Maritime Administration America’s Marine Highway Program & Port Infrastructure Development Program Chip Jaenichen, Deputy Administrator Maritime Administration, U.S. Department of Transportation 1 Maritime Administration Mission: To improve and strengthen the U.S. marine transportation system - including infrastructure, industry and labor - to meet the economic and security needs of the Nation. 2 Shifting Trade Patterns • Panama Canal Expansion • Post-Panamax Ships • Manufacturing and Distribution Shifts Top 1000 “Blue Chip” MulTinaTional Shipper Priorities With Permission from 5 M-5 (AK) $179.26M Marine Highway & TIGER Grants 2009 to 2012 M-5 M-84 M-90 Detroit/Windsor Ferry M-87 $2,200,000 Lewiston, ID $1,300,000 Maine M-90 Ports, ME $14,000,000 M-90 Bayonne, NJ $11,400,000 M-580 M-55 Green Trade Corridor, CA $30,000,000 Oakland, CA $15,000,000 M-5 M-70 M-70 M-64 Tri-City Port, IL $14,500,000 M-40 Cates Landing, TN $13,000,000 Catoosa, OK $6,425,000 James River $1,100,000 M-65 Corpus Christi, TX $10,000,000 M-49 M-55 Tenn-Tom W/W $1,700,000 M-95 Mobile, AL $12,000,000 Cross Gulf $3,340,000 Brownsville, TX $12,000,000 Davisville, RI M-95 $22,300,000 M-10 M-A1 LEGEND MH Corridor Port Manatee, FL $9,000,000 MH Connector MH Crossing M-2 U.S. Interstate M-5 (AK) 64 Express Marine Highway Service MARAD Marine Highway Grant Funds provided for purchase of barges Service started in 2008 Moves approx. 450 TEUs per month Provides relief of congested I-64 corridor 7 7 California Green Trade Corridor Tiger Grant DOT Tiger Grant Funds provided for landside improvements and two barges Service between Stockton and Oakland to begin in late 2012 TEUs already booked, majority heavy weight freight Major relief of congested I-580 corridor Critical to Marine Highway Services • Communication among multiple stakeholders/partners (including public and private) • Coordinated promotion efforts • Business, market and finance plans • Adequate capital for start-up operations, with a contingency fund • Located on a designated Marine Highway Corridor, Connector or Crossing. Go vs. No-Go (Glass Half Empty) Institutional Barriers (HMT, Govt Policy, etc.) Freight & Shipper Uncertainty High Vessel Construction Cost High Operating Cost Infrastructure Gaps Tipping Point GO No GO 10 Go vs. No-Go (Glass Half Full) Advisory Committee Recommendations to DOT Secretary Dual Use/M 55 Studies DOD Support & TITLE XI & CCF LNG + Dual Use $ $111 Million Grants Tipping Point GO 11 Port Infrastructure Development Program • Funding Gaps in Infrastructure Repair & Improvements • Inadequate Links to Major Corridors (road, rail, Marine Highway) • Inefficient Delivery of Federal Services: • Slow and Underfunded Channel Dredging • Environmental and Permitting Gridlock • Regulatory/Enforcement Commerce Delays 12 Who Invests Where? 13 DOT Proposed Port Infrastructure Development Program Framework Category I Category II Engagement Financing All Ports Limited # Ports Low Fed Oversight No Market Interference Moderate Fed Oversight Minimal Market Interference Category III Project Management Very Few Ports High Fed Oversight Minimal Market Interference Public Benefit & Public Stake A. Guidelines & Data: Sector advocate through analysis & showcasing opportunities/consequences regarding port role/investment • • • • • Possibilities Include: Port Investment Plan Guidelines (With Stakeholders) Strategic Asset Management (With Stakeholders) Port/Terminal Ops Guidelines for AMH (With Stakeholders) National/Regional Studies and Maritime Impact Analysis Condition & Performance Tracking & Measures B. Assistance: Direct support to individual ports (upon request) • Investment Plan Devel. Support (Possible Planning Grants) • Facility Needs Assessments (Possible NEPA Support) • Gateway Office Engagement – Delivery of Federal Services Financing: Direct funding support via existing/future programs • • • • • • • • • • TIGER I-IV Grants Marine Highway Grants Other Future Grant Programs Loans/Loan Guarantees Possible Cargo Facility Fee Program Eligible for Port Infra Devel. Fund Eligible for MARAD Lead Fed Agency Support Eligible for Project Delivery Initiative Sel. Criteria in Grant Program Project Defined in Grant App. Project Mgt: Increased Federal project assistance where unique Federal interest exists MARAD Co-Manages Project w/Port • Design Development • Eligible For PID Fund • Eligible for Lead Fed. Agency Supp. • Elig. For Project Delivery Initiative • Strict Sel. Criteria • Investment Plan Req’d • Project Defined 14 Version 11 – 17 Jan 2012 Authority: 46 USC, Section 50302 Questions? 15