Maritime Alert June 2008 Authors: Susan B. Geiger +1.202.661.3818 susan.geiger@klgates.com James A. Sartucci +1.202.778.9374 jim.sartucci@klgates.com J. Timothy Hobbs +1.202.661.3755 tim.hobbs@klgates.com K&L Gates comprises approximately 1,500 lawyers in 25 offices located in North America, Europe and Asia, and represents capital markets participants, entrepreneurs, growth and middle market companies, leading FORTUNE 100 and FTSE 100 global corporations and public sector entities. For more information, visit www. klgates.com. www.klgates.com Coast Guard Marine Safety Performance Plan: Are Changes Really Coming? The maritime industry has spoken. Coast Guard has responded. Are improvements in Coast Guard marine safety functions really coming? Major changes require major funding. In the battle for scarce federal dollars, voices count. The industry must speak up to support these changes if they are to become a reality. Last year, the so-called “Iron Triangle” of industry-agency-Congressional support for the Coast Guard was broken. With homeland security missions demanding priority attention, Coast Guard’s inspection and marine safety functions were, from the industry’s point of view, suffering from inattention and inexperience, leading to costly delays and aggravating operational problems for industry. A Congressional hearing on the problems aired frustrations on both sides. At the request of the Commandant, retired Vice Admiral James Card investigated the problems and developed a number of recommendations intended to restore and improve Coast Guard focus on marine safety, while retaining Admiral Allen’s organizational consolidation at the sector level. Coast Guard has now taken the next step, issuing for public comment its five-year plan for improvements in marine safety functions. Comments on the plan are due by July 20, 2008. Comments may be submitted electronically via MSPerformancePlan@ uscg.mil. Performance Plan Initiatives Coast Guard will undertake six major initiatives over the next five years. 1. Superior Workforce: To achieve improvements in its workforce, Coast Guard will • Increase marine inspector and investigator capacity, by adding 276 personnel to the program, paid for in part by user fees received from the expanding number of U.S.flag vessels subject to inspection •Strengthen marine inspection and investigation consistency by adding civilian positions • Increase accessions from maritime institutions by strengthening recruiting efforts at maritime colleges • Expand career paths in marine safety and professional marine safety training and education • Expand opportunities for maritime industry training and enhance engineering capacity 2. Superb Service Delivery: To enhance service delivery, Coast Guard aims to • Establish centers of expertise focused on specialized areas of industry • Improve information technology systems •Increase rulemaking capacity to expedite regulatory implementation • Improve mariner credentialing and conduct independent evaluations Maritime Alert 3. Q uality Management: To improve management, Coast Guard will • Improve management accountability by improving accessibility and transparency. • Strengthen program management by developing cooperative relationships with operational commands, industry customers and other stakeholders • Develop a “Balanced Scorecard” that includes customer satisfaction metrics and implement a Quality Management System defined by a set of policies, processes and procedures for planning and execution of marine safety mission activities 4. B oat Responsibly: While a popular activity, recreational boating results in the third largest annual number of transportation fatalities. To improve boating safety, the Marine Safety Plan includes actions to • Assess effectiveness of boating education • Improve safety communications • Increase carriage of safety equipment • Increase compliance with navigation rules • Assess the effectiveness of efforts to curb BoatingUnder-the-Influence (BUI) • Increase boating manufacturer compliance with Coast Guard regulations • Improve proper and timely accident reporting 5. S afe Tow: To improve towing vessel safety, the Coast Guard will • Develop regulations for towing vessel inspection for certification, which will be phased in over a four-year period beginning in 2011 - Towing vessels that do not comply with the new requirements may be removed from service - This plan is expected to increase the number of vessels subject to Coast Guard inspection by 40% • I ncrease towing vessel inspections and the workforce to conduct such inspections • Increase safety partnerships and outreach programs related to towing vessels 6. F ish Safe: To carry out its mandate to minimize marine casualties associated with commercial fishing, Coast Guard will • Increase outreach and communication to improve prevention efforts, including developing a voluntary Dockside Examination Program • Expand partnerships by continuing to work with industry advisory committees, fishery management councils, National Institute for Occupational Safety and Health, and state fisheries regulators • Coordinate maritime law enforcement with fishing vessel safety by challenging Coast Guard district commanders to implement robust safety programs, detect violations and educate the industry The K&L Gates Maritime Group represents a broad range of maritime entities on litigation, regulatory and legislative matters, including all elements of the ongoing disputes over discharges from vessels and compliance with environmental and safety regulations. 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