Wheel Sea! Proposal to Establish a Ro / Ro Ferry Service for Trucks to Bypass New York City

Transcription

1 Wheel Sea! Proposal to Establish a Ro / Ro Ferry Service for Trucks to Bypass New York City This is a Dated / Unreserved Discussion Document (But Still Relevant!).* Prepared by TransTech Marine Co. December 2007 * This dated document is offered to elicit interest / support for the establishment of trailerferry service to enable oversize and hazmat rigs to circumvent NYC bridges, tunnels and crowded arterials. Deployment of repurposed Jones Act tonnage as herein proposed can accelerate project development and reduce capital investment. Valid ideas await their time. Inquiries to pursue development of Wheel Sea are invited. Wheel Sea Discussion Document Page 1

2 Introduction From Colonial times until the 1930s the US had a vibrant network of coastal general cargo shipping services. The Great Depression forced many of the shipping lines out of business, followed by World War II which requisitioned most of the ships then in lay-up. By the end of the war, the US railroad system had been greatly strengthened and in the 1950s construction began on the US Interstate highway system. Maritime transport along the coasts of the then 48 contiguous US states (Alaska and Hawaii did not become US states until 1959 and 1960, respectively) was reduced to movement of petroleum products in tanker vessels and of dry-bulk commodities by tugs-and-barges. Since the 1970s several efforts were made to re-establish general cargo shipping services along the US coasts. Figure 1 shows the main routes along the east coast. Other coastwise shipping services operated along the Gulf coast, along the Pacific coast and in intercoastal all-water service that connected the US east and west coasts via the Panama Canal. Figure 1 Wheel Sea Discussion Document Page 2

3 All of the initiatives to re-establish coastwise general cargo shipping services failed. Today, coastal shipping in the US consists of the aforementioned movement by tankers of petroleum products, transport of dry bulk cargoes in barges pulled or pushed by tugs, and limited container-on-barge feeder services. The main reasons for failure of the initiatives aimed at general cargo were: Superior service and flexibility offered by over-the-road trucking The high cost of building and operating Jones Act ships Uncompetitive cargo handling (stevedoring) costs Lack of appropriate port infrastructure Lack of political will The Energy Bill of 2007 Very recently, on 18 December 2007, President Bush signed into law the Energy Bill, HR 6. The new law includes a "Marine Highways" program to promote and research short sea shipping to move cargo on the Great Lakes and sea coasts and opens coastwise shipping vessels to a tax-deferred revenue program to enable companies to use their resources to finance construction of a new class of cargo ships for short-sea shipping. The motivation behind this legislation derives from many forces that have been at work for a number of years and which are now converging: US highways, especially in large metropolitan regions, are heavily congested. The congestion is forecast to become worse in future, imposing increasing economic drag. The highway congestion reduces vehicle speeds and engine efficiency, thereby increasing harmful air emissions and imposing severe societal health and environmental penalties. The current shortage of truck drivers in the US is forecast to become more acute as fewer young people are entering the industry. Railroads that operate along the US coasts are at full capacity; planned expansion and efficiency improvements will not meet future demand. Presently under-utilized water routes provide transport system redundancy and resiliency that is desirable in view of the terrorist events of 9/11/2001. The new Energy Law is the first legislation directed specifically at US coastal general cargo shipping since passage of the Merchant Marine Act of 1920 (commonly called the Jones Act). New and broad-based political will is now present to revive this once vital and vibrant transport mode. Parts of the new law that apply to short sea shipping / marine highway are contained in Appendix 1. Wheel Sea Discussion Document Page 3

4 Wheel Sea Phase 1 Fundamentally short sea shipping in the US can follow two re-development paths: 1. Employ large ships on long routes 2. Employ small ships on short routes TransTech favors the second path. On occasion, suitable Jones Act tonnage comes onto the market that can be acquired and upgraded at a small fraction of the time and cost attached to designing and building new tonnage. Risk is therefore reduced because capital cost is lower, time to market is shortened, and the option to build new, larger ships is preserved for the time when market risks, rewards and requirements are better understood. Presently, the Delaware River and Bay Authority (DRBA), operator of five ROPAX ferries between Cape May, New Jersey and Lewes, Delaware at the mouth of Delaware Bay, is planning to renew its fleet and is in the process of selling off redundant capacity. The current fleet comprises five essentially identical ferries (identical principal dimensions and propulsion systems, but slight differences in superstructure arrangements). The first ferry being sold off is MV Cape May, main particulars of which are shown in Figure 2, pictures shown in Appendix 2. TransTech believes the DRBA ferries represent an infrequent opportunity to acquire appropriate Jones Act short sea shipping / marine highway assets on attractive terms. Wheel Sea Discussion Document Page 4

