Securing smooth sailings.

AuthorBrelsford, Harry
PositionSeattle, Washington renews link with Alaska through cruise ships

Seattle is aggressively renewing its historic link with Alaska via cruise ships. Approximately 6,000 passengers per day are bussed from Seattle's Sea-Tac Airport to downtown Vancouver, British Columbia, to embark on Alaskan cruises. That's due to a set of 100-year-old laws (the Jones Act and the Passenger Services Act) that protects the U.S. ship-building industry by preventing foreign-built vessels from traveling between two U.S. ports.

Now, due to several recent developments, these outdated practices may soon change.

EFFECTS OF THE UNSOELD LEGISLATION

Rep. Jolene Unsoeld (D-Wash.) has successfully introduced and guided two cruise ship bills in the U.S. House of Representatives (H.R. 3821 & H.R. 3822) that effectively allow cruise ship operators to work within the existing regulatory framework that penalizes foreign-built vessels. These bills would boost U.S. shipbuilding, coastal cruises, maritime jobs and cruise business for American port cities.

Key provisions of the bills include:

* Reflagging Provision: Owners of foreign-flagged vessels must promise to begin building U.S. replacement ships within three years of the bills' passage. Once a contract is signed for vessel construction, cruise operators can reflag a foreign-built vessel and operate it in U.S. trade waters indefinitely.

* Financial Incentives: Federal loan guarantees and other financial incentives, including a capital construction fund, are offered for domestic shipbuilding.

* Foreign Ownership: Unsoeld's bills increase the amount of foreign capital permitted in a company from 25 percent to 49 percent, easing foreign joint ventures.

* Bumping Privileges: U.S. flagged ships enjoy a "preference" for Glacier Bay and other national parks unless another operator is...

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