Legislature(2019 - 2020)BARNES 124
03/26/2019 11:00 AM House ARCTIC POLICY, ECONOMIC DEV., & TOURISM
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| Presentation: from the Arctic to Southeast - Present and Future Alaska Maritime Operations by Captain Ed Page | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON ARCTIC POLICY,
ECONOMIC DEVELOPMENT, AND TOURISM
March 26, 2019
11:06 a.m.
MEMBERS PRESENT
Representative Sara Hannan, Chair
Representative Jonathan Kreiss-Tomkins
Representative Chris Tuck
Representative Sara Rasmussen
MEMBERS ABSENT
Representative Zack Fields
Representative John Lincoln
Representative Josh Revak
COMMITTEE CALENDAR
PRESENTATION: FROM THE ARCTIC TO SOUTHEAST - PRESENT AND FUTURE
ALASKA MARITIME OPERATIONS BY CAPTAIN ED PAGE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
ED PAGE, Captain (Ret.)
United States Coast Guard;
Executive Director
Marine Exchange of Alaska
Juneau, Alaska
POSITION STATEMENT: Gave a presentation on the present and
future of Alaska maritime operations.
PAUL FUHS, Board President Emeritus
Marine Exchange of Alaska
Juneau, Alaska
POSITION STATEMENT: Testified and answered questions about the
Marine Exchange of Alaska.
ACTION NARRATIVE
11:06:49 AM
CHAIR SARA HANNAN called the House Special Committee On Arctic
Policy, Economic Development, and Tourism meeting to order at
11:06 a.m. Representatives Rasmussen, Tuck, and Hannan were
present at the call to order. Representatives Kreiss-Tomkins
arrived as the meeting was in progress.
^Presentation: From the Arctic to Southeast - Present and Future
Alaska Maritime Operations by Captain Ed Page
Presentation: From the Arctic to Southeast -
Present and Future Alaska Maritime Operations by Captain Ed Page
11:07:50 AM
CHAIR HANNAN announced that the only order of business would be
a presentation from Captain Ed Page of the Marine Exchange of
Alaska (MXAK). Chair Hannan prefaced Captain Page's
presentation by encouraging those in attendance to learn more
about MXAK.
11:08:42 AM
ED PAGE, Captain (Retired), United States Coast Guard; Executive
Director, Marine Exchange of Alaska, introduced the idea of "the
blue economy." He discussed Alaska's economic dependence on
maritime activity relating to tourism and resource-development.
He provided some background information about his career in the
United States Coast Guard (USCG) and his time in Alaska. He
mentioned that he previously served as Captain of the Port of
Los Angeles and had helped clean up after the 1989 Exxon Valdez
oil spill. He described how he and Executive Director Emeritus
Paul Fuhs established MXAK in 2001 to help ensure safe, secure,
efficient, and environmentally responsible maritime operations.
11:10:10 AM
CAPTAIN PAGE began his PowerPoint presentation [included in the
committee packet] and addressed slides 2 and 3. He explained
that marine exchanges are not a new concept and have existed in
various forms since the 1800s. He said that, during his time
with USCG, he would contact marine exchanges to learn the
locations of ships. He discussed the value of maritime
information, which he said facilitates trade, protects from
environmental harm, and saves lives. He explained how marine
exchanges collect and communicate maritime information. He
called MXAK "the most progressive, expansive marine exchange in
the country." He described the progression of marine exchange
technology from semaphore, megaphones, and spyglasses.
11:11:05 AM
CAPTAIN PAGE addressed slides 4 and 5, titled "Marine Exchange
of Alaska: A 21st Century Operation." He described MXAK's
operations. He noted that MXAK is the biggest marine exchange
in the country and the biggest vessel compliance and monitoring
system in the world. He said MXAK is fortunate receive State of
Alaska (SOA) support via cruise ship head tax funds amounting to
about $400,000 each year. He noted that some of the Exxon
Valdez oil spill settlement money was allocated to help get MXAK
started. He said SOA is only one of many stakeholders in MXAK;
SOA contributes only about 11 percent of MXAK's total revenue
needs. He said USCG is one of MXAK's biggest contributors, but
the marine industry pays the lion's share.
