Sealift Emergency Preparedness Programs
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1 USTRANSCOM Pamphlet 10-1 Sealift Emergency Preparedness Programs Voluntary Intermodal Sealift Agreement (VISA) Voluntary Tanker Agreement (VTA) Requisitioning 14
2 FORWARD The American Merchant Marine is an important component of the sealift needed by the DOD. By contracting with the owners and operators of U.S. Flag commercial vessels, the Government will gain access to a fleet of modern commercial ships, along with the sophisticated intermodal transportation systems supporting it. President William J. Clinton October 8, 1996 upon signing the Maritime Security Act of 1996 SECTION V GLOSSARY Charter - Any agreement or commitment by which the possession or service of a vessel is secured for a period of time, or for one or more voyages, whether or not a demise of the vessel. Commercial - Transportation service provided for profit by privately owned (not government owned) vessels to a private or government shipper. The type of service may be either common carrier or contract carriage. Foreign Flag vessel - A vessel registered or documented under the law of a country other than the U.S. Intermodal equipment - Containers (including specialized equipment), chassis, trailers, tractors, cranes and other material handling equipment, and ancillary items. Liner - Type of service offered on a definite, advertised schedule and giving relatively frequent sailings at regular intervals between specific ports or ranges. Operator - An ocean common carrier or contract carrier that owns, controls, or manages vessels by which ocean transportation is provided. The U.S.-owned commercial ocean carrier industry, to the extent it is capable, will be relied upon to provide sealift in peace, crisis, and war. Sufficient U.S.-owned sealift resources must be available to meet requirements for such unilateral response. President George H.W. Bush October 5, 1989 Excerpts from the National Security Directive on Sealift 2 13
3 SECTION IV SEQUENCING CONTINGENCY SEALIFT To meet immediate and surge requirements for a major DOD contingency, in general, government-owned organic capability would be used first to move forces and equipment into theater. This includes the prepositioned and Surge vessels managed by the Military Sealift Command and the Ready Reserve Force (RRF) managed by MARAD. Commercial capability generally will be used to supplement organic capability, using various contracts available to DOD. When both organic and other DOD-contracted commercial capability cannot meet emerging requirements, VISA can be phase activated, in whole or in part. Similarly, VTA can be activated as necessary for tanker Finally, the Department can use requisitioning of ships to meet TABLE OF CONTENTS Inside this publication: Section I GENERAL 4 Section II VOLUNTARY INTERMODAL SEALIFT AGREEMENT 5 1. Prepositioned vessels 2. Surge vessels Contingency Sealift Sequencing SECTION III VOLUNTARY TANKER AGREEMENT (VTA) & REQUISITIONING USC Contingency U.S.-flag SECTION IV SEQUENCING CONTINGENCY SEALIFT 12 Foreign-flag 5. VISA Phased Activation/VTA Activation 6. Requisitioning SECTION V GLOSSARY
4 SECTION I GENERAL Purpose To provide Department of Defense (DOD) personnel current information on the Sealift Emergency Response Programs, including the Voluntary Intermodal Sealift Agreement (VISA), the Voluntary Tanker Agreement (VTA) and Vessel Requisitioning. The intent of sealift emergency preparedness programs is to assure DOD access to US-flag commercial sealift capability to augment the US government owned (organic) assets. Policy National Security Directive 28: National Security Directive on Sealift The broad purpose of this directive is to ensure the US maintains the capability to meet sealift requirements in the event of crisis and war. Toward this end, the following policy guidelines apply: The US-owned commercial ocean carrier industry, to the extent it is capable, will be relied upon to provide sealift in peace, crisis and war. This capability will be augmented during crisis and war by reserve fleets comprised of ships with national defense features that are not available in sufficient numbers or types in the active US-owned commercial industry. In peacetime, the DOD will operate the minimum number of sealift ships, including reserve ships needed to meet the Joint Chiefs of Staff s exercise requirements and shipping requirements that cannot be accommodated by US-flag commercial ocean carriers. Offices of Primary Responsibility United States Transportation Command (USTRANSCOM) Strategy, Policy, Programs and Logistics Directorate Intermodal Programs Division, Sealift Team (TCJ5/4-IS) (DSN 770) Department of Transportation (DOT) Maritime Administration (MARAD) Associate Administrator for National Security (MAR-600) 1200 New Jersey Ave S.E. Washington DC Internet: SECTION III VOLUNTARY TANKER AGREEMENT (VTA) & REQUISITIONING Voluntary Tanker Agreement (VTA) The Voluntary Tanker Agreement (VTA) program is a partnership between the MARAD, USTRANSCOM and U.S. companies that own, operate or charter tankers and integrated ocean-going tug/barge tank vessels. Participants selected for the VTA agree to commit enrolled tankers or tanker capacity to the DOD in times of