2012 Freight in the Southeast
Conference
America’s Marine Highway Services
March 16, 2012
Lauren Brand, Director
Office of Marine Highways & Passenger Vessel Services
US DOT – Maritime Administration
1
Vision
 America’s Marine Highways are a routine intermodal choice
among shippers and freight forwarders, providing reliable
scheduled liner services;
 Expanded use of Marine Highways make measurable
improvements to environments impacted by transportation;
 Shippers request Marine Highway services as a more efficient
means of moving their goods because of both its cost
effectiveness and its pubic benefits;
 Marine Highway services are self sustaining and profitable
across the U.S., using both ships and barges;
2
M-5
(AK)
M-5
M-84
Marine Highway Grants September 2010
M-90
M-90
M-87
M-90
M-580
M-95
M-55
M-70
M-70
M-64
M-40
M-5
M-65
M-49
M-55
M-95
LEGEND
M-10
MH Corridor
MH Connector
M-A1
MH Crossing
M-2
U.S. Interstate
M-5 (AK)
M-5
(AK)
America’s Marine Highway - Programmatic NEPA
Project in Five Major Regions
M-5
M-84
M-90
West
St. Lawrence SeawayM-87
M-90
Coast
(4M-580
States)
M-90
Great Lakes &
(7 States)
M-95
M-55
Inland
M-70
M-70
Waterways
M-40
M-5
(13
States)
M-65
M-49
M-55
Gulf Coast
M-10
(5 States)
M-A1
East
M-64
Coast
(15
States)
M-95
LEGEND
MH Corridor
MH Connector
MH Crossing
M-2
U.S. Interstate
M-5 (AK)
M-5
(AK)
M-5
M-84
Marine Highway Cooperative
Agreements- Sept. 2010
M-90
M-90
M-87
M-90
M-580
M-95
M-55
M-70
M-70
M-64
M-40
M-5
M-65
M-49
M-55
M-95
LEGEND
M-10
MH Corridor
MH Connector
M-A1
MH Crossing
M-2
U.S. Interstate
M-5 (AK)
Initiatives & Market Studies
•
Examining the potential for marine highway
services to provide relief of congested landside
corridors and to provide additional transportation
options.
•
Identifying types of vessels which would be suited
for marine highway routes.
•
Collecting data from various modes and sources
regarding the most congested corridors and types
of freight being moved.
•
Identifying markets which could be served.
6
2005
GAO Short Sea
Shipping Option
Shows
Importance...
2006
Global Insight
& Reeve and
Assoc: Four
Corridor Case
Studies...
2008 CCDoTT 2009
Operational NAASCO/
Dev of SSS to General
Serve the
Dynamics:
Pacific Coast Shipbldrs
Assessmt of
Marine
Highways
Describe why
Assess viability Analysis of A
short sea
of short sea
short sea
shipbuilder's
shipping is
operations on service along perspective
considered and four potential Pacific Coast based on
factors affecting domestic
handling
previous two
its viability; the Corridors; as domestic and reports
government's
alternatives to feeder
role in SSS
overland
cargoes;
development and freight
using a door
issues to be
transportation. to door
considered by
model
govt when
making
investment
decisions re:
freight mobility
challenges
2011
2012
Herbert
TEC & Erik
Engineering Stromberg
& Mercator M-5 West
Dual Use
Coast
Vessel Study Marine
Highway
Study
2012
2012
2012
The RNO Parsons
CCDoTT 3
Group M-55 Brinckerhoff AMH DualInland River M-95 East
Use Vessel
Marine
Coast Marine Design
Highway
Highway
Project
Initiative
Study
Assess M- Conduct a Conduct a Conduct a
Refine three
95,
study that study that study that of the 11
M-5 and M- examines examines examines the MARAD
10 plus the the
the
potential for concepts
NEMH potential potential for Marine
with cost
project for Marine Marine
Highway
data and
(Maine to Highway Highway
service(s) to calculate
NY/NJ) service(s) service(s) to provide relief RFRs
AMH
to provide provide
to the M-95
markets & relief to
relief to the and
prepare 11 the M-5 M-55 and connecting
Ship
and
connecting Marine
concept connecting Marine
Highway
designs Marine
Highway
Corridors
Highway Corridors
Corridors
7
2005
2006
GAO Short Sea Global Insight
Shipping
& Reeve and
Option Shows Assoc: Four
Importance... Corridor Case
Studies...