CAPTAIN PAGE said MXAK's operations center is active 24 hours
per day. He called MXAK brokers of maritime information" and
an advocate on behalf of the maritime industry for regulatory
programs that make sense, are cost-effective, and impose no
undue burdens. He described the process through which MXAK
helps the maritime industry comply with regulations. He added
that MXAK information is invaluable for port planning. He
explained that MXAK installs environmental sensors that measure
weather, wind, and current across the state to aid maritime
safety. He said mariners with better information are less
likely to have an accident. He noted that MXAK is much more
agile than the National Oceanic and Atmospheric Administration
(NOAA) which does not have the ability to quickly install
systems.
11:13:30 AM
CAPTAIN PAGE addressed slides 6, which featured a pie chart
detailing sources of funding. The maritime industry was shown
to have contributed 48 percent. USCG was shown to have
contributed 41 percent. SOA was shown to have contributed 11
percent. He said the diagram demonstrates how the nonprofit
MXAK operates as a public-private partnership. He said
approximately 450 shipping companies and several thousand
vessels pay into the system.
CAPTAIN PAGE addressed slide 7, which displayed a list of people
on MXAK's Board of Directors. He said the board features
representatives from different segments of Alaska's maritime
community. He said diverse representation on the board ensures
MXAK fulfills its mission statement in the most cost-effective
way.
CAPTAIN PAGE addressed slide 8, titled "The Community We Serve."
He said, "If you're on the water, we basically have a
relationship with you to some degree." He noted that MXAK
information is even used by recreational vessels. He explained
that the automatic identification system (AIS) used by MXAK to
track vessels updates every six seconds. He remarked that if
every car on the highway were checked every six seconds, no one
would speed. He explained that both the International Maritime
Organization (IMO) and USCG require any commercial vessel over
65 feet to have an AIS transponder. He compared this system to
the one that tracks aircraft. He said MXAK built the network
throughout the state that receives AIS signals and displays the
information so that safety information can be communicated to
and from vessels. He read through a list of different types of
vessels that depend on the system. He spoke to its importance,
explaining that if "we turn the system off right now, we'll get
a call from the Coast Guard right away." He noted that USCG
built a similar system with Northrup Grumman Corporation for the
lower 48 states but overran the budget before it could continue
on to Alaska. He explained that the United States Congress did
not provide additional funds for an Alaska system, so MXAK built
it instead. He discussed how MXAK uses its relationship with
the maritime community to obtain access to lighthouses, pilot
stations, and other sites.
11:15:50 AM
CAPTAIN PAGE addressed slide 9, titled "Maritime Information
Services of North America (MISNA)." The slide featured a list
of other marine exchanges across the country that MXAK helped
build. He said all the data from these nationwide marine
exchanges comes to MXAK's headquarters in Juneau. He said MXAK
is "the nerve center" for the national AIS. He relayed that he
receives e-mails every day from around the globe from
organizations that pay to access MZAK's data for reasons
relating to international shipping. He said brokering this data
helps pay the costs of maintaining the system. He noted that
this makes Juneau a location of global importance. He said the
Secretary General of IMO has visited Juneau to learn how MXAK,
an organization with only 20 employees, manages to operate such
a vast system and take in so much data. He added that the
Commandant of the United States Coast Guard and Alaska's
congressional delegation have all visited MXAK. He said MXAK
manages to "squeeze the most out of technology" and that it only
came online once the right technology was available.
CAPTAIN PAGE addressed slide 10, titled "MXAK Automatic
Identification System (AIS) Network." It featured a map of
Alaska with red dots signifying the locations of MXAK's AIS
receivers. He noted that MXAK has also built sites on the
Galapagos Islands and Northern Canada.
11:17:39 AM
REPRESENTATIVE TUCK asked how the AIS sites work.
CAPTAIN PAGE said each site is uniquely tailored to its
environment. He said the receiver located in Dutch Harbor
operates on a 110-volt circuit and an internet line. On the
other hand, he explained, a receiver located atop a mountain or
in some other remote area requires solar power, wind generators,
wireless bridges, a cell network, and/or satellite dishes. He
added that each site is unique in how it transfers data.
REPRESENTATIVE TUCK posited, since any vessel over 65 feet is
required to have a transponder, that information is transmitted
to and from the vessels through the locations displayed on the
slide.
CAPTAIN PAGE said vessels are able to transmit information to
and receive information from other vessels. He noted that they
also communicate with MXAK on matters related to safety
information such as adverse weather. He said the MXAK receivers
pick up signals from the vessels and transmit the information to
Juneau.