war or national emergency. VTA participants tankers must meet militarily useful criteria. Eligible tankers are those greater than 20,000 deadweight tons (DWT) up to 100,000 DWT. VTA provides for a Tanker Requirements Committee (TRC) similar to VISA s JPAG whereby the Government and tanker participants are provided a forum to identify and make plans for tanker capacity to meet specific contingency By signing the VTA, participants agree to commit their vessels for a period beginning with the effective date and continuing through at least an entire fiscal year. MSP participants are required to commit their tankers to VTA. Requisitioning DOT may requisition for charter or purchase, vessels owned by U.S. citizens (U.S. Flag or Effective U.S. Control (EUSC)) upon Presidential authorization in accordance with Section 902 of the Merchant Marine Act of EUSC vessels are U.S.-owned but not U.S.-flagged. They are registered under one of five foreign flags: Bahamas, Honduras, Liberia, Panama and the Republic of the Marshall Islands. EUSC is not a treaty or government agreement and the foreign states under which such ships are registered cannot impede United States ship requisitioning. Under these arrangements, the ships may arrive without crews or infrastructure. The EUSC has never been requisitioned under Section 902 of the Merchant Marine Act. EUSC is requisitioned by DOT/MARAD when: DOD contingency requirements exceed the capability of VISA and the President declares a sealift national emergency and specifically grants requisitioning authority to DOT. 4 11
5 SECTION II VISA and the Maritime Security Program (MSP) VISA and MSP are complementary programs. MSP was established to ensure the continued presence of the U.S.-flag fleet in international commerce. The Maritime Security Act of 2003 called for a fleet of active, commercially viable, militarily useful, privately-owned vessels to meet national defense and other security All dry cargo ships in MSP are enrolled in VISA. More than 90% of the militarily useful vessels in the entire U.S.-flag fleet are committed to VISA and over 75% of that capacity comes from MSP vessels. Enrollment Procedures VISA is open to U.S.-flag vessel operators of oceangoing militarily useful vessels. Enrollment in VISA is conducted annually during an open season window. Notification of the open season is published in the Federal Register. The only exception to the open season is for qualified non-visa operators that reflag a vessel into U.S. registry. Those operators may apply for VISA enrollment at any time after the vessel is documented under the U.S. flag. VISA applications can be obtained from MARAD, Maritime Administration's Office of Sealift Support. Participants in MSP are required to enroll in VISA (i.e. 100% of the ship s capacity and the company s associated intermodal resources). To receive priority for DOD peacetime cargo business, a carrier must enroll in VISA. Its commitment for VISA Stage III must be a minimum of 50 percent of the capacity of its U.S. Flag fleet. Individual carriers percentage of commitment may be higher for competitive bidding on DOD business or due to MSP SECTION II VOLUNTARY INTERMODAL SEALIFT AGREEMENT (VISA) Background VISA was approved by Secretary of Defense in 1997 as a sealift readiness program, creating a partnership between the US Government and the maritime industry to provide commercial sealift and intermodal shipping services and systems necessary to meet mobilization VISA exists under MARAD and DOT authority for voluntary agreements with industry under the Defense Production Act of 1950, as amended. Purpose The purpose of VISA is to provide a responsive transition from peace to contingency operations through pre-coordinated agreements for sealift capacity to support DOD contingency VISA establishes procedures for the commitment of intermodal shipping services/systems to satisfy such VISA will change from standby to active status upon activation by appropriate authority of any of the stages. Objective It is intended that VISA promote and facilitate DOD s use of existing commercial transportation resources and integrated intermodal transportation systems, in a manner which minimizes disruption to commercial operations, whenever possible. VISA is designed to create close working relationships among MARAD, DOD and VISA participants through which contingency needs and the needs of the civil economy can be met by cooperative action. Through advance joint planning, participants provide predetermined capacity in designated stages to support DOD contingency Planning The keystone of VISA is that it brings the participants into the DOD planning process through participation in Joint Planning Advisory Group (JPAG) meetings with DOD and MARAD. The JPAG was developed to provide the opportunity for DOD, DOT and industry to plan, in peacetime, how best to use VISA carriers sealift capacity to meet DOD contingency 10 5
