Page images
PDF
EPUB

8. Air-conditioning systems were installed in crew messrooms and officer's dining rooms adding to the comfort on board.

Existing improvements and continuous effort toward further improvements in ship operations and crew services and facilities will contribute appreciably to a more efficient and economical support effort.

SHIPBUILDING PROGRAM

Priorities and allocation

During the reporting period, a tight material procurement situation continued to exist because of the Vietnam action. The delegation of authority from the Under Secretary of Defense (Installations and Logistics) to make allotments of controlled materials and to apply DO-A3 ratings to contracts and purchase orders to meet the delivery schedules for the ships in the title V subsidy replacement program and the vehicle cargo ship for MSTS was extended to the Coast and Geodetic Survey ships under construction in three shipyards. This authority was delegated in accordance with the Defense Production Act and BDSA delegation 1. Priorities and allocation actions covering 53 ships essential for defense purposes were processed under the regulations of the defense materials system. The need for priorities assistance continues to be essential in the procurement of ship materials and equipment containing brass and copper in any form. The most serious problem was in the procurement of shipboard electric cable. The current strike of the principal companies producing copper and brass will undoubtedly have adverse effects on procurement related to ship construction in the near future. Action has been initiated by the Administration to obtain extension of the delegation of authority for allotments of controlled material to cover all title V ship construction through the fiscal year 1968 program. Construction

During this reporting period the ship construction program consisted of the following projects:

1. Completed construction of eight cargo ships all under constructiondifferential subsidy contracts with allowances for national defense features, where applicable.

2. Awarded a contract for the construction of one new cargo ship under construction-differential subsidy, with allowances for national defense

features.

3. Completed construction of five survey ships for the Coast and Geodetic Survey.

4. Awarded a contract for the construction of one research vessel for the National Science Foundation.

5. Completed the conversion of two cellular containerships.

6. As of June 30, 1967, there were 42 ships under new construction in which the Maritime Administration had an interest, including 37 new replacement ships, four ships for the Coast and Geodetic Survey, and one National Science Foundation research vessel. In addition, oceangoing private shipbuilding and conversion work consisted of two new roll-on-roll-off ships, eight tankers, and 11 tanker, cargo-containership conversions. The Maritime Administration continued to survey existing privately owned shipyards capable of merchant ship construction, conversion, and repair to keep current the records of their capabilities, including facilities and skilled personnel to handle planned programs. A special report on available U.S. shipbuilding and repair capacity was prepared for the use of the Industry Evaluation Board of the Business and Defense Services Administration in its emergency planning in furthering programs concerned with industrial mobilization, industrial defense, planning for postattack survival, and postattack restoration activities.

In keeping with the readiness concept that a national emergency must be met by the then active fleet plus activation of ships from the reserve fleet and replacement of losses within the capability of surviving facilities, emphasis has been placed on upgrading the active fleet and on upgrading ship construction and repair facilities to handle ships of larger dimensions and weights and including features of advanced technology.

A continuing review of the utilization of the major commercial shipyard facilities and labor under current programs was conducted for the guidance of the Maritime Subsidy Board in the implementation of section 502 of the Merchant Marine Act, 1936, as amended. This provision of the act has for its purpose the

maintenance of the potential of the shipbuilding industry for a national emergency.

The Office of Ship Construction completed a project to develop plans and specifications for a steam turbine ship design which can be quickly and economically produced in times of national emergency. The project to develop the plans and specifications for a diesel-powered version of this design is now approximately 75 percent complete.

PORTS AND PORT FACILITIES

The port emergency preparedness program includes responsibility for mobilization planning activities relating to port systems and facilities in the United States, its territories, and possessions, and involves the following:

Port mobilization planning

This activity involves plans and programs for determining requirements to be imposed upon port systems and facilities; port expansion goals, programs, and financial incentives; adequate port mobilization base; port supply and requirements; operation and security of port systems and facilities under partial and full mobilization and attacks and postattack conditions; use of alternate ports; and restoration of ports in postattack phase.

Approximately 110 U.S. port entities, including those of Alaska, Hawaii, Puerto Rico, and the Virgin Islands are currently engaged or are organizing to engage in preparedness planning for emergency port operations, using as a common guide a Maritime Administration publication entitled "Current Planning for Operation of U.S. Seaports Under Emergency Conditions," and Supplements Nos. 1 and 2 thereto. Supplement No. 3 entitled "National Policy Concerning Essential Port Facility Restoration Materials" was distributed to the holders of the basic publication. A documentary and instructional movie entitled "Port Preparedness" has been completed and has been given wide distribution. The "Manual for Federal Port Controllers," a publication designed to provide guidance and instructions for members of the port unit of the National Defense Executive Reserve, has been revised and distributed.

