COALITION PARTICIPANTS

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1 WHY WATERBORNE?

2 Coastwise Coalition

3 Coastwise Coalition COALITION PARTICIPANTS Ports and Terminal Operators Longshore and Shipboard Labor Shipbuilders Shipowners and Vessel Operators Government Transportation Planners Shippers

4 Coastwise Coalition OBJECTIVE An integrated, multi-modal system of coastwise and inland shipping operating in conjunction with rail and trucking to: Increase overall system capacity and efficiency Increase transportation options for truckers, shippers, and passengers Achieve a net public benefit

5 EXPECTED GROWTH INTERCITY TRUCKING (East Coast) VMT (Millions) Assumes VMT increases 50% for every 5% increase in GDP; and GDP increase of 1% per year.

6 CONGESTION WILL ONLY GET WORSE Domestic cargo traffic increases by 50% for every 2-4% increase in GDP Projected growth in cargo traffic ( ) NE (Maine - Virginia) +66% SE (NC - Tampa) +76% Gulf (Mobile - El Paso) +63% NW (Oregon - Alaska) +72% SW (San Diego - Oakland) +63%

7 National Highway System Estimated Peak Period Congestion: 1998 Source: FHWA

8 National Highway System Estimated Peak Period Congestion: 2020 Source: FHWA

9 HARD FACTS Present highway capacity cannot support projected growth Highway volume exceeds capacity in most major corridors today Highway construction costs $32 million per lane mile NTS capacity is essential to sustained economic growth National defense transportation is ill-served by inadequate NTS

10 WHY WATERBORNE?

11 WHY WATERBORNE?

12 WHY WATERBORNE? Opportunity for National System Capacity Expansion Especially along coasts (water access) Underutilized capacity (water routes, ports) Getting more for less (less infrastructure to build) Giving trucking an alternative (driver hours, fuel) Policy Benefits Economic growth and trade Environmental Safety and security

13 COASTWISE MODELS Existing Coastwise Services Port Inland Distribution Network (PIDN) High Speed and Short Haul Ferries (planned) Short Sea Shipping Overseas

14 EXISTING INTERMODAL SERVICE Columbia Coastal Transport Detroit Windsor Ferry Osprey Line Tote Ocean Trailer Express

15 In the Present Osprey Line In the Future SeaBridge Marine Highways And Others

16 Wait a minute Haven t I seen this presentation before? Don t you guys from Washington have anything new to say?

17 WHAT S BEEN HAPPENING In the past year.in Industry 2004 ~ PIDN Albany Express Barge 2004 ~ Kirby Corp. bought interest in Osprey Line 2005 ~ Marine Highways (Kirby / M & T Associates)

18 WHAT S BEEN HAPPENING In the past year.studies & Reports 2004 ~ Public Benefits of the SSS Intermodal System 2005 ~ MARAD / Canaveral SSS Probability Study 2005 ~ MARAD Port / Intermodal Performance Report 2005 ~ GAO Short Sea Option Report 2005 ~ Transport Canada announced SSS NE study 2005 ~ I-95 Short Sea & Coastal Shipping Options (draft) 2005 ~ USDOT Short Sea Shipping market study (soon)

19 Significant interview responses 12 of 19 Marine Carriers have Coastal, Short Sea or Ferry projects in progress 9 of 19 Marine Carriers are presently engaged in Short Sea Shipping 14 out of 19 Marine Carriers see demand for an East-Central Florida Short Sea Shipping hub/port location such as Port Canaveral 16 out of 19 Marine carriers would consider making landside investments to build a short sea shipping service 10 out of 11 Port/Terminal Operators consider Short Sea Shipping probable and desirable for their facilities Economic Impact formula used by one of the ports: 1 new longshore job = 4-5 new ancillary jobs

20 WHAT S BEEN HAPPENING In the past year.studies & Reports 2004 ~ Public Benefits of the SSS Intermodal System 2005 ~ MARAD / Canaveral SSS Probability Study 2005 ~ MARAD Port / Intermodal Performance Report 2005 ~ GAO Short Sea Option Report 2005 ~ Transport Canada announced SSS NE study 2005 ~ I-95 Short Sea & Coastal Shipping Options (draft) 2005 ~ USDOT Short Sea Shipping market study (soon)

