U.S. Maritime Administration A National Port Gateway

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U.S. Maritime AdministrationA National Port
Gateway Freight Corridor Strategy

• American Waterways Operators, Inc.
• July 23, 2008

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Why a National Strategy?

• The Marine Transportation System is a Story of
  Success
• The System is Facing Serious Challenges
• We Need to Change Our Approach to Face Future
  Challenges
• The National Port Gateway and Freight Corridor
  Strategy

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The Marine Transportation System (MTS) Success
Story

• The MTS Channels, gateway ports, near-port
  connectors interstate corridors that move our
  freight and passengers.
• The MTS is the U.S. engine for International Trade

• International Trade and GDP (Prosperity) are
  directly proportional.
• Until now, the MTS has successfully supported
  Americas Prosperity and International Trade.

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The System is Facing Serious Challenges

• Existing Landside Congestion is already a serious
  problem
• Congestion costs us as much as 200 Billion each
  year and climbing.
• We waste 2.3 billion gallons and 3.7 billion
  hours each year.
• Congestion slows freight, reduces reliability and
  increases cost.
• Experts project a doubling of international
  freight by 2015.
• Transportation Routes and Trends are changing
• Panama Canal Expansion
• Ships are getting larger and deeper
• Manufacturing centers are shifting
• Environmental and community pressures influence
  freight choices
• Energy costs are soaring
• Exports are on the rise

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We Need to Change Our Approach
SURFACE TRANSPORTATION
Highways Transit
Railroads
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We Need to Change Our Approach
WATER ACCESS
SURFACE TRANSPORTATION
Highways Transit
Maintenance
Railroads
Deepening
Navigation
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We Need to Change Our Approach
WATER ACCESS
PORTS
SURFACE TRANSPORTATION
Highways Transit
Maintenance
Railroads
Deepening
Navigation
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We Need to Change Our Approach
WATER ACCESS
PORTS
SURFACE TRANSPORTATION
Highways Transit
Maintenance
Near-Port Connectors
Railroads
Deepening
Navigation
Marine Highways
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We Need to Change Our Approach
The Marine Transportation System
WATER ACCESS
PORTS
INTERSTATE CORRIDORS (Surface Transportation)

Highways Transit
Maintenance
Near-Port Connectors
Railroads
Deepening
Navigation
Marine Highways
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The National Port Gateway and Freight Corridor
Strategy
Views the Marine Transportation System as a
single system with the ports at the nexus
Objective Ensure the MTS develops and shifts
capacity in concert, maximizing reliability and
minimizing congestion
The Marine Transportation System and its
Institutional Challenges Water Access
Ports, Terminals and Landside Access
Interstate Rail, Road and Marine Highway Links
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Balancing Capacity and Demand
Capacity
Demand
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Strategy Development to Date

• Maritime Administration met with stakeholders
• Ports
• Shippers and Carriers
• Railroads
• Trucking Interests
• Industry Associations
• Developed initial draft Strategy
• Briefed American Association of Port Authorities
  (AAPA) leadership, Marine Transportation System
  National Advisory Council (MTSNAC)

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The Marine Transportation System and its
Institutional Challenges

• Overview
• Governance
• Funding
• Port Infrastructure Development
• National Defense
• Findings

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Overview

• Recent and Future Increase in Intermodal Cargo
• Highway and Rail Challenges

• Obstacles to Port Infrastructure Development
• Time to Build
• Cost
• Permitting
• Land Use
• Intermodal Road and Rail Links

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Governance

• 18 Federal Agencies Play a Role in MTS
• Dredging
• Regulation
• Environmental
• Role of the CMTS
• State and Local Government Roles
• State DOT
• County, City, MPOs
• Ports and the Private Sector
• Landlord/tenant
• Owner/operator
• Role of MTSNAC

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Funding

• Declining Federal Fund Sources
• Federal Funding through States and MPOs
• Public/Private Partnerships
• Obstacles to PPP

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Port Infrastructure Development

• Trend in Port Infrastructure Investment
• Since 1946 - 465 Million Annually
• Since 1999 - 1.5 Billion Annually
• Future Growth is Impeded
• Regulation
• Environmental Review Obstacles and Community
  Concerns
• Access to Land for Port Use
• Intermodal Connectors
• Water Access

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National Defense

• Department of Defense relies on the commercial
  transportation system to deploy and support
  military operations
• As ports near capacity, there is less space for

• DOD surge operations and unit staging areas
• Designation as a Strategic Port does not
  provide funding to develop or maintain surge
  space

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Findings

• Finding The Federal government is fragmented in
  the governance, financing and operation of the
  marine transportation system.
• Finding Federal policy must encourage increased
  private sector investment in marine
  transportation system infrastructure.
• Finding Strategic Ports must retain the
  non-containerized surge capacity necessary to
  meet military deployment needs.

