Maritime Administration Update

Captain Bob LokenDirector PNW and Alaska Gateways

MARAD Update to OPPA5 October 2018

Contents: Around the Compass Supporting Maritime

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N. Leadership

NE. Gateway Representatives

E. Kind of Ports

SE. Infrastructure Delta

S. Funding-n-Finance

NW. Back up slides

W. Marine Highways

SW. StrongPorts

N. MARAD Leadership

• Maritime Administrator –Retired Navy RADM Mark Buzby o Confirmed as the new Maritime Administrator on August 3, 2017o Was CEO National Defense Transportation Associationo Kings Point Maritime Academy Graduateo Retired from the Navy after 34 years and his last Navy command was

Military Sealift Command

• Associate Administrator for Ports and Waterways –Lauren Brand (since January 2015)o Directs a national port infrastructure modernization program in excess

of $1.3 billion o Development of the marine highway initiative and manages the

Agency’s offshore energy licensing projects (the Deepwater Port Program)

o Previously Director for the Office of Marine Highway and Passenger Vessels

o Prior Gateway Director for the South Atlantic Gatewayo Prior Senior Director for Business Development at Port Canaveral, FL

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Increasing Population

Increasing Freight

Technology (ITS and Cyber)

Work Force Development

Waterways and ConnectorsSecurity

Economy

Shipbuilding and Repair

Port Infrastructure

N. MARAD Vision, Mission, Guiding Principles and Goals• Through MARAD, USDOT focus is on

– U.S. Merchant Marine– Workforce development– Shipbuilding and repair– Leverage waterborne transportation and port infrastructure– Waterways and intermodal connectors– Landside safety, security, and environmental protection– Drive Maritime Technology Innovation

• MARAD advocates for– Maritime industry– Manages assets in support of DOD

• Fleet of government-owned cargo vessels (RRF)• Administers and funds the Maritime Security Program (MSP)

– Operates the U.S. Merchant Marine Academy (USMMA) at Kings Point, NY– Provides training ships, funding and other support for the six State Maritime Academies (SMAs

in Maine, Massachusetts, New York, Texas, California and Michigan)– Administers Title XI loan guarantee program– With other DOT modes, addresses most pressing issues facing maritime transportation system– Mediates competing interests for transportation investments– Forges working partnerships with industry, Federal, State and local governments– Administers Federal BUILD (TIGER), INFRA, Shipyard, and America’s Marine Highway grants.

Challenges with

Changing Dynamics

NE. MARAD – 10 Gateway OfficesGateway Focus Areas

Advocate for the AOR Stakeholder Outreach Familiar with issues in the AOR Improve delivery of Federal Services Port Infrastructure Development Grant Management Workforce Development Inter-Agency Partnerships America’s Marine Highways (M-A1, M-5, M-84, & M-H1) Port Readiness and Emergency Preparedness Environmental Stewardship Agency Liaison

Pacific Gateway Point of Contacts PNWG: Captain Bob Loken, 206.200.5744, robert.loken@dot.gov

Mid-Pacific: Eric Shen, 202.308.8968, eric.shen@dot.gov

Combines SOCAL, NOCAL, and PAC Islands into Mid-Pacific Gateway

Inland Waterways: Branden Criman, 202.384.6001, branden.criman@dot.gov

Adds Bonneville Dam east Columbia and Snake rivers

Relocate 1 FTE Chad Dorsey to Inland Waterways in Paducah, KY

Pacific Back-up Brian Hill, 281-635-0785, brian.p.hill@dot.gov

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Different cargoes and passengers require different port infrastructure:• Container - needs larger contiguous acres, cranes and equipment to

move containers, may need fumigation services; vessels can be very large, needs extra depth at berth

• Cruise – cruise facilities are best separated from cargo operations at ports for safety of passengers, but they must also accommodate provisioning by 75 or more trucks per vessel per day as well as baggage from passengers; cruise ship ‘home ports’ are those where passengers board the vessel and return at the end of the cruise –these need safe, secure parking facilities within a close walk, a nearby airport and facilities for buses, taxis and rental cars; ‘ports of call’ are those where the vessel arrives for less than a day to allow passengers to visit the region. These require safe, accessible transit options such as bus or taxi for passengers. All cruise ports are required to accommodate needs of vessel crew members.

