Elaine Chao has served as Secretary of Labor under President George W. Bush and Deputy Secretary of Transportation under President George H.W. Bush.
Elaine Chao
President-elect Donald Trump has named Elaine Chao to be the Secretary of the U.S. Department of Transportation.
Trump made his announcement late Tuesday, saying her “extensive record of strong leadership and her expertise are invaluable assets in our mission to rebuild our infrastructure in a fiscally responsible manner. She has an amazing life story and has helped countless Americans in her public service career.”
Chao said, “The President-elect has outlined a clear vision to transform our country’s infrastructure, accelerate economic growth and productivity, and create good paying jobs across the country. I am honored to be nominated by the President-elect to serve my beloved country as Transportation Secretary.”
Chao, 63, served as Secretary of Labor under President George W. Bush from 2001-2009 and Deputy Secretary of Transportation under President George H.W. Bush.
She was deputy administrator of the Maritime Administration and served as chairman of the Federal Maritime Commission under President Ronald Reagan.
Prior to the Department of Labor, Secretary Chao was president and chief executive officer of United Way of America. She also was director of the Peace Corps.
Born in Taiwan, Chao emigrated to the U.S. when she was eight. Her father was also involved in the shipping business.
In a speech she gave last month at the National Taiwan Ocean University in Keelung, Taiwan, she recalled how her father “became the youngest sea captain of his time at age 29. When he immigrated to America, he dreamt of starting his own company. In 1964, he founded Foremost Maritime Company, which was the precursor to today’s Foremost Group.”
Chao said, “My own career started in shipping as well. I worked at Foremost for two years before attending Harvard Business School. After business school, I was a shipping banker with Citicorp. Then, I worked on transportation and trade policies at the White House.”
Chao is the wife of Senate Majority Leader Mitch McConnell, and has been a distinguished fellow at the Heritage Foundation, the conservative think tank, as well as the Hudson Institute. The Heritage Foundation has frequently publicized the views of opponents of the “Jones Act,” legislation that reserves transportation of cargo between points within the United States to ships built in the U.S., owned by U.S. citizens, and crewed by Americans.
The association with the Heritage Foundation did not seem to faze those in the shipping industry.
Michael Sacco, president of the Seafarers International Union (SIU), said, “There is nobody better qualified to be Secretary of Transportation than Elaine Chao. Throughout her time in government, Elaine Chao has long been a steadfast friend to the SIU and to maritime labor. The industry has no better supporter than Elaine Chao, and she has stood up to defend the Jones Act, the Maritime Security Program, cargo preference and the other key programs that keep our industry alive. She understands the importance of providing jobs to America’s working families, and she has seen firsthand the value of the United States Merchant Marine to our nation’s defense and prosperity. We look forward to working with her again.”
“I think it is fantastic, she is a remarkable person. She is remarkably knowledgeable about the maritime industry. I couldn’t be more pleased,” said Thomas Allegretti, president and chief executive officer of the American Waterways Operators, the chief trade organization for the tug and barge industry, and the chairman of the American Maritime Partnership, the chief advocacy group for the Jones Act shipping industry.
“If we could build the infrastructure lexicon to routinely include waterways, ports, and locks and dams, that would be a step forward just in terms of recognition that maritime is inherently about infrastructure.,” he said. “She won’t have to be educated on that, she understands that intuitively and that is a good thing for the maritime industry.”
“If confirmed, we look forward to working closely with Secretary Chao, particularly in regard to building on the multimodal freight infrastructure funding and policy issues in the FAST Act, as our nation continues to develop a 21st century multimodal freight network that address the complex challenges of a global supply chain,” said Jean Godwin, executive vice president and general counsel of the American Association of Port Authorities.
CNN reported, “At the Transportation Department, Chao would have a key role in helping Trump get an infrastructure spending bill passed through Congress and start government-backed works projects – a role likely to be complicated by her relationship with McConnell, who will also be a critical player in any infrastructure bill negotiations.” CNN also pointed out that a similar situation confronted Elizabeth Dole, who served as transportation secretary from 1983 to 1987, while married to Sen. Bob Dole, who served as majority leader from 1985-1987.
Chao’s appointment was met with many plaudits.
Jennifer Hedrick, the executive director of the National Industrial Transportation League, the largest shipper group in the U.S., said her organization, “has known and worked with Elaine Chao for three decades, first in her role as the Deputy Administrator of DOT’s Maritime Administration, then as Chairman of the Federal Maritime Commission and of course as the Deputy Secretary of DOT. Importantly, her experience in high profile key executive roles is not limited solely to the transportation arena. She is eminently qualified to lead the department, and we look forward to working with her and the new team she assembles in the weeks and months ahead.”
The appointment was also praised by Chris Spear, president and chief executive officer of the American Trucking Associations.
Spear, who served under Chao at the Department of Labor, said Trump “could not have picked a more qualified, experienced and dedicated individual to serve in this important role.”
“We are eager to support her as our country and our industry work to improve our roads and bridges, improve safety, and harness the potential that emerging technologies have to continue to move our country forward,” he said.
Edward R. Hamberger, president and chief executive officer of the Association of American Railroads, said the railroad industry “looks forward to working with Ms. Chao on the many critical surface transportation issues key to U.S. economic growth and prosperity. We know based on her prior tenure at the Department of Transportation that she has a full appreciation of the vital role freight and passenger rail play in America.”
Chao “has a strong understanding of the transportation challenges facing the nation,” said Bud Wright, executive director of the American Association of State Highway and Transportation Officials. “We look forward to working closely with the U.S. DOT to improve safety, and mobility of the American people.”
U.S. Rep. Bill Shuster, R-Pa., chairman of the House Transportation and Infrastructure Committee, said, “From the start, it was my hope that President-elect Trump would select someone to run the Department of Transportation who has a background leading large organizations, knowledge of how Congress and the legislative process work, and the right mixture of public and private experience necessary to oversee a bold agenda to transform America’s transportation and infrastructure systems for the 21st Century. Elaine Chao embodies these qualities.”
“I am committed to working with Secretary Chao and President Trump to make responsible investments in our infrastructure, streamline transportation improvements, reduce regulatory burdens, encourage private-public partnerships, and encourage innovation to preserve and strengthen America’s economic competitiveness,” he added.
U.S. Sen, John Thune, R-S.D., and chairman of the Senate Committee on Commerce, Science and Transportation, said, “I support the President-elect’s choice and expect the Senate Commerce Committee will expeditiously consider this nomination once the new Congress begins in January. From safely integrating unmanned aircraft into our skies to supporting development of self-driving vehicles, the Department of Transportation has responsibility for overseeing fundamental changes happening in our transportation system.”
He added that Chao “has already shown she can work effectively with members on both sides of the aisle. Her leadership will benefit the Department of Transportation in guiding investment in our infrastructure and making transportation safer and better for the public.”
Chris Dupin is Maritime and Intermodal Editor of American Shipper. He can be reached by email at cdupin@shippers.com.