    [House Hearing, 110 Congress]
    [From the U.S. Government Publishing Office]

                         MARINER EDUCATION AND WORKFORCE

    =======================================================================

                                    (110-79)

                                    HEARING

                                   BEFORE THE

                                SUBCOMMITTEE ON
                    COAST GUARD AND MARITIME TRANSPORTATION

                                     OF THE

                                  COMMITTEE ON
                       TRANSPORTATION AND INFRASTRUCTURE
                            HOUSE OF REPRESENTATIVES

                           ONE HUNDRED TENTH CONGRESS

                                 FIRST SESSION

                                   __________

                                OCTOBER 17, 2007

                                   __________

                           Printed for the use of the
                 Committee on Transportation and Infrastructure

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                 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE

                     JAMES L. OBERSTAR, Minnesota, Chairman

    NICK J. RAHALL, II, West Virginia,   JOHN L. MICA, Florida
    Vice Chair                           DON YOUNG, Alaska
    PETER A. DeFAZIO, Oregon             THOMAS E. PETRI, Wisconsin
    JERRY F. COSTELLO, Illinois          HOWARD COBLE, North Carolina
    ELEANOR HOLMES NORTON, District of   JOHN J. DUNCAN, Jr., Tennessee
    Columbia                             WAYNE T. GILCHREST, Maryland
    JERROLD NADLER, New York             VERNON J. EHLERS, Michigan
    CORRINE BROWN, Florida               STEVEN C. LaTOURETTE, Ohio
    BOB FILNER, California               RICHARD H. BAKER, Louisiana
    EDDIE BERNICE JOHNSON, Texas         FRANK A. LoBIONDO, New Jersey
    GENE TAYLOR, Mississippi             JERRY MORAN, Kansas
    ELIJAH E. CUMMINGS, Maryland         GARY G. MILLER, California
    ELLEN O. TAUSCHER, California        ROBIN HAYES, North Carolina
    LEONARD L. BOSWELL, Iowa             HENRY E. BROWN, Jr., South
    TIM HOLDEN, Pennsylvania             Carolina
    BRIAN BAIRD, Washington              TIMOTHY V. JOHNSON, Illinois
    RICK LARSEN, Washington              TODD RUSSELL PLATTS, Pennsylvania
    MICHAEL E. CAPUANO, Massachusetts    SAM GRAVES, Missouri
    JULIA CARSON, Indiana                BILL SHUSTER, Pennsylvania
    TIMOTHY H. BISHOP, New York          JOHN BOOZMAN, Arkansas
    MICHAEL H. MICHAUD, Maine            SHELLEY MOORE CAPITO, West
    BRIAN HIGGINS, New York              Virginia
    RUSS CARNAHAN, Missouri              JIM GERLACH, Pennsylvania
    JOHN T. SALAZAR, Colorado            MARIO DIAZ-BALART, Florida
    GRACE F. NAPOLITANO, California      CHARLES W. DENT, Pennsylvania
    DANIEL LIPINSKI, Illinois            TED POE, Texas
    DORIS O. MATSUI, California          DAVID G. REICHERT, Washington
    NICK LAMPSON, Texas                  CONNIE MACK, Florida
    ZACHARY T. SPACE, Ohio               JOHN R. `RANDY' KUHL, Jr., New
    MAZIE K. HIRONO, Hawaii              York
    BRUCE L. BRALEY, Iowa                LYNN A WESTMORELAND, Georgia
    JASON ALTMIRE, Pennsylvania          CHARLES W. BOUSTANY, Jr.,
    TIMOTHY J. WALZ, Minnesota           Louisiana
    HEATH SHULER, North Carolina         JEAN SCHMIDT, Ohio
    MICHAEL A. ACURI, New York           CANDICE S. MILLER, Michigan
    HARRY E. MITCHELL, Arizona           THELMA D. DRAKE, Virginia
    CHRISTOPHER P. CARNEY, Pennsylvania  MARY FALLIN, Oklahoma
    JOHN J. HALL, New York               VERN BUCHANAN, Florida
    STEVE KAGEN, Wisconsin
    STEVE COHEN, Tennessee
    JERRY McNERNEY, California
    LAURA A. RICHARDSON, California

                                      (ii)

            SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION

                     ELIJAH E. CUMMINGS, Maryland, Chairman

    GENE TAYLOR, Mississippi             STEVEN C. LaTOURETTE, Ohio
    RICK LARSEN, Washington              DON YOUNG, Alaska
    CORRINE BROWN, Florida               HOWARD COBLE, North Carolina
    BRIAN HIGGINS, New York              WAYNE T. GILCHREST, Maryland
    BRIAN BAIRD, Washington              FRANK A. LoBIONDO, New Jersey
    TIMOTHY H. BISHOP, New York, Vice    TED POE, Texas
    Chair                                JOHN L. MICA, Florida
    VACANCY                                (Ex Officio)
    JAMES L. OBERSTAR, Minnesota
      (Ex Officio)

                                     (iii)

                                    CONTENTS

                                                                       Page

    Summary of Subject Matter........................................    vi

                                   TESTIMONY

    Annessa, Carl, COO/Vice President for Operations, Hornbeck
      Offshore Services for Offshore Marine Service Association......    29
    Beacom, Captain William, Navigation Consultant, Professional
      Mariner........................................................    29
    Connaughton, Sean, Administrator, MARAD..........................     6
    Craine, Jr., Admiral John, Jr. USN, Retired, President, S.U.N.Y.
      Maritime College...............................................    29
    Eriksson, Berit, Former Executive Director, Pacific Coast
      Maritime Consortium............................................    44
    Hammond, Cathy, CEO, Inland Marine Service for American Waterway
      Operators......................................................    29
    Rodriguez, Michael, Executive Assistant to the President,
      Masters, Mates and Pilots......................................    29
    Slesinger, Captain Jeff, Western Towboat Company, Chairperson,
      Committee on Strategic Planning, Pacific Marine Towing Industry
      Partners.......................................................    44
    Sulzer, Captain Arthur H., USN, Retired, Board Member, Maritime
      Academy Charter High School....................................    44
    Tellez, Augustin, Executive Vice President, Seafarers
      International Union............................................    44
    Whitehead, Rear Admiral Joel, U.S. Coast Guard...................     6

              PREPARED STATEMENT SUBMITTED BY MEMBERS OF CONGRESS

    Bishop, Hon. Timothy H., of New York.............................    56
    Cummings, Hon. Elijah E., of Maryland............................    57
    Oberstar, Hon. James L., of Minnesota............................    63

                   PREPARED STATEMENTS SUBMITTED BY WITNESSES

    Annessa, Carl....................................................    66
    Beacom, Capt. William............................................    74
    Connaughton, Sean T..............................................    76
    Craine, Jr., Admiral John W......................................    86
    Eriksson, Berit..................................................    95
    Hammond, Cathy...................................................   120
    Rodriguez, Michael J.............................................   135
    Slesinger, Capt. Jeff............................................   143
    Sulzer, Capt. Arthur H...........................................   152
    Tellez, Augustin.................................................   166
    Whitehead, Rear Admiral Joel.....................................   174

                           SUBMISSIONS FOR THE RECORD

    Whitehead, Rear Admiral Joel, U.S. Coast Guard, response to
      question from Rep. Taylor......................................    21

                            ADDITIONS TO THE RECORD

    Seamen's Church Institute, Eric K. Larsson, Director of Maritime
      Training and Education, written statement......................   187

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                HEARING ON MARINER EDUCATION AND THE WORK FORCE

                                  ----------

                          Wednesday, October 17, 2007

                       House of Representatives
        Committee on Transportation and Infrastructure,
       Subcommittee on Coast Guard and Maritime Transportation,
                                                        Washington, DC.
        The Subcommittee met, pursuant to call, at 10:00 a.m., in
    Room 2165, Rayburn House Office Building, the Honorable Elijah
    E. Cummings [Chairman of the Subcommittee] presiding.
        Mr. Cummings. The Subcommittee will come to order.
        Before we begin, I ask unanimous consent that Congresswoman
    Laura Richardson may sit with the Subcommittee and participate
    in this hearing, and without objection, it is so ordered. I am
    hopeful that she will be joining us shortly, and I will say a
    little bit more about her at that time.
        Today, our Subcommittee convenes to consider two inter-
    related topics that are of great importance to the future
    success of the maritime industry. Specifically, we will examine
    the nature, causes, and forecasts of labor shortages in the
    industry, and we will examine trends and innovations in
    maritime innovation.
        According to the U.S. Department of Commerce, ports are the
    gateways through which 80 percent of our Nation's foreign trade
    enters our Country. Commerce in our Nation's maritime sector
    accounts for approximately $750 billion of U.S. gross domestic
    product.
        Waterborne trade, which totaled 2.3 billion metric tons in
    2005, is increasing at a startling rate, and the growth in
    imported cargo, combined with our own domestic production, is
    creating freight volumes that are straining our transportation
    networks.
        At the same time, significant changes continue to transform
    the experience of working in the maritime industry.
        No longer is the sailor's life necessarily one of
    adventure, offering a young person the chance both to learn
    about sailing through on-the-job experiences at sea while
    occasionally spending weeks exploring port cities around the
    world.
        Deadlines and cost margins are tight and ships sail with
    the fewest possible number of crew members, who are expected to
    fulfill multiple duties while keeping regular watches, and who
    usually spend no more than a few hours in any port.
        The significant changes occurring in the maritime industry
    appear to be contributing to labor shortages that, in turn,
    threaten to further strain the industry.
        The nature and extent of the shortages is not well
    quantified and they appear to vary by type of mariner and type
    of vessel. An important part of our job today is to understand
    these shortages and to project their potential impact on the
    various segments of the U.S. maritime industry.
        Based on data the United States Maritime Administration has
    provided, however, we know that the average age of a mariner
    with a Masters license is 51, while the average age of a Chief
    Engineer is 50. Figures also suggest that nearly 30 percent of
    inland mariners will be eligible to retire in the near future.
        There are likely many factors that can contribute to a
    labor shortage in the maritime industry, and just as the extent
    of the shortages is not known, the impact of each factor is
    difficult to assess.
        Certainly, the lifestyle associated with the maritime
    industry presents unique challenges. While the lure of the sea
    has been a siren song to many throughout the ages, many people
    are also lured by the call of home, and they may prefer to
    relax with their families at the end of the day rather than
    retire to a small cabin at the end of a hard shift. Wage
    differentials between jobs at sea and jobs on land may
    contribute to shortages, particularly when combined with the
    lifestyle challenges of life on the water.
        Further, significant new standards for training and
    continuing education have been applied to mariners through the
    1995 amendments to the Convention on the Standards of Training,
    Certification, and Watchkeeping.
        These standards serve the critical goal of improving safety
    in the maritime industry and reducing human factors as the
    causes of maritime accidents, but they have also had the effect
    of imposing expensive and time-consuming training requirements
    on mariners, particularly on unlicensed mariners seeking to
    climb their way up the hawsepipe to command a ship.
        There are certainly outstanding facilities in the United
    States that help train individuals to enter the maritime
    industry and to advance in their careers, such as the Paul Hall
    Center for Maritime Training in Piney Point, Maryland, run by
    the Seafarers International Union, which I have had the honor
    of visiting, and the Maritime Institute of Technology and
    Graduate Studies associated with the Masters, Mates, and Pilots
    Union, which I have also had the honor of visiting.
        However, attendance at such facilities can be expensive and
    require a significant commitment of time that maritime
    schedules may not allow a mariner to easily make.
        Further, we need to assess whether current maritime
    education programs have the capacity to meet the demand of
    those who are just now entering the maritime industry.
        In short, our hearing today is intended to enable us to
    draw a comprehensive picture of the personnel situation of the
    U.S. maritime industry.
        Our examination will inform the future development of
    policies needed to ensure that our Nation has the labor we need
    to keep maritime commerce flowing and to ensure that those
    contemplating working on the water will have the chance to
    advance along a career path that brings them new opportunities.
        Before I recognize the Ranking Member, I also want to
    discuss for one moment a trend in maritime education that is of
    significance to me, and that is the growth or, I might say, re-
    growth of maritime-themed high schools across the Nation.
        In his written testimony, Captain Art Sulzer, who will
    appear on our third panel, has presented a very comprehensive
    discussion of the past history of high school-level maritime
    education as well as the successes of and challenges faced by
    new maritime-themed high schools being created today.
        Shortly after becoming Chair of this Subcommittee, I
    learned that my own city of Baltimore had established a
    maritime-themed high school some five or six years ago.
        After visiting the school, I learned that it had been
    achieving impressive test results and graduation rates, but the
    school system had not made the investments necessary to ensure
    that the school was truly offering a maritime education and
    could prepare students for work in the maritime industry.
        Over the past summer, I have been working closely with a
    very dedicated group of individuals from the Baltimore maritime
    community, including former Congresswoman Helen Bentley, to
    ensure that the promise inherent in the school's name, Maritime
    Industries Academy, was fulfilled and that students could
    receive a maritime education that would be meaningful.
        We have succeeded in revitalizing the school's Junior Naval
    ROTC program and have introduced a guest lecture series to
    bring the maritime community into the school.
        We are poised to achieve even greater results with the
    creation of a new advisory board that will guide the school
    through the process of applying for a charter, which will
    hopefully give the school the flexibility it needs to support
    an expansive maritime curriculum.
        I want to briefly acknowledge the significant contributions
    that many of those who are joining us today are making to the
    development of this project, including Administrator
    Connaughton and his staff members, Sharon LeGrand, Shannon
    Russell, and Richard Corley, who continue to bring the
    resources of the Federal Government to support this school.
    MARAD also put us in touch with Captain Sulzer, who has been a
    key advisor. I also want to pay special tribute to Dick
    Fredericks for his hard work. I also thank Mr. Mike Rodriguez,
    Walt Megonigal, and the Masters, Mates, and Pilots Union and
    its MITAGS institution; Augustin Tellez and the Seafarers
    International Union; and Admiral Craine, the President of the
    New York Maritime Academy, which is creating a new partnership
    for maritime high schools in which I look forward to having
    Baltimore Maritime Industries Academy participate.
        Every time I visit the school, whose advancement has become
    a top priority for me, I see first-hand the challenges, but I
    also see the possibilities of maritime education and I gain a
    new kind of insight into the maritime industry that I frankly
    have not received from any other source.
        My experience with this school also makes the subject of
    today's hearing very personal to me.
        I am truly hopeful that school districts around the Country
    can benefit from the lessons that those who are testifying
    today are learning regarding how best to support the
    development of maritime schools and open such schools in their
    local communities.
        I look forward to the testimony of our witnesses, and now I
    yield to our distinguished Ranking Member, Congressman
    LaTourette.
        Mr. LaTourette. Thank you very much, Mr. Chairman, for the
    recognition. I have to apologize this morning for being a
    little bleary eyed. It took longer for the Cleveland Indians to
    dispatch the Boston Red Sox than I had hoped last night.
        [Laughter.]
        Mr. LaTourette. This morning, the Subcommittee will hear
    from several witnesses on the state of the maritime workforce
    and the recommendations for enhancements and initiatives to
    attract and retain workers in the maritime trades. Our Nation's
    economy depends on a well trained and skilled maritime
    workforce, and I look forward to hearing the witnesses'
    suggestions.
        Earlier this year, I introduced H.R. 1605, which was titled
    the Merchant Mariner Credentials Improvement Act of 2007. I am
    very grateful to you, Chairman Cummings, and also to Chairman
    Oberstar, for including this bill as a part of the larger Coast
    Guard authorization bill, and I look forward to working with
    both of you to enact those provisions in the law.
        These provisions include common sense changes to the Coast
    Guard's documentation and licensing processes. The bill would
    authorize maritime workers to renew their documents and
    licenses before their existing credentials expire, allow the
    Coast Guard to temporarily extend the validity of credentials,
    and reduce the number of times that maritime workers would be
    required to appear in person and be finger-printed for Federal
    documents.
        The bill also would allow newly hired workers to start
    working in an interim clearance status before they receive the
    transportation worker identification card. Lastly, the bill
    recognizes the impacts that a shortage in the number of
    merchant mariners would have on the U.S. fleet, our economy,
    and our national security. I look forward to hearing the
    thoughts of our witnesses on all of the panels today on how
    such a shortage can be prevented.
        Again, Mr. Chairman, I want to thank you for holding this
    important hearing, and I thank the witnesses in advance for
    their testimony, and yield back.
        Mr. Cummings. Mr. Baird.
        Mr. Baird. I thank the Chairman for holding this meeting.
    The problem you are addressing today is part of a problem
    throughout the transportation industry, and I will just make a
    brief plug. Phil English and I have created a caucus called the
    Career and Technical Education Caucus to address precisely
    these concerns.
        And though I am a former university professor, back home I
    hear more requests for people who can drive diesel trucks,
    repair diesel engines, hang drywall, fix electrical wiring,
    etc., than I hear for liberal arts majors. Nothing against the
    liberal arts majors in the crowd, including myself, but we need
    to do a lot more for career and tech ed in this Country. We
    have a paradox of people worried about jobs being exported
    overseas. Even as employers today, with high-paying jobs, can't
    find skilled workers to fill those jobs. So I would hope that
    this is the first of a series, perhaps, of hearings we have on
    this issue of the need for a skilled workforce.
        Finally, I would urge Members on both sides, when we talk
    about the importance of making a college education more
    affordable, to add the words career and technical education,
    because there are well-paying, decent jobs that people can put
    food on their table for their families and serve this Country
    quite well, and we need to give career and tech ed every bit as
    much status as we give to college education.
        I yield back. Thank you.
        Mr. Cummings. Thank you very much, Mr. Baird.
        Mr. Coble.
        Mr. Coble. Thank you, Mr. Chairman. Very brief opening
    statement.
        Good to have you all with us this morning, gentlemen,
    Admiral.
        An issue I want to determine, and I think will be addressed
    today, Mr. Chairman, is whether or not the Federal Government
    has a responsibility to provide training or to ensure the
    availability of training for mariners working in the private
    sector. I suspect that will be addressed by one or both of our
    witnesses, and I thank you for having the hearing, Mr.
    Chairman.
        Mr. Cummings. Mr. Bishop.
        Mr. Bishop. Thank you, Mr. Chairman. Thank you for holding
    this hearing. In the interest of time, I will submit my opening
    statement for the record.
        Mr. Cummings. Thank you very much, Mr. Bishop.
        Mr. Gilchrest.
        Mr. Gilchrest. Thank you, Mr. Chairman. A couple of brief
    remarks, buttressing what previous Members have said about the
    need for engineers down to dock workers in the maritime
    industry. By the year 2020, I understand the volume of cargo is
    going to double, the number of vessels will double, but the
    number of ports will probably diminish; and the concentration
    of that cargo going into those ports is going to require the
    best kind of intellect that the engineers, the dock workers,
    and we have to offer.
        I would hope that during the course--and there is no
    question that education in the whole range of the maritime
    industry is necessary and we need to put our best people into
    that and our best efforts, and back it up with dollars to make
    those opportunities possible, because they are essential and
    the American public utterly depends on the maritime industry
    for virtually everything they purchase at our stores.
        As we go through this, though, this that we are describing
    today is human activity, and it is human activity impacting,
    more than likely, in a degrading fashion, on very limited
    resources, that is, the environment; and the ecology, the
    environment upon which we ultimately depend, is only now as
    resilient as our understanding of that ecology is. So as we go
    through the fact that we need technical schooling, we need
    engineers, all the way down to dock workers, every one of those
    individuals needs to also understand their place, the impact
    this industry has on those vital natural resources. So human
    activity is important in this maritime industry, but it also
    needs to be and can be compatible with nature's design.
        I represent the Chesapeake Bay, and we are also discussing,
    and more often than not disputing, where dredging needs to take
    place, where a whole range of other activities concerning
    ballast water, invasive species, all of these things need to
    take place. We now know enough information so we don't have to
    sacrifice the Chesapeake Bay so people in Missouri and
    Minnesota and Colorado and Maryland can have the goods they
    need to purchase to improve the quality of their life.
        So as we go through this process, an understanding of where
    we fit in nature's design will certainly benefit our posterity.
        Thank you, Mr. Chairman.
        Mr. Cummings. Thank you very much, Mr. Gilchrest.
        Mr. Poe.
        Mr. Poe. Thank you, Mr. Chairman. I am concerned about how
    we got in this situation. If we know how we got in this
    situation, maybe we can rectify it and not continue to be, in
    my opinion, a dire situation. Also, has the Federal Government,
    with its regulations, made this worse or is it making it
    better? I would like some candid answers on the role of the
    Federal Government; does it get in the way or does it help.
        And with that, Mr. Chairman, I will yield back. Thank you.
        Mr. Cummings. Thank you very much.
        That being the end of the opening statements, we will now
    hear from Admiral Joel Whitehead, Commander of the Coast
    Guard's Eighth District, and Mr. Sean Connaughton,
    Administrator of the United States Maritime Administration.
        Thank you, gentlemen, for being with us. You will have five
    minutes to provide a summary of your testimony and then we will
    have some questions.