Port inventory and capability analysis

This activity establishes criteria and processes port data which is used in analyzing the emergency capability of the Nation's port system. It provides for the maintenance of an inventory of U.S. ports and port facilities, including the development of a methodology for estimating port capability in terms of berthing space and daily maximum potential transshipment capacity (at berth) of marine terminals used for handling general cargo, petroleum, grain, coal, ore, and other dry and liquid bulk cargoes. The current inventory of port facility data includes some 180 U.S. ports located on the Atlantic, gulf and Pacific coasts, the Great Lakes, Alaska, Hawaii, Guam, American Samoa, Canal Zone, Puerto Rico, and the Virgin Islands. The automatic data processing system developed for handling the collected and evaluated port data provides for transferring the data from punched cards to computer tapes for use in preparing a machine analysis of damage to port terminal facilities under a wide range of conditions and nuclear attack patterns.

Port capacity tabulations

Based on an inventory of civilian owned and operated port terminal facilities, a set of four tables containing estimates of daily port transshipment capacities at U.S. ports located on the three ocean coasts and the Great Lakes is maintained by the Maritime Administration. A fifth table, based on an inventory of military owned and operated port terminal facilities is also maintained and contains similar port capacity data as contained in the other four tables. United States-Canada working group on transportation emergency planning

The Maritime Administration, in conjunction with the Office of Emergency Transportation, Department of Transportation, continued its participation in the work of this group, whose primary objective is to define emergency transportation problem areas and to consider proposals for their resolution. The ultimate goal is an overall emergency transportation agreement with Canada, including reciprocal use of ports.

MANPOWER

Shipboard personnel

During fiscal year 1967, shipboard job requirements increased by more than 4,100 due to additional reactivations of Government-owned ships. The incidence of manpower shortages among Government-owned ships' crews causing delayed sailings continued with increased severity as follows:

Number of sailings delayed_.

Minimum delay (hours).

Fiscal year

1967

228

6

Maximum delay (hours).

334

Average per delayed sailing (hours) -

75.3

Marine engineer billets continued to contribute mostly to the crew shortages experienced. A total of 411 short-handed sailings of Government-owned (GAA) ships during fiscal year 1967 had unfilled jobs of:

[blocks in formation]

The Maritime Administration continued close liaison with seafaring labor organizations, providing periodic projections of manpower requirements and continued to aid the industry in training plans. Training programs initiated during early fiscal year 1966 continued to prepare skilled unlicensed seamen for officer rank. The Marine Engineers' Beneficial Association (MEBA) District 2, Seafarer's International Union (SIU) program has prepared a total of 160 unlicensed personnel for licensing as third assistant engineers and currently remains the most productive training program. An apprentice program with a 2-year curriculum has been established by the MEBA, District 1, for developing licensed marine engineers. The initial class of approximately 60 apprentices has been in training for the past 10 months. The International Organization of Masters, Mates & Pilots established a 90-day third mate preparatory course in January 1967 for unlicensed seamen and former Navy personnel. It is estimated that approximately 50 graduates successfully received a third mate's license. A radio apprentice program commenced for the training of radio officers. An apprentice program, based on 6-months training ashore followed by 1 month at sea, is producing about 50 radio officers per year. Attempts will be forthcoming from the industry to seek legislative action reducing the 6-month prior seatime requirement for radio officers. The five State maritime academies and the U.S. Merchant Marine Academy scheduled successfully early graduations of their 1967 classes. Graduation at the Federal academy was in mid-February. Conditions in seagoing labor supply are expected to remain tight through the next fiscal year, with increases in ship delays and short-handed sailing occurring during the summer months and the Christmas holiday period.

Shipyard manpower

Shortage of skilled manpower continued to be experienced by most of the private shipyards. Practically all larger shipyards have apprenticeship schools in operation and shipyards continuously advertise for skilled personnel. The critical shortages include pipefitters, welders, shipfitters, machinists and electricians.

Merchant vessel defense equipment and training

The joint MSTS/Marad atomic, biological and chemical defense and damage control program continued. The Atlantic, gulf, and Pacific coast districts are conducting shipboard training programs to insure a radiological defense capability aboard U.S. flag merchant-flag vessels which have been equipped for such defense action. This program provides for inport and underway training (on coastwise passages), and provides personnel indoctrination and inspection and activation of the ship's equipment to determine the readiness of the ship to detect and combat radiological hazards. A manual containing detailed information on all phases of the protection program is issued to each ship having radiological defense equipment. Vessels equipped for radiological defense operating out of the gulf or Pacific coasts are inspected on a continuing basis.

The Maritime Administration also provided support for the continuation of specialized training courses in the uses of navigational aids, (radar, loran, and gyro) and damage control and firefighting. The number of seafaring personnel processed through these programs during the first 6 months of 1967 is reflected in the following table of class activity:

[blocks in formation]

The Maritime Administration obtained authority to extend the Department of Navy priority to manufacturers and suppliers of Vietnam general agency ships. These priority arrangements have greatly assisted in the repair, outfitting and supply of Government-owned ships.

Joint participation with the Department of Defense continued in an interagency mobilization planning program. The program objectives and implementation steps were:

1. To determine overall material and requirements essential for the merchant fleet in a national emergency, acquaint private industry with the purpose and objectives of the program, survey plant facilities for production capabilities, and negotiate mobilization procurement agreements covering Maritime Administration and Department of Defense requirements. As a result of joint efforts, planning agreements were negotiated with approximately 15,000 manufacturing plants.