REPRESENTATIVE TUCK asked how big the units are and how far they
can transmit.
CAPTAIN PAGE said the on-vessel equipment is not so big and
costs about $500. He compared the units to VHF radios and said
they operate on the same frequency band. He said the range is
quite significant and depends on the height of the antenna. For
example, he said, a cruise ship with a tall antenna and the best
class of AIS technology can transmit 200 miles offshore. He
said a fishing vessel with a lower-powered system can typically
transmit from 25 to 50 miles offshore. He noted that there are
sometimes terrain-masking issues. He spoke to satellite
technology that can also pick up data from the vessels, though
not on such a granular level. He said MXAK operates a hybrid
system of satellite and terrestrial communications, though noted
that the only way to transmit information is through
terrestrial-based stations.
REPRESENTATIVE TUCK asked for clarification that "25 miles
offshore" means 25 miles from one of the onshore receivers.
CAPTAIN PAGE said yes.
11:21:19 AM
CAPTAIN PAGE addressed slide 11, titled "Pacific Vessel Traffic
Today." The slide featured a map of the northern Pacific Ocean
overlaid with icons signifying vessels and vessel traffic. He
said the map is a snapshot of what things look like today. He
drew attention to a line of vessels traveling through the
Aleutian Island. He said vessels travel between the American
Pacific and the Far East via this "great circle route through
our backyard." He added that 99 percent of those vessels do not
stop in Alaska ports, but on occasion will break down, which
could impact Alaska's blue economy. He spoke to the myriad
negative consequences of marine casualties and stressed the
importance of preventing them.
11:22:36 AM
REPRESENTATIVE RASMUSSEN asked for his insight on a recent
incident in Norway involving the cruise ship Viking Sky.
CAPTAIN PAGE explained that ships are not much different from
cars; they do break down on occasion. He said the incident in
Norway drew international attention because the ship broke down
with over 1,000 passengers in rough seas and with no way to tow
it to shore. He spoke to the importance of keeping vessels a
safe distance offshore so that, in the event that something goes
wrong, there is enough time to things before the situation
becomes dire. He noted that MXAK has implemented a variety of
measures accepted by the international community to keep vessels
further offshore. He listed the various consequences of a
vessel breaking down a mile offshore: loss of cargo, loss of
oil, and loss of life.
CAPTAIN PAGE said the incident in Norway shows that ships are
not perfect and do break down. He noted that another ship near
Viking Sky had sunk so rescue helicopters were diverted from the
Viking Sky to assist the other ship's crew. He discussed the
process by which MXAK investigates irregularities and
facilitates a swift response. He said Norwegian authorities
quickly recognized that they could not get vessels on the scene,
which is why rescue helicopters were deployed. He added that
there are no helicopters that big available in Alaska to carry
so many people from a vessel. He said it was fortunate that
Viking Sky's anchor held, and that the engineer got the engine
working again. He noted that the people involved had enough
time to work things out, and that time is critical with any
situation like that. He said cruise ships in Alaska are
different in that they operate mostly in inside waters and are
not exposed to rougher seas. He added that cruise ships only
operate in Alaska in summer.
11:25:35 AM
CHAIR HANNAN asked about a maritime incident in Alaska that
occurred at the same time as the Viking Sky incident but did not
make news.
CAPTAIN PAGE said that an 1,100-foot container ship broke down
in Alaska waters. He shared how MXAK detected it and notified
all relevant parties. He said the ship drifted for 24 hours and
the closest tugboat was 5 days away, but the engineer, with help
from modern communication technology, was able to fix the
problem. He noted that the ship had been drifting toward
Russia.
11:26:29 AM
REPRESENTATIVE RASMUSSEN asked if Alaska is less at-risk because
its waters are more protected, so the storm conditions that
caused the Viking Sky incident would not be an issue.
CAPTAIN PAGE said that is true to some extent, though he noted
that ships traveling in and out of Dutch Harbor and the Gulf of
Alaska face considerable risks. He said, generally speaking,
[cruise ships] spend more time in protected waters. He said if
he were concerned about safety, he would choose an Alaska route
over one that spends more time farther offshore.