      TESTIMONY OF REAR ADMIRAL JOEL WHITEHEAD, U.S. COAST GUARD;
                 SEAN CONNAUGHTON, ADMINISTRATOR, MARAD

        Admiral Whitehead. Good morning, Mr. Chairman and
    distinguished Members of the Subcommittee. I am Admiral Joel
    Whitehead, Commander of the Eighth Coast Guard District in New
    Orleans. The Eighth Coast Guard District is the largest of nine
    Coast Guard districts and covers 26 States, more than 1200
    miles of coastline, and 10,300 miles of inland waterways from
    Florida to Mexico and including the entire navigable lengths of
    the Mississippi, Ohio, Missouri, Illinois, and Tennessee River
    systems. I am pleased to have this opportunity to be with you
    today and to discuss the Coast Guard's role in maritime
    education and workforce.
        The Coast Guard sets standards of training and
    qualification for seafarers and administers the Mariner
    Licensing and Documentation program in compliance with domestic
    and international laws. The aim of the Mariner Licensing and
    Documentation program is to ensure that the U.S. merchant
    marine vessels are manned by qualified, trained, and competent
    personnel.
        In 1978, the International Maritime Organization adopted
    the Standards of Training, Certification, and Watchkeeping for
    Seafarers Convention of 1978. The U.S. deferred ratification
    efforts and worked for over a decade to make the necessary
    changes to our licensing regulations to comply with the
    Convention. The U.S. became party to the STCW Convention in
    1991.
        The STCW Convention was significantly amended in 1995. The
    amendments were comprehensive and detailed, resulting in more
    consistent training worldwide. Competence-based standards were
    established that placed emphasis on the requirements for
    training and assessment of skills in almost every facet of a
    mariner's profession.
        To meet our Convention obligations, the Coast Guard
    published an interim rule on June 26th, 1997, implementing the
    1995 amendments. The rule retained the existing licensing
    structure in the United States; it incorporated the STCW
    training and practical demonstrations of skill requirements,
    and included oversight of the training. This rule impacted
    mariners serving on commercial seagoing vessels of over 200
    gross registered tons, whether operating on domestic or
    international voyages, and resulted in increased training costs
    to the mariners. Mariners serving on seagoing vessels of less
    than 200 gross registered tons on domestic voyages and mariners
    serving on non-seagoing vessels, such as inland towing vessels,
    were not impacted by the rule.
        The Coast Guard is currently reviewing the 1997 interim
    rule and is considering seeking additional comments to ensure
    that we continue to meet our obligations under the Convention.
    The review is necessary to incorporate lessons learned during
    the 10-year implementation period, to clarify issues that
    generated confusion to mariners, to address the comments on the
    interim rule, and to address recommendations from the 2003
    independent evaluation of the credentialing and licensing
    program.
        In January of 2007, the IMO began a comprehensive review of
    the STCW Convention that will take several years to complete.
    The review is restricted to a limited number of issues to avoid
    any unnecessary amendments or reduction of the very successful
    training regime and subsequent impact to industry. The
    comprehensive review presents an opportunity to look for
    alternative training approaches not considered during the 1995
    amendments that may help alleviate the burdens imposed by the
    implementation of STCW.
        The Coast Guard has engaged the Department of Homeland
    Security's Merchant Marine Personnel Advisory Committee, or
    MERPAC, to provide recommendations on the issues to assist in
    the development of the positions for the United States.
        The Coast Guard has also partnered with MARAD to oversee
    and evaluate the implementation of STCW by the U.S. Merchant
    Marine Academy and the six State maritime academies.
    Furthermore, the Coast Guard has supported and fostered
    discussions on mariner recruitment and retention to address
    training related issues that would contribute to the shortage
    of qualified U.S. mariners.
        The Coast Guard believes that the STCW has significantly
    enhanced the safety and security of the United States by
    requiring foreign vessels calling on our waters to be manned
    with competent crews. The Coast Guard does recognize that
    implementing the requirements of the STCW Convention for U.S.
    seagoing vessels has imposed a financial burden on our
    mariners, and we continue to examine methods that may
    potentially reduce some of the challenges associated with the
    implementation of the STCW requirements.
        The Coast Guard is also undergoing several initiatives that
    aim to positively impact industry, and for the past 12 months
    the Coast Guard has been proceeding with its project to
    restructure and centralize the mariner licensing and
    documentation program. Since June, the National Maritime Center
    has been focused on improving its internal customer services
    processes to issue mariner licenses and documents faster and
    with a higher degree of accuracy and consistency.
        In August, as a result of the process improvements, the NMC
    reduced the inventory of credential applications being
    processed by 39 percent and issued over 2,000 mariner
    credentials, reaching a new production record. While the
    overall processing time remains higher than desired, the
    average license renewal processing time has decreased by 25
    percent since June.
        I thank you for this opportunity to discuss maritime
    education and workforce, and I would be pleased to answer any
    questions you may have.
        Mr. Cummings. Thank you very much.
        Mr. Connaughton.
        Mr. Connaughton. Mr. Chairman, Mr. LaTourette, Members of
    the Subcommittee, it is a great pleasure for me to be here
    today to talk to you about some of the challenges that we are
    facing, but also some of the great opportunities that people
    have if they enter into the maritime industry and what a great
    career it is. Mr. Chairman, I have a prepared statement I would
    like to enter into the record and summarize my remarks, sir.
        Mr. Cummings. So ordered.
        Mr. Connaughton. As you mentioned, sir, we are facing some
    challenges today, primarily due to, first, the strength of the
    American economy, the fact that we are seeing enormous
    recapitalization in the maritime industry, particularly in the
    brown-water fleet, the offshore industry, and the coastwise
    fleets. These have obviously meant that we are seeing a greater
    demand for waterborne transportation and also the people that
    man the vessels.
        But, in addition, we also are facing some challenges when
    you look at the actual personnel themselves. First is
    retirements; the second is that many people are not necessarily
    perceiving maritime industry as a career; regulatory hurdles;
    and other types of concerns, particularly in the
    criminalization of certain types of acts of accidents have made
    going to sea or going and working in the maritime industry less
    attractive than it was in the past.
        In addition, we are also seeing an enormous challenge
    internationally with the shortage of mariners practically
    around the world. In fact, we are looking at most of the
    industry very actively recruiting mariners of every different
    nationality, and we are seeing that actually in the United
    States with foreign companies coming to the United States and
    actively recruiting American mariners.
        The Maritime Administration runs several programs that this
    Committee oversees regarding the training of mariners. The most
    prominent is the U.S. Merchant Marine Academy, which is part of
    our Administration. We currently have around 1,000 cadets and
    graduate a little over 200 every year. Also, we are very much
    involved in the education and the programs of the State
    maritime colleges; we provide the training ships as well as
    direct payments to the schools and individuals through the
    student incentive payment program.
        We do provide some post-graduate types of training through
    the Merchant Marine Academy's GMAT School. But, obviously, for
    the most part, these programs have been very much focused on
    the deep sea mariner and not necessarily the different types of
    challenges that we are facing today in the United States,
    particularly in the brown-water industry and the offshore
    industry.
        What we have been trying to do, sir, is since these--I have
    been in office just about a year, and, traveling quite a bit, I
    have started hearing, anecdotally, many of these concerns being
    raised by employers and mariners about some of the challenges
    they are facing. One of the first things that we are trying to
    do is get out a survey to the industry to actually get some
    data behind some of this anecdotal information. We are nearing
    the final stages in getting that approved and out to the
    industry.
        Also, we have actually upgraded what we call the mariner
    outreach system, which allows mariners to actually come in and
    file with us so we can keep track of what is happening,
    particularly in the offshore and the deep sea industry. Right
    now, we have around 41,000 mariners who have signed up for that
    program.
        We are reaching out to many of the industry associations
    and labor management, labor organizations, to work with them
    and get a better handle about what is happening in the
    industry. We are trying to find expanded opportunities with the
    Department of Labor. We have been working with them initially
    with the shipyard industry, because, obviously, in this
    recapitalization that we are experiencing in the industry, they
    are having the same types of challenges, finding and keeping
    shipyard workers; and we have actually been able to take some
    initial steps in setting up some nationwide programs to help
    the shipyard industry, and now we are trying to explore whether
    we can take that and potentially deal with it and bring it out
    to the mariner community as well.
        One of the things that we continually find some challenges
    with is finding training opportunities for our cadets at the
    Merchant Marine Academy and also at the State maritime schools,
    so we have been reaching out to the broader maritime community
    to see if we can get more cadet berths. I am happy to report
    that we have had the first agreement signed just this week with
    an Overseas Shipholding Group, which will potentially open up
    at least 100 more ships to mariners, primary in the foreign
    flag, but it is an American company.
        We also have some other American companies which have
    sizeable fleets who have indicated that they are willing to
    take American cadets onboard so we can start to get more people
    trained, because one of the challenges that we are facing is
    that one of the biggest limitations for the expansion of the
    enrollment in many of the State maritime schools is the fact
    that we have training ships for them, but they are limited in
    their capacity, and because we can't expand the capacity of
    those vessels, necessarily, we have to look for some of these
    other opportunities if we want to actually get more people
    going to the schools and graduating with licenses.
        In addition, the cadets, graduates from the Merchant Marine
    Academy and those students from the State maritime schools who
    actually take the student incentive payments from us have a
    certain obligation that is in the law. Part of that obligation
    is obviously to keep their license for six years and go to sea.
    What I have done is change the obligation to allow the service
    in the brown-water inland industry to meet that obligation, so
    that students know that, once they graduate, they can actually
    go to work in the inland industry and then meet the obligations
    that they incurred.
        Also what we are working very diligently on is, as you
    mentioned, Mr. Chairman, working with some of these high
    schools programs, because we think that one of the things is
    making our youth aware of the maritime industry and the
    opportunities that exist and the career that now exists in the
    industry. If we can get to them early, get them those skills,
    get them that familiarization, that will hopefully make them
    more interested in going to sea and going to work in the
    maritime industry. So we are trying to get to them as early as
    possible.
        In our recent realignment of the maritime industry, we
    actually did establish an office that is completely dedicated
    to workforce development. Sharon LeGrand, who you mentioned, is
    actually part of that office, and that office's whole purpose
    is really to work on some of these program and policy issues
    and do much more outreach so we can end up, again, getting a
    much more consistent approach on how we go after some of these
    workforce development issues.
        We are also working very diligently to revise our own
    regulations. These regulations that we have today that govern
    the State schools, govern the Merchant Marine Academy, our
    training programs, is well over 20 years old. The challenges
    that those regulations were originally developed in are not the
    challenges we are facing today, so we will hopefully be coming
    out with some revised regulations early next year.
        So, Mr. Chairman, these are some great challenges, but
    incredible opportunities. Particularly, I just want to leave
    one thought, an act that this Subcommittee took a few years
    ago. The Committee came forward with some revisions to the
    Deepwater Port Act. Those changes allowed us to broach the
    subject of taking American mariners and American flagged
    vessels in this growing LNG trade. I am very happy to report
    that we now have commitments from two companies to start to
    take onboard American mariners onboard the LNG vessels calling
    in the United States. We have a commitment from another
    company, Woodside Natural Gas, to actually have two American
    flagged LNGs if their deepwater port license is approved, and
    we believe we will shortly be announcing another company's
    commitment to have an American flagged LNG as well. So, again,
    some great opportunities that are there for us if we are
    willing to try to go out and take it.
        So it is a great pleasure for me to be here. Again, we have
    got challenges, but we have got some great opportunities for
    the men and women who are in the maritime industry that can
    have a great career ahead. Thank you, sir.
        Mr. Cummings. Thank you very much, Mr. Connaughton.
        A little bit earlier in the hearing I had asked unanimous
    consent that Congresswoman Laura Richardson sit with our
    Subcommittee to participate in this hearing and it was ordered.
    She is with us now, and in the way of introduction,
    Congresswoman Richardson has been elected to represent the 37th
    District of California, formerly represented by our
    distinguished colleague, Ms. Juanita Millender-McDonald, who
    was a dedicated Member of the Transportation Committee and of
    this Subcommittee.
        While Ms. Richardson has been assigned to the
    Transportation Committee, her Subcommittee assignments have not
    yet been announced, but we eagerly anticipate she will serve on
    our Subcommittee, and we welcome her to her first hearing with
    us today.
        Ms. Richardson's district includes the Alameda Corridor,
    which provides transportation to and from the Port of Long
    Beach, one of our most vital ports, and she has previously
    worked on transportation issues both as a member of the
    California Assembly and the Long Beach City Council. I know she
    understands from the unique position of her district the
    transportation challenges we confront as a Nation, and she
    shares our Subcommittee's concern to ensure that our Nation's
    maritime industry is as strong as it can be.
        So, to Ms. Richardson, we welcome you, and I will yield to
    you for a response.
        Ms. Richardson. Thank you, Mr. Chairman, and I appreciate
    that very kind welcome by both yourself and the Committee.
        You know, it was kind of interesting when I went back to
    school and got my master's in business, I had an opportunity to
    choose to go overseas and study goods movement and trade in
    China, so I have been both to Hong Kong, Shanghai, and Beijing,
    and have had an opportunity to see their tremendous growth,
    which also impacts how we move forward in this Nation.
        As was stated by the Chairman, coming from the 37th
    Congressional District, I noted in the background that we
    expect an increase doubling of our cargo over the next five
    years, and it states that the majority of that will be in very
    concentrated areas. And I guess I should say either
    congratulations or challenges to me, because I happen to
    represent 45 percent of the entire Nation's cargo goes through
    my district.
        So we will be gladly working with this Committee to carry,
    I think, really, something that is going to be good for this
    Country if we do it wisely, and I look forward to future
    legislation that we will enact to enable that the maritime
    industry is very successful.
        With that, Mr. Chairman, count on me, and I hope to make
    you very proud, and my other colleagues, by my representation.
        Mr. Cummings. Thank you very much.
        Now to the five minute questioning.
        Mr. Connaughton, you talked about the survey of U.S.
    vessels operating in the industry and you mentioned in your
    testimony it would be completed fairly soon, I think you said,
    that it was in its final stages. As I am sure you are well
    aware, this Committee deals with timetables and deadlines
    because we are concerned that if we don't do that, nothing gets
    done. So we want to make sure you give us a timetable so we can
    hold you to that. What is it?
        Mr. Connaughton. Well----
        Mr. Cummings. I am not trying to put you on the spot, but--
    --
        [Laughter.]
        Mr. Cummings.--but I am very serious about that. We have
    one life to live--this is no dress rehearsal--and we try to get
    things done. So we don't want to be here 10 years from now
    talking about the survey, when you are off to another job.
        Mr. Connaughton. Well, Mr. Chairman, I appreciate the
    question because I thought we--well, there is a process that we
    must follow, as a government agency, to go out and request any
    information from the public and from business. We have been
    working very diligently to get that survey through that
    process. We initially had to publish in the Federal Register a
    notice that we were going to do the survey. We have gotten that
    through the system. We are now down to the point of where we
    have had now to get the actual questions cleared through the
    system, and it is our hope that that process will be completed
    in the next several weeks. Our goal was to get it out much
    sooner than this; it is just that the system is the system.
        So I would like to tell you that we would--our goal is to
    have it out by December 1st.
        Mr. Cummings. All right.
        Mr. Connaughton. And we will keep you very much informed,
    sir, of what the status is.
        Mr. Cummings. And we will be talking on the last day of
    November.
        Mr. Connaughton. Yes, sir.
        [Laughter.]
        Mr. Cummings. Let me ask you this. Let me go to something
    that you said that I found very interesting, when you talked
    about high schools. There are only a few maritime high schools
    in our Country, and it concerns many Members of Congress that
    we have so many young people who don't even know, don't have a
    clue, about the jobs in the maritime industry. I think one of
    my colleagues said it a few minutes ago, where people can get a
    job and make sufficient funds to support their families and,
    sadly, I think we don't start young enough. In other words, we
    don't expose them early enough. And I am just wondering,
    considering there are only a few high schools now, do you have
    any goals to try to reach out to various school districts?
        You know, the trend in the Nation today is to have these
    specialized high schools. In Baltimore, they have got them for
    homeland security, they have got them for firefighters, all
    kinds of different things, technology, and I am just wondering
    what are we doing, considering the fact that this is an
    industry--and I have read your testimony, which was well done,
    by the way, and it talks about the needs and projects the
    needs. But I am just wondering, at the end of your tenure, do
    you have a goal of addressing that issue, and to what extent,
    under your watch?
        Mr. Connaughton. Mr. Chairman, it is amazing to me to see
    where we are today with regard to demand and the interest in
    mariners, in American mariners. One of the things, as I have
    gone around the Country, I have had the opportunity to meet
    with people in New Orleans, Charleston, our folks have met with
    yours in Baltimore, as well as up in New York about the
    interest in starting up some of these programs. There are
    already some of these high school programs. The issue is how do
    we come up with potentially a model curriculum to get some of
    these programs, which still use or say that they are maritime,
    that are not necessarily in that direction any more, even
    though they may use that title.
        It is now the fact that we can point to them that they have
    a career and they have opportunities. Here we are, just three
    or four months after the graduations from all the State
    schools, Kings Point, and we are looking at 85 percent of the
    graduates afloat or in the military, and another 12 to 13
    percent with some significant short-side jobs; and the salaries
    are just simply tremendous. I mean, what we are looking at is,
    anecdotally, everything from $50,000 to over $100,000 are being
    earned by these graduates, and the demand is there and the
    salaries are there, and trying to reach out to America's youth,
    which just Mr. Baird, I think, mentioned about how difficult is
    in technical--I know my previous position was in local
    government, and we had a very difficult time, even though you
    could show that bricklayers, electricians were graduating at
    18, 19 years old from our technical schools, making $60,000 a
    year in this area, and we had to close the programs down
    because many parents don't recognize that as a viable career.
        We have to do the same thing. I know that it is a problem.
    I think a challenge for all of us is to make people understand
    that 95 percent of the Nation's trade and cargo comes by water,
    is transported by water, and that this is--especially with the
    growth in trade, as Mr. Coble and Mr. Gilchrest mentioned, it
    is going to continue to grow. We are going to become more
    dependent on our maritime highways and this is a career path
    that has unlimited potential.
        Mr. Cummings. Mr. Connaughton, you didn't answer my
    question. Let me restate it. I want you to tell me that by the
    end of your tenure you have certain objectives with regard to
    our high schools. Do you or don't you? You can just say that,
    yes or no, and then I can go a little further. In other words,
    we have a limited time to act, and you have been blessed to be
    placed in this position. I am glad to know you have local
    government experience. What I am trying to get to is I would
    like for you, if you agree with me, to make that one of your
    top priorities, to try to establish more of these high schools.