5 Type ROPAX LOA 97.5 m Beam 20.7 m Draft 2.3 m GRT 2165 Built 1985 Hull Steel BHP 4000 Speed 14 Crew 8 Passengers 895 US cars 90 Trailers 20 est. Figure 2 The DRBA ferries are very well-maintained. TransTech inspected MV Cape May and one of her sister-ferries berthed at the DRBA Cape May, NJ terminal on 28 December, 2007 (separate report in preparation). Based on this inspection, TransTech believes these ferries are appropriate candidates for stretching (insertion of a parallel mid-body to increase vessel length), plus possibly also addition of a hoistable car deck (a temporary tween deck that can be lowered into place to increase automobile capacity when the ferry is not transporting trucks which require full height). Neither of these modifications is needed to redeploy the ferries to the proposed new Wheel Sea route (discussed below); either or both modifications, plus other upgrades, can be deferred until market needs of the new service are fully established. TransTech estimates the remaining useful life of the DRBA ferries is at least 20 years since they were heavily built originally and are presently in excellent condition. Wheel Sea Proposed Initial Route The New York City metropolitan area is home to 18 million people and is the nexus of several interstate highways (Figure 3). Wheel Sea Discussion Document Page 5

6 Figure 3 I-95 is the main interstate highway on the east coast. Presently, an estimated 32,000 trucks per day use four Hudson River crossings (Holland Tunnel, Lincoln Tunnel, George Washington Bridge, Tappan Zee Bridge) plus the Verrazano Narrows Bridge to connect to and through New York City via I-95. Through informal discussions, TransTech has learned that various governmental bodies would be receptive to the establishment of a truck ferry that connects a port in northern New Jersey with a port in southern Connecticut, thereby providing a marine link for trucks (and automobiles) to transit through the New York City metropolitan region without using the bridges or tunnels. This would reduce road congestion, diminish air pollution and produce less wear and tear on the region s already over-stressed highways, however, the paramount advantage of Wheel Sea would be, in light of the terrorist attacks of 9/11/2001, to remove the most dangerous vehicles (heavy, fully-enclosed trucks) from the most critical and vulnerable transport links (bridges and tunnels). The precedence has already been established (by the Detroit Windsor truck ferry) that when a suitable waterborne alternative to using bridges or tunnels is available, the regulatory agencies direct certain trucks such as those transporting hazmat (hazardous materials) to use it. One plausible route (among many) for Wheel Sea would be to connect Perth Amboy, New Jersey with Bridgeport, Connecticut. Both ports are presently under-utilized and are close to I-95. The distance by water between them is about 75 nm. Hence, a ferry of about 14 knots would complete the one-way trip in six hours, depending on tides and allowing for berthing and loading / unloading Wheel Sea Discussion Document Page 6

7 time. Starting from a northern New Jersey port, the ferry would cross Raritan Bay, pass through the Narrows, steam up the East River (i.e. eastwardly) through Hells Gate and on into Long Island Sound to Bridgeport. Notably, the ferry transit time fits well with the federally mandated 8 hour rest period for truck drivers for every 11 hours of driving. Therefore, by coordinating the driver rest period with the ferry schedule, the ferry transit time would not necessarily present a time penalty for the truck compared to over-the-road driving. Wheel Sea Phase 2 TransTech has conceived a design for a larger coastal Ro-Ro ship that is believed to be superior to any designs heretofore proposed, either in the US or abroad. Details of the design will not be provided in electronic form until patents have been applied for. The design is unique in that: The commercial version is easily and economically constructed in the US, enabling the ship to be competitive in civilian, commercial employment. The military version is extremely fast, making the ship particularly interesting to the US Department of Defense where Ro-Ro ships are most highly valued. Conversion from civilian to military version can be accomplished in minutes. TransTech intends to develop its revolutionary ship to expand the Wheels Sea marine highway beyond the initial NYC metropolitan area by-pass route. The design will be licensed to create world-wide partnerships for the development and expansion of short sea shipping services globally. Contact Details Parties interested in joining a community to pursue development of this project are invited to communicate in confidence via . There is no obligation, express or implied, on either side. Geoffrey F. Uttmark MM, MSc, BSc TransTech Marine Co. / ShipShares LLC ttmc@shipshares.com or geoff-nyc@shipshares.com Wheel Sea Discussion Document Page 7

