[Federal Register Volume 62, Number 152 (Thursday, August 7, 1997)]
[Notices]
[Pages 42624-42625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-20839]


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DEPARTMENT OF TRANSPORTATION

Maritime Administration


Voluntary Intermodal Sealift Agreement (VISA) (62 FR 6837, 
February 13, 1997)

AGENCY: Maritime Administration, DOT.

ACTION: Notice of Meeting with Tug/Barge Operators and Charter 
Carriers.

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Introduction

    On June 25, 1997, the Maritime Administration (MARAD) and the 
United States Transportation Command (USTRANSCOM), co-hosted a public 
meeting focused primarily on the U.S.-flag tug/barge and charter 
carriers to provide background information and discuss the advantages 
of becoming a participant in the Voluntary Intermodal Sealift Agreement 
(VISA) Program.
    The VISA program was established pursuant to section 708 of the 
Defense Production Act of 1950, as amended, which provides for 
voluntary agreements for preparedness programs. After review of a one-
year prototype, VISA was approved January 30, 1997 and published in the 
Federal Register on February 13, 1997.
    The mission of VISA is to make intermodal shipping services/
systems, including ships, ships' space, intermodal equipment and 
related management services available to the Department of Defense 
(DoD) as required to support the emergency deployment and sustainment 
of U.S. military forces.
    Subsequent to publication in the Federal Register, MARAD and DoD 
centered attention on enrolling carriers in the U.S. liner trades in 
the VISA program. Currently, 18 U.S. carriers have enrolled in the 
program.
    MARAD and DoD have expanded their focus to the tug/barge operators 
and charter carriers. Tug/barge operators are targeted because they can 
play an important role in executing contingency plans. Tug/barge 
operators can provide capacity for intertheater logistics and domestic 
trade backfill. Charter carriers are important because they provide 
capacity for sealift, prepositioning and other DoD charters.
    The June 25 meeting was attended by 11 representatives, including 
brokers, of the tug/barge and charter industry, MARAD and various DoD 
agencies to include USTRANSCOM and Military Sealift Command.

Purpose of the meeting

    The purpose of the meeting was to establish contact with and inform 
the U.S.-flag tug/barge and charter industry about the objectives and 
benefits of the VISA program. The U.S. Government's objectives include: 
assured access to capacity when needed; contractual commitment and 
prenegotiated rates; and, planned partnership with commercial sector. 
The benefits to the industry include: knowledge of DoD sealift 
requirements; fair compensation for risk incurred; protection of market 
share; and, flexibility to provide a full range of sealift services not 
just specific ships.

Advantages of participation during peacetime

    Because enrollment of carriers in the VISA provides assured access 
to sealift services based on a level of commitment as well as a 
mechanism for joint planning, DoD will prioritize the award of 
peacetime cargo to VISA participants. This will apply to liner trades 
and charter contracts alike.
    The joint DoD/Department of Transportation/Industry planning 
authority provided under VISA is a significant step forward in 
fostering a partnership between industry and Government. The forum 
allows the Government and industry to learn about their respective 
needs and capabilities, and will facilitate better coordination of 
combined resources during contingencies.

Participants

    Any U.S.-flag vessel operator willing to commit sealift assets and 
assume the related consequential risks, may be eligible to participate 
in the VISA program.
    While vessel brokers and agents play an important role as a conduit 
to locate and secure appropriate vessel tonnage for the carriage of DoD 
cargo, they may not become participants in the VISA program. However, 
the carriers they represent should be encouraged to join the program.

Commitment

    A carrier desiring to participate in DoD peacetime contracts/
traffic must commit no less than 50 percent of its total U.S.-flag 
capacity in Stage III of the VISA program. Under Stages I and II, DoD 
will annually develop and publish minimum commitment requirements. To 
minimize domestic commercial disruption, a participant exclusively 
operating vessel capacity in the domestic Jones Act trade is not 
required to commit vessel capacity to VISA Stages I and II. Commitment 
requirements are based on annual enrollment.
    In order to protect a carrier's market share during activation, 
VISA allows participants to join with other carriers in Carrier 
Coordination Agreements to satisfy its commercial or DoD contingency 
requirements. VISA provides a defense against antitrust laws in 
accordance with section 708 of the Defense Production Act of 1950.

Compensation

    In addition to receiving priority in the award of DoD peacetime 
cargo, compensation during activation is revenue based on a rate 
methodology which is commensurate with risk and service provided. The 
rate methodology determination for liners and charters continues to 
undergo development.

Enrollment

    In order to participate in the VISA program a carrier should submit 
duplicate originals of the VISA Agreement to Participate to MARAD. Once 
MARAD has reviewed, approved and countersigned the VISA agreement, the 
participant will execute a VISA Enrollment Contract with the Military 
Traffic Management Command/Joint Traffic Management Command which 
specifies its Stage III commitment and codifies the terms and 
conditions.


[[Page 42625]]


CONTACT PERSON FOR ADDITIONAL INFORMATION: Raymond Barberesi, Director, 
Office of Sealift Support (202) 366-2323; fax (202) 493-2180.

    By Order of the Maritime Administrator.

    Dated: August 4, 1997.
Joel C. Richard,
Secretary, Maritime Administration.
[FR Doc. 97-20839 Filed 8-6-97; 8:45 am]
BILLING CODE 4910-81-P