This Annual Report of the Maritime Administration (MARAD) fulfills the reporting requirements under Section 208 of the Merchant Marine Act of 1936, as amended. It also fulfills requirements for reporting to Congress on Cargo Preference activities, plus the requirement for reporting on Title XI activities, as mandated in 2003. During Fiscal Year 2005, MARAD continued to provide strong support to the Administrations efforts to ensure Americas future as a maritime nation. The agency activated the Ready Reserve Force (RRF) ships to support the U.S. Armed Forces in overseas movements, and the RRF continued to play a key role in transporting support supplies for Operation Iraqi Freedom. Domestically, the RRF, other ships from the National Defense Reserve Fleet (NDRF), including training ships from the fleets school ship program, as well as an additional ship from the NDRF, were activated for the first time to respond to a domestic emergency. They assisted in the recovery and rebuilding efforts due to the unprecedented destruction caused by Hurricanes Katrina and Rita. Additionally, the RRF displayed its security capabilities and importance to national security by conducting a SafePort demonstration in San Francisco Harbor. The demonstration safely accessed a suspect container by removing it from a post-Panamax containership at a safe anchorage location for homeland security. The Maritime Security Program (MSP) was scheduled for expansion at the end of Fiscal Year (FY) 2005, and MARAD completed preparations for the transition. As of October 1, 2005, the program was authorized for 60 ships instead of the 47 of previous years. These 60 ships serve to maintain a U.S.-flag fleet in oceangoing commerce, both in peace and war. MARAD also completed the final phase of the development of a Mariner Tracking System capable of importing data from the U.S. Coast Guard merchant mariner database to identify qualified mariners. MARAD is actively investigating ways our Nations maritime transportation system can be used to alleviate congested landside transportation systems, thereby promoting greater use of the waterways. MARAD acts as the official sponsor of the Short Sea Shipping Cooperative Program, supports the I-95 Corridor Coalitions efforts to study freight alternatives from Maine to Florida, and established the Inland Waterways Intermodal Cooperative Program to assist the Nation's inland waterway intermodal transport system operators in promoting innovations in cargo handling and new technologies. In other significant activities during the fiscal year, MARAD continued its efforts to strengthen the Marine Transportation System with participation in the Marine Transportation System National Advisory Council (MTSNAC). The MTSNAC provided important input to the U.S. Commission on Ocean Policy Report, resulting in the creation of a new cabinet-level Committee on the Marine Transportation System, and held its inaugural meeting in July 2005, chaired by U.S. Secretary of Transportation Norman Y. Mineta.


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