E. 8 Kinds of Ports

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Different cargoes and passengers require different port infrastructure:• Energy – handles liquid bulk, has pipelines, tanks and berths for

very large vessels; needs extra depth at berth• Ro/Ro (roll on/roll off) – handles vehicle and heavy equipment

exports and imports; needs ramps, docks with width, may offer value added services for vehicle prep

• Break bulk – handles steel, forest products, refrigerated products not in containers; needs laydown yards, specialized warehousing, may need fumigation services

• Bulk – handles aggregates for construction and road building, fertilizers for agriculture, agricultural exports such as rice, wheat, soy, etc.; may have silos or warehouses near dock, or be connected by conveyor belts; rail access, may need extra depth at berth

• Commercial Fishing – may have a ro/ro ramp, or allow commercial fishing fleet to raft up, or discharge alongside the dock. May have waterfront freezer or fish processing facilities nearby.

E. 8 Kinds of Ports (cont)

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Different cargoes and passengers require different port infrastructure:

• Space – handles rockets for refurbishment, drone barges/vessels, proximity to hangar, needs adequate room for operations and possibly a clean room in proximity to the dock, special road connectors may be required to accommodate high, wide and heavy loads.

• Currently 19 Spaceports in the U.S. $350 billion industry that is projected to grow to $2.7 trillion in 30 years.

E. 8 Kinds of Ports (cont)

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SE. 2017 $66 Billion Needed for Port-Related Infrastructure over next 10 Years

• Port Industry identified $66B in Federal Investment– Nearly $34 billion in waterside

projects (dredging)• $27.6 billion needed to maintain

deep-draft navigation channels

• $6.2 billion needed to modernize deep-draft navigation channels

– $32 billion for landside projects• $28.9 billion to modernize road

and rail connectors to Ports

• $3.13 billion to improve Port facility infrastructure

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Source: American Assoc of Port Auth (AAPA) Survey Member Ports – 2017 America: Keep It Moving

• Ports plan to Spend $155B over next 5 years

S. Fixing America’s Surface TransportationFAST Act

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• Fixing America’s Surface Transportation (FAST) Act Signed into Law December 4, 2015 Authorizes $305B (all modes) over 5 Years.

• Requires each state to have a State Freight Plan by Dec 2017 identifying critical urban and rural freight corridors to be eligible for formula funding

• Infrastructure for Rebuilding America (INFRA) replaced FASTLANE. NOFO solicited applications for up to $1.56 billion in FY 2017-2018 INFRA Funds closed on 2Nov2017. Large projects minimum $25 million and Small Projects minimum $5 million. (26) Awards sent to the House for Congressional 60 day review on June 5, 2018. 2019 $950M; 2020 $1B.

– Contacts MARAD HQ Bob Bouchard at (202) 366-5076 or email to INFRAgrants@dot.gov

• Congestion Mitigation and Air Quality Improvement Program (CMAQ) transportation project to attainment (2018-2020 $2.4B) https://www.fhwa.dot.gov/fastact/factsheets/cmaqfs.cfm

• Advanced Transportation and Congestion Management Technologies Deployment (ATCMTD) $60 million. Closed 18June2018. For employing advanced transportation technologies to improve safety, infrastructure ROI, efficiency, and performance. https://www.fhwa.dot.gov/pressroom/fhwa1806.cfm

2019: $60M 2020 $60M

S. Funding and Financing• Better Utilizing Investments to Leverage Development (BUILD) Grant replaced TIGER. Open for

application $1.5 Billion. 30% ($450 Million) to rural. Closed 19July2018.

• List of TIGER 1-9 applications 2009-2017 https://www.transportation.gov/policy-initiatives/tiger/tiger-application-list TIGER over $740 million and cost share is over $800 million equaling $1.5 Billion in port improvements.

• Build America Bureau (The Bureau) https://www.transportation.gov/buildamerica

– Transportation Infrastructure Finance and Innovation Act (TIFIA) https://www.transportation.gov/tifia (3.22% as of 1Oct2018)

– Railroad Rehabilitation and Improvement Financing (RRIF) https://www.transportation.gov/buildamerica/programs-services/rrif

– Public Private Partnership https://www.fhwa.dot.gov/ipd/p3/

– Port Conveyance Program www.marad.dot.gov/ports/public-benefit-conveyance-program/

• Small Shipyard Grants 2018 $20 million. Closed 22May2018. Awards were announced on 24 July 2018. https://www.marad.dot.gov/ships-and-shipping/small-shipyard-grants/