2. To establish an emergency pool of marine components and items to be utilized as available replacement parts by the merchant fleet in an emergency. In cooperation with some 180 privately-owned shipping companies, approximately 3,600 marine items were made available at 130 storage points located in 60 U.S. cities, foreign bases, and aboard ships. This program is being updated on a continuing basis relative to spare parts availability and storage locations.

3. To furnish input resource data to the National Resource Evaluation Center of the Office of Emergency Planning relative to essential producers covered by mobilization procurement agreements and strategic storage locations of essential pooled marine components. This data includes source of manufacture, item description, ship application, storage depot identification, inventory quantities, and location by geographic and universal transverse mercator (UTM) coordinates. Approximately 2,400 source points for components are maintained currently available as printouts to be incorporated with damage assessments in the event of an attack, for early determination of priority item availability for merchant fleet operations.

RESERVE SHIPYARDS AND TERMINALS

Negotiations are continuing betwen the General Services Administration and the city of Richmond, Calif., for the sale of the Richmond Shipyard. Under the terms of the Maritime Administration's Report of Excess Real Property, this yard will remain available for a period of 10 years for reactivation as a shipyard in the event of mobilization. The Maritime Administration and the city of Norfolk, Va., have entered into a lease-purchase agreement for the Norfolk Terminal. The city is proceeding with its development as a modern marine cargo facility, having extensive wartime potentials.

WAREHOUSE OPERATIONS

During the fiscal year 1967, unrequired and obsolete stock items were disposed of in the amount of $1,517,000 to assure that retention items maintained will be of current usable type. During the same period, $2,344,000 was issued to ships re

[ocr errors][merged small][ocr errors][ocr errors][ocr errors]

activated for use in Southeast Asia, leaving a $10,034,000 stock balance available for mobilization activities.

WAR RISK INSURANCE PROGRAM

The Maritime Administration administers the war risk insurance program authorized under title XII of the Merchant Marine Act, 1936, as amended, designed to provide war risk insurance for waterborne commerce of the United States, including ships and their supplies, cargoes, loss of life and injury of crew members and other persons, and personal effects of crews. It is available to vessel operators who conform to the requirements as prescribed in General Order No. 75, second revision, as amended. Under this program 3,865 (hull, protection and indemnity, and second seamen's) binders were outstanding as of June 30, 1967. In addition to covering American ships, this program continues to provide interim insurance of Pan-Hon-Lib ships, majority owned or controlled by U.S. citizens, whose owners have contracted to make their ships available to the Government upon request, in the event of a national emergency. As of June 30, 1967, 142 policies had been issued for war risk builder's risk insurance covering the prelaunching period on new construction. Also, war risk builder's risk insurance for the postlaunching period, effective after operation of commercial automatic termination clauses, was provided and 33 policies had been issued on a service fee basis. Pursuant to section 1205 of title XII, the Maritime Administrator entered into an agreement with the Department of the Navy effective July 1, 1965, providing certain war risk insurance requested by the Navy. As of June 30, 1967, the insurance arrangements under the agreement were as follows:

Second seamen's war risk insurance coverage was provided for the civilian crews of 20 tankers and nine range instrumentation ships owned by the Department of the Navy and operated by the Military Sea Transportation Service through commercial operators.

Second seamen's war risk and war risk hull insurance coverages were provided for a privately owned tanker and its crew while under bareboat charter to the Military Sea Transportation Service.

Second seamen's war risk, war risk hull, and war risk protection and indemnity insurance were made available on privately owned vessels time or voyage chartered to the Military Sea Transportation Service. This standby arrangement will provide the required insurance upon request.

Under section 1208(a) of the title, a war risk insurance revolving fund was established, and as of June 30, 1967, fund net assets amounted to $3,821,900.55. Funds are also available up to $10 million from the vessel operations revolving fund created by Public Law 45, 82d Congress.

The Maritime Administration purchased marine protection and indemnity insurance on National Shipping Authority-General Agency Agreement (NSA-GAA) operated ships for 1 year effective March 31, 1967. This is renewed each year to take advantage of the worldwide claims settling facilities of commercial underwriters. In addition, other claims of a marine and war risk insurance nature assumed by the Government (not recoverable from commercial insurance) are as follows:

MARINE AND WAR RISK INSURANCE CLAIMS FOR NSA-GAA OPERATED SHIPS

[blocks in formation]

Includes claims reported in prior years.

2 Approximate. 3 Represents death benefits for 7 seamen and loss of personal effects of the crew of the "SS Baton Rouge Victory,' struck by a mine in the Saigon River on Aug. 23, 1966.

EMERGENCY COMMUNICATIONS

The Maritime Administration is continuing its efforts to obtain secure communications capability through the National Communication System (NCS) plan to provide high priority emergency message service linking certain Mari

« PreviousContinue »