        And I agree, with the content, they have got to be,
    content-wise, what we need. The school in Baltimore, to be
    frank with you, when they created the school, they did not give
    it the content that they needed, and that is what we are doing
    now. But these young people are eager. They are so excited
    about this school, and it is in the inner city of Baltimore
    and, basically, we anticipate that, in a year, people will be
    knocking down the doors trying to get into this school. And I
    believe there are a lot of youngsters all over our Country
    that, if they only knew--and if the parents; we have got to
    educate parents, you are absolutely right. But I am asking you
    are you committed to trying to do that under your watch.
        Mr. Connaughton. Mr. Chairman, very much so within the
    constraints of the resources I have.
        Mr. Cummings. I understand.
        Mr. Connaughton.. I have entirely five people dedicated to
    all the manpower issues across this industry and we have one
    person that I have essentially focused on these high school
    programs, and the goal there is to develop a model curriculum
    that we can then share with school districts, starting with
    yours, but then sharing with school districts around the
    Country. But the thing is that, again, that is a priority, but
    within the fact that we are a very small agency and obviously
    we have had many funding issues in the past and we are down to
    just the four or five people that I have now pulled in and
    created this office to deal with these types of issues.
        Mr. Cummings. Well, we want to see if we can't perhaps help
    you get more funding, perhaps in the future, so that you can
    carry that out.
        Last, but not least, let me ask you this. Does the Maritime
    Administration have an advertising budget? If our goal is to
    reach out to non-coastal areas, in addition to reaching areas
    that are on the water, is it possible for MARAD to develop an
    advertising campaign to make people aware of the maritime
    industry and let them know that they are needed?
        Mr. Connaughton. We have no funds, sir, none at all.
        Mr. Cummings. So we have got this great need, but we have
    no way of letting people know.
        Mr. Connaughton. I think I have two or three people in my
    public affairs shop and, for the most part, they are reporting
    things that are happening in the press versus being out there.
        Mr. Cummings. Well, we want to work with you on that.
        I see my time is up.
        Mr. LaTourette?
        Mr. LaTourette. Thank you, Mr. Chairman.
        Admiral, in your oral statement, and I think in your
    written statement, you indicated that the Coast Guard is
    cognizant of the fact that some of the new training
    requirements under STCW and maybe TWIC, as well, are causing an
    additional financial burden on mariners. I made a note; I
    thought you said that the Coast Guard is examining that. Can
    you sort of describe the examination and then tell me whether
    or not the Federal Government, to your knowledge, has ever
    participated in providing funds to mariners for these
    additional training requirements and if you are authorized to
    do so?
        Admiral Whitehead. Yes, sir. We are very aware that the
    cost to mariners associated with the STCW Convention
    requirements are costly, particularly for those that are at the
    more senior levels, the Masters, the Chief Engineers. Those
    costs can be very much, they can exceed $20,000 for a full
    round of STCW training requirements. So we are aware that it is
    very costly.
        We are looking into and working with a variety of industry
    training schools into ways that we can bring training in
    approved training courses through different means that would be
    much less costly, perhaps. For example, we are looking into
    computer-assisted training, long-distance training, things that
    actually, in the United States Coast Guard, we are beginning to
    use for our own personnel. We are trying to involve those
    training entities out there to begin to use those sorts of
    things.
        The Coast Guard, to my knowledge, does not have any funding
    directly associated with that, though there was a history of,
    at one period, of some grants that I believe were provided to
    MARAD at one point for training, but at this point we don't
    have funds for that.
        Mr. LaTourette. Two points on that. I understand you don't
    have the funds. Do you think, if you had the funds, you would
    be authorized to make that funding available?
        Admiral Whitehead. I am not aware, sir, that we have a
    legislative authority for using such funds. We certainly get
    involved in many issues, particularly at the local sector
    level, where there are industry days, for example, and we will
    send Coast Guard personnel out to industry days and to assist.
    We recently did one in Greenville, Mississippi that was
    recently sponsored, which was very beneficial; MARAD was there
    as well, I believe. And I think this is opening up, in many
    ways, to people in the heartland of the Country and inner
    cities, if it can be done right, the availability and the real
    jobs that are out there.
        Mr. LaTourette. Maybe that is something, Mr. Chairman, we
    can look at as we move forward with our authorization.
        Administrator Connaughton, you mentioned the LNG trade, and
    we have had a number of hearings on LNGs. Specifically to the
    Merchant Marine Academy and the six State marine academies, is
    there additional capacity at those facilities to accommodate
    more cadets?
        Mr. Connaughton. It is restricted, sir, it is limited.
    Basically, with the State maritime academies, the capacity is
    really limited by the school ships. The school ships that we
    provide have a certain number of berthing. The sea days that
    they obtain on those cruises are essential to getting the sea
    service necessary to get their licenses. The Merchant Marine
    Academy has essentially been capped at a certain amount. Right
    now, we have around 1,000 students. We graduate a little over
    200 every year. So there are some self-limiting issues. We have
    tried to, especially now, we are trying to open up more cadet
    berths that will allow at least the State schools to
    potentially increase enrollment. But, for the most part, I
    think Admiral Craine will be testifying later on and I think he
    will verify this, that it is the school ships, it is the size,
    the age, and the ability of the school ships to handle certain
    capacity. That is one of the biggest limiting factors.
        Mr. LaTourette. Last question. The Chairman had a hearing a
    little earlier on the TWIC card, the transportation worker
    identification card. We had Homeland Security here and a number
    of Members of the Subcommittee expressed some disappointment
    with the progress of that. But in reviewing the testimony of
    the witnesses that will appear after you, there is an assertion
    by some that the requirement to have a TWIC card is perceived
    in the maritime industry, in some sectors, to be a deterrent
    from folks entering the industry.
        Admiral, I invite your comments on that observation that we
    will hear later.
        Admiral Whitehead. Sir, I don't go to any maritime event
    anywhere in the Eighth Coast Guard District where I don't hear
    about the TWIC cards, as I am sure you do here as well. I have
    heard, anecdotally, that this is a deterrent or somewhat of a
    barrier; it is another cost that is associated with it. I was
    very heartened to learn, in a recent briefing that I had, that
    the initial costs that were estimated for a TWIC card have gone
    down substantially, down to, I think, $139. So I am very
    heartened with that respect.
        I don't have any firm data to say that that is a factor,
    but, to be very honest, sir,--we were discussing this earlier--
    if I were a merchant mariner, I would be the first one on the
    block to have a TWIC card, because if I have that TWIC card,
    you are very much more marketable in your own industry and in
    other industries because you have got that credential that
    allows you entry from a security perspective. So I know this is
    a little bit of a difficult issue, but just yesterday, I
    believe, in Delaware, we had an enrollment session there. There
    were 25 new credentials that were issued, but there were 1,000
    mariners that were pre-enrolled to get their TWIC card, and I
    thought that was a pretty substantial roll-out of that system.
        Mr. LaTourette. I thank you for that answering. I know that
    when we had the hearing, I could never figure out why it is
    $139. That seems like a strange number to me, but thank you.
        And thank you, Mr. Chairman.
        Mr. Cummings. Thank you very much, Mr. LaTourette.
        Mr. Bishop.
        Mr. Bishop. Thank you, Mr .Chairman. I know this issue of
    shortage of qualified mariners has many dimensions to it, but I
    would like to focus on the LNG piece of it.
        Mr. Connaughton, your testimony indicates that the fact
    that we have few, if any, U.S. flagged LNG vessels--and I know
    you have been successful in developing a few--that U.S.
    mariners are at a strategic disadvantage in a market that is
    going to explode--perhaps I should rephrase that.
        [Laughter.]
        Mr. Bishop.--in a market that is going to expand
    dramatically over the next couple of years, leading potentially
    to safety risks, potentially to security risks. As I say, I
    know that you have done some work; you have been successful in
    bringing some U.S. flagged vessels into this market. What else
    can be done? What other tools perhaps can Congress give the
    Maritime Administration to help develop both U.S. flagged
    vessels and U.S. mariners in this industry?
        Mr. Connaughton. Mr. Bishop, I think the law today allows
    us to pursue voluntary agreements, and I think we have been
    successful in doing so. One of the things, obviously, is that
    we only deal with the offshore facilities; we do not deal with
    onshore or those within the territorial waters. So it is kind
    of limited in scope as to the vessels or the applications that
    we can raise and broach this issue.
        One of the things that we have also been working on and we
    are able to get the State maritime academies, the Merchant
    Marine Academy, and all the labor organization operated
    training schools to come together on a uniform standard of
    training, the same types of what we like to say is a model
    curriculum and career path training path that we will get
    everyone to come together on. It is actually implementing that
    now is what we are trying to focus on, as obviously there is a
    resource issue with that. And it is by making sure we have that
    type of pipeline.
        But I think we have been doing what we have been able to
    do, given the current structure of the law, given the current
    structure of at least the resources that we have available.
        I will mention one thing. We have been made aware that one
    of the things that is an issue is how we treat the income taxes
    of American mariners versus how mariners from other countries
    are dealt with by their own home countries that actually places
    our American mariners at a little bit of a disadvantage when
    you are looking at the general marketplace, and that is
    something we are trying to get a better handle on as well.
        Mr. Bishop. I know this question may go beyond somewhat the
    scope of this hearing, but for both Admiral Whitehead and Mr.
    Connaughton, is the fact that we have a bifurcated approval
    process for LNG facilities--some of them are under the
    jurisdiction of the FERC, others would be under the
    jurisdiction of the Coast Guard and the Maritime
    Administration--does that complicate this issue? I mean, is the
    FERC sufficiently sensitive to this issue of the qualifications
    of the mariners that will be serving on the vessels that will
    be re-gasifying these facilities? Is that something? And, as I
    say, I will put this question to both the Admiral and to you,
    Mr. Connaughton. I mean, is our process the right process?
    Should we not have one entity that is responsible for reviewing
    these applications, as opposed to two, given the fact that we
    have some concern about the qualifications of the mariners on
    these vessels?
        Mr. Connaughton. I will maybe answer this from this
    perspective. The Coast Guard is involved in both sets of
    applications, particularly on the environmental side. We work
    very, very closely with the Coast Guard on our aspect of
    licensing and we are the actual licensing authority for the
    deepwater ports. Because of the law that you all have passed,
    we require and have issues that FERC does not deal with, does
    not raise, and one issue is financial responsibility. We
    require some fairly substantial financial responsibility.
    Because of our law, we require there to be provisions on how
    you will dismantle facilities after you are done.
        But also, due to the law, we raise the issue of American
    flags; we raise the issue of American mariners. That is not
    part of FERC's law, so it doesn't get raised, as far as we are
    aware, in their approval process. So it does make it so there
    obviously is a bifurcated system. The only thing I will mention
    to you is that we are seeing more and more interest in offshore
    facilities due to some of the concerns and questions being
    raised by onshore facilities, but right now there is a
    different system and theirs is just, in many ways--well, they
    don't raise the same issue we do.
        Mr. Bishop. Thank you.
        Admiral Whitehead?
        Admiral Whitehead. Yes, sir. I am glad you raised this
    issue, sir. First, I don't believe that the bifurcated process
    that we have got right now is really a problem. I mean, at
    first, I think, ramping up, there were some issues there, at
    least in the Eighth Coast Guard District, in the Gulf of
    Mexico, where we have 8 to 15, depending on how you count, LNG
    facilities in development. This is now going a little bit more
    smoother.
        The whole issue of LNG permits is really almost equally
    owned, I think, between as an energy requirement, as a
    transportation security requirement. So it brings in both the
    Energy Department, FERC, and the Coast Guard into it.
        I should also say I don't believe FERC is really involved
    in the issue of the qualification of the mariners, and that
    would be more an issue for the Coast Guard, at least from an
    international perspective; and I am very, very concerned about
    that. In the Gulf of Mexico, as I mentioned--and, Mr. Chairman,
    we have discussed this before--right now we have about 261
    annual arrivals of LNG ships into the Gulf of Mexico annually,
    compared to 210 everywhere else in the United States. In fiscal
    year 2008, we are going to go from 261 to about 780 arrivals,
    and in the next four or five years after that to over 6,000 to
    7,000 arrivals a year. So the whole thought of the LNG, the
    growth of LNG, as you mentioned before, is very, very much in
    my concern.
        We are working with Maritime Administration to lay out the
    training standards that would be required for LNG workers under
    the STCW Convention, as well. So I am very, very concerned
    about the capacity, though, and you raised that as well. With
    all these new ships coming into the United States, it will
    require not only training for mariners, it will also require
    additional training for Coast Guard inspectors, who have to be
    very, very technically astute and trained with these brand new
    ships, $250 million vessels that are being constructed just for
    this trade.
        Mr. Cummings. Thank you very much.
        Mr. Coble.
        Mr. Coble. Thank you, Mr. Chairman.
        Gentlemen, good to have you all with us. The current
    shortage of merchant mariners available to work aboard U.S.
    flagged vessels, do you classify that as a moderate problem or
    a critical problem?
        Admiral Whitehead. Sir, we don't really tally up those
    numbers, but I can tell you I don't go to an event, either in
    the United States, whether it is in the inland waters, whether
    it is a coastal maritime group, or if it is an offshore group,
    where they are not talking about the shortage of mariners and
    getting mariners in there. I think there is a real problem, but
    part of that is based upon how busy the business is. All areas
    of the maritime industry in the United States are tremendously
    busy.
        I was astounded to learn, in the Eighth District, that
    between 2001 and 2007 our number of inspectors for marine
    inspectors had doubled, from 18,000 inspections a year to
    36,000 inspections a year. Now, the year 2001 has nothing to do
    with 9/11. This is not security inspection, these are safety
    inspections; and they have doubled in five years, and that is
    because of the economy and because this business is so
    important to our economy. So it is a real concern to me and I
    hear about this all the time, but I don't really have the
    numbers to tell you.
        I can also tell you that, internationally, I was recently
    overseas and met with five or six different shipowners, and I
    can tell you that they are facing the same exact issues, same
    problems. It is a worldwide demographic issue.
        Mr. Coble. Thank you, Admiral.
        Mr. Connaughton, do you concur with that?
        Mr. Connaughton. Mr. Coble, again, we only have anecdotal
    information, until we get this survey out and actually put some
    numbers to it. We know this is a major, major challenge and
    concern. I think we are just facing a perfect storm. When you
    look at the increased demand for waterborne transportation, the
    fact that we are seeing retirements, we are seeing a lot of
    people go ashore because right now, especially marine
    engineers, any type of technical background, are really getting
    great job offers ashore. And then what is happening worldwide,
    if you look at the numbers worldwide, I will tell you right now
    if our numbers mirror those, we are facing a critical shortage,
    because the numbers worldwide are showing tens of thousands.
    When they do their projections, they are showing tens of
    thousands of licensed officers.
        Mr. Coble. And I think the shortages inevitably negatively
    impact the viability of the U.S. fleet, (a), and negatively
    impact the national security posture of our Country as well.
        Back to the statement I made earlier, gentlemen. Does the
    Federal Government have a responsibility to provide training or
    to ensure the availability of training for mariners working in
    the private sector?
        Mr. Connaughton. Mr. Coble, it has been a cornerstone of
    American maritime policy since 1936 that the Federal Government
    has a vested role, due to safety and security, national defense
    reasons, to have trained mariners, particularly those mariners
    who can be called upon during times of national emergency,
    which even since the 70 years since that Act was passed, we
    have proven time in and time out the American merchant marine
    and its mariners are critical to not just the economic needs of
    this Nation, but also its national defense, and they have
    always been there whenever this Nation has called.
        Mr. Coble. And are you currently authorized to make such
    funding available?
        Mr. Connaughton. Sir, yes. Well, our programs today, our
    principal programs, between the Merchant Marine Academy and the
    six State maritime schools, are really geared towards the deep
    sea mariner and what has been traditionally viewed as the most
    essential for the national security and economic interests. I
    think what we are seeing now is that many of the State schools,
    even our GMAT school, as well as employer-run and labor
    organization-run schools, are starting to deal with some of
    these other issues that are being faced. But, for the most
    part, our programs really have been geared toward the deep sea
    mariner, and we are now trying to make them available to the
    brown-water inland types of fleets.
        Mr. Coble. I thank you.
        Admiral, do you want to add anything to that?
        Admiral Whitehead. No, sir, I don't really have anything to
    add.
        Mr. Coble. Gentlemen, thank you for being with us.
        I yield back, Mr. Chairman.
        Mr. Cummings. Thank you very much.
        Mr. Taylor.
        Mr. Taylor. I want to thank our witnesses for being here.
        I am curious, Mr. Connaughton, with the problems that both
    the Navy and the Coast Guard have experienced in acquisitions
    and with the decision by Secretary Winter and I think also by
    the Commandant of the Coast Guard to try to bring the
    acquisition programs back in-house, as opposed to turning them
    over to the private sector, has there been any discussion with
    you, the Merchant Marine Academy or the other maritime
    academies, of explaining this programs as far as design and
    ramping up those acquisition programs to bring back what the
    Navy refers to as a supervisor of shipbuilding? And if so, is
    that complicating the problems that you have outlined in your
    testimony or is that something that is just kind of on the edge
    and only marginally adds to your challenges?
        Mr. Connaughton. Mr. Taylor, we at the Merchant Marine
    Academy and at the State schools, many of them have a sub-major
    or a major that involves shipbuilding and shipyards. However,
    for the most part, almost all the programs, at least that we
    are involved with, are really geared towards making sure we
    have merchant marine officers. We haven't attempted to address
    that type of issue. We recognize very much that many of the
    shipyards are facing some enormous challenges themselves in
    finding people, but that is actually not in the acquisition
    side, but really focused on the actual technical and detail
    issues of the shipyards.
        I just want to mention one thing to you, that I have become
    very diligent in ensuring that we grant few, if not--well, I
    limit the number of waivers that are available to graduates
    from this year from the Merchant Marine Academy--I will be
    looking at the State schools as well--regarding their
    obligations and whether they can go ashore. Because of the
    great job market and the fact that we need people onboard these
    vessels of every size, I am pushing them to go to sea and
    fulfill their obligation. The only exception to that is that I
    have allowed a certain percentage to work in the shipyards
    because of recognizing their issues and problems, and we can't
    have these good challenges of recapitalization and more vessels
    without the yards to produce them. So I have bene allowing some
    graduates to actually go into the shipyards, but we have not
    been focused on the acquisition side, sir.
        Mr. Taylor. Just as a matter of curiosity--and maybe,
    Admiral, this would be better directed at you--I was looking at
    the--and I happen to have been a Member of Congress in the wake
    of the tragic accident outside of Mobile that led to
    Congressman Tauzin and others substantially increasing the
    training for mariners and the hurdles for mariners. I am
    curious, when you talk about the costs of acquiring those
    additional licenses and those additional courses, are the
    people who take these courses, are they eligible for the
    Montgomery GI bill if they are veterans? Is that something that
    the Montgomery GI bill would pay for, as if they were going to
    a community college or normal university?
        Admiral Whitehead. Sir, I am not at all an expert on that,
    but I would believe it is. I think we need to get back to you
    with an answer on that.
        Mr. Taylor. Would you, please?
        [Information follows:]
        [GRAPHIC] [TIFF OMITTED] 38515.012