6 SECTION II Joint Planning Advisory Group The JPAG provides USTRANSCOM, MARAD and VISA participants a planning forum to: Analyze DOD contingency sealift/intermodal service and resource Identify commercial sealift capacity that may be used to meet DOD requirements, related to contingencies and, as requested by USTRANSCOM, exercises and special movements. Develop and recommend Concepts of Operations (CONOPS) to meet DOD-approved contingency requirements and, as requested by USTRANSCOM, exercises and special movements. The JPAG consists of designated representatives from MARAD, USTRANSCOM, participants and maritime labor. Other attendees may be invited at the discretion of MARAD and USTRANSCOM. Representatives will provide technical advice and support to ensure maximum coordination, efficiency and effective use of participants resources. Concept VISA provides a staged, time-phased availability of participants shipping services/systems to meet national command authority directed contingency These services are available in the most demanding defense oriented sealift emergencies and for less demanding defense oriented situations through pre-negotiated contingency contracts between the government and participants. Stages I and II provide for pre-negotiated contracts between DOD and participants to provide sealift capacity for projected DOD contingency Stage III provides for additional capacity to DOD when Stages I and II commitments or volunteered capacity are insufficient to meet contingency requirements, and adequate shipping services from nonparticipants are not available through established DOD contracting practices or US government treaty agreements. SECTION II Stage III Stage III will be activated, in whole or in part, by Commander, USTRANSCOM upon approval by SecDef when contingency requirements exceed the capability of Stages I and II, and other shipping services are not available. Upon activation, SecDef will request the Secretary of Transportation (SecTrans) allocate sealift capacity to meet contingency VISA Activation Stage I - 15% of participant capacity Stage II - 40% of participant capacity Stage III - 50% capacity or 100% of Maritime Security Program vessels (whichever is greater) Stages I & II USTRANSCOM activates & executes with SecDef approval; MA- RAD acts as advisor Stage III USTRANSCOM activates with SedDef approval; MARAD prioritizes & allocates capacity 6 9
7 SECTION II Activation Procedures VISA may be activated at the request of the Commander, USTRANSCOM, with approval of the Secretary of Defense (SecDef), when certain conditions exist to support contingency operations. Activating voluntary commitments of capacity to support such operations will be in accordance with prenegotiated contingency contracts between DOD and participants. Notification of Activation The Commander, USTRANSCOM will notify the Maritime Administrator of the activation of Stages I, II and III. The Administrator shall notify the Attorney General and the Chairman of the Federal Trade Commission when DOD determines activation of any stage of VISA is necessary to meet DOD contingency Voluntary Capacity Throughout the activation of any stages of this agreement, DOD may utilize voluntary commitment of sealift capacity or systems. Throughout the activation of any stage of this agreement, DOD will continue to attempt to utilize voluntary commitment of sealift capacity or systems through normal contracting procedures. In general, VISA capacity will be considered only when other DOD contracts do not meet DOD Stage I Stage I is activated in whole or in part by the Commander, USTRANSCOM, with approval of SecDef, when voluntary capacity commitments are insufficient to meet DOD contingency USTRANSCOM will notify the Maritime Administrator upon activation. Stage II Stage II is activated, in whole or in part, by the Commander, USTRANSCOM, with approval of SecDef when contingency requirements exceed the capability of Stage I and/or voluntarily committed resources. Stage II will be activated using the same procedures as Stage I. SECTION II Participants capacity committed pursuant to VISA may include any intermodal shipping services/systems and all ship types, including container, breakbulk, roll-on/roll-off and tug and barge combinations. VISA Priorities As stated in DOD Instruction , Section E5.3, the Department of Defense relies on the private sector for transport of a significant portion of its wartime and peacetime cargo. The goal of VISA is to provide assured access to the US-flag ocean transportation industry to support emergency deployment and sustainment of US military forces through the contractual pledges by carriers of their vessels and intermodal systems capacities, in return for priority for DOD peacetime business. The following is the prioritized order for utilization of commercial sealift capacity to meet DOD peacetime and contingency requirements: 1. US-flag vessel capacity operated by a VISA participant and US-flag Vessel Sharing Agreement (VSA) capacity of a participant. 2. US-flag vessel capacity operated by a nonparticipant. 3. Combination US-flag/foreign flag vessel capacity operated by a participant and combination US-flag/foreign flag VSA capacity of a participant. 4. Combination US-flag/foreign flag vessel capacity operated by a non-participant. 5. US-owned or operated foreign flag vessel capacity and VSA capacity of a participant. 6. US-owned or operated foreign flag vessel capacity and VSA capacity of a nonparticipant. 7. Foreign-owned or operated vessel capacity of a non-participant. 8 7
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