC 325-CBC 328 MA-12870 $1,000,000

CANAL BARGE COMPANY INC CBC 329-355, 110-114, 118-227, 761-762 MA-13535 $15,604,000

CANAL BARGE COMPANY INC 21 RIVER BARGES MA-13199 $5,952,000

CANAL BARGE COMPANY INC CBC 100-109, CBC 301-302, CBC 366-

368 

MA-13730 $9,183,000

CANAL BARGE COMPANY INC CBY 222-251, CBC 1267-8, 903-912 MA-13394 $6,272,000

CANAL BARGE COMPANY INC CBC 193, 197-199, 2 DECK BARGES MA-13019 $1,222,000

CANAL BARGE COMPANY INC 39 BARGES MA-14123 $028

CASHMAN EQUIPMENT CO CEC 251-CC-255 MA-13491 $3,647,002

CASHMAN EQUIPMENT CO 7 OCEAN DECK BARGES MA-13351 $4,301,000

EASTERN SHIPBUILDING GROUP INC SHIPYARD MODERNIZATION MA-13544 $2,642,000

EMPRESA ENERGETIA CORINIO LTD MARGARITA II MA-13498 $8,900,000

ENSCO OFFSHORE COMPANY ENSCO 7500 MA-13552 $82,339,000

ENSCO OFFSHORE COMPANY ENSCO 105 MA-13674 $51,750,000

GLOBAL INDUSTRIES LTD HERCULES MA-13576 $61,380,000

GUAM INDUSTRIAL SERVICES INC ONE DRY DOCK MA-13819 $2,792,273

HAWAII SUPERFERRY, INC. PASSENGER/VEHICLE FERRIES MA-14018 $135,774,872

LAKE EXPRESS LLC PASSENGER /CAR FERRY MA-13902 $12,029,270

LIGHTSHIP TANKERS I LLC S R BRISTOL BAY MA-13176 $31,731,509

LIGHTSHIP TANKERS II LLC HMI BRENTON REEF MA-13182 $32,849,480

LIGHTSHIP TANKERS III, LLC SEABULK PRIDE MA-13458 $35,753,000

LIGHTSHIP TANKERS IV, LLC SEABULK ARCTIC MA-13464 $35,821,000

LIGHTSHIP TANKERS V, LLC SEABULK MARINER MA-13468 $35,908,000

MANSON CONST & ENGINEERING ROCKPORT MA-13056 $1,695,502

MANSON CONST & ENGINEERING SOUTHPORT MA-13282 $1,729,771

MANSON CONST & ENGINEERING NORTHPORT AND EASTPORT MA-13122 $2,057,552

MANSON INTERNATIONAL INC HR MORRIS MA-13570 $5,250,208

MATSON NAVIGATION COMPANY INC MANUKAI, MAUNAWILI MA-13853 $85,800,000

 

28 Note: While this guarantee had been approved by September 30, 2009, the mortgage was not in place because the closing had 

not yet occurred. 
111 

PARKER TOWING COMPANY PTC 421-440 1001-1002 MA-13144 $417,000

PASHA HAWAII TRANSPORT LINES LLC JEAN ANNE MA-13620 $63,507,766

List of Loan Guarantees in the Title XI Portfolio 

As of September 30, 2009 

 (Continued) 

SHIPOWNER VESSELS MA. 