        Admiral Whitehead. But I think that is something that
    sounds to me like it would clearly fit into the GI bill.
        Mr. Taylor. Okay.
        Admiral Whitehead. We will get back to you on that, sir.
        Mr. Taylor. Thank you.
        Thank you, Mr. Chairman.
        Mr. Cummings. Thank you.
        Mr. Gilchrest.
        Mr. Gilchrest. Thank you, Mr. Chairman.
        Just a quick comment on high schools. I think, Mr.
    Connaughton, you said that you might focus on Mr. Cummings'
    high schools for high school maritime. If you could come over
    to the eastern shore of Maryland, maybe we could double up on
    that.
        In the course of my district work, we have college seminars
    for students twice a year, and we always make sure that we have
    a representative from the Merchant Marine Academy at those
    seminars. I think what we ought to do in addition to that--
    maybe, Elijah, you and I can work on this--is have school
    officials in one of those seminars to show what opportunities
    there are out there in the maritime industry, something that we
    don't really place a lot of emphasis on. But there is, I think,
    a valuable reason for doing that because there are many
    students, I just know, that this doesn't fall within their
    frame of reference. If they had the opportunity, they were
    exposed to it, they would take advantage of it, which leads to
    the next question.
        If we can't now expand, for example, the Merchant Marine
    Academy that we have or the six other State academies that we
    have, and we want more high schools to expose students to this
    type of opportunity, that means we really need to find a way to
    start expanding those college facilities so that they can take
    advantage of these opportunities.
        I guess, Mr. Connaughton, how many graduates from the
    Merchant Marine Academy do you know stay in a career in the
    maritime industry? Is there a percentage we could look at?
        Mr. Connaughton. We can give you some of those numbers,
    sir. I don't have them with me. I can tell you, again, from my
    anecdotal information, that the vast majority do stay in.
        Mr. Gilchrest. I see.
        Mr. Connaughton. They may go ashore and assume management
    positions, but, for the most part, I think that almost all stay
    in some sort of maritime-related field.
        Mr. Gilchrest. The other thing, it is my understanding--
    although I don't know this, I am not on the Armed Services
    Committee; maybe Gene Taylor can tell me--if you are a graduate
    of West Point or the Naval Academy or the Air Force Academy, it
    is my understanding that the military will send you to graduate
    school or post-graduate school. You can get a PhD while you are
    in the military. When you graduate the Merchant Marine Academy
    and you want to get a further degree, a Master's or a PhD, does
    the maritime industry, in some capacity, pay for that degree?
        Mr. Connaughton. Well, it is not necessarily the advanced
    degree, sir, as much as it is maybe the advanced license. I
    think what the normal career path would be, starting out as a
    Third Mate or Third Assistant, then moving up to Second, First,
    and then Master or a Chief Engineer. I think the challenge that
    everyone is facing today is that it has become very, very
    difficult for mariners to work their way up the what we used to
    call hawsepipe, license-to-license. And also for those mariners
    who are sailing, if they are not a member of a labor
    organization with a training school or they do not have an
    employer to pay for these courses that are required due to
    regulatory----
        Mr. Gilchrest. So if you are a graduate of the maritime
    industry or one of these State schools, to move up the ladder,
    for example, is vastly different than it would be to move up
    the ladder in the Coast Guard or the Navy.
        Mr. Connaughton. Yes, sir, that is correct.
        Mr. Gilchrest. This isn't the same sort of structure. Is
    there any way we could take a look at that structure and begin
    the process of examining it to change it?
        Mr. Connaughton. Well, you know, it is one of these issues,
    sir, where there are regulatory standards that deal with the
    licensing and then there are the educational standards. And
    every one of these graduates from Kings Point and those who
    have the obligation from the State schools, they end up having
    their commission in the military, in the Reserve; they have
    their degree and they have their license; and if you sort of
    look at them, all three have different sorts of career paths
    and different sorts of requirements.
        Mr. Gilchrest. If you look at the number of graduates in
    the maritime industry today, the State schools or Merchant
    Marine Academy, how short are they of meeting demand?
        Mr. Connaughton. It is difficult to actually put a number
    on it. I can tell you that my conversations with particularly
    the State presidents, that they have never seen applications
    like they have seen today, the numbers of people trying to get
    into their, in particular, licensed programs. And when you
    look, anecdotally, at the number of employers coming to the
    career days, trying to attract soon to be new graduates, they
    are seeing record numbers of companies coming and seeking
    graduates, and many graduates having multiple job offers. I
    mean, again, we are going to try to get a handle on some of the
    real numbers, but we have never seen a job market this good, or
    at least have not seen a job market this good in a very long
    time.
        Mr. Gilchrest. That is great. Thank you very much.
        Mr. Taylor. Mr. Gilchrest, would you yield for one minute?
        Mr. Gilchrest. I think I have five minutes left.
        Do I have five minutes left, Elijah?
        Mr. Cummings. Yes.
        Mr. Taylor. Thank you, Mr. Chairman.
        Thank you, Mr. Gilchrest.
        Secretary, I am just curious. Is anyone tracking--I am sort
    of familiar with the offshore supply vessel business and the
    boom and bust with it, so I am curious, is anyone tracking the
    boom in the offshore supply vessel business to what extent that
    is affecting the shortages that are going on right now; and,
    again, it has been very cyclical. If there is a bust, there is
    the boom in hiring for the young people coming out of the
    Merchant Marine Academy, coming out of S.U.N.Y. Does that
    continue or do we get back to a situation where we were a few
    years ago, where we are looking for places for these young
    people to serve?
        Mr. Connaughton. Sir, I think, at $88 a barrel for oil, the
    boom is here. They are going further and further out in the
    exploration for oil. What we are seeing--again, it is anecdotal
    conversations with OMSA, the offshore industry, as well as
    actual individual operators that they are having a very
    difficult time finding people. They are offering incredible
    salaries, and as long as oil stays at the price it is, which,
    given the growth in the economies in China and India, as well
    as the rest of the Far East, we think the boom times are going
    to be here for quite some time, sir. And the salaries and the
    size of the vessels and the complexity of the vessels that are
    in the offshore industry is like something we have never seen
    before; they really are ships. And for the foreseeable future,
    as long as those economies worldwide continue to grow, we think
    the boom time for the offshore industry is going to be there
    and stay here.
        Mr. Taylor. But does that contribute 20 percent of the
    demand, is it 10 percent of the demand, is it half the demand?
    That is what I am trying to get in my mind.
        Mr. Connaughton. I don't know, sir. I actually have
    numbers, aggregate numbers for employment. Again, when I said
    it was about 85 percent right now, just a few months after
    graduation at sea or in the military, we can go back and try to
    break those numbers down and see actually where people are
    working.
        Given that, actually, right now, in the United States, on
    the deepwater side, we do have a sufficient number of mariners,
    I think when we go back and break these numbers down and get
    them back to you, we are going to see that the vast majority of
    the demand for these graduates is offshore as well as inland.
        Mr. Cummings. Mr. Larsen.
        Mr. Taylor. Thank you, Mr. Chairman.
        Mr. Larsen. I am waiting for that clock to reset to get my
    five minutes. Thank you, Mr. Chairman.
        Admiral Whitehead, something specific to Washington State.
    We are obviously looking at, on the Committee, lifestyle
    issues, wage levels, requirements, and so on. I know that the
    Coast Guard is working with the State ferry system to implement
    some regulations on crew endurance and fatigue, and these
    regulations, specifically the requirement that a mariner work
    no more than 12 hours in a 24 hour period, don't always work
    with our State ferry schedule, which is not a tourist
    attraction, but State ferries are an important part of our
    commerce and transportation system.
        I just wanted to get your impression. Is the Coast Guard
    able to be flexible enough with the regulations as they apply
    to different sectors of the maritime industry? Because this
    particular sector of the maritime industry is in fact
    particular largely to Washington State, the largest vehicle
    traffic on ferries, the largest passenger traffic on ferries of
    any ferry system in the Country.
        Admiral Whitehead. Yes, sir. I am generally familiar with
    your ferry system. I know it is a very large one and it plays a
    great role in your economy and, of course, in transportation.
    The crew endurance system, I am glad our people are working the
    your State officials on that as well, because it is a very
    important issue for us.
        Right now, the laws, as I understand them, read basically
    that a mariner can't operate more than 12 hours continuously,
    except in an emergency situation. So I am not sure that we have
    the flexibility to make any changes in that right now, but I am
    quite sure the State ferry system is engaging with our maritime
    licensing people within the Thirteenth Coast Guard District.
        Mr. Larsen. I am sure they are. I know that they are, and I
    just hope that there is enough flexibility found to continue to
    make our ferry system work. It is not easy. Sometimes you just
    can't take an 8 foot skiff from San Juan Island to Anacortes to
    get back home after your shift is done, and that is a
    scheduling problem, obviously, but sometimes that is the way it
    works when you have the ferry system you have.
        Admiral Whitehead. Yes, sir. I should also say that if they
    are on a two-watch schedule, which I believe they are there,
    there is flexibility within the company itself or the State to
    adjust those hours in some way. Many companies--and I am not
    sure about your ferry system--are operating on a square six
    system, where they are doing six hours off and six hours on,
    and there is some flexibility there, providing they don't
    exceed the 12 hours.
        Mr. Larsen. Okay. I just wanted to highlight that.
        The second is for you as well. In your testimony, you talk
    about future improvements that will benefit merchant mariners,
    and the four bullet points read more like a list of goals as
    opposed to specifics, so I was wondering if you could walk
    through a couple of specifics. One is expediting the regulatory
    implementation for training and recruitment, and second is
    improving the mariner credentialing through greater efficiency,
    transparency, and capacity, and continuing to improve
    processes. It sounds a little more goal-oriented than specific
    actions. If you can walk through the actions for us.
        Admiral Whitehead. Yes, sir. I have to tell you I came to
    the Eighth Coast Guard District about a year ago. I was very
    dismayed at the delays that we were seeing at our regional
    examination centers in New Orleans and Houston. We took some
    immediate actions for improvement and now--and I have to tell
    you I was a bit skeptical with the future implementation or
    standing up of the National Maritime Center. My offices have
    been working very closely with the NMC to see exactly what they
    are doing, and I had an opportunity about a month ago to come
    up and visit the in West Virginia. And I have to tell you I
    will certainly not tell you today that we have turned the
    corner on licensing and credentials, some of the delays that we
    have had, but I think the corner is in sight. I am very, very
    heartened by the improvements that we are making and that the
    NMC is making. There is a variety of things that we are trying
    to do at the NMC and the numbers are actually showing up as
    improvements. So there is activity that is showing some real
    improvements.
        But what we are trying to do at the National Maritime
    Center is, first off, to decrease the processing time that is
    involved in getting a mariner his credential, whether it is a
    license or a merchant mariner's document, from the time he
    submits it. Before, we had 17 regional examination centers that
    probably each had their own process for how they would handle a
    license or an MMD application. Now we will be going to a system
    where we have just one location and one process to manage. So I
    thin that will give us some clear improvements there.
        We are trying to also improve consistency of service by
    having centralized evaluators in one place. That will, I think,
    also help us.
        And then, finally, we are improving things with customer
    service, which was an area that was sorely in need of some
    improvement. We have established a new toll-free call center,
    where a mariner can call up this 888 number toll free, they can
    get an application sent to them. Once their application is
    submitted, they can actually monitor the progress of their
    license online, and they can track it and see it, and they can
    talk to a human being and find out exactly where their license
    application is in the system.
        And I mentioned to you that we are getting results. Just in
    the period of time since the NMC has stood up, a matter of
    months, they have reduced the inventory of applications that
    were awaiting processing by 39 percent. In addition, the
    average license renewal has decreased by about 25 percent in
    the time it takes to get out since June.
        I have to tell you that one of the other major things that
    is an improvement, I think, in the Eighth Coast Guard District,
    particularly at New Orleans, but also Memphis and Houston, one
    of the problems we had was our applications were coming in at a
    rate of about 60 percent to 80 percent errors. So the
    applications were not complete when they were turned in. This
    put a little bit of a hardship on the mariner in the sense that
    he or she might be going to sea, and they would mail in their
    application and there was maybe a block that needed to be
    filled in or some document that wasn't here, and then they are
    gone for maybe several months, potentially, and then they come
    back and get the thing, then they mail it off again; and it was
    this back and forth. So it was a real problem.
        We are now going to assist them where, in the Eighth
    District, we have created a CD wizard application, so you can
    plug the CD in, and if you forget to fill in something, it will
    highlight it in red, just as you would see if you ordered
    something on line and you forgot to put your telephone number
    in it. So we are going to that and the NMC is now seeking
    additional funding to be able to improve their licensing
    documentation computer system to give them greater flexibility
    and speed up their process time as well.
        So I think we are really seeing some very, very important
    changes, and with that comes additional people, additional
    people that have not been there in the past that will be able
    to, I think, handle the capacity much better. I am very
    optimistic.
        Mr. Larsen. Thank you.
        Thank you, Mr. Chairman.
        Mr. Cummings. Thank you very much.
        I ask unanimous consent that Mr. Boustany may sit with the
    Subcommittee and participate in this hearing. Without
    objection, so ordered.
        Mr. Boustany, do you have questions?
        Mr. Boustany. Thank you, Mr. Chairman. Having just come in,
    I don't have any specific questions at this time. I just want
    to say that workforce issues in the maritime industry, in my
    home State of Louisiana, we have reached a crisis stage. I
    represent coastal Louisiana, two of the parishes in coastal
    Louisiana. I have visited a number of our facilities, and this
    is something that is urgent. It is a complex problem and I
    hopeful that we can start looking toward solutions as we go
    forward.
        I want to thank the Subcommittee Chairman for holding this
    hearing and for allowing me to sit in.
        Mr. Cummings. Thank you very much.
        Ms. Richardson.
        Ms. Richardson. Thank you, Mr. Chairman. Just three quick
    questions.
        In the information provided, you talk about a list of
    individual companies that provided partnership programs. Could
    you please provide this Committee the contact information and
    the location of those individual companies?
        Mr. Connaughton. Yes, ma'am, we will provide those to you.
        Ms. Richardson. My second question is it also is noted in
    the information that the Seafarers International Union in
    Maryland has a pretty extensive apprenticeship program. Could
    you also provide to this Committee for the other locations
    where the Seafarers are located? For example, for me in
    California, do they have a similar program? And, if not, what
    we could do to make that happen?
        And, number three, you also noted in the information that
    there are 250 training providers. If we could also receive that
    information of contacts and locations.
        Mr. Connaughton. Sure, ma'am. We will get you all of those.
        Ms. Richardson. Thank you very much.
        Thank you, Mr. Chairman.
        Mr. Cummings. Thank you very much, Ms. Richardson.
        Let me just ask. I want to go back to you, Admiral
    Whitehead. In the next panel there is going to be some
    discussion by Mr. Michael Rodriguez, Assistant to the President
    of Masters, Mates, and Pilots Union, about the way mariners are
    treated, and, as you know, the conduct of the Coast Guard's ALJ
    system has been, and continues to be, of great concern to the
    entire Subcommittee. One witness write in testimony that the
    Coast Guard is unwilling to fully inform mariners of the nature
    of an investigation and their rights during an investigation.
    Also, the testimony suggests that the information given by the
    mariner in an accident investigation could be used to prosecute
    the mariner. Is this common practice? The Coast Guard has been
    required to cite the Miranda rights to a mariner when their
    statements may be used against them.
        And so that you understand the relevance, in Mr.
    Rodriguez's testimony, what he is saying is that because of the
    way mariners are treated, it is his belief that that may deter
    them from wanting to become mariners. In other words, they
    don't want to suddenly become criminals when they are trying to
    pursue their life pursuits, and they feel, quite often, that
    they have been treated unfairly.
        Now, this doesn't just come from Mr. Rodriguez. As you
    know, we have had an extensive hearing on ALJ and there has
    been no subject that this Subcommittee has addressed that has
    drawn more interest than the fairness of hearings and the ALJ
    process. So would you comment on that for me, please?
        Admiral Whitehead. Yes, sir. As I understand it, there are
    about 5,600 cases a year that are brought from the Coast Guard
    that could potentially result in an administrative hearing, and
    of those, most of those are handled, let's say, in-house by the
    Coast Guard, so that there are only around 1,100 that even make
    its way up to the ALJs. And then, at that point, most are
    handled in some way that don't result actually in a hearing, so
    that there are only a couple hundred hearings a year.
        With respect to the potential prosecutions, there are some
    laws that are old on the books and some newer ones that
    certainly require the prosecution of mariners if there is a
    criminal violation, and cases that come to my mind are cases
    involving environmental crimes. Should a case like that come
    up, I am quite sure that the Coast Guard ourselves would not
    prosecute an individual criminally; that would go to the local
    U.S. attorney, and at that point we would turn it over to the
    U.S. attorney. And whether the U.S. attorney could handle those
    types of cases, it is a selective sort of thing based on their
    workload, I believe.
        Mr. Cummings. But you didn't address my question. And I
    realize that you may not have been prepared for that, but I
    would really like for you to look into that issue, and I will
    put it in writing, the issue of Miranda rights and a lot of
    times mariners feeling that they have been placed in a position
    where they are damned if they do and damned if they don't, and
    they think they are trying to work out issues and it is like a
    ``gotcha'' kind of situation, as opposed to a situation where
    there is some leeway, where it could be worked out; the next
    thing you know, they are hauled before an ALJ hearing and have
    not been even given the Miranda rights.
        As you know, we are looking seriously and, by the way, in a
    bipartisan way, in removing the ALJ from under the Coast Guard.
    We are just looking at trying to figure out the best way to do
    it. But, in the meantime, we just want to make sure that
    mariners are treated fairly and that we are not causing folks
    not to come into this profession because of the belief that
    they might be treated that way.
        Admiral Whitehead. Yes, sir. I would be glad to get back to
    you on the record with that, sir, but I should say that unless
    things have changed, I used to be an investigator myself, many
    years ago, and if there were some belief that there was a
    criminal violation involved, I am quite sure our Coast Guard
    investigator would give the appropriate warnings.
        Mr. Cummings. All right. And the other thing that we will
    do is we are going to make sure that you get a copy of the
    relevant testimony so that you can--sometimes I think we sort
    of talk passed each other--so that you will know what the
    people who are subject to the Coast Guard are feeling and
    saying. Okay?
        Admiral Whitehead. I would be happy to do that, sir.
        Mr. Cummings. Thank you very much, both of you. We really
    appreciate it. Thank you.
        If our next panel would come forth now, please.
        Mr. Michael Rodriguez is the Assistant to the President of
    the Masters, Mates, and Pilots Union; Mr. Carl Annessa,
    President for Operations, Hornbeck Offshore Services; Ms. Cathy
    Hammond, Chief Executive Officer for Inland Marine Services
    with the American Waterways Operators; Admiral John Craine, the
    President of Maritime College of New York; Captain William
    Beacom, Navigation Consultant and Professional Mariner; and Mr.
    Augustin Tellez, Executive Vice President of Seafarers
    International Union.
        First of all, thank you all for being with us. It is my
    understanding that we are going to have a vote in about 10
    minutes. We have got six witnesses, so let's try to adhere, as
    close we can, to the five minute rule. Thank you. And if you
    want to take less, you are welcome.
        [Laughter.]

