Coast Guard Says Year 2000 Problem Won't Close U.S. Ports.

LOS ANGELES--(BUSINESS WIRE)--June 15, 1999--

The U.S. Coast Guard Tuesday announced that it plans to allow U.S. ports to say open on Jan. 1, 2000, ending speculation that shipping might temporarily be halted because of the Year 2000 computer problem.

Instead, the agency will assess the ability of individual vessels and facilities to operate safely and reliably, and allow those that can demonstrate that they have adequately addressed their Y2K issues to continue operating normally. Where there are concerns for safety, operational restrictions could be imposed by the local Coast Guard Captain of the Port.

Questions about the "millennium bug" in the highly computerized maritime transportation industry have led to concerns about the possibility of disruptions in ship movements and harbor operations, even the potential of collisions, spills, or harbor traffic jams as consequences of conceivable vessel-related Year 2000 computer failure.

Rear Admiral George N. Naccara, the Coast Guard's Chief Information Officer, said, "Rather than interrupt U.S. port activities on Jan. 1, the Coast Guard will gather and assess information on operators' Y2K preparations, and only impose operational restrictions if the operator's level of Y2K preparedness raises safety concerns."

The Coast Guard's criteria will focus on the maritime operators' efforts to evaluate and repair their computer systems, as well as the adequacy of their contingency plans to address possible Year 2000-related failures.

"The idea is to have a consistent, nationwide approach that will protect life, property and the marine environment while recognizing the importance of ocean transportation to the nation's economy," Naccara said.

He added that the Coast Guard was treating the Year 2000 problem with the same heightened state of readiness that it would employ with other marine hazards, such as spills and severe storms. From a maritime-safety perspective, however, Coast Guard policy makers do not think the Year 2000 presents an unmanageable problem.

"The key is to have contingency plans in place and then rigorously test them," Naccara said. Naccara's comments came at a media availability following a day and a half spent assessing the readiness of the Coast Guard, the Ports of Los Angeles and Long Beach, and three private-sector transportation providers -- containership company APL, the terminal division of oil producer ARCO, and tugboat operator Crowley Marine Services -- for responding to potential Year 2000 mishaps.

Scenarios included simulations of an oil spill, telecommunications problems, engine malfunction on a vessel with its clocks set forward to the turn of the century, and the failure of a port's vessel-traffic system, which controls ship movements in the harbor.

Naccara applauded the voluntary participation of the three companies, as well as the spirit of cooperation between them and the two large Southern California ports. "This exercise will become a model for others in the maritime industry to follow," he said.

The centerpiece of the Coast Guard's Year 2000 policy is the Year 2000 Code of Good Practice that was recently published by the International Maritime Organization (IMO) as IMO Circular Letter 2121. It provides questionnaires for the exchange of information about an organization's Y2K preparations.

The information gathered by the questionnaire will be used in combination with a Coast Guard risk assessment matrix to "score" a vessel and its level of Y2K preparedness. The resulting "grade" will determine whether a vessel may proceed normally, or have restrictions placed upon it.

Naccara said the questionnaire will be available from any Coast Guard Captain of the Port or may be downloaded from the Coast Guard's Y2K Internet site. The Coast Guard is providing the following central address and 1-800 fax number for filing completed questionnaires.

U.S. Coast Guard (G-MOC/Y2K)

c/o The Centech Group

2000 N. 14th Street

Suite 700

Arlington, VA 22201

Fax: [phone]

As an alternative, members of the maritime industry will have the option of filing their response online at http://www.uscg.mil/hq/g-m/y2k.htm.

"Theoretically, we should be able to advise shipping companies of their status very quickly," Naccara said. The fast response will be critical, he added, in allowing vessel operators to augment their Year 2000 readiness as needed in order to pass the Coast Guard's muster. Additional information on the USCG Y2K Preparedness can be found by contacting 202/267-1742, 202/267-1275, or e-mail to [e-mail].