DREDGING LOUISIANA S NAVIGABLE WATERWAYS A Statewide Systematic Approach to Meeting Dredging Needs. February 2018

Transcription

1 DREDGING LOUISIANA S NAVIGABLE WATERWAYS A Statewide Systematic Approach to Meeting Dredging Needs February 2018

2 PLAQUEMINES PORT MASTER PLAN A Public Private Partnership February 2018

3 Introduction Christopher M. Fetters, P.E. Bio Education B.S. Chemistry Pittsburg State University M.S Chemical Engineering Mississippi State University Work Summary Over 20 years of experience in engineering, environmental and consulting industries with a primary focus on large-scale projects and logistical management. For the past 4 years, his focus has been on the marine infrastructure and transportation markets. Currently Mr. Fetters serves as the CEO of Louisiana 23 Development Company.

4 Overview Infrastructure has become the predominant topic for national investment. Crumbling roads, bridges, and other economic structures are overstressed, in poor condition, and in need of dramatic improvement. $2.2T invested in the next 5 years Current fiscal challenges Federal State Local Energy sector depression Natural disasters Infrastructure Condition Age Population growth Shift in population (coastal) Evolution of commerce Solution Raise more debt (taxes) Private investment

5 Louisiana Infrastructure Condition the state is at a disadvantage and will continue to lose its economic competitiveness The truth is that our infrastructure is in poor shape and needs immediate attention National infrastructure grade of D" ASCE Report Card for Louisiana Infrastructure 2017

6 Louisiana Ports Infrastructure 2017 grade of C- 38 public port authorities Deep draft (6) freight movement Coastal (9) oil and gas Inland local service Emerging or developing Funding Sources Bonds at capacity Capital reserves diminishing Port Priority competitive and limited Capital Outlay competitive and limited TIGER Grants restricted and competitive 73,000 jobs $3.9B personal earnings $517M state and local tax 4 percent direct jobs Consistently top 2 in tonnage Economic Impact Direct connection to 34 states and Canada 56 percent grain exports 3 of 6 deep draft ports in top 4 (2015) Lake Charles, New Orleans, Plaquemines, and S. Louisiana top 25 by tonnage (TEU and bulk in 2016) 90 percent US offshore O&G in GOM

7 Condition and Management Capacity maximized in next 5 years Condition 25% or less, likely deferred due to funding Operation and Maintenance diminishing due to funding Public Safety risk due to access, coalition formed and received $29 between 2008 and 2013 Funding port priority and TIGER limited due to match Future Needs Port Priority up, PPP in consideration Resilience natural disasters, lessons learned Innovation larger ports v. smaller ports

8 Alternative Funding Public Private Partnerships

9 Privatization v. Public Private Partnership Privatization P3 Principal-agent relationship Improve efficiency (quicker and cheaper) Clear problem with desired output and defined procedures Partnership Focus on effectiveness and quality Shared goals to establish procedures for interaction

10 Public Private Partnership Under PPP, private contractors become long-term providers rather than upfront asset builders. Shared responsibilities in design, construction, operation, maintenance and financing to deliver the specific service needed by public sector Advantages 1. Flexibility in design 2. Open and innovative solution 3. Risk allocation (shared) 4. Increased financial capacities 5. Better public value 6. Value for money 7. Greater certainty on construction 8. Long term operational guarantee Disadvantages 1. Need for full transparency 2. Costs can vary based on risk 3. Increased regulations 4. Limited number of private participants/limited competition

11 Public Private Partnership - Structure Public Sector Legal Full Service by Special Purpose Vehicle Special Purpose Vehicle Leadership Team Financial Trust Investors Private Fund 1 Private Fund 2 Private Fund 3 Private Fund 4 Private Fund 5 Technical Leads 3-4 people Specialty Services Engineering QA/QC Design Financia l Plannin g GR Legal Public Outreac h Environmenta l Permitting CMAR Constructio n Project Teams Project 1 Project 2 Project 3 Project 4 Project 5 Project 6 Project 7 Project 8 Project 9

