THE JONES ACT: A COMMERCIAL AND
PUBLIC POLICY SUCCESS
International Propeller Club of the United States
RIVERS OF TRADE: LINKING AMERICA'S
HEARTLAND TO THE WORLD
Darrell Conner
Government Affairs Counselor, K&L Gates LLP
darrell.conner@klgates.com
Phone: 202-661-6220
A Commercial & Public Policy Success
AMERICAN MARITIME PARTNERSHIP
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Economic Impact
AMERICAN MARITIME PARTNERSHIP
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National Security
“It is the sense of Congress that
United States coastwise trade laws
promote a strong domestic trade
maritime industry, which supports
the national security and economic
vitality of the United States and the
efficient operation of the United
States transportation system.”
AMERICAN MARITIME PARTNERSHIP
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Homeland Security
“The task of securing U.S.
seaports and foreign cargoes is
daunting by itself. …Were the
Jones Act not in existence,
DHS would be confronted by
the difficult and very costly
task of monitoring, regulating,
and overseeing all foreigncontrolled, foreign-crewed
vessels in internal U.S.
waters.”
Dr. Daniel Goure, October 2011
AMERICAN MARITIME PARTNERSHIP
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Domestic Industry Growing
Crude oil revolution continues to explode
AMERICAN MARITIME PARTNERSHIP
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Changing Transportation Needs
“What has happened in shale plays
across the country has stood the
transportation network on its ear.”
Richard Kinder
CEO and Chairman of the Board
AMERICAN MARITIME PARTNERSHIP
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Significant Increases in CBR
2012
2013
2011
2010
2009
2008
AMERICAN MARITIME PARTNERSHIP
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New Opportunities
Gulf to USAC
Mbbls
Midwest to Gulf
Mbbls
9000
40000
8000
35000
7000
30000
6000
25000
5000
20000
4000
15000
3000
10000
2000
5000
1000
0
0
2008
2009
2010
2011
2012
2013
2008
2009
2010
2011
2012
2013
Source: EIA
AMERICAN MARITIME PARTNERSHIP
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Shipbuilding Boom
AMERICAN MARITIME PARTNERSHIP
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Tanker/ATB Construction Surge
Carrier
Shipyard
Order
SeaRiver Maritime, Inc.
Aker Philadelphia
Two 115,000 DWT product tankers
American Petroleum Tankers
General Dynamics NASSCO Five 50,000 DWT LNG-conversion-ready
product tankers with 330,000 barrel
capacity
Aker Philadelphia
Four 50,000 DWT product tankers with
330,000 barrel capacity
2015/2017
Seabulk Tankers, Inc.
General Dynamics NASSCO Three 50,000 DWT product tankers with
330,000 barrel capacity
2015
Bouchard Transportation Co., Inc.
VT Halter Marine, Inc.
2015
Kirby Offshore Marine
Gunderson Marine
Moran Towing Corp.
Bay Shipbuilding Company Two 150,000 barrel and one 110,000
barrel capacity articulated tug barges
Donjon Shipbuilding
One 185,000 barrel capacity articulated
tug barge
Aker Philadelphia
Two 50,000 DWT LNG-conversion- ready
product tankers
Crowley Maritime Corp.
Seabulk Tankers, Inc.
Philly Tankers
Kirby Corporation
Two 250,000 barrel capacity articulated
tug barges
Two 185,000 barrel capacity articulated
oceangoing oil and chemical tank barge
Bay Shipbuilding Company Two 155,000 barrel capacity articulated
oceangoing oil and chemical tank barge
AMERICAN MARITIME PARTNERSHIP
Est. Delivery
2014
2015
2015
2015
2016
2016/2017
2016/2017
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Inland Tank Barges
In 2013, 336 inland tank barges were delivered,
collectively adding 8,210,500 barrels of capacity.
Number of Vessels
Recent Deliveries by Year
# Delivered in 2013
Capacity (bbls)
400
241
30,000
300
1
20,000
1
17,500
1
17,000
100
1
16,000
0
91
10,000
200
2011
2012
AMERICAN MARITIME PARTNERSHIP
2013
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The Big Myth
Comparing Foreign Flag to U.S. Flag
Vessels is Comparing Apples to Oranges!
Governed
by
Domestic
Laws
Governed
by Flag
State
DOMESTIC
INTERNATIONAL
AMERICAN MARITIME PARTNERSHIP
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Jones Act Support Runs Deep
“This is a very exciting time for American
maritime…I appreciate the many benefits of
Jones Act and this vibrant homegrown
American industry.” – House Transportation
Committee Chairman Bill Shuster (RPennsylvania).
AMERICAN MARITIME PARTNERSHIP
“My boss is on
the record
supporting the
Jones Act,
and so am I,”
Transportation
Secretary
Anthony Foxx
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A Public Policy Success
 Supports U.S. economic, homeland and
national security at no cost to government
 Ensures domestic defense shipyard
industrial base
 Sustains a pool of skilled mariners
essential to national security
AMERICAN MARITIME PARTNERSHIP
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American Maritime Today
AMERICAN MARITIME PARTNERSHIP
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QUESTIONS
Darrell Conner
Government Affairs Counselor
darrell.conner@klgates.com
Phone: 202-661-6220