Northwest
Transportation Briefing
PNW container ports no longer
have a competitive advantage
The Canadians are eating our lunch
We need your help
Competitive Threats
Midwest Battleground
West Coast Ports TEU Volumes 2009
Seattle
Tacoma
Portland
Oakland
Los Angeles
Long Beach
1,584,000
1,545,000
174,000
2,051,000
6,748,000
5,067,000
Port of Metro Vancouver
Port of Prince Rupert
2,152,000
265,000
Canada’s Gateway & Corridor Initiative
Targets U.S. Midwest Cities
•58 hours closer to Asia
•No Harbor Maintenance
Tax
Competitive Threats
Widening of Panama
Canal makes all-water
route viable again
Over 26M TEU New Capacity
Planned at East Coast/Gulf
Ports
New York: 52’ depth by 2012.
Expanded rail capacity to 1
million on/near dock.
Norfolk: current projects to
expand to 3M TEU. All 56’
depth.
Charleston: Proposed new
1.3M TEU terminal. 45’ deep.
Savannah: Expand capacity to
6.5 Million TEU. 48’ channel
deepening project.
Jacksonville: 2 new container
terminals. 2 Million TEU.
Dredging to 45’’
Houston: Bayport Terminal
$1.4 billion project. 2.3 M TEU.
Global Trading Partners
Pacific
Northwest
Mainline Rail
West Vancouver Freight Access Rail Project
PROJECT PARTNERS:
Deep Draft Lower Columbia River
• 105-mile deep draft channel
• 40 million tons worth $17 billion
• Jobs: 40,000 direct; 100,000 indirect
• 3 grain ports; 4th to come early 2011
• 14-16M tons grain and growing
• 3M tons forest products
• Third largest grain export
gateway in the world
Inland Columbia/Snake River Channel
• 14’ channel
• 360 miles – Portland/Vancouver
to Lewiston
• 8 locks
• 10-12M tons
• $3B in value
• Keeps 700,000 trucks off
highways that run through
Columbia River Gorge
OR & WA Shallow Draft/”Low Use” Ports
• Critical to survival of local
communities
• International trade, recreational
boating, commercial fishing
• $94.3M recreational sales, 1500 jobs
in OR
• Four top 40 US Commercial Fish
Landings in OR & WA
• $100M estimated annual value of
Commercial Fish Landings in OR
• Infrastructure funding vital to
maintaining coastal economies
Union Pacific in Oregon
2010 Fast Facts
Miles of Track
Annual Payroll
1,073
$123.4 M
In-State Purchases
$84.9 M
Capital Spending
$89.6 M
Employees
1,581
Union Pacific in Washington
2010 Fast Facts
Miles of Track
532
Annual Payroll
$23.2 M
In-State Purchases
$95.9 M
Capital Spending
$18.8 M
Employees
319
BNSF Rail Network
BNSF Network
What is Unique About Rail
And Why Public Policy Matters
Public/Private
Partnerships
Railroads
Anti-Trust
Port of Vancouver Train Blocking Mainline
West Vancouver Freight Access Rail Project
PROJECT PARTNERS:
Amtrak Cascades Service
•
•
•
•
Serves major urban areas in NW from Willamette
Valley to Vancouver, BC
7th highest ridership among passenger rail
corridors nationwide
Partnership between WSDOT, ODOT and Amtrak
Federal support will help increase frequency,
improve travel times and reliability
Federal Highway Trust Fund
•
Highway Trust Fund supported almost entirely by gas and diesel taxes
•
Trust Fund expected to exhaust balances in 2013 (or maybe even
2012)
•
Without additional resources, Congress will have to cut highway
funding about 30%, transit funding 40%+
•
In long-term, need to re-think over-reliance on gas tax
Highway Trust Fund Finances
60
Billions of Dollars
40
20
0
2009 2010 2011 2012 2013 2014 2015 2016
-20
-40
-60
Funding
Revenue
Balance
Columbia River Crossing
•
•
•
One of the worst chokepoints in the nation
Innovative, multi-modal solution
Federal support through program for projects of
national significance is critical
Airports in the Pacific Northwest
• Four largest airports:
– Sea-Tac
– Portland
– Spokane
– Boise
• Many other commercial service airports
• Even more general aviation airports
Value of Airports
• Passenger service
– Domestic/International
• Cargo service
– Domestic/International
• General aviation business/recreation
• On-airport commercial activities
• Job generators
Airport Federal Priorities
• Funding
– Tax treatment of airport bonds
– Airport Improvement Program (FAA grants)
– Passenger Facility Charges (PFCs)
• Security/Facilitation
– Transportation Security Administration
– Customs and Border Protection
Airport Federal Priorities
• Environmental
– Sustainable Aviation Fuels Northwest
• Safety
– Firefighting and rescue standards
• Air Service
– Essential Air Service
– Small Community Air Service Development
Navigation Policy
WRDA
• Vehicle for Corps policy changes & new projects
• Traditionally biennial
• WRDA 2000 … 2007 … 2011?
Navigation Policy
Principles & Guidelines
• Guides federal water resources planning
• Published in 1983
• WRDA 2007 called for update
• CEQ currently finishing work on Principles
Navigation Policy
Other federal policies impact navigation
• NEPA
• Clean Water Act
• ESA
• FCRPS Biological Opinion (the “BiOp”)
Navigation Funding
Pattern of decline in Corps funding
Navigation Funding
• Pacific Northwest has mix of federal navigation projects:
– Deep draft
– Coastal shallow draft/”low use”
– Inland
• Funding climate is difficult for all projects
Coastal Navigation Funding
Harbor Maintenance Trust Fund (HMTF)
• Authorized in WRDA 1986
• Designed to pay 100% of coastal O&M
• Ad valorem tax on imports
• “Surplus” of over $5B
• Bills to address the surplus
Inland Navigation Funding
Inland Waterways Trust Fund (IWTF)
• Also authorized in WRDA 1986
• Designed to pay 50% of inland construction and major
rehab
• Diesel tax paid by barging industry
• Receipts not keeping pace with project costs
• IMTS Capital Investment Plan proposed
Questions?