12 Plaquemines Port, Harbor and Terminal District Alternative Funding

13 Gulf Gateway Terminal - Background Beginning in 2008, Plaquemines Parish government resolved to establish and construct a port facility. Trident Consultants and Vickerman and Associates were contracted to establish a Master Plan for the Parish. The 2010 Master Plan had four critical components: 1. Establish a stand alone Port Administration 2. Hire an Executive Director to focus on Port Development 3. Acquire land 4. Construct the port facility In January 2013, the Plaquemines Port, Harbor & Terminal District (PPHTD) was established and Brigadier General (Ret) Maynard Sandy Sanders was hired as the first Executive Director. Between 2013 and 2017, PPHTD acquired or secured rights to nearly 8,000 acres of Plaquemines Parish land and Trident Consultants and Vickerman and Associates published a pre-feasibility study that outlined the creation of the largest intermodal facility in the Gulf of Mexico region. The study calls for the construction of a cargo container terminal, LNG facility, various bulk operations, secondary handling/industrial support facility, and a commercial air cargo terminal. The strategic location of the proposed PPHTD facility utilizes six distinct modes to support the onward movement of cargo.

14 Location PPHTD has the jurisdiction of the first 100 miles of Mississippi River from the outlet at the Gulf of Mexico. This area is mostly undeveloped with a rural population and setting situated along the river front. The Gateway Terminal will be situated beginning at MS River mile 50. This location has a natural depth greater than 55 feet at one of the widest points in the river at 2,500 feet. Additionally, due to the absence of bridges, there are no air space restrictions. Moreover, the rural setting also allows for the development of a complete greenfield project. The land and property secured by PPHTD currently has limited-to-no development.

15 Vision The Gateway Port facility will become the southern terminus for the onward forward movement of container, bulk, break bulk, and roll on/roll off cargoes. Offering efficient and competitive multimodal on-dock conductivity, with intermodal rail container transfer capability and road access in combination with river waterway conductivity. This operating methodology and productivity will cut dwell time from days to hours and offer users the absolute lowest cost provider advantage. In addition, the terminal planning, design, and operation will provide storage for inventory in transit and empties. The development of adjacent non-public highway access for high-wide-and heavy truck and terminal hostler access to sufficient logistics park space for viable warehouse/distribution center will be integrated into the overall plan to allow for viable support services, necessary for efficient operation. The terminal operating methodology will be equal to or greater than the current industry sector productivity standards with regard to a collective labor agreement that permits semi automation with local labor work rules and labor rates. This operating methodology and will be in concert with and conducive to the creation of a competitive cost and added value environment. The full build out container terminal concept is includes but is not limited to: Five total vessel berths with three mega ship berths having dockside depths of ft. Fifteen next generation 150 ft. gage, zero emission, state-of-the-art wharf/quay semi- automated gantry cranes, with subterranean high voltage electrical bus drives. Zero emission yard terminal equipment to provide maximum sustainable throughput for the wharf/quay gantry cranes, Highly efficient, zero emission on-dock Intermodal Container Transfer Facility (ICTF) capable of handling seven unit trains in the yard Approximately 7M sq ft of warehouse and logistics distribution center space Substantial on project environmental preservation and mitigation area

16 Connectivity The Mississippi River system allows direct access from the Gateway Port at the southern terminus of the river to 34 states within the Midwestern United States. The Midwestern United States as a stand alone market is equivalent to the 5 th largest gross domestic product (GDP) in the world. Integration of multimodal network is key to improving the connectivity to international trade partners as waterborne commerce is the most cost effective mode of transportation. However, utilization of rail and highway are necessary to fully utilize the network and create a sustainable system of transportation. Bismark Minneapolis Chicago Kansas City Pittsburgh St. Louis Memphis Dallas Houston Tallahassee