      TESTIMONY OF MICHAEL RODRIGUEZ, EXECUTIVE ASSISTANT TO THE
     PRESIDENT, MASTERS, MATES AND PILOTS; CARL ANNESSA, COO/VICE
       PRESIDENT FOR OPERATIONS, HORNBECK OFFSHORE SERVICES FOR
    OFFSHORE MARINE SERVICE ASSOCIATION; CATHY HAMMOND, CEO, INLAND
     MARINE SERVICE FOR AMERICAN WATERWAY OPERATORS; ADMIRAL JOHN
    CRAINE, JR. USN, RETIRED, PRESIDENT, S.U.N.Y. MARITIME COLLEGE;
      CAPTAIN WILLIAM BEACOM, NAVIGATION CONSULTANT, PROFESSIONAL
     MARINER; AUGUSTIN TELLEZ, EXECUTIVE VICE PRESIDENT, SEAFARERS
                          INTERNATIONAL UNION

        Mr. Rodriguez. Thank you, Mr. Chairman. I will go through
    this as quickly as possible, in the interest of time.
        Good morning, Mr. Chairman and Members of the Subcommittee.
    I am Michael Rodriguez, Executive Assistant to the President of
    the International Organization of Masters, Mates, and Pilots. I
    began my career in the maritime industry as a graduate of the
    United States Merchant Marine Academy in 1979. I sailed as a
    deck officer aboard U.S. flagged vessels until 1995. I am an
    officer of the Naval Reserve and a veteran of Operation
    Enduring Freedom. Thank you for inviting me to appear today.
        America's mariners are an important national asset, an
    asset that our Nation cannot afford to lose. Mariners have
    served our armed forces; they are supporting our troops in the
    Middle East. As Naval officers, mariners have performed on
    active duty at sea, ashore, and as harbor pilots. American
    mariners play a role in relief and humanitarian efforts.
    Following the attack on the World Trade Center, mariners
    rapidly mobilized to evacuate thousands from lower Manhattan.
    In 2005, they helped provide relief to the victims of the Gulf
    hurricanes and the tsunami.
        A strong commercial fleet provides good paying jobs and is
    an essential part of maintaining these capabilities and
    attracting young people to our industry. To this purpose, there
    are three fundamental elements of maritime policy that Congress
    and the Administration must continue to support. First, the
    Maritime Security Program is crucial toward maintaining a U.S.
    flagged fleet and an American presence in world shipping
    markets and opportunity for mariners; second, the Jones Act is
    central to our economic security and an important source of
    jobs; and, third, our cargo preference laws must be fully
    enforced. They provide an important incentive for shipowners to
    keep their ships under the American flag.
        Mariners face many challenges: they endure long separations
    from home, extreme working environments, and the dangers of the
    sea. They have always accepted these difficulties, but there
    are aspects of their work that governments and industry can
    manage.
        Criminalization of the unintentional acts of mariners
    following accidents is a human rights issue as well as a
    recruiting and retention issue. The maritime community
    recognizes that mariners, subject to the laws of many
    jurisdictions, must have special legal protections under
    uniform international standards. Regrettably, the United States
    opposes the international community's work on this issue.
        Mariners live where they work. They often sleep only a few
    feet away from engine rooms, cargo spaces, and machinery.
    Quality rest is essential for a safe workplace, stress relief,
    and overall health. A recent survey reported that one in four
    mariners said they had fallen asleep on watch. Nearly 50
    percent of mariners reported work weeks of 85 hours or longer.
    Almost 50 percent of mariners believe their working hours are a
    danger to their personal safety. In the short term, stress and
    fatigue cause accidents. In the long-term, the effects are poor
    health and reduced life expectancy.
        Maritime security regulations have not only increased the
    workload on our mariners, they have cut off mariners' ties with
    the shore. Unfortunately, in many ports around the United
    States, mariners, labor representatives, visitors, and welfare
    service providers are denied access under the pretense of
    maritime security. The right to shore leave is a part of the
    International Ship and Port Facility Code, which is a treaty
    obligation of the United States. However, this important human
    right is often ignored.
        The Members of this Subcommittee are well aware of the
    problems with the TWIC program. There are two issues that most
    directly affect the maritime workforce. First, the program goes
    well beyond what Congress originally intended and it
    unnecessarily burdens mariners. For instance, mariners or
    prospective mariners who have committed one of the
    disqualifying crimes will be denied a TWIC until they prove
    that they are not a terrorism threat. Many of these individuals
    will leave the industry rather than endure this bureaucratic
    exercise. Second, a TWIC will not guarantee access for mariners
    to shore leave because the TWIC, a Federal security program,
    does not preempt State, local, or facility access control
    measures.
        Mr. Chairman, the United States must stop treating mariners
    like criminals and begin to treat them like the national asset
    that they are. They are dedicated professionals performing
    services essential to our Nation's economic and national
    security. If we can manage and develop this national asset
    appropriately, we have a chance to compete for the best and
    brightest of our young people.
        This concludes my remarks, Mr. Chairman. I would be happy
    to answer your questions.
        Mr. Cummings. Mr. Annessa?
        Mr. Annessa. Thank you for allowing me to testify on this
    subject this morning. My name is Carl Annessa. I am the
    Executive Vice President and Chief Operating Officer of
    Hornbeck Offshore Services, a publicly traded company which
    owns and operates vessels that support the offshore and the gas
    industry. Today, I am testifying on behalf of the Offshore
    Marine Service Association. OMSA's member companies are the
    lifeline to America's offshore energy resources, providing the
    U.S. flagged vessels that move all of the equipment and most of
    the workers needed to find and produce our Nation's offshore
    oil and gas resources.
        The topic of this hearing is important and timely: the
    offshore work boat sectors and the process of replacing and
    upgrading our fleet, building an estimated 150 offshore service
    vessels over the next five years. A recent OMSA survey
    indicates that our members will need about 3600 mariners to
    crew these new state-of-the-art vessels. Given the time that it
    takes for a mariner to work his or her way up to becoming a
    licensed captain or a licensed engineer, building our workforce
    is as important an industry priority as is building our new
    vessels.
        Our industry is concerned about the licensing process. The
    burdens that the International Standards for Training,
    Certification, and Watchkeeping Code have placed on our
    mariners are challenging. The STCW, which sets worldwide
    standards for mariners, was developed for large ships on ocean
    voyages. However, more than 90 percent of the U.S. flagged
    vessels that fall under the requirements of the STCW are
    smaller coastal and offshore boats. Increasingly, the Coast
    Guard's interpretation of STCW's mandates are out of synch with
    the needs of the vast majority of American mariners who fall
    under STCW.
        The Coast Guard does deserve credit, however, for its
    efforts to revamp its licensing and documentation system, and
    to cut down somewhat on the delays wrought by the
    implementation of STCW. From every indication, and some of
    those that you heard a minute ago from Admiral Whitehead, those
    reforms are beginning to take hold and beginning to improve the
    results of the licensing process that our employees face.
    However, the licensing process was developed for another age,
    when mariners had different and less complex needs. The current
    reforms may only improve the efficiency of an antiquated
    system. The Coast Guard needs to continue to strive for the
    modernization of the entire process to meet the needs of
    mariners today. If that takes additional resources, we would
    certainly encourage Congress to fund it.
        Another challenge that we face, again, as you have heard,
    is the aging of our workforce. A recent OMSA survey of member
    companies has determined that nearly half of our licensed
    officers are over the age of 50. That means, in five or ten
    years, our most experienced captains and engineers will be
    approaching retirement. Since it may take at least that many
    years for a mariner to rise to a senior position of
    responsibility in one of our vessels, we can't afford to waste
    any time in addressing that future and impending shortfall.
        The Coast Guard is currently working on new fitness-for-
    duty standards. We need to make sure that, as these medical
    standards are implemented, that they make sense and don't
    inadvertently cut productive careers short. Mariner wellness
    programs will become more and more important to our industry
    and the marine community at large. Congress should consider
    funding a program that helps promote wellness in the maritime
    industry. OMSA would welcome the chance to participate in a
    pilot project toward that end.
        The foregoing standard industry has a true strength: in the
    offshore work boat industry, we can offer Americans the
    opportunity to earn a very good living at a skilled profession.
    We can take young men and women and give them a clear career
    ladder that will move them from positions of entry level,
    unskilled laborers to senior positions as licensed masters and
    licensed engineers of multi-million dollar vessels. We will
    provide the training the mariner needs to advance to a job that
    could pay a six figure salary. We also offer a very safe
    workplace, one that is statistically safer than most any other
    workplace in America, according to OMSA data.
        The nature of the work can be hard and stressful, but I
    think our industry does offer something that is a fundamental
    American value, and that is opportunity. Individuals who come
    to work in our industry know, the day they first walk aboard
    one of our vessels, that their ability to succeed depends on
    their skill, their energy, and their willingness to work hard.
    We think that is a very American concept and worth celebrating
    and defending. Ultimately, we believe that that value will be
    the source of our success as an industry.
        We certain welcome the role of the United States Coast
    Guard as a partner in our efforts to streamline mariner
    education, licensing, and career development, but insist that
    they will so continue in that function, that they be adequately
    motivated, staffed, and funded for their role in that process.
        Thank you very much, and I look forward to your questions.
        Mr. Cummings. Thank you very much.
        Ms. Hammond.
        Ms. Hammond. Good morning. I am Cathy Hammond, CEO of
    Inland Marine Service in Hebron, Kentucky. We are a privately
    held company in the marine business since 1981. Unlike many
    companies in our industry, Inland Marine Service does not own
    towboats or barges. We provide the personnel to operate inland
    towboats for our client companies. We recruit, train, and
    dispatch the crew members for 19 boats operating on the
    Mississippi and Ohio River systems.
        I am testifying this morning on behalf of the American
    Waterways Operators. AWO is a national trade association for
    the tugboat, towboat, and barge industry, an industry that
    provides family wage jobs for more than 30,000 mariners in the
    brown-and blue-water trade.
        I love this industry, I believe in it, and I am proud of
    it. The towing industry provides great opportunities for young
    people looking to start a career or other Americans looking to
    make a career change. A college degree is not required. A young
    person can begin earning a living wage right away, and six
    figure incomes are achievable for those motivated to become
    pilots, mates, and captains.
        Despite the opportunities our industry offers, a career on
    the water is not for everyone. Today, the towing industry faces
    a critical shortage of vessel personnel. This is a problem at
    two levels: first, attracting new people to the industry and
    convincing them to make their career on the water; and, second,
    replacing retiring captains and replenishing critical wheel
    house positions.
        My written testimony describes in some detail the reasons
    for this situation. For now, let me simply say that there are
    no silver bullets that will solve the industry's personnel
    shortage and ensure the necessary supply of well qualified,
    well trained mariners to crew our vessels and meet our Nation's
    current and future transportation needs. Our industry
    recognizes that companies themselves bear the primary
    responsibility for making our industry as attractive as
    possible to current and prospective employees, and being
    creative in our recruitment and retention programs. We are
    working hard to do just that.
        We also believe that there is a role for Congress and the
    Federal agencies to play. The place to start is by eliminating
    government-imposed obstacles that make the job of attracting
    and retaining qualified crew members more difficult. We offer
    the following recommendations. First, government policies and
    regulations such as the TWIC program that established barriers
    for new hires should be modified. We urgently request your
    support for including a practical interim work authority
    provision for new hires in the manager's amendment to the Coast
    Guard authorization bill.
        Second, the Coast Guard should carefully review its
    protocols for interacting with vessel personnel and ensure that
    a stated objective of honoring the mariner is reflected in its
    dealings with the professionals who crew our boats. Routine
    interaction with vessel personnel should not be conducted in
    the same manner as a for-cause law enforcement boarding.
        Third, the Coast Guard should make changes to its licensing
    system that eliminates obstacles to advancement while ensuring
    high standards of safety. Congress should monitor the Coast
    Guard's ongoing effort to restructure and centralize the
    licensing program, and ensure that this much needed effort
    truly achieves its intended goals.
        Fourth, the Maritime Administration should recognize the
    changes in the domestic merchant marine and ensure that its
    publications reflect the fact that the majority of the onboard
    jobs today are on so-called small boats or small vessels such
    as towboats and tugboats.
        Fifth, Congress and the Maritime Administration should
    ensure that the U.S. Merchant Marine Academy modernizes its
    focus to reflect the domestic fleet today and help prepare
    graduates for jobs in the towing industry.
        Finally, we believe MARAD can also play a role in helping
    companies and mariners understand and tap into existing
    government resources or public-private partnerships for
    training and education.
        Mr. Chairman, the personnel shortage is a complex problem
    and there are no simple solutions. However, if government can
    take these items as a work list and industry redoubles its
    efforts to improve crew member recruiting and retention,
    together we can make a meaningful difference in tackling this
    important and growing problem. Thank you very much.
        Mr. Cummings. Thank you very much.
        Admiral Craine.
        Admiral Craine. Mr. Chairman, distinguished Members of this
    Subcommittee, thank you for the opportunity to testify today.
    While I am with the State University of New York Maritime
    College, I am here to represent all of the State maritime
    academies. And if I can convey only one message to you today,
    it is this: the State maritime academies--from Maine,
    Massachusetts, New York, Texas, California, Great Lakes in
    Michigan--produce the vast majority of all new licensed
    officers in the United States each year. These colleges are an
    extraordinary value to our Nation, but they need more
    government support to meet the growing demand for merchant
    officers who play such a critical role in our national
    security.
        Last year, these State academies produced 70 percent of all
    new licensed officers. This is up from 51 percent just four
    years ago, and we expect this upward trend to continue. There
    is tremendous demand, as we have already heard, for licensed
    officers. Many Federal agencies compete for our graduates along
    with the growing need and demand from the commercial industry.
    Former Commander of the Military Sealift Command, Admiral
    Brewer, stated that our national military sealift requirements
    cannot be met without these graduates.
        The State maritime academies operate under what is
    essentially a Federal mandate and are accountable to Congress,
    the Maritime Administration, the Coast Guard, and the
    International Maritime Organization for the education and
    training of our licensed students. Yet, only 3 percent of our
    annual funding comes from the Federal Government. The annual
    Federal contribution to the State academies has ranged from $10
    million to $13 million a year for all six State academies
    combined. The amount provided today is less than it was 15
    years ago in real dollars, a 25 percent decrease, while
    inflation for higher education has gone up by 70 percent.
        One of our most valuable assets is our federally provided
    training ships. These vessels provide invaluable, real-world,
    hands-on training to our students. The ships are generally
    older, former Naval or cargo vessels that need to be converted
    for school ship use. A ship assigned to Texas Maritime is not
    deployable as a training ship due to lack of Federal funds to
    convert it for school use. Three other ships, while usable, are
    still awaiting additional Federal dollars to complete their
    conversions. The oldest of these six ships is 46 years old and
    will soon need to be replaced. These ships are used by the
    Federal Government for other global and national emergencies.
    Half of them were activated by the President for humanitarian
    use following Hurricanes Katrina and Rita. These ships should
    be considered national assets and funded accordingly.
        Recruiting initiatives play a critical and crucial role in
    attracting young men and women into a maritime career. We ask a
    great deal of our students, who take in excess of 160 semester
    credit hours in order to graduate, versus a norm of 120 to 130
    for other college students, largely because of the merchant
    marine license courses that are required by the Federal
    Government to graduate. They also spend in excess of six months
    at sea during their summer and winter breaks.
        The State maritime academies offer in-State tuition or a
    reduced regional tuition to students from other States, to all
    other States, as an incentive to attract more prospective
    students. We are also working not only with high schools, but
    with elementary schools to get young students interested in a
    maritime career. The Federal Government also has a student
    incentive program that provides funds directly to students to
    offset the cost of uniforms, books, and subsistence in return
    for a service obligation in the merchant marine reserve.
    Unfortunately, payments in this program have not kept up with
    inflation and it is not the incentive that it used to be.
        Mr. Chairman, we will continue to carry out our mission of
    recruiting--which is our toughest job--educating, and placing
    the world's best trained, licensed mariners, but we need more
    Federal support in order to meet the growing demand for
    licensed merchant officers, for our training ships, our license
    programs, and the student incentive program. A stronger
    partnership with the Federal Government will better enable us
    to serve the needs of our Nation and our world.
        Mr. Chairman, I thank you for this opportunity and I look
    forward to any questions this Subcommittee might have.
        Mr. Cummings. Thank you very much to the panel and our
    guests. It is my plan to--we have three votes, one fifteen and
    two fives, and so five minutes. So what I plan to do is
    reconvene at 12:30. But I would like to get the testimony of
    our two witnesses in. We have exactly 11 minutes and 27
    seconds.
        Captain Beacom.
        Captain Beacom. My name is Captain Bill Beacom, and I
    appreciate the opportunity to appear before the Committee. I am
    a lifetime mariner, second generation. I was on boats by the
    time I was five years old. I got my first look at a wheelhouse
    all by myself when I was 17 and became a licensed mariner when
    I was 20. I am currently in my eleventh issue. I have run all
    of the rivers that the Admiral mentioned before and dozens
    more.
        The problem that we face with the industry is that people
    like me can't come up with a viable reason or a logical reason
    why anybody should join the industry, and we are the
    recruiters. What we find ourselves doing is trying to convince
    somebody that has got a certain amount of logic into joining
    something that is illogical. The pay looks really good on
    paper, but when you get on the vessels, you find that they can
    work you up to 14 hours a day the whole time you are on there,
    without any intervention by any regulatory agency or anything
    else. In a 30-day period, you can actually put in 10 42-hour
    weeks, and it isn't conducive to that.
        Now, you know, we always figure that we should have to take
    our hard knocks, you know, pay our dues, but paying our dues
    just doesn't get us anywhere because, when you become a pilot,
    you would think that you wouldn't have to work over 12 hours
    out of a 24-hour period because that is what the law says. But
    the law was in place long before we had 9/11, and since 9/11--
    even though before that we already had watch change
    conferences, which takes about an hour a day, when the two
    people have to be in the wheelhouse at the same time. And, by
    the way, any kind of a management system that requires both the
    pilot and the captain to be working at the same time breaks the
    law, just by the zero sum. If you get 24 hours and you have got
    to split it up into watches, and nobody can work any more than
    12 hours, any time both are required to be on watch at the same
    time, you break the law. So the watch change conference, by the
    letter of law, breaks it.
        Now we come along with our responsible carrier program, and
    the captains and the pilots were pretty well in a position that
    they couldn't argue with it, but they had to enforce it, and
    that takes time besides navigation time. Then 9/11 came along
    and the captain became the vessel security officer. Now, in the
    Federal Register it said it probably wouldn't take over two and
    a half hours a day to fulfill the requirements of the vessel
    safety security officer, but the companies are very proud of
    the fact that it only takes about 40 minutes, but that 40
    minutes is also outside the 12 hour law.
        And then we have the responsibilities of the crew endurance
    management system, not counting all of the paperwork stuff that
    we have to do in between. So you don't graduate from a 14-hour
    day to a 12-hour day, you graduate from a 14-hour day to
    another 14-hour day. And two of those hours are outside of the
    law. But do you dare say anything? No. Because, if you do, then
    you are considered to be a rabble rouser and you will be
    looking for other employment; and that is exactly why the
    people in this industry are 50 or 55 years old, because that is
    the only thing they know how to do, and they are just
    tolerating this onerous load that you have put upon us, and
    they are just working until the end of it, and very few of them
    stay over.
        Now, the wages are way up and it looks really good in the
    long-term, but a survey was done by John Sutton, the President
    of AIM, in 1998, in which he concluded that the average life
    expectancy of a towboat captain is 57 years and 8 months. And I
    brought that survey up to date, to 2004, and it stayed about
    the same; it might have even went down a little bit.
        So there is really nothing that would attract a person to
