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INTERVIEW - US Coast Guard to Review Energy Costs
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US: June 1, 2006


WASHINGTON - The US Coast Guard has proposed increasing its operational costs in 2007 due to the high cost of energy and future ship purchases may be reviewed due to fuel efficiency concerns, the new head of the maritime service said Wednesday.


Admiral Thad W. Allen, the USCG's 23rd commandant who assumed his position May 25, said fuel efficiency would be a crucial factor in orders for new ships.

The Coast Guard's budget request for 2007 was pegged at US$5.518 billion, up from US$5.41 billion in 2006 and US$5.066 billion in 2005. For 2007, the USCG proposed to adjust upward its operational costs by US$66.8 million, owing to energy account increase and depot level maintenance.

"We plan to look into our energy costs and the use of fossil fuels in this cycle (during his four-year term)," said Allen.

He declined to elaborate on plans as they were preliminary but said that so far, soaring fuel prices have not altered the way his branch of the US military operates.

The Coast Guard has a fleet of 211 aircraft and more than 1,400 boats and large ships, securing 95,000 miles of coastline and 360 commercial ports in the United States.


SATELLITE TRACKING

The Coast Guard has welcomed to new International Maritime Organization rules to track ships by satellite to fight terrorism and prevent the transport of materials used in weapons of mass destruction.

"It is a significant and positive step forward. It is not only good for the United States, but it is also good for the rest of the world," Allen said.

According to the new rules, the Coast Guard is allowed to track ships calling at ports in the United States via satellite up to 2,000 miles from the US coast.

That area would cover ships in the Caribbean, much of Central America, parts of South America and Canada, as well as swathes of the Atlantic and Pacific oceans.

With the new rules, "we will have the visual tracking of ships in transit in the Panama Canal," he said.

The Coast Guard would prefer to have satellite tracking of ships up to 2,000 miles for both US and coastal states ports, but that remained for future discussion, Allen added.
QUALITY SHIPPING

The new commandant also said the Coast Guard had raised the percentage of incoming ships qualifying for its quality shipping reward program to 9.2 percent from about 5 percent in 2002 when it was launched.

To eliminate substandard shipping, the Coast Guard initiated the Qualship 21 program, which helped identify poor-quality vessels and enforce compliance with international and US standards.

The program was deemed a success, with about 10 percent of the ships meeting standards beyond the call of duty, he said.

With more ships qualifying for the program, it freed up more resources for the Coast Guard to accomplish other tasks, Allen said.

"The shipping safety and standards have been improving over the years, and we should use the same paradigm for safety in security," he said.

The Qualship 21 program rewards shipowners with increased flexibility for tanker owners, two years of limited Port State Control oversight for freight ships and Qualship 21 certification for all ships that lasts two years.


Story by Edgar Ang and Caroline Drees


REUTERS NEWS SERVICE

Reuters



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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