17 Key Factors APH Vessel PPHTD secured exclusive rights and agreement to American Patriot Holdings new inland barge liner vessel. This vessel has revolutionized the container on barge (COB) economics. Panama Canal The expansion of the Panama Canal to manage larger vessels has realigned the global transportation market again, shifting the economics of transportation in favor the direct access through the Panama Canal. PPP The support of Public Private Partnerships (PPP) has increased significantly due to the current fiscal condition of both the Federal and State budgets. This shift now allows for a more favorable status of private firms to directly invest in major infrastructure projects. Energy Sector Downturn in energy prices shifted the import/export of energy into the US. Increasing not only the refined petrochemical products, but also spurned the exported of liquefied natural gas (LNG). Both of these increases have significantly impacted the industrial areas in the Gulf of Mexico Region.

18 Multimodal Aspect The Gateway Port will have access to all modes of transportation: 1. Marine - Dual use port facility to support trans-loading of ocean going vessels to inland marine liners 2. Rail Class-One access to: BNSF, CN, CSX, NS, UP, and KCS 3. Highway LA Hwy 23 direct tie into US I-49 at New Orleans 4. Air Commercial air cargo at Belle Chasse NAS-JRB New Orleans 5. Pipeline Comprehensive pipeline network for both raw and refined products Bismark Minneapolis Chicago Kansas City Pittsburgh St. Louis Memphis Dallas Houston Tallahassee

19 Targets Currently, ports along the Gulf of Mexico are restricted due to draft and air space capacity. Targeting the next generation of cargo carrier. No direct competition with existing port facilities.

20 Revolutionary Change

21 Plan Full build out will include: 3 mega berths 3 APH berths Chambering yard 7 UT Warehouse 5 modes of transport available Marine Rail Road Air Pipeline

22 Local Impact Installation of container facility will provide approximately 2,000 full time, direct jobs. Generating annual revenues in excess of $2B. Re-establishes Louisiana s place as the Gateway to the United States for domestic and international trade and commerce. Increased capacity and sustainability of ports will serve as the basis for continued expansion and economic growth to offset the instability in the energy sector.

23 Regional Impact The Gateway Terminal Project will serve as an entry point for next generation Panamax vessel to service the Gulf of Mexico and interior of the United States Cooperation with agricultural organizations and farmers in the Midwest will enable a more effective and efficient on-ward movement of cargo. Target markets for the regional impact include petrochemical, agriculture, specialty chemical, and break bulk Serves as a basis for modification in the BC ratio of projects in S. Louisiana

24 Global Significance Global transportation by larger vessels is dictating the change to infrastructure. Upgrades are currently underway on the East Coast and West Coast of the United States to allow access to next generation vessels Management of congestion and enabling the onward movement of cargo will shift the global transportation routes to the path of least resistance China has launched the One Belt-One Road program to stimulate trade with foreign powers.

25 Questions Christopher M. Fetters, P.E Hwy 23 Belle Chasse, LA Tel

26 LTRC.HTM

27 Problem Statement USACE is responsible for maintaining navigation in federally authorized channels. Insufficient dredging threatens the commercial viability of channels, i.e., a decrease in waterway use and tonnage. The resultant impact on existing infrastructure and the loss of market share are significant and need to be quantified. Dredging and funding alternatives outside the norm need to be considered.

28 Research Objectives To investigate the impacts that insufficient dredging has on commerce, ports, waterways, and supporting infrastructure To investigate and recommend possible alternatives to complement current dredging activities and funding opportunities

29 Scope of Services Task 1 Literature Review Task 2 Data Collection Task 3 Statewide Site Inventory and Analysis Task 4 Program Analysis Task 5 Recommended Plan Final Report Case Studies o Ouachita-Black Rivers Navigation Project o Houma Navigation Channel

30 Literature Review Global leading edge trends in the dredging industry o Impacts of the lack of dredging on commerce, ports, waterways, and highways o Dredging technologies and types traditional/non-traditional o Alternative engineering solutions What other public bodies and private entities have done to address the issue/situation o Engineering structures o Methodologies o Administrative/policies Funding alternatives

