Status of Senior Service School Program



Purpose: CCG will provide remarks at a luncheon hosted by the Union League of Philadelphia. During this event, CCG will be presented the League’s prestigious Abraham Lincoln Award.Key Messages: History / Celebration of 226 yearsBig 4 (plus HCS) updatesDuration: 30 to 45 minutes allottedOPENING / HISTORYThank you! What an honor it is to be the very first Coast Guard recipient of the Abraham Lincoln Award and to be here today to celebrate the 226th birthday of the United States Coast Guard! For those unfamiliar, the Coast Guard’s roots officially began on August 4th, 1790, when President Washington signed the Tariff Act authorizing 10 cutters to enforce customs laws and collect revenue – creating the Revenue Cutter Service.It was Alexander Hamilton that worked ardently, courting the favor of the States, in order to get those ten cutters. In Federalist Paper No. 2, Alexander Hamilton wrote that “a few armed vessels, judiciously stationed at the entrances of our ports, might at a small expense be made useful sentinels of the laws.” Those 10 revenue cutters were built in separate shipyards – but not one was delivered on it’s $1000 budget. In fact, the USRC GENERAL GREEN actually launched out of Philadelphia, and she came in at about $1500. If Alexander Hamilton could see us today - with our new 418’ National Security Cutters, our largest and most technologically sophisticated vessels ever; with our 154’ Sentinal-Class Fast Response Cutters, replacing our aging 110’ patrol boat; with our 7 new C-27J Spartans (I flew in one of these a few weeks ago, you should feel the acceleration!); with our OPCs coming down the pipe, with the contract expected next month - Alexander Hamilton would stand up in his grave and applaud. He never could have envisioned a Coast Guard as great as it is today! The Coast Guard received its present name in 1915 when the Revenue Cutter Service merged with the Life-Saving Service. Over time, we gained the Lighthouse Service and then the Bureau of Marine Inspection and Navigation. We started in the Department of Treasury, moved to DoD for a brief stint with the U.S. Navy during WWII, then the Department of Transportation, and have now settled into our current home in the Department of Homeland Security. Our long and proud history has created the Coast Guard of today. A humanitarian, law enforcement, intelligence, diplomatic, disaster response, ice breaking, regulatory, waterways management, and military service. We serve globally, on all seven continents, safeguarding our Nation’s maritime interests and using our broad authorities to protect our economic interests and project sovereignty. “BIG 4 +1” STRATEGIESGuiding our global operations, I’m focused on four key strategic areas, plus the recapitalization of our aging platforms and of our most important asset, our people. WHEM:Transnational organized crime in the Western Hemisphere is a direct threat to our national security. In 2014 alone, over 68,000 unaccompanied minors crossed our Southwest border. In 2015, the figure was 40,000. So far this fiscal year, over 33,000 desperate children have arrived on our border. Why? Because drug-fueled violence in Central America has eclipsed the death rates in Iraq and Afghanistan. El Salvador’s National Forensics Institute reported that in 2015 there were 6,650 homicides. That is 18 deaths per day in a country whose population is only 6.4 million. It makes El Salvador the most violent country in the world.This violence is destabilizing governments and threatening the rule of law at our back door. And to be clear, it is our Country’s demand for illicit drugs that is fueling this unrest. Our country is 5% of the world’s population but owns 30% of the global drug demand. So, while the Navy is pulled East and West, the Coast Guard has doubled down at home. Last year, we conducted the most aggressive campaign undertaken in recent history to hit transnational criminal networks where they are the weakest – at sea.Results:In 2015, we disrupted 191 metric tons of cocaine and arrested nearly 700 smugglers. This year…in the first half of 2016, we (and our interagency and international partners) have already removed 245 metric tons of cocaine and nearly 400 more smugglers. In one stretch last fall, CUTTER BERTHOLF had six drug interdictions in six days. Our National Security Cutters (STRATTON and BERTHOLF), our largest and most technologically sophisticated vessels, seized three drug semi-submersibles in back to back deployments. Furthermore, these same ships interdicted another two semi-submersibles in the first half of 2016.Just this spring the CGC MOHAWK interdicted 11 vessels suspected of drug trafficking, detained 37 suspected smugglers for prosecution, and seized approximately 7,500 kilograms of cocaine with an estimated wholesale value of over $221 million during a 62–day patrol. She also disrupted another four smuggling ventures, preventing an estimated 3,100 kilograms of cocaine from reaching its destination.Not too long ago, numbers like this would be career highs; now it is a good patrol… or even a good week! Our regional stability depends on our continued efforts to sever the financial lines of these organizations. ENERGY:In addition to our law enforcement mission in the Western Hemisphere, as I mentioned before, the Coast Guard is also a regulatory agency – a mission equally important to our national security. It is the Coast Guard’s responsibility to ensure the safety, security, and environmental stewardship of maritime commerce, which carries 95% of our nation’s foreign trade. 