Appalachia s Coastal Port Partners, Gateways to Global Commerce

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1 Appalachia s Coastal Port Partners, Gateways to Global Commerce Jim Walker Director of Navigation Policy and Legislation American Association of Port Authorities November 13, 2013 American Association of Port Authorities

2 American Association of Port Authorities Representing Seaports of the Western Hemisphere for over 100 years! AAPA was established in 1912 Since that time AAPA has provided for collaboration and exchange of best practices Fostering collaboration among members and allied groups. We do this through: Education and Training, PPM Networking and one on one interaction Legislative and Policy support Outreach 2

3 U. S. Marine Transportation System A network of waterways, ports, and equipment for the movement of freight and passengers. A vital public-private partnership that makes up an essential component of the nation's transportation network. It links water and surface transportation (rail and highway) and enables America to connect globally. 3

4 Portland Richmond Oakland Los Angeles Anacortes Seattle Tacoma Kalama U.S. Ports: Vital to Trade and Our National Economy 50 harbors coastal, inland, Great Lakes - handled over 10 million tons each in 2012 Two Harbors Duluth/Superior Chicago Indiana Hbr St. Louis Cincinnati Detroit Huntington Pittsburgh Cleveland Baltimore New York/NJ Lower Delaware River (9 harbors) Norfolk Portland Boston New Haven Newport News Long Beach Valdez Honolulu Memphis Baton Rouge Lake Charles Pascagoula Houston Texas City Mobile Freeport Port Arthur Plaquemines Matagorda Beaumont New Orleans S. Louisiana Corpus Christi Tampa Charleston Savannah Jacksonville Port Everglades Million Tons Over San Juan 4

5 2013 Quite a Year! February: State of the Union includes Ports April: President Obama visits Port of Miami May: President Obama visits Ellicott Dredges July: President Obama visits JaxPort August: President Obama addresses Ports on Jay Leno show September: VP Biden visits Baltimore, Savannah and Charleston November: President Obama visits Port of New Orleans 5

6 Inland Waterway Commodities Share by Tons Mississippi River and Tributaries: 30M tons in 1940, 500M tons today All Others <1% Manufactured 2% Food & Farm Prod 12% Primary Manufactured 5% Coal 29% Coal leads in tons Crude Materials 19% Chemicals 8% TOTAL VOLUME: 627 Million Tons Petro & Petro Prod 25% 6

7 U. S. Infrastructure Funding FEDERAL Navigation Channels Highways Rail PUBLIC Port Facilities PRIVATE Port Facilities Rail footer goes 7 here

8 Federal Participation Water Resources Development Act Authorizations for new projects Policy and process for Corps of Engineers Annual Appropriations Corps of Engineers Navigation channels, inland navigation locks and dams Homeland Security Port Security Grants Department of Transportation TIGER Grants Surface Transportation (MAP21) National Freight Strategy 8

9 WRDA Building Support House Members WRDA Information Push What is WRDA Why is WRDA important to you WRDA is Essential to America s Global Trade 9

10 Federal Role in Navigation Channels Federal role based in U.S. Constitution 2 Navigation trust funds Harbor Maintenance Tax 0.125% of cargo value $1.6 billion annual revenue; $800 million annual appropriation Funds 100% of coastal navigation operation and maintenance program Inland Waterways Fuel Tax $0.20 per gallon of fuel used travelling on the named waterways $90 million annual revenue 50/50 cost share for capital investments on inland rivers 10

11 Performance Shipper: Efficient load/unload at dock; keep schedule Port: Efficient in/out the gate; time in the port Cargo owner: Delivery cycle ships to shelves US developing performance measures for total intermodal movement National freight strategy Prioritize future Federal investment 11

12 Current Challenges Preparing for 21 st Century Shipping Bigger ships Deeper and wider channels Channel maintenance Aging infrastructure Funding US deficit Communicating the value of maritime infrastructure 12

13 Global Shipping Trends 13

14 US Harbors 45 or Greater WEST COAST Seattle/Tacoma (>50 ) Oakland (50 ) LA/LB (>50 ) San Diego (47 ) EAST COAST NY/NJ (50 underway) Baltimore (50 ) Hampton Roads (50 ) Charleston GULF COAST Morehead City Mobile Miami (50 underway) New Orleans Houston/Galveston/Texas City Corpus Christi Freeport 14

15 Why This Matters to ARC Transportation Cost Savings Gateway to Global Marketplace US is 5% of world population and 20% of consumption Conversely, 95% of consumers and 80% of the market are outside US The world wants US goods 15

16 Kentucky Shipments of Origin, top Destinations 2012 (Vessel Shipments- $6.3 Billion) Japan (11%) China (9%) Korea, Republic Of (8%) Austria (6%) Belgium (6%) United Kingdom (5%) Brazil (4%) Australia (4%) Germany (4%) Hong Kong (4%) Other (40%) 16

17 Kentucky Shipments of Origin, top Gateways, 2012 (Vessel Shipments- $6.3 Billion) Norfolk, Va. (31%) Los Angeles, Calif. (16%) Savannah, Ga. (14%) Long Beach, Calif. (9%) Charleston, S.C. (7%) Jacksonville, Fla. (3%) New York, N.Y. (3%) Oakland, Calif. (3%) Gulfport, Miss. (2%) New Orleans, La. (2%) All Others (10%) 17

18 Why should farmers care about transportation? Because our international competitiveness depends on it. Davenport to Shanghai Sioux Falls to Shanghai Land: Truck $8.94 $8.94 $ Land: Barge/Rail $31.85 (Barge) $50.31 (Rail) Ocean $55.46 $29.25 $31.67 Total Transport $96.25 $88.50 $ Farm Value $ $ $ Landed Cost $ $ $ Transport as % of Landed Cost Costs of transporting soybeans: U.S. vs. Brazil (per metric ton; 4 th quarter, 2010) 19.4% 18.7% 26.9% N. Mato Grosso to Shanghai Source: USDA 18

19 What will success look like? Full use of HMT revenues to fully maintain navigation channels A robust navigation studies and construction program Channel improvements that allow America to continue its freight movement competitive advantage throughout the 21st century. Bottom Line: We need WRDA in 2013 to advance efforts towards accomplishing these goals. footer goes 19 here

20 Recruiting US economic growth requires investment Freight movement - relate inland and coastal navigation Long term goal: American public understands My job depends on WRDA 20