    this industry. We are overloaded; they have cut the crews on
    the boats. Not only have they cut the crews, the turnover has
    made it to where less of the people in the crews have
    experience. Because there is only a small amount of the people
    in the crews that have experience, they are worked to death;
    and a 14-hour day sometimes becomes a relief, because if you
    have two or three people on the boat that don't have the
    experience, then you have to make up for it.
        So what we really need is enforcement of the regulations
    that we have, and we need some new manning requirements.
        Mr. Cummings. You convinced me.
        Mr. Tellez.
        Mr. Tellez. Thank you, Mr. Chairman. Since I drew the short
    straw, I will try to be as quick as possible.
        Thank you for the opportunity, and welcome, to Ms.
    Richardson, to our world.
        I am Augustin Tellez, commonly known as Augie Tellez. I am
    the Executive Vice President of the Seafarers A&G District.
    Along with our affiliates, including the AMO, we are the
    largest representative of mariners employed throughout the
    entire spectrum in the maritime world.
        Quick snapshots, since we are pressed for time.
        Any discussion of manpower issues has to be taken in the
    context, first off, in national security. If you talk to a
    logistician, he will tell you the strategist plans the war, the
    tactician fights the war, and the logistician wins the war, and
    the way he does that is by the successful movement and
    sustainment of movement of vast volumes of cargo and material
    and troops required to win the battle. The major engine fueling
    that successful effort is the United States merchant marine and
    the manpower pool required to staff it.
        Besides the importance of the vessels themselves, more
    importantly, the U.S. commercial fleet, a viable and effective
    U.S. commercial fleet is a key component because it provides
    the employment base by which everything revolves.
        The other part of that merchant marine effort is the
    organic fleet or the military ships, including MARAD's RRF
    vessels. One of the lessons learned during the first Gulf War
    was that the Nation could not depend on laid-up old vessels
    without crews to be activated in a short period of time and go
    to war. We learned that lesson very quickly. Besides mechanical
    failures, it taxed the manpower pool employed at that time.
        In order to address those issues, we changed the way we did
    business and we came up with the RRF ROS program, which puts a
    cadre of crew members on all those laid-up vessels to not only
    maintain them and keep them ready, but also to provide a
    nucleus crew for any activation crew.
        Having said that, the commercial fleet being so important,
    we would like to thank this Committee, this Congress for their
    support and their continued support for programs like the
    Maritime Security Program, Cargo Preference, and all the other
    programs and policies that keep that commercial fleet viable.
        It is also amazing that, having talked about the importance
    of the RRF vessel, we are a little dismayed at the government's
    efforts, in order to realize some short-term financial savings,
    it is looking to reduce and eliminate entirely some of those
    RRF vessels and their crews, which exasperates the problem we
    are here talking about because it eliminates employment base
    and jobs.
        In general, the Union is not experiencing the shortage, at
    least on the deep sea side that we are here talking about. Part
    of that is because of the viability of the commercial fleet. It
    is also because we meet the challenges of the manpower issues
    through the aforementioned school in Piney Point. It just
    celebrated its fortieth anniversary and in that time has
    graduated 22,000 apprentices, new recruits. It has also
    graduated 100,000 upgraders and issued to them 238,000
    certificates, many of them Coast Guard certified and STCW
    certified.
        In anticipation of the boom in the Gulf mentioned by Mr.
    Taylor, a few years ago we met with our contracted companies
    and came up and developed an inland license program in
    conjunction with our contracted companies. They support it,
    they sponsor it. That, augmented by an inland apprentice
    program, creates kind of a cradle-to-the-grave situation where
    we recruit people specifically for that industry, ultimate
    objective of getting their license.
        In conclusion, let me just say the manpower issue, any
    manpower issue can be handled as long as you control and manage
    the pipeline efficiently. And as long as there are jobs,
    viable, effective jobs out there, you can manage any--meet any
    challenge or manpower issue.
        Also, before closing, my one comment on TWIC. Everyone else
    made their comments on TWIC. I find it amazing that we are
    sitting here talking about TWIC and imposing more stringent
    regulations and background checks on the most regulated people
    already, American citizens, and the very vessels that Mr.
    Bishop was talking about are transporting LNG gas into our
    Country with who knows who on those ships.
        Thank you for your time.
        Mr. Cummings. Thank you very much. We will see you all at
    12:30.
        [Recess.]
        Mr. Cummings. Thank you all very much.
        Admiral Craine, can you briefly speak about the partnership
    that your college is establishing with the several maritime
    high schools? And can you indicate whether you believe ties
    between such high schools and the Nation's maritime colleges
    could be increased to create a seamless educational path to
    draw students from high schools to the maritime academies?
        Admiral Craine. Yes, sir, I would be happy to do that. The
    short answer to your question is yes. We are reaching out to
    these high schools to see what we can do to make it not only
    easier for these students to be able to come to our schools,
    but to get these students interested. As I mentioned in my
    testimony, recruiting is tough to try and convince a young 17
    or 18 year old that life at sea and the maritime industry is
    something for them.
        One of the things that we're doing next Tuesday, I will be
    with Art Sulzer, Captain Sulzer, who will be testifying in the
    next panel, and his school that he represents in Philadelphia,
    the one that you mentioned_the Maritime Industries Academy in
    Baltimore_along with two others, on Tuesday to talk about what
    we can do to provide curriculum to their schools that will
    provide a broader overview of what the opportunities are, so
    that the students can actually get started before they come.
        Mr. Cummings. It seems like in other industries, there has
    been more of an effort to try to get to our kids at a young
    age, high school age. Why does it seem like we are a little
    behind with regard to this industry? Why do you think that is?
        Admiral Craine. I don't know if we are behind or whether
    these ideas of partnering, it is just a new, it is a great idea
    that we need, perhaps we could have been doing before. But we
    have realized that we need to reach out to high schools. And it
    is not just the rising seniors or those that are graduating,
    but we have to start at a younger age.
        When I was the chief of education and training for the
    Navy, when I was on active duty, we had a program called
    Starbase Atlantis, where we learned that it was at the fifth
    grade level, if we were going to attract youngsters to have an
    interest in the sciences and the math that we needed to get
    them at the fifth grade level. That was the knee in the curve,
    where you could get the biggest bang for the buck. And we are
    doing that on our campus and I know the others are as well. We
    have our oceanography, meteorology professors, science
    professors, working with elementary schools. Just two weeks ago
    we honored Eleanor Roosevelt Intermediate School from
    Washington Heights in Manhattan as one of those schools that
    has been working with us.
        And there are others. It is not something that is new to
    us, but the formal relationship we are finding is very helpful.
    We worked an agreement last week with Valley Forge Military
    Academy to accept any student that was accepted to their junior
    college, they have a high school and then a junior college. Any
    student that was accepted to their junior college would
    automatically be accepted to ours. Every day we are looking for
    new opportunities to establish these partnerships. We are
    really excited about the one that we are going to be talking
    about next week. We have three students from the Harbor School
    in Manhattan. They are freshmen, but they seem to be doing
    well, and we want more of them.
        Mr. Cummings. That is wonderful.
        Mr. Rodriguez, can you describe the extent to which the
    criminalization of mariners, you think, is affecting the
    recruitment? When I talked to the Admiral a little earlier in
    the first panel, he didn't seem to think that, well, I kind of
    got the impression that he didn't think that it was as bad as
    you make it sound in your testimony. Could you comment on that,
    please?
        Mr. Rodriguez. Yes, Mr. Chairman. Let me begin my answer by
    pointing out, what I have here is a report that was done back
    in May of 2002. I remember this effort because I was part of
    it, it was a very broad-based effort at coming up with some of
    the answers to the questions we are asking today in this
    hearing. And one of them is, one of the aspects of life at sea
    that, if I can take a moment to describe, these are very high
    level people from industry, from labor, from the Coast Guard,
    from the Maritime Administration, we all got together. We
    started at Kings Point in the spring of 2001. We had a number
    of meetings, things, as I recall, got a little overcome by the
    events of September 2001.
        But one of the aspects that this very broad-based group
    came up with, one of the problems that we had recruiting and
    retaining people into our industry, was criminalization. And
    that is in this report, and I would like to provide that for
    you.
        Over the years that I have been involved in the maritime
    industry, there has been more and more regulation put upon us.
    Mariners can be prosecuted under a number of different Federal
    statutes for discharging oil into the water, these are mainly
    environmental protection laws. And I can tell you that the
    level of morale on board ships has been affected. If you can
    imagine, it is not just the person who is being investigated or
    prosecuted directly who is affected; you have this whole
    mindset of the crew, particularly amongst the officers, that
    every time they go up that gangway, they may be liable for
    something that happens.
        So I hear about it. I worked at one time in the Merchant
    Marine Academy handling the training for a lot of the cadets
    who came through there. Some of the young graduates who had
    problems, they had an incident, would call me in my new job and
    say, I am thinking about getting out of the business: I got
    investigated. So it is affecting the morale of this industry. I
    would venture to say that it goes right from the inland people
    to the deep sea folks.
        Mr. Cummings. So we are looking into the ALJ situation and
    hopefully, that might be helpful in trying to address that
    issue.
        I want to go to you, Captain Beacom. In your testimony, you
    raised some very serious concerns about safety in the towing
    industry. You believe that manning, in particular, is often
    insufficient in part because the Coast Guard does not have
    adequate resources to ensure safety in the industry and in part
    because you believe management is essentially filtering
    information that passes to the Coast Guard through safety
    committees. Can you comment on how prevalent unsafe conditions
    you have described are in the towing industry?
        Captain Beacom. Well, a lot of it is based on the fact that
    they have cut the size of the crews to the point where it is
    impossible to operate safely. In 1988, I worked on a vessel
    that had a 10 man crew. That vessel is currently operating with
    a six man crew, doing exactly the same thing, and there is no
    automation that would lead to that downsizing. So you either
    have to come to the conclusion that the people that were
    operating the vessel in 1988 were idiots and they were paying
    four people not to do anything, or you have to come to the
    conclusion that those six people are now doing the work of ten.
    And any time you put that kind of an onerous workload on
    people, you decrease the amount of safety.
        Now, because of the fact that there is an onerous workload,
    the turnover changes. And I talked with people in both Dupont
    and Shell that say when you get more than a 20 percent turnover
    that any safety management program is nullified by the lack of
    knowledge within the group. And we have way more than a 20
    percent turnover on the deck on most towboats. So if you had
    adequate manning, you would eliminate this. Not only would you
    eliminate it, you would level the playing field so those
    companies who bid jobs on the basis of inadequate manning would
    not have a financial advantage against those who are trying to
    do things right.
        Mr. Cummings. Thank you.
        Mr. LaTourette.
        Mr. LaTourette. Thank you, Mr. Chairman.
        I apologize that other responsibilities didn't let me
    listen to your testimony, but I read it before.
        Mr. Rodriguez, I want to pick up with where the Chairman
    was on the criminalization issue, because we did have a rather
    lengthy hearing on the administrative law judge process, and I
    came away convinced that the Chairman was on the right path. I
    am a big believer that people can accept results, even when
    they lose, as long as they think they have been treated fairly.
    You don't always win, but you have to be treated fairly.
        If criminalization is one of the findings of this group
    that got together in 2001, what do you think the answer is?
    Clearly, we can't have people dumping oil in the water, we
    can't have people getting drunk and running their boats into
    rocks and things like that. So what would be your observation,
    that we should look more to civil penalties? What do you think
    we need to do?
        Mr. Rodriguez. Mr. LaTourette, I believe the answer, well,
    I don't want to confuse the ALJ issue and this issue of
    criminalization. We appreciate your looking at that problem. We
    are hopeful that you will come out with the right solution.
    Criminalization is, let me start by saying, anyone who
    willfully or intentionally discharges oil into the water is a
    criminal. That is clearly against our environmental law, it is
    against the public good. It should not be protected.
        But accidents do happen, and they happen in this high risk
    maritime industry. What we object to is under some of the
    environmental statutes, we have strict liability for what
    occurs, whether it is an accident or not. I think looking at
    the way those statutes are applied and the effect on this
    workforce, and again, it is not that it is always a direct
    effect. It gets into people's minds, it gets into the way they
    do business. They get overly protective, the crew begins to
    split between the junior officers and the senior officers who
    are probably going to be on the hook for anything that happens.
        I think a step in the right direction, and it is in my
    testimony, one of my recommendations is that we separate the
    investigations for trying to get to the cause of an accident
    and possibly a criminal action later on, and insulate whatever
    we find out in an accident investigation from any criminal
    prosecution that may result.
        Mr. LaTourette. Well, I think that is a good idea. We just
    had a big train derailment in my district, and two agencies
    came in, actually the EPA wandered in too, but we had the FRA
    come in, NTSB came in. NTSB is tasked with figuring out what
    happened. Then FRA is tasked with figuring out whether somebody
    should be held accountable for breaking the rules. Is that the
    model that you are sort of pitching to us?
        Mr. Rodriguez. Yes. The work that we do at IMO is kind of
    heading in that direction. There is a code of practice, it is a
    very long title and I haven't really committed it to memory.
    But there was a code of practice for the disparate treatment of
    seafarers after a maritime accident. And it has some principles
    in there. And one of the principles is that one of the goals of
    the investigation is to determine what the cause was and to
    prevent those kinds of accidents happening in the future.
        If you don't have the criminal side and the accident
    investigation side separated, it is very difficult to get at
    that root cause.
        Mr. LaTourette. I would think that is right, because if the
    person believes that they are going to be on the hook
    criminally, they are going to clam up. I mean, why would you
    want to cooperate and sort of incriminate yourself potentially
    or provide some information to somebody that could be used
    against your penal interests?
        Mr. Rodriguez. It can be self-defeating, and the
    international maritime community is beginning to realize that.
        Mr. LaTourette. Okay, and is that included some place? I
    know you said this in your testimony, these recommendations you
    are talking about, are they written down some place? Could you
    send those to us?
        Mr. Rodriguez. I certainly will. If I need to clarify them,
    if I need to elaborate on them, I certainly will.
        Mr. LaTourette. Thank you so much.
        Thank you, Mr. Chairman.
        Mr. Cummings. Just two questions. Mr. Annessa, you talked
    about the maritime industry's ability to recruit individuals
    from areas that are not near the water and that might in fact
    face a lack of local employment opportunities. What percentage
    of the people working for the member firms of the offshore
    marine service association live in areas that are not near the
    water and particularly in areas that are economically
    depressed? Can you give me some kind of ball park figure?
        Mr. Annessa. Yes, sir. I am not sure that without referring
    to our survey we could give you the exact componentry.
        Mr. Cummings. That is why I said ballpark.
        Mr. Annessa. I would suggest probably 75 percent of the
    mariners are in the coastal regions, the balance in the inland
    areas. I know that our particular company's case, when we look
    at our national demography, we have literally employees that
    live nearly every State in the Union, though the preponderance
    are in the Gulf States, Texas, Louisiana, Mississippi, Alabama,
    and then we have a high concentration in the Northeast, New
    York, Maine, and then in the Hampton Roads area, around
    Virginia, and then Florida. That seems to be the predominant
    locations where our workforce, and if it is indicative of a
    cross-section of the rest of the Country in our industry, then
    it would be probably appropriate. Seventy-five percent in the
    coastal areas, 25 percent in the inland areas.
        And one of the premises of our written testimony to attract
    mariners or candidates for employment in the marine industry in
    let's say inland or marginally employed areas would be to be
    more proactive in our communication of the opportunities that
    the industry affords potential prospects, particularly when a
    lot of the companies pay the transportation or provide a
    transportation allowance that allows the employee to cover the
    cost of moving back and forth to his assigned vessel from his
    home. It is a remarkable benefit in our industry that is
    available in very few others that I am aware of, with the
    possible exception of the airline industry where that travel is
    paid, or compensated to the employee to move from his location
    of domicile to his assigned vessel.
        Mr. Cummings. Do you worry about the future of these
    companies and their ability to get the employees they need?
    Does that concern you greatly?
        Mr. Annessa. It does concern me, sir, but it is not a grave
    concern. Because I do believe that we are on a momentum here
    that will, I hope, mitigate some of the busts and booms that
    our particular industry has experienced in recent years. We
    talk anecdotally about $80 per barrel oil as a motivator for
    continued investment by our particular client group in
    developing the offshore oil prospects in this Country. But our
    fleets are predominantly focused on an international
    capability, again, it is another great advantage that our
    industry affords, is that even if our vessels are not able to
    be employed in the U.S., those U.S.-flagged vessels can be
    employed in foreign locations and employ a certain complement
    of U.S. mariners. I think we are in a period at least for the
    foreseeable future of a prolonged opportunity for full
    employment. And with that momentum, I believe we will begin to
    attract new entrants into our business.
        The opportunities for a very predictable career path and
    the ability for an individual to attain a very well-paying job
    if he applies him or herself to achieving the credentialing
    that is needed is a very powerful and attractive for the
    candidates.
        Mr. Cummings. Can you tell me how much Offshore Marine
    Service Association generally spends on training their
    employees, and particularly for unlicensed mariners seeking to
    move ahead in their careers?
        Mr. Annessa. Yes, sir, approximately, unlicensed mariners
    from a greenfield start of what we would call an entry level
    employee that would be an ordinary seaman, we commit
    approximately $3,000 to $6,000 to take them through the STCW
    certification and get them proficient, for example, for the
    deck department to be a rating and performing part of a
    navigation watch, which is one of the certifications they
    require. Almost all of our member companies are bearing the
    cost of that themselves, reimbursing or paying for that
    training of those individual employees. The career path
    continues to move from that rating level to mate or in the case
    of the interim, to qualified man or chief engineer onto captain
    of the bridge. Commitment of training dollars over a six to ten
    year career path, which is necessary not only to accomplish the
    course work, but to achieve the sea time that is required, may
    result in a commitment by the companies of anywhere from
    $10,000 to as much as $40,000, depending on the standard of
    certification that is attained by the mariner.
        Now, certainly, we, like many of the other shipping
    companies under the U.S. registry, do try to seek candidates
    from the maritime academies, the State schools and Kings Point.
    They come with basically a third mate or third engineer's
    certification that they have earned through participation in
    the academic environment and the sea time they have achieved
    through those academies. But we also have to develop those
    mariners ourselves internally through what we call commonly the
    hawespipe, fellow, men and women that come up through the ranks
    to achieve those same certifications, at a cost either to
    themselves or generally borne by the companies that is not very
    much different than what they would pay or what the cost of an
    academy education might cost.
        Mr. Cummings. Thank you all very much.
        Mr. Tellez, nobody asked you a question, did you just need
    to say something? Go ahead and say it. We definitely want to
    hear you.
        Mr. Tellez. I would invite you all to Piney Point so you
    can see first-hand what happens down there in terms of training
    and certification. Come on down.
        Mr. Cummings. I have been there, but I will come back.
        Mr. Tellez. I would invite the rest of the Committee.
        Mr. Cummings. All right. Thank you very much.
        Our third and final panel, and I want to thank everybody
    for waiting around, we really appreciate it, Captain Arthur
    Sulzer, a Board Member with the Maritime Academy High School in
    Philadelphia, Pennsylvania; Captain Jeff Slesinger, the
    Director of Safety and Training with Western Towboat Company;
    and Berit Eriksson, Former Executive Director of the Pacific
    Coast Maritime Consortium.
        Mr. Sulzer.