2008
2009
2011
2012
CCDoTT
NAASCO/ Herbert
TEC & Erik
Operational General
Engineering & Stromberg
Dev of SSS to Dynamics: Mercator
M-5 West
Serve the
Shipbldrs Dual Use
Coast
Pacific Coast Assessmt of Vessel Study Marine
Marine
Highway
Highways
Study
2012
The RNO
Group M-55
Inland River
Marine
Highway
Initiative
Federal
Global
Highway
Insight's
Admin reports Transearch
and study of database
two
2003
operations
State DOT previous
stats of
studies
Business
Economic
Areas (WA,
OR and
CA)/US
Bureau of
Economic
Analysis
regional
economic
data
Old fashioned Corridors and Builds on
market
services
2011 HEC
analysis
identified in market
within a
the Marine
analysis with
targeted
Highway
peer review
geographic applications confirmation
area; work
titled:• The
based on
AMH 1-95
research,
Corridor
meetings and Service Project
interviews
(ports of New
Bedford,
Maryland,
Canaveral);•
New Jersey
Marine
Highway
Platform as a
Marine
Highway
Project
Extensive FHWA's
interviews Freight
with shipping Analysis
companies Framework
confirmed by 2007; US
analysis of Census
Global
Foreign
insights 2009 trade
Transearch Division
data base trade data;
US Census
County
Business
Patterns; US
Bureau of
Economic
Analysis
(BEA)
regional
economic
data
2012
2012
Parsons
CCDoTT
Brinckerhoff Three AMH
M-95 East
Dual-Use
Coast Marine Vessel
Highway Study Design
Project
8
SHIPPER CONCERNS
• Multiple shippers interviewed – key concerns
are:
• Reliability
• Consistency of schedule
• Visibility
• Cost
• Risk of delays in ports
9
Bottom Line
 Under current market and regulatory
conditions, sustainability of services are
difficult to predict
 Therefore, policy and regulatory changes are
required in order for services to be
economically sustainable.
10
Policy Options
•
•
•
•
•
•
•
•
11
Revision in the collection of the Harbor Maintenance
Tax
Government support for Ship Construction
Tax credits for shippers who use more environmentally
sustainable modes of transportation
Investment in Port Infrastructure
Amend the Tonnage Tax for U.S. flag ships
Implement Marco Polo type startup assistance
program
Fund LNG fuel distribution capability
Ensure users and beneficiaries pay for services
commensurate with costs of providing them.
11
Supply
Demand
Shipper
Incentives
Start up funding
Carbon Trading
HMT & Tonnage Tax
Policy Changes
Maritime is part of the
transportation system
Fuel Costs
12
Focus on States
 MAP 21 (Moving Ahead for Progress in the 21st
Century) S. 1813:
 February 29, 2012 recommended for consideration by
the Senate
 Maritime projects will be able to compete in State
DOT programs for:
 CMAQ funds
 Up to $400 million for infrastructure projects more cost
effective than highway options
 Up to $1 billion for infrastructure projects of national or
regional significance
Focus on States
 38 State DOTs influence America’s Marine Highways
 Which State DOT department will consider it?
 9 = maritime, ports, waterways or marine
 8 = planning
 6 = intermodal
 4 = freight
 3 = rail & marine/railroads & harbors
 1 = aviation & ports
 1 = trade development
 6= have no department that addresses maritime
•MTSNAC –
Marine Highway
Subcommittee
Next Steps 2012
•Regional
Roundtables
•Issue “Call for
Projects”
15
America’s Marine Highways Program
http://www.marad.dot.gov
•
Existing MH Corridors Map
•
Existing MH Corridor, Project and Initiative descriptions
•
References (Studies)
•
Report to Congress (April 2011)
Lauren Brand
202-366-7057 Lauren.Brand@dot.gov
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