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NATIONAL MARITIME DAY

Remarks of
Jeffrey N. Shane
 Under Secretary for Policy
U.S. Department of Transportation

Propeller Club of Jacksonville
JAXPORT Cruise Terminal

 Jacksonville, Florida
May 24, 2006

I am delighted to be here in Jacksonville to meet with so many supporters of the maritime industry. We at the Department of Transportation view the Jacksonville Propeller Club as our valued partner. Your dedication to the well-being of all interests of the maritime community on a national and international basis is strengthening our nation’s transportation system in challenging times.

The purpose of my visit is to celebrate National Maritime Day. And I can think of no better place to celebrate than here in Jacksonville, a city whose economy and future are so tightly intertwined with the maritime industry.

As you know, Maritime Day honors the many brave men and women who have contributed, and continue to contribute, so much to our economic well being and our national security.

In the major mobilizations of the 20th Century – World War I, World War II, Korea, Vietnam, and Operations Enduring and Iraqi Freedom – our men and women in combat relied on the invaluable work of merchant mariners. This remarkable legacy of service lives on today.

More than 90% of the materiel for fighting the global war on terrorism has been carried to the Middle East on the water. Over 5,000 merchant mariners voluntarily put themselves in harm’s way to transport much-needed equipment and supplies to our troops serving in Iraq and Afghanistan. And this noble service continues.

The merchant marine has proven itself essential here at home as well.

Immediately following the horrific terrorist attacks of 9-11, America’s merchant mariners were among the first to answer the call for assistance by transporting emergency personnel and needed supplies to Ground Zero.

That day, more than half-a-million people were safely evacuated from Lower Manhattan on ferryboats, tour boats, and government vessels.

And in the days that followed, merchant mariners stayed the course, providing rescue and recovery support and ferrying responders into and out of Manhattan.

And just last year, immediately following Hurricane Katrina, Secretary Mineta took the unprecedented step of calling the Maritime Administration’s Ready Reserve Force ships into service to help move supplies and personnel into the Gulf Coast region and to move people out of harm’s way.

MARAD ships brought in emergency cargo, generated electricity, used their cranes when port cranes wouldn’t work, and provided shelter and meals to relief workers. Ships and crews gave assistance to Port of New Orleans workers, MARAD staff, pilots, harbor police, contractors, and the Army, Marine Corps, and the Air Force.

Three days ago, Secretary Norman Y. Mineta presented medals to 30 merchant mariners who distinguished themselves in that effort. They answered the call to duty quickly and willingly. The extraordinary skills they showed in extraordinary circumstances saved lives.

The maritime industry also plays a vital role in America’s growing economy – an economy that outpaced those of every other major industrialized nation in 2005 and, during the latest quarter, grew at an impressive 4.8 percent rate.

Waterborne cargo and associated activities contributed more than $742 billion annually to the U.S. GDP. America’s network of waterways moves 2.2 billion tons of domestic and foreign commerce each year, and the top 50 ports in the U.S. account for about 84% of all waterborne domestic and international cargo tonnage.

In an increasingly global economy, the Jacksonville Port Authority plays a major role. More than 70 percent of U.S. waterborne trade to and from Puerto Rico moves through JAXPORT. This vital trade lane contributes more than $1 billion to the economy of the North Florida region and generates or supports more than 32,000 jobs here in the Sunshine state.

Of course, shipyards such as Atlantic Marine and North Florida Shipyard also add to this region’s prosperity.


And I would be remiss if I didn’t mention a fine company such as Crowley Liner Service which provides highly diversified marine transportation services.

Clearly, maritime activities in and around Jacksonville will play a large part in charting America’s economic future. The more than $200 million that JAXPORT has committed over the last decade to improving its terminals and harbor will ensure the port’s continuing role as a major economic engine in Northeast Florida.

But port congestion remains a major challenge, not just for Florida, but for our entire nation. And the backups are not just a problem for the ports themselves, but of what happens beyond the gates on highways and freight railroads that are already stretched to their limits.

The $286 billion surface transportation bill President Bush signed into law in August contains many of the innovative financing provisions we requested to improve freight movement through our gateway seaports and along major trade corridors. This includes several provisions that encourage private-sector involvement and make transportation investments inside seaports eligible for credit assistance.

But even with these important measures, congestion still clouds America’s long-term economic forecast. I don’t think it’s necessary to convince anyone in Jacksonville that congestion is a problem. In 2003, drivers in the Jacksonville area alone burned an extra 10 million gallons of gas while spending more than 16.85 million hours stuck in traffic. The total cost of this delay: $285 million, just in 2003.

Secretary Mineta is determined that transportation will not be a chokepoint for our economy. So he tasked our top thinkers across the Department of Transportation with developing a comprehensive action plan to eliminate major congestion choke points, reduce delays, and ensure that people and goods can move efficiently throughout our transportation network.

And last week, he unveiled the product of that assignment: the Bush Administration’s new National Strategy to Reduce Congestion on America’s Transportation Network. This major Department-wide initiative provides federal, state, and local officials with a clear plan to follow as we work together to eliminate one of the single largest threats to our economic prosperity and way of life.

Part of this plan involves a heavy focus on our largest metropolitan areas. We will seek “Urban Partnership Agreements” with as many cities as are willing to participate. These agreements will embrace several proven, effective strategies, including variable priced tolling programs designed to spread traffic flows throughout the day and get more out of existing highways; more dedicated lanes for buses carrying rush-hour commuters; streamlined review of highway construction projects; and flex schedules and/or telecommuting options for employees. Perhaps Jacksonville will want to be one of the first to join in this effort!

We will run a competition to find three to five “corridors of the future” – corridors with the greatest potential to relieve traffic based on current and projected growth patterns. And we will put a major federal support structure in place to help these high-priority projects navigate the enormous organizational and funding challenges that they always face.

We also are going to encourage more states to pass legislation to give the private sector a broader role in funding and operating transportation systems.

And we will identify new technologies that are successful in reducing traffic tie ups, and encourage more states to use them. We also will restructure our approach to funding aviation programs so that we can better match the need for new runways, towers, and air traffic control equipment to current demand.

And finally, we are targeting freight bottlenecks -- in Southern California, in this region, and around the country. Our plan calls for convening a joint border transportation task force with the Department of Homeland Security to accelerate some of the most significant transportation investments at our borders. And we will engage America’s major companies – including many represented in this room today – in a sustained dialogue about our national freight policy.

The maritime community is a cornerstone of that policy. As we celebrate Maritime Day 2006, let’s remember that the men and women who make up that community are not just human resources.

They are not just part of the economy.

They are the essence and the lifeblood of what makes America great.

And I salute all of you — the men and women of the Jacksonville Propeller Club — for your love of the maritime industry and your commitment to keep it the best in the world.

Thank you.

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Briefing Room