      TESTIMONY OF CAPTAIN ARTHUR H. SULZER, USN (RETIRED), BOARD
      MEMBER, MARITIME ACADEMY CHARTER HIGH SCHOOL; CAPTAIN JEFF
     SLESINGER, WESTERN TOWBOAT COMPANY, CHAIRPERSON, COMMITTEE ON
     STRATEGIC PLANNING, PACIFIC MARINE TOWING INDUSTRY PARTNERS;
       BERIT ERIKSSON, FORMER EXECUTIVE DIRECTOR, PACIFIC COAST
                          MARITIME CONSORTIUM

        Captain Sulzer. Thank you, Mr. Chairman.
        Mr. Chairman and distinguished Members, it is a great
    pleasure to appear before this Committee. I am Captain Art
    Sulzer, a second generation mariner whose father served as a
    merchant marine officer in World War II. I have been in this
    industry my whole life and I have witnessed first-hand the
    effects of America's decline as a shipbuilder and ship-
    operating Nation.
        As one of the focuses of this hearing is shortness of
    mariners, I actually find that heartening that this may portend
    a change in our industry and some future growth.
        I am going to principally discuss maritime education at the
    entry and crew level, where our greatest shortages appear. My
    paper, which you have, is five sections. I am going to skip and
    just cover the last three in an effort to save time.
        Most people are familiar with mariner training such as the
    cabin boy serving tea on the Titanic, the powder monkeys
    serving cannon balls to gunners in movies such as Master and
    Commander. This is the impression many Americans have of
    maritime training, and they were right. It is a hands-on
    training, although it has changed quite a bit since those days.
        Today's mariner needs to be highly trained, needs to be
    dedicated and motivated. This applies to all positions on board
    ships, not just the master. That is what I want to address.
        Many of my colleagues today talked about current issues and
    problems. I would basically echo those: aging workforce,
    compensation issues, documentation, renewal problems. But the
    one area that was not talked about today that I want to focus
    on is our maritime heritage. This is not talked about very
    often. It is most overlooked, and unfortunately, the American
    public has largely forgotten that we are an island nation,
    dependent on waterborne commerce for most of our goods and
    services.
        Now, traditionally, American mariners have come from the
    European nations and certain areas of Africa, Asia and the
    Pacific. For the most part, they were also largely immigrants.
    Policies in the 1990s and security requirements have cut off
    the source of mariners. I believe we need to create a new
    generation of mariners in this Country with a tradition of
    maritime seafaring. And I believe that the group will come from
    our under-served urban students in America's cities, which can
    use this program as an opportunity to escape poverty and to
    find their ways to good, meaningful careers. That is what I
    think the maritime high school movement is about.
        Specifically in maritime education, I got involved in 2003
    as a board member opening a charter school in Philadelphia. We
    opened with 125 students. As of this year, we now have 700 and
    we have a waiting list of over 300 students. We will graduate
    our first seniors this year.
        Along with that, I was also completing my doctoral work at
    the University of Pennsylvania, and because of my involvement,
    I took the opportunity to start to conduct research on this
    growing movement. When I thought I had one school, lo and
    behold, I found there are over 16 in the Country and growing.
    My research specifically is entitled Maritime Tactile Education
    for Under-Served Urban Students in America: Sailing to Success.
    Presently there are 16 maritime middle and high schools around
    the Country that are about 350 to 400 students.
        What I have done in working with these schools, I have
    grouped them into a couple of categories. The first thing is
    program style, how they conduct their training. There is the
    integrated method, vocational, apprentice and academic.
        The other way that I group these schools is by program
    type; what type of outcome do they desire. We have general
    maritime studies, which is a broad program; industry-specific,
    such as fishing, marina, tug barge; company-specific, where a
    particular company takes an interest in a school looking for
    future employees, and lastly regional. I have given examples of
    some of these fine schools in my paper.
        What I would like to talk about is how we can help these
    schools succeed. Now, to help them, you have to see some of the
    positive outcomes. This has been parent-student interest, the
    graduation rates are up, comportment and student behavior has
    increased as a result of the maritime programs, academic grades
    have come up, and graduation upon employment.
        You have asked me to come, I hope that I have excited you.
    I have some suggestions for you on how you can help. These
    suggestions include promotion of conferences on maritime
    education, development of grant programs on maritime regional
    awareness, video materials, review of aid restrictions which
    impact apprentice programs, continuation of maritime vocational
    training, encourage Federal agencies to continue to work with
    the maritime schools and create and fund a national cooperative
    research program in marine transportation to serve as a conduit
    and a source for these efforts and increase public awareness.
        I see a positive future in maritime education and I am
    encouraged by the results we have seen in our own school and I
    hope this will be a continuing trend. Thank you, gentlemen.
        Mr. Cummings. Thank you very much.
        Captain Slesinger?
        Captain Slesinger. Good afternoon, Mr. Chairman. On behalf
    of the Washington State Skill Panel, I want to thank you for
    inviting us to speak about how we are currently dealing with
    the personnel crisis in the towing industry. I am Captain Jeff
    Slesinger, Chairperson of the Skill Panels Committee on
    Strategic Planning.
        I am also a working tugboat captain and Director of Safety
    and Training for Western Towboat. Western Towboat is a family-
    owned tug and barge company located in Seattle. We, as well as
    other west coast tug and barge companies, provide a vital
    transportation link between ports on the west coast and Alaska.
    There are many communities in Alaska where the only means of
    transporting critical supplies is with a tug and barge. Our
    work is diverse and essential. We move 600 foot tank barges
    filled with petroleum products; we tow freight barges stacked
    with containers; we tow ocean-going barges carrying rail cars
    on deck. We do this year-round through Pacific storms and
    Alaskan winters.
        I can tell you from my own personal experience that this
    work is challenging and very rewarding. But frankly, we have
    serious concerns about our ability to crew vessels today and in
    the future. We face challenges on all fronts: recruitment,
    training and retention of competent and qualified mariners.
        The Skill Panel's success in meeting those challenges is a
    result of a highly-organized, non-partisan collaboration
    between business, education, labor and the local workforce and
    economic development councils. The one word I hope you
    associate with our success and our testimony today is
    partnership. We found solutions by partnering with government
    and industry resources. And we would like the Federal
    Government to play a larger role in that partnership.
        Over the past two years, our skill panel has developed two
    highly effective and efficient partnership models that have a
    record of demonstrated success. The first is the Skill Panel
    itself. The catalyst for the panel's formation is the same
    fundamental personnel problem we share with the rest of the
    towing and marine transportation industry. We have good family
    wage jobs. We have people who want those jobs.
        What we don't have is a clear, coordinated career path. We
    don't have good answers to the man or woman who is on a dock
    and asks, how can I get a job on one of those tugs? What kind
    of training do I need and where can I get it?
        Although these are simple questions, the process of
    developing simple answers is more complex. This is because the
    source of these answers lies in different sectors. Industry,
    Government and educational institutions all house partial
    solutions. What is needed is an organization that connects
    these sectors, takes partial solutions and makes them whole.
    This is the primary role of our Washington State Skill Panel.
        The second example of the successful approach is our
    support of the Workboat Mate Vocational Apprenticeship Program.
    In 2005, the Pacific Maritime Institute, located in Seattle,
    pioneered this approach for towing vessels. This program
    provides a defined career pathway to the level of mate.
        At the end of the two year process, we have an individual
    who has confidence in his skills, because he has already put
    them to work in an on the job environment. The Coast Guard has
    confidence that this individual has met not just the certifying
    standard, but the intent of that standard. And the companies
    have confidence that this individual has been trained to a
    common, accepted standard, one that works in practice, not just
    on paper.
        The program's success is a direct result of a partnership
    between an individual cadet, the Coast Guard, the towing
    industry and the maritime training center. All bring commitment
    to the process, and all reap the rewards.
        The benefit of this program goes far beyond the original
    partners. The local communities have gained an individual whose
    family wage job contributes to the local and regional
    economies. He or she helps ensure that a critical link in the
    region's transportation network continues to function in a safe
    and effective manner. This is truly an example of how a rising
    tide floats all boats.
        This type of coordinated effort is readily available to
    other regions and could be expanded to all sea-going positions
    on tugs. However, funding for the Skill Panel will soon run out
    unless new Government resources are made available.
        Mr. Chairman, we very much appreciate the opportunity to
    appear before you today. Our Skill Panel stands ready to work
    as a contributing partner with this Committee and other Federal
    agencies. Together, we can create clear, viable pathways for
    training qualified individuals seeking a career in the towing
    industry. Thank you.
        Mr. Cummings. Thank you very much, Captain.
        Ms. Eriksson?
        Ms. Eriksson. Good afternoon, Chairman Cummings and Members
    of the Subcommittee.
        My name is Berit Eriksson, and I hold an endorsement as an
    Able Seaman Unlimited and I am a member of the Sailor's Union
    of the Pacific.
        As a working mariner and maritime workforce development
    specialist, I would like to thank you for the opportunity to
    address the Committee on the education and workforce
    development challenges facing the United States maritime
    industry. The U.S. Merchant Marine is diverse and its workforce
    problems are complex. I am convinced that mariner workforce
    development solutions must be as diverse as our industry. I
    want to primarily address and suggest a potential solution to
    the problem of the financial challenges facing merchant
    mariners as they attempt to advance upwards through the
    maritime career ladder. Commonly known as the hawespipe, it
    speaks to the difficult transformation of unlicensed mariners
    into licensed mariners.
        First, some background which speaks to the finding of
    solutions through partnerships. In 2001, the Pacific Coast
    Maritime Consortium, or the PCMC, was created to meet the
    immediate training needs brought on by the then-looming 2002
    deadline of the STCW Convention. It was a multi-State
    partnership approach encompassing Alaska, Washington, Oregon,
    California and Hawaii, and included five maritime unions and
    six maritime employers.
        From 2001 to 2006, the PCMC worked to ensure that qualified
    U.S. mariners were available in sufficient numbers for the
    maritime sectors of the West Coast region. During this period,
    it became clear that the advancement from unlicensed to
    licensed mariner positions was practically eliminated as a
    result of the new regulations. We could not accept that, and
    the Consortium turned to addressing the issue.
        As you may be aware, the STCW Convention had created
    certain unfunded training and certification mandates, which
    seriously impacted the ability of the industry to meet
    licensing requirements. Through a grant funded project, we
    found that it took a little more than two years for an
    unlicensed mariner working in the towing industry to complete
    all the certifications required for a third mate towing license
    at the approximate cost of $16,000 just for the courses. That
    is not counting travel and room and board expenses.
        Most working mariners find this too daunting a financial
    hurdle to career advancement. This is a cause for grave concern
    for when we consider that approximately 95 percent of the mates
    and masters in the U.S. offshore and coastways towing sector
    have come through the hawsepipe.
        To develop solutions to these challenges, the PCMC hosted
    several regional maritime roundtable meetings in Alaska,
    Hawaii, California and Washington with the Skills Panel, where
    there emerged a strong consensus on the concept of the maritime
    education loan program. It is modeled after the existing and
    successful Teachers Educational Forgivable Loan program. The
    program would provide unlicensed mariners with the means to
    pursue higher certification by vaulting the financial obstacles
    by a Government loan that is forgivable only upon demonstration
    of long-term commitment to the industry.
        With this in mind, we drafted sample legislative language
    as a possible solution to the financial challenges of advancing
    in a maritime career. The main points of the concept are: the
    program would be administered by the Maritime Administration;
    to encourage retention, the loan would be forgiven if the
    mariner completes 36 months of sea time; the loan may not
    exceed a lifetime total of $60,000; the loan may be used for
    tuition, travel to and from training facilities, room and
    board, books, loan guarantee fees and other required fees. The
    loan program would initially be a five year pilot project.
        The training institutions would be chosen based on
    geographic diversity, their ability to administer a Federal
    program and their possession of appropriate U.S. Coast Guard-
    approved sites, courses and instructors. Student eligibility
    would be based on their holding a valid merchant marine
    document, committing to completing the course of instruction
    and serving as a merchant marine officer or unlicensed mariner
    upon the completion of the course of instruction.
        The appropriate office for administration of the loan
    program would be the Office of Maritime Workforce Development
    within the Maritime Administration. This office should also be
    the site for other innovative workforce development programs
    that need to be integrated with the U.S. Coast Guard regulatory
    requirements. One such program could be a Secretary's
    discretionary grant program, which exists in Labor, and it
    would well here, I think, which could fund maritime workforce
    demonstration projects such as multi-State training projects,
    demographic and industry needs research projects, entry level
    enrichment programs and youth school-to-career programs.
        In conclusion, I would like to thank you again for this
    opportunity to present some possible solutions for recruitment,
    training and retention challenges facing the merchant mariners
    and the maritime industry today.
        Mr. Cummings. Thank you all very much.
        Mr. Slesinger, tell me, how difficult is it for a young
    person who is not a member of a union to get the training they
    need to move ahead in the maritime industry?
        Captain Slesinger. Right now, it is I would say a matter of
    circumstance. For instance, for a non-union company, such as
    ourselves, if you approached us, some of our best employees are
    those that have no background and are basically walking up and
    applying. But what has to happen is a relationship has to
    develop between that company and that individual where it is a
    mentor relationship, it carries them through the process.
    Because there really is no formalized structure or organization
    that could lead that person through there.
        So it is very dependent on the companies they contact and
    it is very dependent on the type of relationship they can
    establish with that company.
        Mr. Cummings. Captain Sulzer, you were talking about how
    you went from, in Philadelphia, I think you said, from 125
    students to 700, is that right?
        Captain Sulzer. That is correct, sir.
        Mr. Cummings. One of the things that I, what I have tried
    to figure out is that when I look at the Baltimore school, I
    think we have a lot of students coming, and some of them
    genuinely have an interest in maritime. Many of them are just
    looking for a decent school to go to where they are going to
    feel safe and feel as if there is learning taking place. I hate
    to even say that, but it is true.
        So I am trying to figure, and because of that, they have
    had a tremendous success rate in the five or six years they
    have been there. I don't think it has so much necessarily to do
    with the curriculum. I think that is going to change, though,
    and I think that what is going to happen is that the curriculum
    is going to drive it. I think Baltimore will have a problem in
    the next two or three years if not, probably less than that,
    with a waiting list of people trying to get into this school.
        What do you see as the problems you have seen so far with
    the schools you have been involved with? How easy or difficult
    is it to create a curriculum that truly trains them to go into
    the maritime industry and do you get the impression that a lot
    of these young people are basically going to these schools,
    like I said, to get a decent education, not necessarily going
    into the industry? And I am sure there are advantages of just
    having that knowledge, even if they never go into the industry,
    many of them will go on to college, and may not want to go the