11:27:35 AM
CHAIR HANNAN noted that Alaska's maritime tourism industry
operates during the summer in inside waters. She said the year-
round maritime commercial industry presents a greater risk. She
considered the continuous risk of major cargo ships going
adrift. She said it is fortunate that there has not been a
recent major tragedy, though noted that there has been loss of
life. She noted that Alaska has not had a major cruise ship
disaster. She mused on the cruise ship industry's promotion of
"the shoulder season" in September. She called the conditions
in September "unpleasant.
CAPTAIN PAGE said he thinks the Viking Sky incident will spur
the cruise ship industry to conduct further risk assessments.
He said USCG, the Norwegian Coastal Administration Coast Guard,
and the industry will all treat it as a lesson learned.
11:29:19 AM
REPRESENTATIVE RASMUSSEN noted that the airline industries are
heavily regulated in terms of weather and flying conditions.
She asked if there is a similar standard for the maritime arena.
CAPTAIN PAGE said the only time USCG would weigh in is if it
considered something a "manifestly unsafe voyage," which he
noted is a high bar to reach. He said there are many variables
that determine whether a voyage will occur, including the
competence of the crew and the type of vessel. He said
insurance underwriters, owners/operators, on-ship masters, and
weather advisers all have a say in determining whether a transit
is unsafe. He referenced the vessel SS El Faro, which sank with
all hands after sailing into Hurricane Joaquin in 2015. He said
sometimes people do not make the most prudent decisions, and
often that is because they do not have the most up-to-date and
accurate information at hand. He said the solution is better
information and more people involved in risk-assessment. He
advocated for reflection on maritime disasters. He said, "When
bad things happen, sometimes good things happen as a result."
11:31:34 AM
CAPTAIN PAGE addressed slides 12 and 13 which featured maps
illustrating high-traffic areas in Alaska waters and areas of
MXAK AIS signal coverage, respectively. He noted that the map
on slide 13 does not show MXAK's range, but rather locations
where MXAK detected vessels. He discussed tools that allow MXAK
to analyze this data.
CAPTAIN PAGE addressed slide 14, titled "Alaska Maritime
Community Support of AIS Network." He ran through a list of
places where AIS sites are located. These include lighthouses,
pilot stations, harbor offices, fish hatcheries, tug offices,
shipping companies, fish processing plants, tribal offices, oil
facilities, science centers, and oil spill response
organizations.
CAPTAIN PAGE addressed slide 15, titled "Remote Self-Supported
AIS Sites." The slide featured photos of an AIS site
installation on an island near Ketchikan. He drew attention to
a photo of the installation of solar panels and a vertical axis
wind turbine.
CAPTAIN PAGE addressed slide 16, titled "Cape St. Elias Marine
Safety Site." He said the site pictured on the slide is located
on Kayak Island in the Gulf of Alaska. He discussed installing
an AIS site there. He noted that the site now utilizes a cell
network for data communication.
11:33:33 AM
CAPTAIN PAGE addressed slides 17-19, titled "Unimak Pass." He
drew attention to a photo of a container ship traveling near
Unimak Island in the Aleutian Islands to the Far East. He
described the logistics and equipment necessary to construct an
AIS site on Unimak Island.
CAPTAIN PAGE addressed slide 20, titled "Maritime Safety." He
opined that a 99.99 percent success rate is not good enough and
remarked that the Exxon Valdez oil spill was the result of a
0.01 percent failure rate. He noted that the public is
rightfully still upset about that incident 30 years later. He
said it is important to utilize technology to reduce the risk of
marine causalities and avoid the resultant consequences.
11:34:38 AM
CAPTAIN PAGE addressed slide 21. He described an incident that
occurred in 2004 during which a wayward ship, Selendang Ayu, ran
aground off Unalaska Island. He said USCG called MXAK "late in
the game" and requested it track the vessel's drift. He
described how MXAK tracked the vessel. He said, despite best
efforts, Selendang Ayu ran aground and broke in half, resulting
in loss of cargo, loss of life, and a major oil spill. He
described how USCG deployed a helicopter to rescue the crew, but
the helicopter crashed after being hit by a wave. He said the
Selendang Ayu disaster reinforced the need for better marine
safety. He said, at that time, MXAK did not have maritime
domain awareness or management. He noted that it does now. He
spoke to USCG limitations, noting that it only has "governance"
up to 12 miles offshore. He said there is not much navigational
restriction beyond that 12-mile threshold except for industry
agreements based on measures implemented by MXAK out to 200
miles offshore. He said vessels that do not abide by those
measures are in breach of contract.
