What’s New onAmerica’s Marine Highways

Annual TRB Ferry CommitteeAugust 14, 2012

August 6, 2012Lauren Brand, PPM

Director, Office of Marine Highways and Passenger Vessel Services

U.S. Department of Transportation – Maritime Administration

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Maritime Administration Mission:

To improve and strengthen the U.S. marine transportation system - including infrastructure, industry and labor - to meet the economic and

security needs of the Nation.

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Our Vision: America’s Marine Highway

Reliable, regularly scheduled, competitive and sustainable services employing U.S. vessels and tugs are a routine choice to transport passengers

and freight.

M-5

M-95

M-10

M-90

M-70M-55

M-5 (AK)

M-7

1/77

M-65

M-40

M-49

M-87

M-5 (AK)

M-64

M-A1

M-7

5

M-84

M-580

America’s Marine HighwaysDesignated August 2010

M-2

LEGEND

MH Corridor

MH Connector

MH Crossing

U.S. Interstate

M-55

M-70

M-95

M-5

M-90

M-90

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Shifting Transit Patterns

• US DOT embraces ‘Livability’, greater emphasis on transit options

• Pedestrian/Bike/Bus/Train considered intermodal transportation

• Diminishing public funds available for aging infrastructure and equipment

• Marine Highways slowly being integrated into surface transportation system planning

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Federal assistance for infrastructure and equipment including terminals and ferries.

Available: $22.2 million

Requested:

$124 million

Project Totals: $435.9 million

FHWA’s Ferry Discretionary Grant Program

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M-5

M-95

M-10

M-90

M-70M-55

M-5 (AK)

M-7

1/77

M-65

M-40

M-49

M-87

M-5 (AK)

M-64

M-A1

M-7

5

M-84

M-580

$179.26M Marine Highway & TIGER Grants 2009 to 2012

M-2

LEGEND

MH Corridor

MH Connector

MH Crossing

U.S. Interstate

M-55

M-70

M-95

M-5

M-90

M-90

Cates Landing, TN$13,000,000

Green Trade Corridor, CA$30,000,000

Tri-City Port, IL$14,500,000

Port Manatee, FL$9,000,000

Davisville, RI$22,300,000

Maine Ports, ME$14,000,000

Tenn-Tom W/W$1,700,000

Cross Gulf$3,340,000

James River$1,100,000

Detroit/Windsor Ferry$2,200,000

Oakland, CA$15,000,000

Mobile, AL$12,000,000

Lewiston, ID$1,300,000

Bayonne, NJ$11,400,000

Catoosa, OK$6,425,000

Brownsville, TX$12,000,000

Corpus Christi, TX$10,000,000

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Map - 21

• New legislation – passed July 2012• 27 month program that will lay the

baseline for future of transportation system in the U.S. / freight and passengers

• Maritime Opportunities:– Will identify National Freight Network– Will establish State Freight Advisory

Committees

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What’s Next?

Working to develop viable, regional inner city commuter options to relieve landside congestion

Exploring environmental and technology innovations for ferries and inland river vessels

M-5

M-95

M-10

M-90

M-70M-55

M-5 (AK)

M-7

1/77

M-65

M-40

M-49

M-87

M-5 (AK)

M-64

M-A1

M-7

5

M-84

M-580

America’s Marine Highway - Programmatic NEPA Project in Five Major Regions

M-2

LEGEND

MH Corridor

MH Connector

MH Crossing

U.S. Interstate

M-55

M-70

M-95

M-5

M-90

M-90West Coast

(4 States)

Gulf Coast(5 States)

East Coast(15

States)

Great Lakes & St. Lawrence Seaway

(7 States)

InlandWaterways

(13States)

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Focus on States

37 State DOTs influence America’s Marine Highways Which State DOT department will consider it?

– 9 = maritime, ports, waterways or marine– 8 = planning– 6 = intermodal– 4 = freight– 3 = rail & marine/railroads & harbors– 1 = aviation & ports– 1 = trade development– 6= have no department that addresses maritime

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What Else?

• Demand Development– Tax credit programs?

• Exploring Policy Impediments– Tonnage Tax– HMT– U.S. Shipbuilding– Hazardous Materials

Movement

• Meetings• Regional Roundtables• ‘Bookend’ Open

Houses• Regional Marine

Highway Working Groups

• National Marine Highway Committees

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Critical for forming Marine Highway services

• Need communication among multiple partners (including public and private)

• Marketing and sales efforts must be coordinated between all partners

• Need business, market and finance plans• Need adequate capital for start-up

operations, with contingency fund

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California Green Trade Corridor Tiger Grant

DOT Tiger Grant Funds provided for landside improvements and two barges

Service between Stockton and Oakland to begin August 2012

TEUs already booked, majority heavy weight freight

Major relief of congested I-580 corridor

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St. John’s River, Jacksonville to Orlando, Florida

Florida DOT:

“future bridge modifications will meet vessel needs”

M-5

M-95

M-10

M-90

M-70M-55

M-5 (AK)

M-7

1/77

M-65

M-40

M-49

M-87

M-5 (AK)

M-64

M-A1

M-7

5

M-84

M-580

Potential Additional Corridors, Connectors or Crossings

M-2

LEGEND

MH Corridor

MH Connector

MH Crossing

U.S. Interstate

M-55

M-70

M-95

M-5

M-90

M-90

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Market analysis (current and future)a. What moves, How it moves, & Where it goesd. Which freight is a candidate for marine transportation e. Market share that might be achievedf. Required price point and delivery timeline

Key elements of a successful servicea. Identify gaps (equipment/property/partners)b. Develop (or modify) business modelc. Pro forma income and expensesd. Other business planning factors

Optimize the servicea. Maximize efficiencyb. Overcome obstacles/impedimentsc. Reduce cost

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Corridor Study Objectives

Call For Projects

• Round #2 of Project Applications Will be Solicited Later This Year.

• Project Designation Can Help Win Federal Support/Assistance.

• Some Funding Proposals May be Tied to Formally Designated Marine Highway Projects.

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Thank you

Lauren Brand, PPM

202-366-0757

Lauren.Brand@dot.gov

Lauren Brand, PPM

202-366-0757

Lauren.Brand@dot.gov

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Extra Slides

Top 1000 “Blue Chip” Multinational Shipper Priorities

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With Permission from

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Fuel Costs

Policy Changes

Start up funding risk

Demand Supply

Maritime as part of the surface transportation

system

Carbon Trading

Shipper Incentives

HMT & Tonnage Tax