31 Literature Review, cont. Dredge technologies o Water Jet o SedCon/Axial Pump o Submerged Hopper/Sediment Collector o Autonomous Dredge o Agitation o Trailer-mounted Dredge Channel management methodologies o Retrain/Re-align Channels o Upstream Sediment Controls o Train Dike/Soft Dikes

32 Water Jet South Carolina State Ports Authority Columbus Street Terminal o Specifications Multiple <500 rpm hydraulic water jets inlet velocity ~ 2.5 ft/sec 2 hydraulic units 125 hp o Cost Total system cost ~ $4.2M O&M cost ~ $60,000 per year With 10 year life span, rate of return = 20% South Carolina Ports Authority. (2007). A Potential Alternative to Berth Maintenance

33 Submerged Hopper/Sediment Collector USACE Fountain Creek, Pueblo, CO o Specifications 30 ft bedload collector 50 hp submersible pump 100 ton/hr sediment separator 1,000 cy stacker o Cost Total system cost ~ $628,000 O&M Cost ~ $60,000 per year o Production: 23, ,000 cy/yr (depending on stream flow) Robert Thomas, John McArthur, Dave Braatz, and Tim Welp. (2017). Sediment Methods to Reduce Dredging: Part 2, Sediment Collector Technology

34 Trailer-mounted Dredge Amphibex 600 o Specifications Size ~ 15 x 50 ft Speed - 5 to 8 knots Power hp Bucket/rake/cutter head Normrock. (2017). Amphibex 600 Specification sheet

35 Agitation Port of Morgan City Atchafalaya River o Specifications Size ~ 52 x 265 ft Speed to 10 knots Power - 5,400 hp Trailing suction hopper dredge Manson Construction. (2008). Trailing Suction Hopper Dredge Newport

36 Data Collection Sources ERDC Navigation Data Center o Historical contracted dredges o Historical USACE dredges LA Works - Economics

37 Funding Alternatives Federally Authorized channels o Primary Harbor Maintenance Trust Fund (HMTF) o Secondary Federal contract Grant State contract Non-federally authorized channels o Primary State contract Grant o Secondary Private

38 Statewide Site Inventory and Analysis Identification and mapping of project locations statewide Summary of mapped and tabulated data o LADOTD GIS Standard Data collected in coordination with USACE and non-federal agencies o State Coastal Master Plan (CPRA) o Fish and Wildlife o NRCS o DU/CLF o Other private entities

39 Statewide Site Inventory and Analysis, cont. Proposed map layers o Responsible public sector jurisdictions o Identification of project types Deepening and/or widening of existing channels Maintenance dredging New channels o Volume estimates By site By dredge type and options as applicable Cost estimates by conventional methods and current projects Cost per cubic yard per channel Incorporate time scale o Prioritization of need and schedule

40 Program Analysis Administrative/Policies o Agency options/recommendations o Legislative requirements Fiscal/innovative funding strategies o Funding opportunities/strategies o Revenue generation and collaboration/sharing o Additional shared responsibilities Stakeholder management

41 Program Analysis, cont. Physical and financial considerations o Types and ranges of available dredges o Dredges presently in the public domain o Acquiring a dredge o Operations costs o Maintenance costs o Permitting o Disposal of dredged material o Beneficial use of dredged material opportunities Analysis/case studies commerce, ports, waterways, and highways impact analysis

42 Recommended Plan Plan and operational guidelines Implementation guidelines Legislative agenda Potential impediments Project metrics

43 Economic Impact Analysis Ouachita-Black Rivers Navigation Project o Reduce Shoaling o Increase drainage o Decrease O&M/life cycle costs o Economic development o Job production o Increase tax base

44 Economic Impact Analysis, cont. Houma Navigation Channel o Navigation reliability o Land building o Storm protection/damage mitigation o Economic development o Job production o Increase tax base

45 Dr. Mohan Menon 450 Laurel Street Suite 1500 Baton Rouge, LA Chris Fetters 4847 Hwy 23 Belle Chasse, LA