    route of the industry.
        What do you see are the problems and what do you see is
    attracting young people to the Philadelphia school?
        Captain Sulzer. You are correct, a good, safe school is the
    first attraction to the school, since these students don't know
    what maritime is, as I mentioned before. Our job is, once they
    get there, to fire up an interest. We chose to start at fifth
    grade. As Admiral Craine said, the difference in education in
    fourth and fifth grade, a student goes from being fed education
    to eating education on their own.
        So we chose an earlier model to get these kids interested.
    In our early program, grades five to nine is what I call the
    song of the sea, where we take maritime and we infuse it in all
    the regular subjects. Pilgrims came over on the Mayflower; that
    is the last most of us ever hear of the Mayflower. It is a
    ship, it had to navigate. So we start to infuse this at the
    early grades to get them interested in our programs when they
    move into ninth grade.
        Now, I can give a concrete example of how maritime actually
    helps these students improve. One particular school that has
    been around for a while, again, most of these schools have only
    opened since 2000, so the track record is short. Mar Vista,
    which is in the San Diego area, has had a long partnership with
    the Military Sealift Command. They have had a maritime program
    for five years and they have graduates. What they started to
    show me the data is that, again, in most of these inner-cities
    schools, if you show up and go to class, you are going to pass.
    That is not true every place else.
        What happened in this school is, the students, because of
    Coast Guard requirements for training and passing and
    documentation, they had to do more than show up in the maritime
    classes to get by. And an amazing thing happened: they worked
    hard. When they went back to their regular classes in the
    afternoon, the brain didn't get shut off. And lo and behold,
    what started to come up was English, science and the other
    courses. Because what they learned by making the commitment to
    maritime, which they made, we didn't force them, is they
    learned their own skills and they started to develop. That is
    what really excites me.
        I will be honest, at the end of the day, if not a single
    graduate of Maritime Academy Charter School works on the water,
    but everyone graduates, we hit a home run. Because you know
    graduation rates inner city. I have to say that as an educator.
        But I am fully convinced that a percentage of those
    students will go into maritime, and as they come back to the
    neighborhoods, which they can do, because of transportation,
    they will talk to their fellow neighbors and that will grow. We
    have 300 on the waiting list right now. So I am convinced this
    works and I have seen it.
        Mr. Cummings. One of the interesting things, I have visited
    the Maritime Academy in Baltimore on several occasions. But my
    last visit, I so happened to get there when the former marine
    chief warrant officer, Officer Williams, was drilling these
    students and teaching them to march. And I was just amazed that
    these kids were doing it. It sort of blew me away that
    everybody was in line, and he has his marine uniform on.
        And the reason why I raise that is you talk about the
    quasi-military nature, and if you have a quasi-military
    component there, that it helps with behavior. I kind of saw
    that, I saw kids that were, I think, I get the impression that
    they almost want the discipline, they almost want the
    structure. And I can hardly wait to see them in their uniforms.
    That, I am sure, will be an even greater boost.
        In Baltimore, as many districts are dealing with, we are
    dealing with gangs and the phenomenon of gangs. We are finding
    that there are certain things that attract kids to gangs, it is
    the discipline, it is the family, it is the belonging, things
    of that nature. When I talk to some of these kids and ask them
    why do they like the kids, a lot of the very things that other
    kids tell me attract them to gangs, the identical types of
    things that attract them to the school, that closeness, that
    discipline, somebody looking over your shoulder, people going
    in the same direction that you are going in.
        Now, of course the gangs are going negative, the Academy is
    going positive. Could you comment on that, please?
        Captain Sulzer. I agree with you. In fact, I just spoke
    with the lieutenant colonel who runs Western Maritime School up
    in Buffalo. He and I were talking, and he was about ready to
    pull his hair out, because he has been there about two years. I
    said, stay the course. It is going to be rough the first couple
    of years. I had to sit on discipline boards and everything
    else, and I felt like Captain Blye sometimes.
        But you go through a learning curve where those who are
    going to get with the program stick with it, and then that
    number swells and those that aren't going to get with the
    program leave. Once you turn the corner, the momentum grows.
    One program we talked about is typically, you give out demerits
    for bad behavior.
        Well, we talked about giving out doubloons as a reward. We
    ignore the 90 percent of the kids who sit there and want to
    learn and we focus on the 10 percent. So what I've been
    advocating is we give out doubloons for making the grade.
    Everybody knows doubloons, pirates, et cetera. This is what the
    kids like. You earn these doubloons for good grades and good
    behavior, and you redeem them at the end of the month. How
    about some positive rewards instead of negative?
        So I agree with you. But the schools will go through a
    learning curve and then they will turn the corner and it is
    only going to get better. That is the message I am trying to
    get out there.
        Mr. Cummings. This is my last question. Is there something
    unique about maritime, say a maritime curriculum in achieving
    the things that you and I just talked about, as opposed to
    perhaps a medical type curriculum, preparing them for medical
    school, preparing them for other types of things? Is there
    something very unique about maritime that would cause that kind
    of effect that we are now talking about?
        Captain Sulzer. Well, as I said, we are an island nation.
    We all got here by a boat a long time ago. And it is something
    I believe that people thrive on. When I go to meetings, parents
    come up to me, they want to know how to get their kids
    involved. They don't know anything about it, it ignites
    something in people. I can't put my finger on it. I guess it is
    just the way we are in this Country. But it is awareness, and
    it is very important to get the parents involved at an early
    stage, and maritime will bring them to a meeting. They like it,
    and that is critical.
        Mr. Cummings. Yes, Ms. Eriksson?
        Ms. Eriksson. Mr. Cummings, when I was working with the
    Pacific Coast Maritime Consortium, we did have a grant that
    funded Mar Vista High School, partially. So I was the project
    coordinator down in San Diego at the time. And the kids were
    going to school in the building I was in.
        And in answer to you, what was one of the things about the
    curriculum that really got them, and strangely enough, because
    I was a working mariner, this happens on a ship, the kids who
    were like the engine kids and the kids who were like the deck
    kids, they called them the black gang and the knuckle draggers.
    They identified with being marines. They had that, as you said,
    that identity like they are not in the gang any more. But now
    they are like deckies or they are like the black gang. And they
    take great pride in that. So I think that is part of what
    happens within that curriculum.
        Mr. Cummings. Thank you very much.
        Mr. LaTourette.
        Mr. LaTourette. Thank you, Mr. Chairman, and thank all of
    you for your testimony.
        Captain Sulzer, is the Mar Vista program the oldest of the
    16 that you have laid out in your testimony?
        Captain Sulzer. No, it is not. It is the most focused,
    specifically for direct employment upon graduation. Actually,
    some of the schools go back into 1991. But one of the things
    is, and I have kind of put them together, I have to clarify,
    there are maritime schools and there are marine. They are
    different. Marine schools have typically been around a little
    bit longer, there are several in Florida. Marine deals with the
    sciences and biology and oceanography. Maritime is a fairly new
    phenomenon. And they can work together and they can work in
    concert, and some schools actually have both programs.
        So Mar Vista is focused on marine employment, deep sea, and
    has a partnership particularly with MSE.
        Mr. LaTourette. And did you indicate that Mar Vista
    actually has graduated a class?
        Captain Sulzer. Yes, sir, they have.
        Mr. LaTourette. And I know that the Chairman was talking
    about something that is of great interest to me, and that is, I
    think it is wonderful to get graduation rates up and so forth
    and so on, but if we are dealing with people actually going
    into the business, is there any data available based on that
    graduating class of how many kids chose to make maritime a
    career?
        Captain Sulzer. There is, sir. I don't have it in front of
    me. It is not great, but it is there. And I guess one
    indication is, I have people looking for our seniors that
    haven't even graduated yet. So there is a large interest from
    employers. And again, I tell employers, I used to be head of
    personnel at a company. People leave because they don't like
    your company. You need to start a partnership early on.
        The one comment that was made today, I will just take a
    brief moment to mention, is the cost of mariner training. What
    I have said to marine employers is, you will spend $6,000 to
    $10,000 on an unknown walking in off the street. How about you
    give me $1,000 for my ninth graders and get to know them for
    four years and build a relationship? That ninth grader is going
    to stick with you. That is a much better investment than
    throwing money out at unknowns. That is what I think is a big
    help.
        Mr. LaTourette. I think that is exactly right, and that
    goes into what I want to talk to Captain Slesinger about, and
    that is apprenticeship programs. Do these 16 institutions that
    you have put in your testimony have apprenticeship programs as
    part of their curriculum or no?
        Captain Slesinger. Some do. One issue that has just come
    up, which I mention in my comments, which was unknown to me, I
    started working as a mariner with the Corps of Engineers when I
    was 16. Apparently in the 1980s, some changes were made in the
    labor laws that preclude young people, before the age of 18,
    from working in the marine field. This is a particular problem.
        I had KC Shipping offer me four full-term internships this
    summer for our eleventh graders, and I couldn't get the
    students involved because of that. Now, maybe something can be
    done to exempt an apprentice program which is structured and
    looked at, rather than direct employment. But most juniors are
    not going to be 18. And it is a problem that is just starting
    to show up.
        Mr. LaTourette. Is that a State law or is that a Federal
    law?
        Captain Slesinger. I believe it is Federal. I am working
    with some DOL people on that to get a little more information.
    But that just came out of left field for us.
        Mr. LaTourette. Captain Slesinger, the apprenticeship
    programs that you were describing in your testimony indicated
    that their success is really determinative based upon the
    company buy-in. And are you finding, because of shortages,
    because of new training requirements, are you finding companies
    willing to make that buy-in? Are they eager to do that?
        Captain Slesinger. Yes. Yes, companies are very eager to do
    that. I think their problem is finding the right vehicle to do
    it. That is why, in the towing industry, I do not believe that
    you could have a successful training program unless you involve
    the companies. These are hands-on jobs and you need people to
    be out there working with their hands and working on the
    vessels. We heard earlier testimony that one of the problems
    with the Academy is the lack of ships. There are many, many
    tugboats around which could use apprentices and start that
    training process. But that is key to their success.
        Mr. LaTourette. This reminds me, I have a lot of folks in
    the machine business back in Ohio. Most of them are first or
    second generation people who came from Eastern Europe, most of
    them are 50, 60, up in years. Like you, they are having trouble
    attracting young people to make that a career path. Some of the
    most successful recruitment efforts that I have seen are based
    upon fellows that have apprenticeship programs, teaching them
    that it is actually a good career, it can be a rewarding
    career.
        Ms. Eriksson, there has been a lot of talk today about the
    cost of STWC standards, and you mentioned it, some others
    mentioned it. I think you mentioned $16,000, I think one of our
    earlier witnesses said $20,000, and maybe they put in the room
    and board that you said wasn't included in your figure.
        I have two questions before I get to your loan proposal.
    Have these higher standards resulted in a safer maritime
    working environment, in your opinion? Sometimes we make rules
    that don't mean much, even when you follow them.
        Ms. Eriksson. As an unlicensed mariner in like the basic
    safety training, et cetera, I do believe they have made it
    safer, especially when I worked for the Alaska Marine Highway
    in the steward's department, they never drilled that with fire
    and et cetera. So I found that to be highly of value.
        I think when you get into the higher levels, I don't know,
    because I am not an officer, I am an unlicensed mariner, but
    just anecdotally, I think some of it became a little too highly
    regulated. But you have to meet the convention.
        Mr. LaTourette. Right. And my observation is there is some
    basic stuff, we had a hearing on marine safety and we had some
    captains in that indicated when they drilled, they had turnout
    suits that didn't fit, because somebody got a little chubbier
    than they used to be when they first got the suit. So there is
    some basic stuff, like CPR and lifesaving, things like that.
        But let me talk to you about your loan proposal, because I
    am intrigued. I happen to be a big supporter, I think the
    Chairman probably is, too, that we do recognize in certain
    industries, we have a national interest in promoting employment
    in those industries. So we do it, you mentioned teachers, I
    think we do it with nurses, we do it with physicians. And it is
    to make sure that under-served areas have the opportunity to be
    served by health care professionals or teachers, as the case
    may be.
        I understood what your proposal is. Do you think that it
    needs to be for the entire Country or should we target it
    towards particular areas that are having difficulty recruiting
    and maintaining merchant mariners?
        Ms. Eriksson. In my opinion, it should be a national
    program, as it would be, then, within MARAD. Because the issues
    in Alaska are often the same issues as in Florida or in the
    Gulf Coast and Seattle in terms of the coast-wise, and that is
    all around the Country, the hawsepipe issue. Though it is
    designed to even be usable to somebody who wants to get their
    AB and tankerman, which could cost $5,000. So I think, but as a
    pilot project, I think you should target geographically the
    areas where there is the most need.
        Mr. LaTourette. Let me ask you just this $16,000 or $20,000
    or whatever it is, is it your experience and observation that
    that cost is completely borne by the person who wants to
    receive that certification? Or do the companies help?
        Ms. Eriksson. Often a company can help or a union can help.
    But in terms of like when you are hawsepiping the unlicensed
    union doesn't necessarily want to pay for you to become
    licensed and vice versa. Also the traditional independence of
    mariners, they tend to want to move around. So there are quite
    a few mariners that will want to get this on their own, or that
    used to get them on their own with a minimum of expense to get
    their license and that is all shut down. So you would have to
    almost indenture yourself, in a way, to get what you needed.
        Mr. LaTourette. And is it your observation, just so I am
    clear, that the STWC stuff has taken it from it didn't cost too
    much to get your license? Is it all in STWC that takes us up to
    the $16,000, $20,000?
        Ms. Eriksson. My understanding is that the STWC
    certifications requirements for between AB and mate, it is like
    flashing lights and stability, et cetera, and GMDSs. I base the
    $16,000 on what the Pacific Maritime Institute was charging at
    the time.
        Mr. LaTourette. Thank you very much. Thank you, Mr.
    Chairman.
        Mr. Cummings. Just one last question, Ms. Eriksson. Let's
    talk about women in the industry. What challenges do we have
    with regard to getting women in this industry? I am just
    curious.
        Ms. Eriksson. From when I started, when it was hell, to
    now----
        Mr. Cummings. Say that again?
        Ms. Eriksson. It was hell in the beginning, in the 1970s.
    But the situation has really changed. It is much better. The
    academies are turning out really good women officers and stuff.
    And something I want to not only in terms of women, I want to
    bring up in terms of this meeting is, we have spent a lot of
    time talking about officers, where 75 percent of the workforce
    is unlicensed.
        That is where the challenges were for women in the past,
    especially in the engine room. But that is changing a lot. And
    some of these programs, like the high school programs, Mar
    Vista and others, the girls, high school girls, they are doing
    really well. There are girls coming out of those high school
    classes, too. It has improved quite a bit. It can get better.
    It is not as unpleasant any more. There is a lot more
    acceptance.
        Mr. Cummings. Thank you all very much. This ends this
    hearing.
        [Whereupon, at 1:50 p.m., the Committee was adjourned.]
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