2010-11_ANNUAL_REPORTS_-_FINAL_VERSION_(3)

A MESSAGE FROM THE MARITIME ADMINISTRATOR
David T. Matsuda
The Maritime Administration (MARAD), an agency of DOT is responsible for improving and
strengthening the U.S. marine transportation system in order to meet the economic, environmental, and
security needs of the Nation. MARAD’s oversight responsibilities encompass shipbuilding, port
operations and vessel operations, as well as the ships and mariners of the U.S. merchant marine.
In 2010, the Maritime Administration began to focus more heavily on the future of the maritime
industry, while maintaining the versatility and preparedness that epitomize the character of this vital
industry. In June 2010, when I was honored to begin my tenure as the Maritime Administration’s new
administrator after serving as deputy and acting administrator, one of the major tasks we faced was the
lingering environmental challenge posed by the fleet of 57 obsolete government ships that had been
moored for decades in Suisun Bay, California. After years of inactivity, our agency is once again
moving to recycle these ships, creating jobs in the ship recycling industry, and reinvesting ship sale
proceeds in our maritime education programs.
In fiscal year 2011, MARAD continued to spark job growth in the maritime industry through its
Assistance to Small Shipyards Program and Marine Highways Grant Program, distributing a total of
$17 million both to improve shipyards across the country and enable the growing use of America’s
waterway resources. We conducted large-scale studies into the expected effects of the 2014 Panama
Canal expansion, the feasibility of using clean Liquefied Natural Gas (LNG) to power vessels, the costs
of U.S.-flag shipping versus foreign-registered ships, and the future of the Great Lakes merchant fleet.
We continued to lead the global effort to improve our environment by dedicating our third ballast water
technology test platform and conducting large-scale testing of renewable fuels. And we continued to
address the growing threat of piracy through education, training and international outreach.
This annual report outlines the activities of MARAD in these areas and highlights other major
accomplishments. It also satisfies the statutory requirements for a report to Congress on the Cargo
Preference Program, the Maritime Guaranteed Loan Program (Title XI), and admiralty suits.
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