CAPTAIN PAGE addressed slide 22, titled "Maritime Domain
Awareness," which featured a photo of a cargo ship operating
dangerously close to shore in a remote area near Attu Island.
He said, if that vessel were to break down, the closest tugboat
would be five days away and the resulting consequence could be
40 miles of containers and oil floating in the ocean, plus
crewmember deaths.
CAPTAIN PAGE addressed slide 23, titled "Improving Prevention &
Response." He listed various technologies and measures that have
been adopted to improve prevention and response efforts,
including the Internet of Things, machine to machine technology,
and artificial intelligence.
11:36:59 AM
CAPTAIN PAGE addressed slide 24, titled "Los Angeles / Long
Beach." It displayed a photo of a cargo ship exiting the Port
of Los Angeles. He said that if you took the containers that
arrive annually in Los Angeles and Long Beach and put them end-
to-end, they would wrap the equator twice. He noted that the
ship in the photo is a similar size to the one discussed earlier
that recently broke down in Alaska waters. He said the
containers on that ship, arranged end-to-end, would stretch
around 40 miles. He explained that these ships carry a
phenomenal amount of cargo and value added, though also present
a major risk should the contents end up in the ocean. He noted
that the ships leaving Los Angeles do not stop in Alaska as
there is no port in Alaska that can accommodate them, but
"they're driving through our backyard."
CAPTAIN PAGE addressed slide 25. He described the Alaska
Maritime Prevention & Response Network, which he called "a
spinoff network." He described how the network uses technology
to enhance maritime safety in the Arctic and across the state.
11:38:14 AM
CAPTAIN PAGE addressed slide 26, titled "Alaska Waters which
featured a world map with icons signifying each ship enrolled in
MXAK's system. He noted that a ship may be in Africa today, but
its operators know it will be in Alaska at some point during the
year, which is why they enroll in and pay into the system. He
introduced the idea of "Sea Traffic Management," which he
explained is a heightened focus on maritime activity beyond the
ports. He noted that he has traveled around the world to
discuss the Sea Traffic Management concept, which he said has
only recently been enabled by new technology.
11:38:54 AM
CAPTAIN PAGE addressed slide 27-28, titled "LAURA MAERSK." He
provided an example of what MXAK does when a container ship
breaks down. Slide 27 featured a report sent by MXAK to USCG
which displayed a ship's location, attributes, current status,
and drift trajectory. He said the owners/operators of LAURA
MAERSK were not moving fast enough to mitigate the risk of a
major incident, so USCG opened the Oil Spill Liability Trust
Fund (OSLTF) to contract tugboats to rescue the vessel. He said
this is the process that results "in a save." The slide
indicated that the vessel had approached to 5 miles offshore
before the tugboats arrived.
CAPTAIN PAGE addressed slide 29, titled "Vessels of Concern,"
which featured a list of concerning vessel behaviors that draw
MXAK's attention, such as reduced speed, erratic maneuvers,
moving too close to shore, traveling through an unauthorized
pass, loss of propulsion, loss of steering, loss of stability,
and cargo broken free. The slide featured a map of the Aleutian
Islands with dots signifying incidents that occurred from 2015
to 2017. He described the process through which MXAK
communicates with vessels that behave irregularly. He remarked
that the map demonstrates how often ships break down.
11:40:00 AM
REPRESENTATIVE TUCK asked a question about the Oil Spill
Liability Trust Fund. He asked if the financial expenses
incurred by USCG are the responsibility of the ship.
CAPTAIN PAGE explained that the Oil Spill Liability Trust Fund
was established to allow USCG to spend federal money to respond
to an emergency when a vessel is not responding, and then send
the bill to the operator. He said most companies wince when
that happens because the costs are substantial and because it is
like "a black mark" indicating that a company has not fulfilled
its responsibilities. He said the fund is only opened in "in
extremis" situations.
11:41:37 AM
CAPTAIN PAGE, addressed slides 30 to 31, titled "Example: CMA
CGM AQUILA." He identified CMA CGM AQUILA as the aforementioned
vessel that drifted in Western Alaska with a broken engine at
the same time of the Viking Sky incident in Norway. He noted
that CMA CGM AQUILA is over three football fields in length at
1190 feet, carries 43 miles of containers, and also carries
several millions of gallons of oil. He pointed to a nautical
chart displayed on slide 31 and walked through how MXAK
identified the issue and tracked the vessel. He said it is
fortunate that MXAK's routing measures disallow vessels from
navigating close to land because they can break down and not be
in extremis immediately, which allows time for rescue or repair.
