SIU-contracted Maersk Line, Limited has issued the following news release:Maritime Administration Approves Transfer of MSP Operating Agreements to Maersk Line, Limited
MLL will work with Maritime Administration to Assume Direct Operation of the 15 MSP Vessels
WASHINGTON, June 7 -- Maersk Line, Limited (MLL) applauded today the U.S. Maritime Administration's (MarAd) decision approving MLL's request to transfer the 15 Maritime Security Program (MSP) operating agreements for the ships currently being operated by U.S. Ship Management (USSM).
MLL petitioned MarAd in 2003 to transfer the MSP operating agreements so the company could more effectively and efficiently operate the vessels. In the original operating contracts between the two companies, USSM agreed to transfer direct operation of the 15 vessels to MLL should MLL elect to become the MSP contractor. The decision follows an arbitration award concluding that the applications for the MSP operating agreements “submitted by MLL to MarAd were properly submitted by MLL.”
“We are extremely pleased with the MarAd's decision approving the transfer of the 15 MSP operating agreements to MLL,” said Kenneth C. Gaulden, MLL senior vice president. “Our first priority with this action was always to ensure that we deliver the best possible service to the U.S. government, both in peacetime and war. Now, we look forward to the benefits that will be brought about by streamlining operations and creating much-needed efficiencies.”
Gaulden added: “MLL will work closely with MarAd to assume direct operation of the ships in an appropriate, efficient and expeditious manner, while continuing to support our military forces engaged in the war on terrorism and serve our commercial customers.”
The vessels will remain U.S.-flagged supporting U.S. global trade and national security, and will be crewed by American seafarers. MLL also provides the U.S. government immediate access to its global network of intermodal assets including terminals, cranes, logistical platforms, computerized management systems and equipment. Today's decision closely integrates management of the 15 MSP vessels with that global system, strengthening the MSP for military purposes and enhancing the U.S.-flag presence in international shipping.
MarAd noted the role of MLL in national security in its decision: “[MLL] currently operates vessels for the U.S. military performing missions as diverse as the afloat pre-positioning of U.S. Army and U.S. Marine Corps combat equipment, U.S. Navy counter-drug operations, and highly classified ocean surveillance. Maersk also holds a special security agreement. The United States Transportation Command supports the transfer and has advised us that they consider [MLL] to be an industry leader providing [the Department of Defense] unparalleled transportation services, not only with regard to U.S.-flag vessels, but also its extensive global infrastructure consisting of berths, cranes, IT systems, transportation systems, regional logistics expertise, and much more.”
MLL will work with MarAd to meet the conditions specified in the decision for transfer of the operating agreements.
About Maersk Line, Limited
Maersk Line, Limited is based in Norfolk, Virginia, and is one of the Department of Defense's primary shipping contractors. It has been a reliable partner for the government in peacetime and war for almost 30 years. The company operates vessels registered in the United States in full compliance with U.S. laws and regulations. It manages a fleet of nearly 50 ships in commercial and government service, including vessels requiring Top Secret security clearances. Maersk Line,
Limited, a subsidiary of Denmark's A.P. Møller - Maersk A/S, is independently controlled by a board of directors comprised entirely of U.S. citizens including Vice Admiral William H. Rowden, (USN, Ret.) former commander of the Naval Sea Systems Command. The retired vice chief of naval operations and supreme allied commander, Atlantic, Admiral Harold W. Gehman, joins Admiral Rowden on the board.
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