• Maritime Environment & Technology Assistance (META) funding $3 million to support environmental innovations POC Dan Yuska, email daniel.yuska@dot.gov phone 202-366-0714

• Marine Highway: Call for Project Service Designation ended 30June. Next deadline 31Dec2018. Marine Highway Grant NOFO announced 27Jun2018 for $7 Million Apps due by 5pm Eastern October 5, 2018. Eligibility requires Project Designation of a Service. FR Document: 2018-13798

• MARAD Port Finance Agent: Kirk Claussen, email kirk.claussen@dot.gov phone 202.366.5660

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S. Other Funding and Financing• USDOT

– FHWA pax and vehicles Ferry grants ($80M formula grants) https://www.fhwa.dot.gov/fastact/factsheets/ferryboatfs.cfm

– FTA pax Ferry grant https://www.transit.dot.gov/funding/grants/passenger-ferry-grant-program-section-5307 (annual $60M awarded 8 May 2018)

• Other Government Agency (OGA) funding: – EDA Planning and Infrastructure https://www.eda.gov/funding-opportunities/

– FEMA Port Security Grant Program https://www.fema.gov/port-security-grant-program Closed on June 20, 2018

– EPA DERA Grants open $40 Million applications Closed 12Jun18 https://www.epa.gov/cleandiesel/clean-diesel-national-grants

– EPA Water Infrastructure Finance and Innovation Act (WIFIA) for eligible water and wastewater projects up to 49%. Future USACE application for financing dredging outside on Navigation Channel. https://www.epa.gov/wifia

– NPS Maritime Heritage Grants, Boating Infrastructure Grants (BIG), and Clean Vessel Act Program http://www.nps.gov/maritime/grants/apply.htm

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S. Other Grant Resources• Catalog of Federal Domestic Assistance

– CFDA lists 2,320 programs available – Link: https://www.cfda.gov/– Download latest print version

• Grants.gov– An online system focused on improving services– 900 grant programs across 26 Federal Agencies– Offers free grant application– Link: https://www.grants.gov/

• Federal Register– Legal newspaper by the National Archives and Records Administration (NARA)– The Federal Register contains:

• Federal Agency Regulations and Proposed Rules• Public Notices, such as, funding opportunities• Notices of Federal agencies and organizations• Executive orders and other presidential documents

– Link: https://www.federalregister.gov/• Committee on the Marine Transportation System 2017 Funding Handbook

– Link: http://www.cmts.gov/

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Port of Morrow

Port of Garibaldi

Port of Newport

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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; examples of what works • Built with modules on planning, fundingand executing projects• Determine the most cost-effective, sustainable and efficient solutions to port problems; and• Position port projects for federal funding or financing such as INFRA grants or TIFIA; and Assist ports in obtaining private sector investment funds. • Funding Strategy Module was released in November 2014 http://www.aapa-ports.org/topic.aspx?ItemNumber=21265• Phase II Port Planning and Investment Toolkit released in Jan 2017http://www.aapa-ports.org/advocating/PRDetail.aspx?ItemNumber=21653• YouTube video https://www.youtube.com/watch?v=JwDYxYtMCAw&t=10s• Future focus on Intelligent Transportation Systems (ITS)

SW. Port Planning & Investment Toolkit A Maritime Industry Joint Venture

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Documents the Ports as-is, to-be, and where MARAD can assist

PortTalk engages Ports, State DOT, MPOs, and other stakeholders in a facilitated telecon to foster dialogue and develop regional maritime transportation plans

Increase attention on Intermodal Connectors with each state creating a Natl Highway Freight Network to prioritize federal investments

Regional PortTalk Roundtable: Hosted 1 day meeting focusing on bringing a region to the table for discussions. Sponsored by state DOT and consists of Ports, MPOs, State DOT, MARAD, and Industry to address issues and generate solutions.