3.2 trillion dollars of economic activity is linked to our waterways every year! As part of our Marine Safety mission, the Coast Guard inspects, examines, and credentials foreign and domestic vessels, U.S. facilities, and crews. Currently, we are responding to shifts in energy markets that result in significant growth, even as oil prices decline. For example, two years ago, there were no LNG-fueled vessels in operation in the U.S. Today, there are five in operation, with five more under construction and two planned conversions.In fact, LNG is the fastest growing and most readily available energy source throughout the world and the United States is producing more natural gas than ever before. It is predicted that by 2030, the US will provide 20% of the global liquefaction capacity, making the US the world's third largest exporter behind Australia and Qatar. And with eight US LNG export projects pending approval, the US has the potential of exporting 120 million metric tons of natural gas per year, compared to Qatar's current production capacity of 77 million metric tons per year.Tomorrow I am visiting Sunoco Marcus Hook Industrial Complex, the largest LPG exporter on the East Coast. They converted from an oil refinery to an LPG export terminal in 2014 and are currently expanding their output and infrastructure.The expansion of the Panama Canal is likewise impacting vessel traffic in the United States. Just this month, the biggest container ship to ever stop in Hampton Roads arrived in port, just two weeks after the opening of the expanded Canal. The Coast Guard remains ready to answer the call as we continue to monitor the shifting energy market and prepare for changes in export and import patterns. But make no mistake, shifts in this technologically advanced area strain our Coast Guard resources. ARCTIC:The Arctic is another area that has my full attention. Did you know, in light of the namesake of today’s award, it was the Revenue Cutter Lincoln that transported the U.S. diplomatic delegation to oversee the transfer of the Alaskan Territory from Russia to the United States back in 1867 - thereby making us an Arctic Nation?The Arctic isn’t what it used to be back in 1867. It is changing at unprecedented rates. The National Snow and Ice Data Center and NASA announced that Arctic sea ice set a record in March for the lowest winter maximum in the satellite tracking era. We are losing approximately “One Utah” of ice per year… With that, human activity is on the rise.Two weeks from today (on August 16th), The Crystal Cruise Ship, Crystal Serenity, will sail from Alaska to New York on a 32-day cruise through the Northwest Passage. She will carry approximately 1000 passengers and 700 crew. If you’re interested, tickets are a mere 20K-100K dollars.International shipping through the Arctic is also on the rise. The first petrochemical reactors manufactured by South Korea are currently enroute Kazakhstan through the Northern Sea Route. The vessel is scheduled to make a port call in the Russian Port, Sabetta, on the 15th of this month. This will be the first of many if this shipment proves successful. Russia’s energy giant Gazprom is systematically exploring the Russian Arctic. They are extracting oil from the Yamal Penninsula and the surrounding Arctic Shelf (Prirazlomnoye field). On 25 July 2016, Vladimir Putin announced the commencement of year-round shipments of oil through the “Arctic Gate” marine oil terminal for delivery to consumers in Europe and Asia via the Northern Sea Route. Additionally, we see foreign powers asserting disputed territorial claims and navigational restrictions, not in accordance with international law.So it is vital that the United States has the ability to safely and reliably operate in both Polar Regions year-round. Heavy icebreakers are the only assets capable of year round assured access. Yet the Coast Guard’s heavy icebreaker inventory, which is our entire national capability, consists of a single operational vessel which is 40 years old, the POLAR STAR. This is why we are steadily focused on the acquisition of a new heavy icebreaker. Excitingly, the President has requested 150 million dollars in his FY17 budget to start building new heavy icebreakers. There is even a one billion dollar SAC-D mark up for consideration! There is more significant dialogue taking place today regarding the preservation of our interests and ensuring year-round access to the Polar Regions than I have seen in over 20 years of Coast Guard efforts. For the