8 Appendix 1 VICTORY FOR MARINE HIGHWAYS and the U.S. MARITIME INDUSTRY! PRESIDENT SIGNS ENERGY BILL GIVING LIFE TO NEW SHORT SEA SHIPPING INITIATIVE USDOT Gets First Short Sea Transportation Mission On 18 December 2007 President Bush signed the Energy Bill, HR 6. The legislation includes a "Marine Highways" program to promote and research short-sea shipping to move cargo on the Great Lakes and sea coasts and opens coastwise shipping vessels to a tax-deferred revenue program for companies to use their resources to finance construction of a new class of cargo ships for short-sea shipping. The Energy Bill language pertaining to Marine Transportation is included below. H.R. 6 'An Act to reduce our Nation's dependency on foreign oil by investing in clean, renewable, and alternative energy resources, promoting new emerging energy technologies, developing greater efficiency, and creating a Strategic Energy Efficiency and Renewables Reserve to invest in alternative energy, and for other purposes.', TITLE XI-ENERGY TRANSPORTATION AND INFRASTRUCTURE Subtitle C--Marine Transportation SEC SHORT SEA TRANSPORTATION INITIATIVE. (a) In General- Title 46, United States Code, is amended by adding after chapter 555 the following: `CHAPTER 556--SHORT SEA TRANSPORTATION `Sec Short sea transportation program. `Sec Cargo and shippers. `Sec Interagency coordination. `Sec Research on short sea transportation. `Sec Short sea transportation defined. `Sec Short sea transportation program `(a) Establishment- The Secretary of Transportation shall establish a short sea transportation program and designate short sea transportation projects to be conducted under the program to mitigate landside congestion. `(b) Program Elements- The program shall encourage the use of short sea transportation through the development and expansion of-- Wheel Sea Discussion Document Page 8

9 `(1) documented vessels; `(2) shipper utilization; `(3) port and landside infrastructure; and `(4) marine transportation strategies by State and local governments. `(c) Short Sea Transportation Routes- The Secretary shall designate short sea transportation routes as extensions of the surface transportation system to focus public and private efforts to use the waterways to relieve landside congestion along coastal corridors. The Secretary may collect and disseminate data for the designation and delineation of short sea transportation routes. `(d) Project Designation- The Secretary may designate a project to be a short sea transportation project if the Secretary determines that the project may-- `(1) offer a waterborne alternative to available landside transportation services using documented vessels; and `(2) provide transportation services for passengers or freight (or both) that may reduce congestion on landside infrastructure using documented vessels. `(e) Elements of Program- For a short sea transportation project designated under this section, the Secretary may-- `(1) promote the development of short sea transportation services; `(2) coordinate, with ports, State departments of transportation, localities, other public agencies, and the private sector and on the development of landside facilities and infrastructure to support short sea transportation services; and `(3) develop performance measures for the short sea transportation program. `(f) Multistate, State and Regional Transportation Planning- The Secretary, in consultation with Federal entities and State and local governments, shall develop strategies to encourage the use of short sea transportation for transportation of passengers and cargo. The Secretary shall-- `(1) assess the extent to which States and local governments include short sea transportation and other marine transportation solutions in their transportation planning; `(2) encourage State departments of transportation to develop strategies, where appropriate, to incorporate short sea transportation, ferries, and other marine transportation solutions for regional and interstate transport of freight and passengers in their transportation planning; and `(3) encourage groups of States and multi-state transportation entities to determine how short sea transportation can address congestion, bottlenecks, and other interstate transportation challenges. `Sec Cargo and shippers `(a) Memorandums of Agreement- The Secretary of Transportation shall enter into memorandums of understanding with the heads of other Federal entities to transport federally owned or generated cargo using a short sea transportation project designated under section when practical or available. Wheel Sea Discussion Document Page 9