Community MPO export: Travis Black email: travis.black@dot.gov phone 202.366.9087

SW. PortTalkA Regional Maritime Collaboration

W. American Marine Highway1. Route Designation

Pacific Area

M-H1 HawaiiM-A1 Cook InletM-5 PacificM-5 Connector AlaskaM-84 Columbia, Snake, Willamette RiversM-580 StocktonFuture

• Extend M-5 Connector to Arctic• Add Route into Salish Sea

Marine Highway Link: http://www.marad.dot.gov/ships-and-shipping/dot-maritime-administration-americas-marine-highway-program/

Marine Highway Call for Projects 22701 Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 /

Notices MH Project submissions due June 30, 2018, Dec 31, 2018

MARAD POC Tim Pickering Timothy.pickering@dot.gov Ph. 202-366-0704

M-H1

W. Critical Elements for Creating 2. Designated Marine Highway Project

• Proposed Project is a service that is located on a designated Marine Highway Route

• A public/private partnership between ports, vessel operators (service provider), labor, and most importantly, shippers

• A solid business case including analysis of competing modes • An efficient operational plan

• Adequate capital for start up and initial operations

• A coordinated promotion effort by key stakeholders• Submitted to Secretary USDOT for Approval of Project

Designation

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• MH Route + Service Project Designation = Eligibility for MH Grants

• FY 2018 ($7M) Notice of Funding FR Document: 2018-13798 . Applications due 5 pm Eastern 5 October 2018. Must have a designated service to be eligible. – Only Designated Service Projects Eligible

• Development and Expansion of documented vessels• Port and Landside Infrastructure

• 2017 MH Grants under review• 2016 MH Grant awards

– Baton Rouge–New Orleans Shuttle on the M-55 - $1,758,595– Illinois Intrastate Shuttle on the M-55 - $713,000– James River Expansion Project on the M-64 - $476,748– New York Harbor and Container and Trailer on Barge - $1,632,296 – M-55/M-35 Container on Barge Project - $96,000– Potomac River Commuter Ferry Project - $173,361

W. Funding3. Marine Highway Grants

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Questions

Captain Bob Loken Eric Shen Brian HillPNW & AK Gateways Mid-Pacific Gateway Pacific Backup/Texas Gatewayrobert.loken@dot.gov eric.shen@dot.gov brian.p.hill@dot.gov(206) 220-7717 Office (213) 629-8616 Office (713) 272-2864 (Office)(206) 200-5744 Cell (202) 308-8968 (Cell) (281) 635-0785 (Cell)

Port of Coos Bay

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Port of St. Helens, OR

StrongPorts link: http://www.marad.dot.gov/ports/strongports/Through Planning & Engagement – Finance – Project Support

NW. National Maritime Transportation Strategy

• More than 75 percent of all U.S trade is transported by water.

• Develop a National Maritime Transportation Strategy to support growth of U.S. maritime industry and ensure availability of U.S. flag vessels for our nation’s economic and national security.

• MARAD hosted two three-day National Maritime Transportation Strategy Symposium in 2014, with over 400 maritime stakeholders developing and identifying five priorities:

1. Expand Capacity of U.S. Gateway Ports2. Ensure the Maritime Capacity to Guarantee Economic and National Security3. Modernize, Educate, Train and Recruit the Next Generation of Mariner Work-Force

a. By 2022 U.S. will require 70,000 new mariners4. Fully Leverage Waterborne Transportation in our National Transportation Network

a. 70 million increase in population by 2045 and 45% cargo increase b. EU 40% vs US 5%

5. Drive Maritime Technology Innovation

• New Administration has updated the draft and it will go out for comment in 2018

NW. U.S. DOT Financing Programs (other)

• Private Activity Bonds (PABs) – www.fhwa.dot.gov/ipd/finance/tools_programs/federal_debt_financing/private_activ

ity_bonds/ (tax-exempt bonds issued by or on behalf of a local or state government )

• Federal Ship Financing Program (commonly referred to as “Title XI”) – www.marad.dot.gov/ships-and-shipping/federal-ship-financing-title-xi-program-

homepage/

• Construction Reserve Fund (CRF) – www.marad.dot.gov/ships-and-shipping/construction-reserve-fund/(Financial assistance program which provides tax deferral benefits to U.S.-flag operators to defer the gain attributable to the sale or loss of a vessel)

• Capital Construction Fund (CCF) – www.marad.dot.gov/ships-and-shipping/capital-construction-fund/ (Program encourages construction, reconstruction, or acquisition of vessels through the deferment of Federal income taxes on certain deposits of money or property)

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MTSNAC is a Federal advisory committee within MARAD that advises the U.S. Department of Transportation on issues related to the marine transportation system

MTSNAC is comprised of over 40 leaders from commercial transportation firms, port and water stakeholders, labor, and Federal, state and local public entities

