Expanding Freight on our Waterways and Modernizing our Ports. U.S. Department of Transportation Maritime Administration

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1 Expanding Freight on our Waterways and Modernizing our Ports U.S. Department of Transportation Maritime Administration May 2014

2 America s Marine Highways: From Concept to Reality! Authorized in 2007 Grant program created and $7M awarded in 2010 Four new services funded Three market studies funded New vessel designs funded 2

3 M-29 M-495 M-146 3

4 Marine Highway Studies Three Routes Studied (M-5, M-55, & M-95) Market Analysis Operation/Infrastructure Analysis Business Case Major Findings Where the geography and market were favorable, services could work Infrastructure gaps and modal connectivity need to be addressed Handling costs and vessel operations continue to be the major cost drivers Must be part of a total t supply chain package 4

5 64 Express Marine Highway Service MARAD Marine Highway Grant Funds provided for purchase of barges Service started in 2008 Moves approx TEUs annually Provides relief of congested I- 64 corridor 5

6 California Green Trade Corridor Tiger Grant DOT Tiger Grant Funds provided for landside improvements and two barges Service between Stockton and Oakland began June 2013 Improves air quality and reduces highway congestion along I-580 All hi t f Allows shipments of heavy weight containers

7 Tenn-Tom Tom Waterway Pilot Project MARAD Marine Highway Grant Funds provided for landside container handling equipment Memphis Tupelo Fulton Mobile Birmingham Service between Mobile and Fulton to begin 2 nd Qtr 2014 Provides modal choice and an all water alternative versus east/west coasts to Memphis rail ramps. Potential ti to expand to other Ports along the waterway and extend the service further north

8 NY Metro Area Potential 8

9 Lessons Learned for forming Marine Highway Services It takes a village! Partnerships must be formed among the State DOTs, MPOs, Port Authorities, Terminal Operators, Service Operators, Logistics Providers/Shippers and Federal Agencies (i.e. U.S. Customs) Communication and Cooperation In-depth Market Analysis Sufficient start up capital Part of a complete, door to door supply chain Value-added services as part of the total service package

10 Prime Considerations & Where s my freight? When will I get it? How much will it cost me?

11 Major Cost Factors & Maximizing vessel utilization Efficient terminal operations How much will it cost me?

12 StrongPorts Program Legislation: Authorizes Port Infrastructure Development Program (2010 National Defense Authorization Act (PL )) Purpose: Promote, Encourage, Develop Ports and Transportation Facilities in Connection with Water Commerce Secretary of Transportation, through the Maritime Administrator shall establish a port infrastructure development program for the improvement of port facilities. Provide technical assistance as needed for project planning, design and construction. Coordinate with Federal agencies to expedite NEPA. Coordinate reviews or requirements with local l state t and federal agencies. Receive (Federal, non-federal, private) funds to further projects. 12

13 StrongPorts Program Primary Objective: Improve state of repair, capacity, efficiency and environmental sustainability of all U.S. ports. Leverage existing programs where possible Improve port competitiveness for public (Federal, State and local) and private funds through h enhanced planning and engagement Factors, Goals and Methodologies to Consider Ensure Federal role is appropriate to circumstances Right Size, not Super Size Competition among/between ports is essential minimize impact Program must be effective with no new Federal Funds New money only increases scope of program benefits. Address the real challenges ports face, not perceived - Consensus Program should benefit all ports, not just a select few. 13

14 Program Framework - Phase 1 PHASE I Implementation Category I Planning & Engagement Category II Financing Category III Project Support All Ports Limited No. of Ports Very Few Ports High Federal Oversight Minimal Market Low Federal Oversight Moderate Federal Oversight No Market Interference Minimal Market Interference Interference A. Guidelines & Data: Sector advocate through analysis & showcasing opportunities/consequences regarding port role/investment Activities Include: Port Investment Plan Guidelines (With Stakeholders) National/Regional Studies and Maritime Impact Analysis B. Assistance: Direct support to individual ports (upon request) Investment Plan Devel. Support (TIGER VI Planning Grants) Delivery of Federal Services (Gateway Offices & HQ) Dedicated Staff With MPO Experience Financing: Direct funding support via existing/future programs TIGER I-VI Grants ($420M) Marine Highway Grants Eligible for Port Infra Development. Fund Project Support: 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. Strict t SlCit Sel. Criteriai Investment Plan Req d Project Clearly Defined Authority: 46 USC, Section