He noted that it was also fortunate that the ship was drifting
toward Russia rather than toward one of Alaska's islands. He
said this incident is one example of what MXAK monitors and acts
upon, and how MXAK prevents disruptions to the blue economy.
11:43:13 AM
CAPTAIN PAGE addressed slides 32, titled "Monitoring Compels
Compliance with Risk Mitigating Measures." The slide featured a
photo of a roadside "Your Speed" sign displaying the driving
speed of a pickup truck. He noted that no one has ever pushed
back when contacted by MXAK. He compared MXAK to one of the
speed signs displayed in the photo, a reminder of requirements.
CAPTAIN PAGE addressed slide 33 and noted that AIS has been
identified as a key component in maritime safety by the Arctic
Marine Shipping Assessment Report put out by the Arctic Council
and by the Aleutian Islands risk assessment report done by the
Transportation Research Board.
11:44:33 AM
CAPTAIN PAGE addressed slide 34, titled "IMO Polar Code." He
said IMO has created higher-level restrictions and criteria for
the new maritime frontier in the Arctic. He described taking
part in international meetings to ensure a holistic and
integrated approach to managing maritime activity in the Arctic.
CAPTAIN PAGE addressed slide 35, which featured an excerpt from
IMO literature detailing the premium placed on ship monitoring
and tracking in remote polar waters. He said MXAK is currently
tracking vessels and enforcing routing measures in the Arctic.
CAPTAIN PAGE addressed slide 36, which featured a chart
illustrating Arctic maritime activity through the Bering Strait
in 2018. He said MXAK collects Arctic maritime data that is of
great interest to various governmental and non-governmental
organizations.
CAPTAIN PAGE addressed slide 37, titled "Arctic Maritime Safety
Net Project." He explained that the indigenous peoples of the
Arctic are concerned about ships coming through their backyard
and interfering with subsistence operations. As a result, he
said, MXAK has worked with them to create a system through which
all vessels are aware of other vessels' locations.
CAPTAIN PAGE addressed slide 38. He explained that IMO is
concerned with the future protection of Arctic people,
especially those in Arctic coastal communities and their
traditional lifestyles. He said Alaska's AIS system is more
proactive, comprehensive, and sophisticated than similar systems
in countries such as Norway and Iceland.
CAPTAIN PAGE addressed slide 39, titled "Arctic App." He
explained that MXAK developed an application so that people who
reside in Arctic areas can receive information about maritime
activity. He said MXAK continues to work with these communities
to utilize technology and minimize the adverse impacts of
vessels operating in the Arctic.
11:47:50 AM
CAPTAIN PAGE addressed slides 40, titled "Bering Strait Transits
2009-2019." He said traffic trends in the Arctic have not
increased as much as is believed and that traffic is currently
steady. He noted that Russia has taken advantage of Arctic
routes and utilizes icebreakers to transport raw materials.
CAPTAIN PAGE addressed slide 41, titled "Bering Strait
Transits," which featured a diagram measuring traffic through
the Bering Strait. He noted that some previous increases were
due to oil exploration efforts. He said there was more activity
in the Bering Strait during 2010 than during 2018. He clarified
that much of the traffic through the United States Arctic was
transportation of food and supplies to Native Alaskan
communities.
11:48:42 AM
REPRESENTATIVE TUCK asked a clarifying question about the
diagram on slide 41.
CAPTAIN PAGE said the red bars on the chart indicate northbound
transit and the blue bars indicate southbound transit. He noted
that most people come back from the Arctic." He added that a
lot of the activity featured on the 2010 chart was due to
exploration by Royal Dutch Shell. He noted that traffic has
increased on the Russian side of the Bering Strait because the
Russians have mobilized to take advantage of raw materials. He
said there is economic opportunity in the Arctic, including
liquified natural gas (LNG) and other raw materials.
11:49:33 AM
CAPTAIN PAGE addressed slide 42, titled "The New York Times."