NUMBER 

TOTAL 

MORTGAGE 

BALANCE 

PENN ATB INC HULLS 133-134 266-267 MA-13272 $23,296,000

PENN BARGE INC ATLANTIC ELIZA CARIBBEAN LUCIA MA-13037 $7,791,300

PENN TRANSPORT INC 3 DOUBLE HULL BARGES MA-13753 $28,425,000

PENN TUG & BARGE INC EVERGLADES MA-13662 $6,040,000

PERFORADORA CENTRAL, SA TONALA MA-13794 $54,896,000

PETRODRILL FIVE LIMITED PRIDE PORTLAND MA-13511 $99,477,000

PETRODRILL FOUR LIMITED PRIDE RIO DE JANEIRO MA-13505 $92,775,000

PETRODRILL FOUR LIMITED PRIDE PORTLAND/RIO DE JANEIRO MA-2004 $12,759,000

REINAUER MARITIME COMPANY TWO TUG-BARGE UNITS MA-13723 $37,541,000

ROWAN COMPANIES INC GORILLA V MA-13259 $12,775,000

ROWAN COMPANIES INC GORILLA VI MA-13442 $35,613,000

ROWAN COMPANIES INC GORILLA VII MA-13540 $69,523,000

ROWAN COMPANIES INC BOB PALMER MA-13683 $124,859,000

ROWAN COMPANIES INC SCOOTER YEARGAIN MA-13839 $60,798,000

ROWAN COMPANIES INC BOB KELLER MA-13844 $65,746,000

STERLING EQUIPMENT INC E CARROL/CAPT FOURNIER/JOE 

VERROCHI 

MA-13742 $6,317,000

SUPERIOR ENERGY LIFTBOATS LLC SUPERIOR GALE AND SUPERIOR 

STORM 

MA-13770 $14,571,000

TOTEM OCEAN TRAILER EXPRESS INC M/V NORTH STAR MA-13882 $91,518,000

TOTEM OCEAN TRAILER EXPRESS INC MIDNIGHT SUN MA-13760 $150,796,161

TRAILER BRIDGE INC THREE CARRIER BARGES MA-13346 $10,055,574

TRAILER BRIDGE INC CHICAGO BRIDGE AND CHARLOTTE 

BRIDGE 

MA-13306 $6,032,563

TRICO MARINE INTERNATIONAL INC SPIRIT RIVER AND HONDO RIVER MA-13517 $6,287,000

TT BARGE SERVICES SHIPYARD MODERNIZATION MA-13357 $713,300

TUGZ INTERNATIONAL LLC TWO MULTI-PURPOSE TRACTOR 

TUGS 

MA-13242 $1,771,000

VANE LINE BUNKERING INC DOUBLE SKIN 51 AND DOUBLE SKIN 52 MA-13813 $8,464,860

VANE LINE BUNKERING INC DOUBLE SKIN 55, DOUBLE SKIN 57 MA-13959 $9,428,000

VESSEL MANAGEMENT SERVICES INC 5 ARTICULATED TUG BARGES MA-14106 $269,230,000

VESSEL MANAGEMENT SERVICES INC 10 TUGS MA-13472 $43,200,000

VESSEL MANAGEMENT SERVICES INC ALBERT/ATTENTIVE/AWARE/ROGER 

G/ GUS E 

MA-13667 $22,880,000

VESSEL MANAGEMENT SERVICES INC SEA RELIANCE AND SOUND RELIANCE MA-13718 $41,169,000

VESSEL MANAGEMENT SERVICES INC OCEAN RELIANCE AND COASTAL 

RELIANCE 

MA-13766 $45,062,000

TOTAL GUARANTEES OUTSTANDING $2,441,098,361 
112 

Appendix 10 

List of Pending Applications for Title XI Financing 

As of September 30, 2009 

Applicant Project Description $ Requested Date Received

Foss Maritime Company 3 bunker barges and 2 harbor tugs $36,500,000 1/2/09

AmNav Maritime Services 1 harbor tug $4,600,000 1/2/09

Rowan Companies, Inc. 7 jack-up drill rigs $1,263,605,000 1/14/09

Boldini, S.A. 5 platform supply vessels $265,000,000 3/10/09

Penn Marine Transport, Inc. 3 double-hull articulated tug barges $81,039,560 5/18/09

Seabulk Towing, Inc. 4 bunker barges $37,094,663 5/21/09

Overseas Shipholding Group, Inc.

2 double-hull articulated tug barges 

and 2 shuttle tankers $525,000,000 6/10/09

Vessel Management Services, Inc. 3 double-hull articulated tug barges $352,000,000 8/12/09

Total $2,564,839,223
113 

Chief Navigation, Official MARAD photo 

Capt. John Verrilli (left) explains bridge and vessel operations to U.S. Secretary 

of Transportation Ray LaHood as Associate Administrator Kevin Tokarski looks 

on during a tour of the ship. 
114 

New look for cruise terminal, Official DOT Photo 

U.S. Secretary of Transportation Ray LaHood gets a tour of Detroit’s Public Dock and Terminal 

Project by Congresswoman Carolyn Kilpatrick (left). As part of American Recovery Project, the dock and 

terminal reconstruction created over 450 construction jobs
116 

U.S. Department of Transportation 

Maritime Administration 

1200 New Jersey Avenue, SE 

Washington, DC 20590 

1-800-99-MARAD