15 Maritime Administration Projects Garibaldi, OR Coos Bay, OR Green Trade Corridor, CA Portland, OR Lewiston, ID W. Sacramento, CA Stockton, CA Oakland, CA Duluth, MN Tri City, IL Eastport, ME Mi Maine Ports, ME ProvPort, RI Quonset, RI Toledo, OH Wellsville, OH Bayonne, NJ Wilmington, DE South Jersey Port Corp, NJ Baltimore, MD Port of L.A., CA Port of Long Beach, CA Catoosa, OK Cates Landing, TN Pier 29, HI New Orleans, LA Houston, TX Corpus Christi, TX Pascagoula, MS Mobile, AL Brownsville, TX Gulfport, MS Port Manatee, FL JaxPort, FL Port of Miami, FL Auke Bay, AK ARRA Grants TIGER FY 2010 TIGER FY 2012 TIGER FY 2009 TIGER FY 2011 TIGER FY

16 Maritime Administration Projects M5 Corridor Tacoma, WA Portland, ORPasco, WA Garibaldi, OR Benton, WA Lewiston, ID Coos Bay, OR Green Trade Corridor, CA Hueneme, CA W. Sacramento, CA Stockton, CA Oakland, CA Port of L.A., CA Port of Long Beach, CA Duluth, MN Eastport, ME Mi Maine Ports, ME M95 Corridor ProvPort, RI Quonset, RI Toledo, OH Wellsville, OH NE Gateway Bayonne, NJ Wilmington, DE South Neptune Jersey Port Corp, NJ Richmond, VA Baltimore, MD Tri City, IL M55 Corridor Virginia Ports, VA Catoosa, OK Cates Landing, TN Fulton, MS Pier 29, HI Dillingham, AK Auke Bay, AK Pascagoula, MS Mobile, AL JaxPort, FL New Orleans, LA Houston, TX Gulfport, MS Main Pass Corpus Christi, TX Orange, TX Cross Gulf, FL Port Manatee, FL LOOP Port of Miami, FL Cross Gulf, TX Gulf Gateway Brownsville, TX Gulf Port Dolphin Landing Port Pelican ARRA Grants TIGER FY 2009 TIGER FY 2010 TIGER FY 2011 TIGER FY 2012 TIGER FY 2013 Marine Highway Port Conveyance Deep Water Ports 16

17 StrongPorts Initiatives A Collection of Investment Plan Best Practices and Tools, Developed by industry experts under a cooperative agreement between AAPA and the Maritime Administration Working with State Departments of Transportation, Metropolitan Planning Organizations, and ports to include water transportation in State freight and passenger transportation plan 17

18 A joint venture between AAPA, a working group of 57 industry expert volunteers, and the Maritime Administration. Toolkit will help ports obtain funding by developing investment grade plans that: Clearly identify future port needs; Determine the most cost-effective, sustainable and efficient solutions to port problems; and Get port infrastructure projects into MPO and state transportation programs in order to receive formula funding; Position port projects for federal funding such as TIGER grants; and Assist ports in obtaining private sector investment funds. 18

19 A facilitated day-long session to foster dialogue and develop regional maritime transportation plans Target participants include State Departments of Transportation, MPOs, Economic Development Corporations, Ports, and Port Authorities PortTalk Outcomes: Identify resources and programs to help build, modernize and expand maritime transportation assets Spotlight maritime transportation's role in regional transportation system planning Gain understanding of freight system plans to 2025 Generate innovative solutions to environmental and logistics challenges 19

20 Questions? Contact: Scott Davies Office of Marine Highways & Passenger Services U.S. Department of Transportation/Maritime Administration (202)