MARAD Briefs:

U.S. Maritime Administration announces change in policy to clean up Suisun Bay Reserve Fleet and Acting Maritime Administrator approves LNG deepwater application.

• DOT Deputy Secretary John D. Porcari Announces Plan to Clean Up Suisun Bay Reserve Fleet; Department prioritizes 25 ships in worst condition for cleaning.

BENICIA, CA: U.S. Transportation Deputy Secretary John D. Porcari announced that the Department’s Maritime Administration (MARAD) will begin to clean up and recycle obsolete vessels at the Suisun Bay Reserve Fleet (SBRF). MARAD has awarded the first contracts for the removal and recycling of two WWII-era cargo ships currently moored in Suisun Bay, California – the first ships to be disposed from the fleet since January 2007.

“The Obama Administration is committed to good environmental stewardship, and these deteriorating vessels pose a risk to the marine ecosystem in Suisun Bay,” said Deputy Secretary Porcari. “We can maintain our national defense sealift assets at the Suisun Bay Reserve Fleet with a much smaller footprint on the surrounding environment. The DOT has prioritized obsolete ships in the worst condition for proper cleaning and will work as quickly as possible to bring the fleet in line with our national goals for a safe and clean environment.”

The Suisun Bay Reserve Fleet is one of three anchorages maintained by the Department of Transportation’s Maritime Administration for national defense and national emergency purposes. There are currently 84 non-retention ships moored in the Reserve Fleet, of which 57 are located in Suisun Bay.

MARAD Acting Administrator David Matsuda added, “The Suisun Bay Reserve Fleet is an important national security site. Performing our mission here needs to be done with great respect for the environment and we are committed to doing just that.”

The first two ships slated for drydocking – the Earlham Victory and the Pan American Victory – were built by Permanente Metals of Richmond, California in 1945. Both ships will be cleaned at the BAE Systems San Francisco shipyard by the end of the year, and then towed to Brownsville, Texas, where they will be recycled at All Star Metals, LLC. MARAD awarded BAE Systems a $1.47 million contract to drydock the two vessels, and ALL Star Metals a recycling contract for $2.1 million.

• Acting Maritime Administrator David T. Matsuda Approves Port Dolphin Energy’s Deepwater Port Application

Yesterday, Acting Maritime Administrator David T. Matsuda signed the Record of Decision, approving Port Dolphin Energy LLC’s application to own, operate and construct a deepwater port to import Liquefied Natural Gas (LNG) into the United States. Also, Port Dolphin Energy signed a Letter of Agreement to support the Maritime Administration’s “U.S. Crewing Initiative” to provide employment and educational opportunities to American officers, mariners, and cadets in the operation of LNG tankers serving the deepwater port.

The deepwater port facility, named Port Dolphin, will be located approximately 28 miles southwest of Tampa Bay, Florida. When operational, Port Dolphin will initially deliver about 400 million cubic feet per day (MMscfd) of natural gas into the Florida energy market, with the ability to deliver up to 1,200 MMscfd when operating at peak capacity. The Port Dolphin facility will connect with existing pipelines to deliver natural gas throughout Florida.

Construction of the Port will commence early 2013 and is expected to take approximately 11 months to complete. Operations are planned to commence in late 2013.