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Water Access

• Overview Current State and Future Trends
• Maintenance Dredging
• Channel Deepening
• Harbor Maintenance Trust Fund
• Findings

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Maintenance Dredging

• Current State
• Implications of Deferred Dredging
• Encroachment on Waterways (bridges piers)

• Impediments to Maintenance Dredging
• Shortage of Appropriated Funding
• Environmental Review

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Channel Deepening

• Current State
• Implications of Deferred Deepening

• Impediments to Successful Channel Deepening
• Federal Share Difficult to Obtain
• Environmental Review Process
• Federal Funding and Delays Discourage PPP

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Harbor Maintenance Trust Fund

• How the Harbor Maintenance Trust Fund Works
• Skyrocketing Fund Balance
• Access to the funding

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Findings

• Finding Maintenance dredging must keep existing
  channels and ports operating efficiently.
• Finding Deepening projects, including new
  starts, should be accelerated to meet the demands
  of anticipated increases in trade and larger
  vessels.
• Finding Expedited, streamlined environmental
  processes support the development of
  infrastructure to increase capacity.

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• Ports, Terminals, and Landside Access

2018
2008
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Challenges Ports Terminals

• Anticipated Growth in Traffic
• Infrastructure Requirements
• Capacity vs. Demand
• Lifts/Hour
• Velocity of Cargo through System
• Productivity
• Throughput / Acre
• Landside Access (Road, Rail)

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Landside Access

• Port Land Use
• Limited space to expand
• Competition with other uses - Gentrification

• Near Port Intermodal Connectors
• MPOs not always linked to ports
• Residential and urban limitations
• Stove-piped (modal) funding structure and
  sources.

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Small Medium Ports Bulk Cargoes

• Small Medium Ports
• Play a vital role in system of ports in the
  United States
• Serve niche markets Single essential commodity
• Serve specific populations/regions
• Provide redundancy and resiliency in emergencies
• Bulk Cargoes
• More tonnage moves in bulk and liquid than
  containers, and corridors that serve them differ

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Overarching Limitations Opportunity

• Environmental Impact
• Green modernization expansion
• Financing Private Investment in Ports
  Terminals
• To date, private equity mainly in existing
  facilities
• Innovative Technology Intermodal Systems
• Agile Port
• Agile Intermodal Networks
• Land use the community
• San Diego

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Findings

• Finding Current modal statutes and proposed
  legislation impose constraints and barriers to
  multi-modal, and system-wide transportation
  policies and funding.
• Finding There is a need for expanded use and
  flexibility of public-private partnerships
  through national policy and statutory authority.
• Finding There is a need for streamlined
  environmental processes that reduce the cost and
  time to complete major transportation projects.
  This need exists at the federal, state and local
  governmental levels.
• Finding Federal leadership in the development
  of critical port and terminal infrastructure can
  assist in expediting the management and
  completion of marine transportation projects.

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Findings (Continued)

• Finding Increasing velocity of cargo through
  the transportation system has the potential to
  reduce congestion and environmental impacts in
  and around densely populated port/terminal
  areas.
• Finding Public sector collaboration with the
  private sector is essential as private entities
  implement initiatives to increase cargo
  throughput at ports and terminals.
• Finding Legacy equipment and associated highly
  polluting engine technology need to be replaced
  with more modern and environmentally sound
  equipment.

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• Interstate Rail, Road and
• Marine Highway Links

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Container Ports at Major U.S. Gateways and Their
Distribution Hubs
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Major Freight Truck Bottlenecks
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North American Rail Network(Bottlenecks
Congestion Areas)
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Americas Marine HighwaySurface Transportations
Third dimension

• The U.S. has 25,000 miles of under-utilized
  navigable waterways
• The Marine Highway can provide relief to
  landside congestion
• The 2007 EnergyBill establishes aMarine
  Highwayprogram withinthe Maritime Administration

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Marine Highway Benefits
ENERGY
1 Barge 456 40 Containers
MARINE HWY
228 Railcars DBL Stacked 456 40 Containers
RAIL
456 Trucks 456 40 Containers
TRUCK
15 Barrels
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Findings

• Finding Empirical analysis of the intermodal
  system is essential to determining and
  identifying chokepoints impeding the flow of
  cargo.
• Finding Shipper incentives can have a major
  impact on the movement of cargo around
  chokepoints.
• Finding The U.S. needs to increase and maximize
  capacity across all available surface
  transportation modes (rail, road and marine
  highway) on major domestic surface transportation
  corridors.
• Finding Critical interstate waterway corridor
  infrastructure, including locks, needs to be
  modernized to meet growing demands for the use of
  inland waterways and to mitigate landside
  congestion.

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Findings

• Finding Port connector road and rail projects
  need to be expedited.
• Finding Maximizing use of Americas Marine
  Highway can reduce landside traffic and
  environmental impacts of freight movement.
• Finding Harbor Maintenance Tax is a
  Disincentive to Marine Highway expansion.
• Finding Short line railroads can increase
  capacity and the flow of cargo between the
  waterside terminal and inland terminal and other
  satellite points.

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Appendices to the National Port Gateway Freight
Corridor Strategy

• A Gateway and Corridor Projects
• B Port Terminal Intermodal Information
• C Deep Draft Shallow Draft Navigation
  Projects

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A National Port Gateway Freight Corridor
Strategy

• Questions?

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Ports Terminals

• Productivity Efficiency (existing
  infrastructure)
• Lifts/Hour
• Velocity of Cargo through System
• Throughput / Acre

• Increased Capacity through infrastructure
  development
• PPP Challenges
• Environmental Review Process