Captain Greg Faust, Director of Marine Operations WSF; Susan Hayman VP Foss Maritime Company, and Richard Berkowitz, Director of Pacific Coast Operations, Transportation Institute

MTSNAC current focus Impediments hindering effective use of short sea transportation for freight and passengers

Expand capacity of U.S. international gateway ports to accommodate larger vessels;

Improve waterborne transport to reduce congestion and increase mobility

Strengthen maritime capabilities essential to economic and national security

Modernize the maritime workforce and inspire and educate the next generation of mariners

Drive maritime innovation

Provide advice

Written comments for consideration can be emailed to MTSNAC@dot.gov

NW. Marine Transportation System National Advisory Committee (MTSNAC)

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On October 8, 1996, the President signed the Maritime Security Act of 1996 establishing the Maritime Security Program (MSP)

On November 24, 2003, the President signed the National Defense Authorization Act (NDAA) for FY 2004, which contained the Maritime Security Act of 2003 reauthorizing the MSP for FY 2006 through FY 2015

On January 2, 2013, the President signed the NDAA of 2013 (H.R. 4310) extending the current MSP to FY 2016 through FY 2025

The NDAA of 2013 requires that the Secretary of Transportation, in consultation with the Secretary of Defense, to establish a fleet of active, commercially viable, militarily useful, privately-owned vessels to meet national defense and other security requirements

MSP Ships receive a subsidy and all operating agreements are currently filled by 60 ships

MSP ship crews are a major source for the DOD surge fleet and contributes approximately 2,400 mariner positions to the U.S. deepwater seafarer base

NW. Maritime Security Program (MSP)

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Initiated in 1976 - Subset of the National Defense Reserve Fleet (NDRF) program to

support the rapid worldwide deployment of U.S. military forces.

6 ships in 1977; 102 ships in 1994

Currently 46 ships

Maintained in 5 and 10-day readiness status by commercial U.S. ship

managers that are under contract for maintenance and repair, activation,

manning, and operation.

The RRF provides nearly one-half of the government-owned surge sealift

capability.

National and Humanitarian Emergencies and Disaster Relief Missions

Used as training platforms by Navy and Army and various law enforcement

agencies

NW. Ready Reserve Force (RRF) Highlights

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NW. Disaster Relief Capability: pre-scripted missions

Port Infrastructure Recovery: Crane Ships and Over Shore Operations

SAFEPORT: Crane Ships can remove “suspect” containers from box ships.

SAFESTOR: Emergency vehicles shelter on RoRos: Hurricane Mitchell Cape Decision 53 water craft and vehicles loaded

OTHER: Deliver Relief SuppliesCommand and Media CenterCharter Commercial Vessel CapabilitiesHotel ServicesPlatform for Destroying chemical gases

Emergency Worker Support: School Ships double as relief ships.

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NW. 16 Strategic Ports

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Guam has transitioned to a 'Special Consideration’ Commercial Strategic Seaport

NW. Training Ship RecapitalizationNational Security Multi-Mission

Vessel (NSMV)

Goal: Invest In essential marine transportation careers, to support America’s National Security and Economic Vitality Training ship 100 officers/crew, 600 cadets 10,000 nm range Surge mode 760 personnel u/w or 1,000 personnel in port Dimensions 600’ x 105’ x 25’ Diesel Electric, Integrated Electric Drive, Single shaft, bow

thruster, design speed 18 kts

NW. State Freight Plans

• To receive funding under the National Highway Freight Program, the FAST Act requires each State to develop a State Freight Plan by December 5, 2017. A State Freight Plan must: – Cover a five-year forecast period; – Be fiscally constrained; – Include a “freight investment plan” with a list of priority projects; and – Describe how the State will invest and match its National Highway

Freight Program funds.

Freight Planning and Policy Provisions: https://www.fhwa.dot.gov/fastact/factsheets/fpppfs.cfm

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NW. State Freight PlansWhy Include Maritime Assets in State Freight Plans?

• State Freight Plans will guide state infrastructure investments through the development of funding - constrained lists of projects to be funded by the National Highway Freight Program

State Freight Plans

• Will designate critical urban and rural corridors for inclusion in the National Highway Freight Network,

• Will provide ports with an opportunity to integrate into the wider surface transportation system within their State.

• If ports want to benefit from a State’s freight investment, they need to participate in the State Freight Plan development by joining groups such as State Freight Advisory Committees.

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