It featured an excerpt from an article in that publication from
2017 titled "With More Ships in the Arctic, Fears of Disaster
Rise." He noted that he was interviewed for the article and
shared one of his quotations: "We should stop worrying about
what we're going to do when things go wrong ... We should
prevent things from going wrong." He cited his experience of
spending three years addressing the Exxon Valdez oil spill as a
reason why he is passionate about disaster prevention. He
reiterated the important role of information in preventing
disasters and protecting Alaska's blue economy. He recalled
seeing images of Alaska salmon packed in oil in the wake of the
Glacier Bay oil spill in 1987, and that these images made
national news. He noted that this impacted Alaska's fisheries.
11:51:00 AM
CAPTAIN PAGE addressed slide 43, titled "USCG - MXAK CRADA
(Cooperative Research & Development Agreement)." He reported
that USCG is also looking at the Arctic as the next maritime
frontier. He noted that USCG has not previously had much of an
Arctic presence. He spoke about the Arctic Next Generation
Navigational Safety Information System, a cooperative effort
between MXAK and USCG to enhance maritime safety in the Arctic.
He said the gist of the system is that buoys and lighthouses are
outdated technologies and the challenges of securing the Arctic
are best met by new technology. He listed the types of
information communicated through the system, including the
location of whales and whalers, environmental data, vessels in
distress, and areas to be avoided.
CAPTAIN PAGE addressed slide 44, which featured a map of Alaska
and displayed the locations of AIS aids to navigation (ATONs)
which broadcast safety information to vessels.
CAPTAIN PAGE addressed slide 45, which featured a map of Cook
Inlet and featured the location of a virtual buoy installed by
MXAK made possible through AIS. He said MXAK can and has done
the same thing in the Arctic.
CAPTAIN PAGE addressed slide 46, titled "Nome Environmental
Data: Current and Waves." He discussed MXAK efforts to measure
environmental data and weather information in Nome.
11:52:40 AM
CAPTAIN PAGE addressed slides 47 through 50. He explained that
the City and Borough of Juneau employed MXAK to conduct a study
to help with efforts to expand its docks to accommodate larger
vessels. He said MXAK also developed sensors that provide real-
time environmental information to marine pilots and ship masters
for the purpose of making safer approaches. He noted that MXAK
is developing similar current and weather sensors for the City
of Ketchikan.
CAPTAIN PAGE addressed slide 51, titled "Juneau Alaska AIS
Weather Data Distribution Project." He said MXAK has installed
50 weather stations across the state that collect data that is
of great use to fishermen. He noted that funding for weather
stations comes from the cruise ship head tax as well as the
Alaska Ocean Observing System. He said these stations enhance
maritime safety by gathering information from locations not
covered by the National Weather Service. He noted that it also
provides MXAK additional information to broker.
CAPTAIN PAGE addressed slide 52. He explained how, using
vessel-tracking data and information from the ship logs, MXAK
can determine whether or not a ship discharged materials in
unauthorized areas. He said this is another way MXAK can help
ensure that vessels are being compliant. A map on slide 52
relayed discharge information for the cruise ship Star Princess.
11:55:27 AM
CAPTAIN PAGE addressed slide 53, titled "Changing Technology."
He characterized MXAK as a group of "technology whizzes" with
about 150 cumulative years of USCG experience, though noted that
most employees do not have a USCG background. He spoke to his
employees' experience and their knowledge of various maritime
industries. He described how MXAK builds and tests its own
equipment. He said MXAK leverages technology to enhance
maritime safety without huge resources. He called MXAK's
operations "unprecedented in the world.
CAPTAIN PAGE addressed slide 54, titled "The Future: Safe,
efficient, environmentally responsible maritime operations." He
restated that Alaska is the most maritime state and that it is
reliant on a blue economy that requires protecting.
11:57:06 AM
REPRESENTATIVE TUCK asked from where MXAK primary funding
comes.
CAPTAIN PAGE answered that it is mostly through the maritime
industry. He said MXAK's biggest customers are foreign flag
vessels that travel through Alaskan waters. He described how
MXAK serves those vessels. He said the second biggest revenue
stream is USCG. He added that SOA provides 11 percent of MXAK's
funding. He characterized MXAK as a "true public-private
partnership." He noted that he first developed the MXAK model
when overseeing the Port of Los Angeles.
11:58:24 AM
REPRESENTATIVE RASMUSSEN asked what is MXAK's total budget.
CAPTAIN PAGE answered approximately $4 million.
REPRESENTATIVE RASMUSSEN asked for verification that MXAK
receives approximately $400 thousand in state funds
CAPTAIN PAGE verified that.
