NCHRP PROJECT 08-36 PROPOSED RESEARCH PROBLEM STATEMENT 1. Title Feasibility of River Barges and Lakes Vessels used to transport freight on the North American Marine Highways in Central United States (Great Lakes and Mississippi River) 2. Background The use of water craft to move transportation containers and trailers within the geographic area of the Continental United States has not developed on the two main waterways that reach the central portion of the United States, neither the Mississippi River Ports in Minnesota nor the Twin Ports of Duluth/ Superior have historically been able to support such a transportation alternative. The use of slow-moving barges on rivers and smaller ocean-going or lake vessels to move the kind of time sensitive freight that typically is hauled in containers and truck trailers does not have the appearance of being either economical or practical. There are several examples around the world where oceans containers are regularly hauled between interior points of countries with Europe (Rhine, Danube, etc) and China (Port of Hong Kong, Chinese river-ways, etc.) representing two of the most long – lived records of river transport of containers. Perhaps the limited availability of dry land corridors to move freight within these intensely crowded countries has made the interior water option both economical and practical. While the U.S. is by no means as strapped for corridor space to move its freight, there is evidence that congestion and geographic limitations may be reaching the point that alternative corridors for freight movement could be viable. 3. Statement of Urgency The very rapid rise in international trade between the U.S. and the rest of the world, not to mention Canada and Mexico whose trade with the U.S. has literally skyrocketed since NAFTA was enacted, has heightened the awareness and desire of interior U.S. businesses to have access to the world market. In addition, the growth in Asian production of consumer goods for the U.S. consumption and the rising demand for centrally grown U.S. agricultural products, has create an environment for an imperative trading partnership. To keep businesses competitive and provide consumer goods for our citizens at the optimum price possible, given the under utilization of a centrally located water corridors, we need to explore all possibilities for the most cost effective and environmentally favorable means of moving freight in and out of the region. The Great Lakes and Upper Mississippi waterways provide two natural corridors that are being underutilized. Notwithstanding the diminishing limitations placed on our waterway access by seasonal weather closures, it would seem worthwhile to study the economical possibilities of containers/trailer movement on barges and lake vessels to and from central U.S. markets. 4. Project Objective The objective of the research will be to provide cost and operational information that can allow for conclusions to be drawn as to the feasibility of such an alternative transportation pricing in the central portion of the U.S. for both outbound and inbound commodities. Page 1 of 3 5. Relationship to Existing Body of Knowledge NCFRP Report 5- North American Marine Highways1 was generally focused on use of the North American Marine Highway throughout the country and the report provide potential path of success for various geographic environments. Other Studies focused on Minnesota’s Competitiveness with emphasis on promoting economic vitality for the state. There has been some work on moving so-called “identity –preserved” agricultural commodities by container on barge, but the relative low value of the commodity being shipped, not to mention the lack of any true freight flows already existing, did not result in this alternative being economically feasible for such products. (See. “Minnesota Port Access Study” re Identity Preserved Crop Handling & Shipping Systems, by Global Resource Associates, Inc. for the Minnesota Department of Agriculture, 2000 This proposed “Feasibility of River Barges and Lakes Vessels used to transport freight on the North American Marine Highways in Central United States (Great Lakes and Mississippi River)” study would be specially focused on containers on barge and short sea shipping and its possible impact to the central portion of the United States. 6. List of Anticipated Work Tasks Research will consist of a market survey to determine freight movements that could benefit from intermodal water services to include origins/ destinations, commodity type, and volumes. Much of the consumer products produced in the Far East and consumed in the Central portion of the U.S. comes through the West Coast ports and moves via rail intermodal. The research would address moving containers via panamax ships through the Panama Canal to New Orleans and upriver to Minnesota via barge be a viable alternative. Next would be an in depth analysis of operating costs of the alternative modes to deliver and receive commodities indentified in the market survey to include rail intermodal, over the road truck, and water/rail, water/truck and other possible combinations involving water movements. This analysis would also address environmental and energy comparisons for the different options. An analysis of the operational issues and opportunities will be required, i.e., loading and unloading containers from barges; barge container capacity; limitations of ocean going (“salties”) traversing the St. Lawrence Seaway to reach the Twin Ports; etc. Would these inbound containers provide a ready and economical source of empty containers (no “positioning charges” for bringing empties into Minnesota for outbound loads) - once unloaded they can be reloaded for shipment to markets worldwide. The research should also consider opportunities for water intermodal markets to enhance the economic possibilities for other areas, e.g., could intermodal barges deliver containers to river ports between New Orleans and St. Paul, such as: Memphis, St. Louis and the Quad Cities. Can a system of “drop barges” be devised whereby a barge tow would drop off a loaded container barge at a port and pick up an empty barge which had been unloaded previously and proceed upriver dropping off loads and picking up empties which can travel faster than the usual 15 barge tow sizes on the Upper Mississippi an alternative (more equipment “turns” and faster transit times). 7. Estimated Funds Needed $100,000 1 NCFRP Report 5, “North American Marine Highways” Transportation Research Board Page 2 of 3 8. Estimate of Time Needed to Complete Research 12 months 9. Name, Affiliation and Contact Information of Submitter (s) Mukhtar Thakur Office of Multimodal Innovation 395 John Ireland Blvd. St. Paul, MN 55155 mukhtar.thakur@state.mn.us 651-366-4691 John Tompkins Office of Freight and Commercial Vehicle Operations 395 John Ireland Blvd St. Paul, MN 55155 john.tompkins@state.mn.us 651-366-4691 10. Date of Submittal 10-1-10 Page 3 of 3