first time in 20 years, I believe this is within our grasp.While heavy icebreakers are essential, other platform and infrastructure needs must be considered. This month, we are partnering with NORTHCOM to conduct a joint live field exercise of the Arctic SAR Agreement (“Arctic Chinook”). This comprehensive 5-day exercise with our international, federal, and local partners, will test our resources and illuminate vulnerabilities in the Arctic. It will also be a major step toward understanding what the Coast Guard and our nation need to effectively operate in the Arctic - 20, 30, 40 years into the future. CYBER:Just as the Arctic has our focus today, and will well into the future, Cyber is another challenge that isn’t going anywhere. Our world relies inextricably upon information technology. These technologies have enabled our countries to operate with impressive efficiency. But, they also expose us to risk. Exploitation, misuse, or simple failure of cyber systems can not only derail vital activities, it can also cost lives.Events:In 2012, over 120 ships experienced malicious jamming of GPS signals and a number of major Asian Coast Guard vessels were impacted by the event.Mobile Off-Shore Drilling Units have driven off-station due to disruption to their Dynamic Positioning Systems. In Europe, organized crime exploited a container terminal’s system to facilitate drug smuggling.Ardit Ferizi, citizen of Kosovo, admitted to stealing the PII of over 1,000 U.S. service members and federal employees, and providing it to ISIL with the understanding that they would incite terrorist attacks against those individuals. Plead guilty in U.S. District Court.Cyber is one of the most difficult issues facing our nation. But the Coast Guard is poised with some very specific and useful authorities and we are well positioned to help in the fight.Uniquely, the Coast Guard is the only military agency within the Department of Homeland Security. A Coast Guard Vice Admiral is the Director of J6 (C4 and Cyber) on the Joint Staff. We have members at the U.S. Cyber Command. We are leading the International Maritime Organization. And we are a member of the National Intelligence Community. Also, given our regulatory nature, we are also well positioned to influence the maritime industry that must be proactive in securing their own networks. Cyber is not a onetime threat. It is a moving target requiring both offensive and defensive tactics. It is going to require significant investment in trained cyber specialists, which will prove to be quite the challenge given the national shortage of cyber specialists - especially in the federal government. While estimates vary, the demand for cyber specialists is expected to rise to between 4.5 - 6 million by 2019, with a projected shortfall of 1.5 million specialists. Coupled with that, the average salary of qualified workers today is $150,000 for new hires and over $230,000 for security software engineers – that tops the salary for the CSO, the boss, which is about $225,000…HUMAN CAPITAL:That leads me to my Human Capital Strategy. Abraham Lincoln once said, “you cannot escape the responsibility of tomorrow by evading it today.” And it is today when we must work to build tomorrow’s Coast Guard. The complexity and uncertainty of our operating environment and our adversaries require 21st century talent. Our ships, our planes, our boats – they are all hollow without our people. Today’s operating environment requires a workforce that is:(1) More specialized;(2) More adaptable; and(3) More diverse…than ever before. I visited Silicon Valley a few months ago. Facebook, Tesla, Google… These companies, and others just like them, are seeking out the best and the brightest. They are working hard to draw in and retain the very top talent. Just like we are.But, as explained in a recent Military Times article (“The Pentagon keeps data on millennials. This is what it says”), young Americans continue to show steady interest in military service – despite the Silicon Valley options. It’s the mission that motivates our young talent. And, in the Coast Guard? Our mission cannot be beat. But, Silicon Valley is learning from us! …Continuing to recruit and retain the very best talent will remain a highest priority for the Coast Guard.CONCLUSION:The Coast Guard is a Service that is no stranger to challenges. As we venture into our 226th year, we will remain Semper Paratus – always ready to guard the Homeland, protect our environment, facilitate commerce, attack transnational criminal organizations, and, always, save those in peril.Thank you again for the honor of being the first Coast Guard recipient of the Abraham Lincoln Award! And thank you for celebrating with me, the 226th birthday of the United States Coast Guard! It was Abraham Lincoln who said, “And in the end, it’s not the years in your life that count. It’s the life in your years.” And it is the life in our 226 years that makes our Coast Guard the very best Coast Guard in the world! ................
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