21 WHAT S BEEN HAPPENING In the past year.in Government 2004 ~ National Freight Action Agenda 2004 ~ Commission on Ocean Policy Report 2004 ~ USDOT SEA-21 proposals to White House 2004 ~ White House Ocean Action Agenda (CMTS) 2005 ~ President signed SAFETEA-LU 2005 ~ MTSNAC Recommendations to USDOT 2005 ~ Weldon / Shays HMT Legislation

22 WHAT S BEEN HAPPENING In the past year.in Government 2004 ~ National Freight Action Agenda 2004 ~ Commission on Ocean Policy Report 2004 ~ USDOT SEA-21 proposals to White House 2004 ~ White House Ocean Action Agenda CMTS, implement NFAA, assess SSS, improve nav 2005 ~ President signed SAFETEA-LU 2005 ~ MTSNAC Recommendations to USDOT 2005 ~ Weldon / Shays HMT Legislation

23 WHAT S BEEN HAPPENING In the past year.in Government 2004 ~ National Freight Action Agenda 2004 ~ Commission on Ocean Policy Report 2004 ~ USDOT SEA-21 proposals to White House 2004 ~ White House Ocean Action Agenda (CMTS) 2005 ~ President signed SAFETEA-LU 2005 ~ MTSNAC Recommendations to USDOT HMT, hazmat, policy commission, data, forecasting 2005 ~ Weldon / Shays HMT Legislation

24 WHAT S IN FLUX IN WASHINGTION Katrina & Rita Implications for Inland & Coastwise Service? Corps of Engineers Civil Works Program? SAFETEA-LU Future Transportation Policy Commission Will surface transportation policy have a water factor? SEA-21 Will the government encourage Short Sea service? Will industry seek government encouragement?

25 SOME OBSERVATIONS The CRUNCH is coming the US will reach the same level of congestion [in EU] within the next 5 to 10 years the full integration of a strengthened marine mode into the intermodal system is essential

26 SOME OBSERVATIONS The CRUNCH is coming Industry and policy focus is primarily on domestic freight Volume on the highways is domestic Trucking is a key market Dedicated domestic freight terminals Time is Relative: Fast or Just JIT?

27 SOME OBSERVATIONS The CRUNCH is coming Focus is primarily on domestic freight Costs Too Much : Different Things to Different People Maritime (Jones Act, longshore labor) All modes (true costs and benefits)

28 SOME OBSERVATIONS The CRUNCH is coming Focus is primarily on domestic freight Costs Too Much : Different Things to Different People The Maritime Sector: Together But Not Always Federal incentives: Will legacy carriers block new entrants?

29 SOME OBSERVATIONS The CRUNCH is coming Focus is primarily on domestic freight Costs Too Much is Different Things to Different People The Maritime Sector: Together But Not Always The US is not the EU (but maybe ) there are concentrated efforts in the EU to reduce traffic on roads, while in the US this growth continues unabated there are no comparable documents to the EU White Paper The government s role in the development of SSS and freight transportation improvements needs more careful study - GAO The government has a role to play (long range planning, benefits) Is it better to stand aside until congestion turns to crisis?

30 SOME OBSERVATIONS The CRUNCH is coming Focus is primarily on domestic freight Costs Too Much is Different Things to Different People The Maritime Sector: Together But Not Always The US is not the EU (but maybe ) Establishing new service is not always easy Takes time, money, cooperation Different models have different requirements: capital, operating

31 SOME OBSERVATIONS The CRUNCH is coming Focus is primarily on domestic freight Costs Too Much is Different Things to Different People The Maritime Sector: Together But Not Always The US is not the EU (but maybe ) Establishing new service is not always easy Public benefits are real but must be demonstrated Environmental skeptics Waterborne transport will not work everywhere

32 SOME OBSERVATIONS The CRUNCH is coming Focus is primarily on domestic freight Costs Too Much is Different Things to Different People The Maritime Sector: Together But Not Always The US is not the EU (but maybe ) Establishing new service is not always easy Public benefits are real but must be demonstrated Washington doesn t really know the MTS Coastwise shipping still unknown to most on Hill Key leaders are familiar with it, will White House listen? Advances are possible: SEA-21, CMTS, MTS community

33 Coastwise Coalition WHY NOT WATERBORNE? Paul Bea (202)