11:58:49 AM
REPRESENTATIVE TUCK asked if MXAK services are ever paid for out
of the Oil Spill Liability Trust Fund (OSLTF).
CAPTAIN PAGE answered no. He said MXAK tries to avoid those
kinds of fiduciary discussions. "When it comes to saving a
life," he explained, "we don't charge anything." He said USCG
already pays into MXAK's system. He noted that LAURA MAERSK was
not enrolled in MXAK's system, though that did not mean MXAK was
not going to help it. He explained that any casualty is going
to have an impact on the maritime industry, so MXAK does not
limit its services to those who pay into its system. He added
that LAURA MAERSK was not required to enroll in MXAK's system
and explained the concept of "innocent passage."
CHAIR HANNAN noted that USCG was already MXAK's client.
CAPTAIN PAGE said yes. He noted that USCG has access to all of
MXAK's data. He reiterated MXAK's role as an information broker
and said, when it comes to rescue efforts, MXAK "gets assists"
while USCG gets the goals.
12:02:05 PM
REPRESENTATIVE TUCK asked if the marine exchange is uniquely
American. He asked, "How far back does it go?"
CAPTAIN PAGE asked if he meant MXAK or marine exchanges in
general.
REPRESENTATIVE TUCK clarified that he meant marine exchanges in
general.
CAPTAIN PAGE said marine exchanges date back to the mid-1800s.
He offered some brief historical tidbits. He said European ship
spotter organizations operated under the same idea. He
described the Maritime Information Service of North America
(MISNA), for which he previously served as president, and the
effort it took to construct a national AIS system. He said the
"tech support" for MISNA is located in MXAK's Juneau office. He
explained how MXAK brokers that nationally-sourced data to
create revenue.
12:05:28 PM
CHAIR HANNAN thanked Captain Page and his staff.
12:06:00 PM
PAUL FUHS, Board President Emeritus, Marine Exchange of Alaska
(MXAK), addressed several issues that were raised. First, he
said, state-licensed marine pilots make determining decisions
related to voyaging in potentially-dangerous conditions. He
also spoke to MXAK's ability to use technology to more
effectively and cost-efficiently perform the duties of the Ocean
Rangers program. He acknowledged that there have been
discussions related to that topic. He noted that, while there
is relatively little maritime traffic in the Arctic compared to
that through the Aleutian Islands, 85 percent of the cargo that
moves through the Arctic is petroleum products. He said the
Arctic "is a loser for us, money-wise" but stressed the
importance of covering the entire coast, especially considering
the high-risk cargo traveling through the Arctic. He spoke to
the possibility of transporting LNG from the North Slope through
the Bering Sea on special icebreaker vessels. He also discussed
MXAK's protection of fiberoptic communication systems.
12:08:34 PM
CHAIR HANNAN discussed her experience visiting the MXAK
headquarters and viewing real-time data on maritime activity in
Alaska and around the globe. She spoke to the beneficial
aspects of technology on understanding Alaska's reliance on the
blue economy.
12:09:38 PM
CAPTAIN PAGE invited all committee members and their staff to
visit MXAK's headquarters. He remarked that Alaska is a can-do
state. He discussed how USCG depends on private mariners to
assist in times of distress. He said USCG uses MXAK technology
to identify vessels traveling near an emergency and asks them to
intercede. He said the [2001] sinking of Arctic Rose with all
hands sparked the genesis of MXAK because Alaska needed a better
system. He reiterated the role technology plays in saving
lives. "If someone is in trouble," he said, "it's nice to know
where they are."
MR. FUHS noted that when the Arctic Rose sank, its sister ship
was only six miles away and nobody knew it.
CHAIR HANNAN recognized that MXAK manufactures charts and
thanked Captain Page for providing an Arctic regions navigation
chart to her office.
CAPTAIN PAGE discussed how MXAK got into the business of selling
charts. He noted that it is a loss leader, but said it is
important that mariners have accurate, up-to-date information.
12:12:55 PM
CHAIR HANNAN thanked the presenters.
ADJOURNMENT
There being no further business before the committee, the House
Special Committee On Arctic Policy, Economic Development, and
Tourism meeting was adjourned at 12:13 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Present and Future Alaska Maritime Operations - Captain Ed Page (002).pdf |
HAET 3/26/2019 11:00:00 AM |
Presentation: Marine Exchange of Alaska |