Port Security Oversight Hearing Held -- June 11, 2004 -- California Capitol Hill Bulletin -- Volume 11, Bulletin 19

The Coast Guard and Maritime Transportation Subcommittee of the House Transportation and Infrastructure Committee held an oversight hearing on Wednesday, June 9, 2004 to examine the implementation of the Maritime Transportation Security Act (MTSA) and to review two pending port security bills, both of which were introduced by members of the California Congressional Delegation. H.R. 2193, introduced by Rep. Doug Ose (Sacramento), provides funding for port security enhancements, while Rep. Juanita Millender-McDonald's (Carson) H.R. 3712 creates a new grant program aimed at improving seaport security.

Rep. Bob Filner (San Diego) welcomed witnesses in his opening statement, but expressed concern over MTSA implementation and questioned whether the Coast Guard is prepared to meet the Congressionally-set July 1, 2004 deadline. By that date, every vessel and operating facility is required to have its security measures certified by the Coast Guard. He pointed out that a recent survey by the International Maritime Organization showed that only 9 percent of ships and 5.4 percent of ports have had their security measures certified, and only 57 percent of ships have submitted their plans for approval.

In her opening statement, Rep. Millender-McDonald noted that America's 361 seaports handle 95 percent of the nation's overseas trade by volume and that maritime industries contribute $742 billion per year to the U.S. Gross National Product. She said that her proposed legislation, " The United States Seaport Multiyear Security Enhancement Act" (H.R. 3712), calls for a creation of a grant program to be administered by the Department of Homeland Security and an investment of $4 billion over five years to address port security needs. Rep. Millender-McDonald also underscored the pivotal economic role that ports play, and reminded the audience that the 2002 West Coast port 10-day lock out cost the nation an estimated $1 billion per day.

The Subcommittee members heard testimony from the following witnesses: Rear Admiral Larry Hereth, Director of Port Security, U.S. Coast Guard; Mr. Noel Cunningham, Director of Operations and Emergency Management, Port of Los Angeles, also testifying on behalf of The American Association of Port Authorities; and Mr. Michael Mitre, Coast Port Security Director, the International Longshore and Warehouse Union.

Mr. Hereth testified on the Coast Guard's implementation of MTSA. He said that 99 percent of the nation's ports that have submitted their implementation plans to the Coast Guard for approval are now in compliance with MTSA's regulations. He also said that 99 percent of vessels are compliant as well. Mr. Hereth noted that the Coast Guard anticipates that all implementation plans submitted will be approved by the July 1, 2004 deadline. He added that foreign vessels without certification of their compliance will not be allowed into U.S. ports. He urged congressional support for the FY 2005 proposed funding for the Coast Guard, which includes $101 million in new resources for MTSA implementation. When question by Ranking Member Bob Filner (San Diego) about the Coast Guard's efforts with respect to inspection of empty containers and container seals, Mr. Hereth replied that the Coast Guard is addressing this issue and that tampering with seals and failure to inspect empty containers are being treated as serious concerns by the Coast Guard.

Mr. Cunningham and Mr. Mitre addressed H.R. 2193 and H.R. 3712 and offered recommendations to improve the overall security of the ports, in addition to speaking about MTSA implementation by the ports. Mr. Cunningham emphasized the fact that the Los Angeles/Long Beach Port Complex is the 7^th largest container port in the world, the 3^rd busiest, the largest in the nation, and handles 42 percent of commerce coming into the United States. With respect to MTSA implementation, Mr. Cunningham said that MTSA's aggressive schedule has posed significant challenges not only for the Coast Guard but for port authorities as well, even though the Los Angeles/Long Beach Port Complex is on track to be in compliance by the July 1, 2004 deadline. Mr. Cunningham also outlined several current port security initiatives: 1) the Transportation Worker Identification Card, a pilot program in its third phase that might prove to be an answer to port security concerns with respect to truck drivers and other transportation workers; 2) the Joint Container Inspection Facility, which is expected to have an array of sophisticated container screening capabilities for use by U.S. Customs and Border Protection and other law enforcement agencies and which will provide the means to efficiently screen a greater number of containers using the most effective technologies available; and 3) Operation Safe Commerce - a program design to track containers to secure the overall supply chain. Mr. Cunningham offered strong support for H.R. 2193 and H.R. 3712, He said that both bills focus on obtaining sufficient federal financial assistance to fund port security infrastructure projects, which is a top priority and the most important challenge currently facing the U.S. port industry.

Mr. Mitre briefed Subcommittee members on a recent incident at the Los Angeles/Long Beach Port Complex, which involved an export container that exploded several minutes before being loaded on a carrier. He testified that several red flags were missed in the process, including the fact that the accompanying paperwork had a general cargo description and did not specify that cargo's contents were hazardous, and that the container had no seal on it and displayed no placards. In his testimony he criticized several current practices in place at the ports and said that such practices need to be reformed. He pointed out that export cargo is not treated the same way as import cargo and argued that an automated system, which replaced human personnel at the ports' entry gates is not as accurate as was initially advertised. He asserted that truck drivers are granted access to the port with almost no verification, that the separation of dangerous containers is not done, and that empty containers go unchecked -- all practices he insisted have to be changed. Upon questioning by Rep. Filner, Mr. Mitre said that Congress needs to pass specific regulations about inspection of empty containers. Without explicit requirements such inspections will not take place as they are costly and slow down production. Mr. Cunningham confirmed Mr. Mitre's assertions and added that shippers responsible for securing containers often have low profit margins and do not consider security of their shipments as priority.

To get more information about this hearing please visit the Coast Guard and Maritime Transportation Subcommittee's website at: http://www.house.gov/transportation .

To expand communications between Washington and California, the California Institute provides periodic bulletins regarding current activity on Capitol Hill that directly impacts our state. Bulletins are published weekly during sessions of Congress, and occasionally during other periods.

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