10 `(b) Short -Term Incentives- The Secretary shall consult shippers and other participants in transportation logistics and develop proposals for short -term incentives to encourage the use of short sea transportation. `Sec Interagency coordination `The Secretary of Transportation shall establish a board to identify and seek solutions to impediments hindering effective use of short sea transportation. The board shall include representatives of the Environmental Protection Agency and other Federal, State, and local governmental entities and private sector entities. `Sec Research on short sea transportation `The Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, may conduct research on short sea transportation, regarding-- `(1) the environmental and transportation benefits to be derived from short sea transportation alternatives for other forms of transportation ; `(2) technology, vessel design, and other improvements that would reduce emissions, increase fuel economy, and lower costs of short sea transportation and increase the efficiency of intermodal transfers; and `(3) solutions to impediments to short sea transportation projects designated under section `Sec Short sea transportation defined 55601'. `In this chapter, the term `short sea transportation' means the carriage by vessel of cargo-- `(1) that is-- `(A) contained in intermodal cargo containers and loaded by crane on the vessel; or `(B) loaded on the vessel by means of wheeled technology; and `(2) that is-- `(A) loaded at a port in the United States and unloaded either at another port in the United States or at a port in Canada located in the Great Lakes Saint Lawrence Seaway System; or `(B) loaded at a port in Canada located in the Great Lakes Saint Lawrence Seaway System and unloaded at a port in the United States.'. (b) Clerical Amendment- The table of chapters at the beginning of subtitle V of such title is amended by inserting after the item relating to chapter 555 the following: (c) Regulations- (1) INTERIM REGULATIONS- Not later than 90 days after the date of enactment of this Act, the Secretary of Transportation shall issue Wheel Sea Discussion Document Page 10

11 temporary regulations to implement the program under this section. Subchapter II of chapter 5 of title 5, United States Code, does not apply to a temporary regulation issued under this paragraph or to an amendment to such a temporary regulation. (2) FINAL REGULATIONS- Not later than October 1, 2008, the Secretary of Transportation shall issue final regulations to implement the program under this section. SEC SHORT SEA SHIPPING ELIGIBILITY FOR CAPITAL CONSTRUCTION FUND. (a) Definition of Qualified Vessel- Section of title 46, United States Code, is amended-- (1) in paragraph (5)(A)(iii) by striking `or noncontiguous domestic' and inserting `noncontiguous domestic, or short sea transportation trade'; and (2) by inserting after paragraph (6) the following: `(7) SHORT SEA TRANSPORTATION TRADE- The term `short sea transportation trade' means the carriage by vessel of cargo-- `(A) that is-- `(i) contained in intermodal cargo containers and loaded by crane on the vessel; or `(ii) loaded on the vessel by means of wheeled technology; and `(B) that is-- `(i) loaded at a port in the United States and unloaded either at another port in the United States or at a port in Canada located in the Great Lakes Saint Lawrence Seaway System; or `(ii) loaded at a port in Canada located in the Great Lakes Saint Lawrence Seaway System and unloaded at a port in the United States.'. (b) Allowable Purpose- Section 53503(b) of such title is amended by striking `or noncontiguous domestic trade' and inserting `noncontiguous domestic, or short sea transportation trade'. SEC SHORT SEA TRANSPORTATION REPORT. Not later than one year after the date of enactment of this Act, the Secretary of Transportation, in consultation with the Administrator of the Environmental Protection Agency, shall submit to the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate a report on the short sea transportation program established under the amendments made by section The report shall include a description of the activities conducted under the program, and any recommendations for further legislative or administrative action that the Secretary of Transportation considers appropriate. Wheel Sea Discussion Document Page 11

12 Appendix 2 Information on MV Cape May LOA 97.5 M, Beam 20.7 M, Draft 2.3 M Profile Navigation Bridge Trailer Deck Cafeteria Wheel Sea Discussion Document Trailer Deck Cocktail Lounge Page 12