AASHTO - FHWA Freight Partnership IV

AASHTO - FHWA Freight Partnership IV

Americas Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation Maritime Administration 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. Our Vision: Americas Marine Highway

Reliable, regularly scheduled, competitive and sustainable services employing U.S. ships and tugs are a routine choice to transport freight and passengers. 3 Shifting Trade Patterns Panama Canal Expansion Post-Panamax Ships Manufacturing and Distribution Shifts Top 1000 Blue Chip Multinational Shipper Priorities With Permission from

5 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 Will identify National Freight Network Will establish State Freight Advisory Committees 6 M-5 (AK) Americas Marine Highways Designated August 2010

M-5 M-84 -7 5 M -7 1 /7 7 M-90 M-87

M M-90 M-90 M-580 M-95 M-55 M-70 M-70 M-64 M-40

M-5 M-65 M-49 M-55 M-95 LEGEND M-10 MH Corridor MH Connector M-A1 MH Crossing

M-2 U.S. Interstate M-5 (AK) M-5 (AK) $179.26M Marine Highway & TIGER Grants 2009 to 2012 M-5 Lewiston, ID $1,300,000 Oakland, CA

$15,000,000 M-5 M-87 Bayonne, NJ $11,400,000 M-580 Green Trade Corridor, CA $30,000,000 Maine M-90 Ports, ME $14,000,000 M

M-90 /7 $2,200,000 -7 5 M -7 1 M-90 Detroit/Windsor Ferry 7 M-84

M-55 M-70 M-70 M-64 Tri-City Port, IL $14,500,000 M-40 Cates Landing, TN $13,000,000 Catoosa, OK $6,425,000

James River $1,100,000 M-65 Corpus Christi, TX $10,000,000 M-49 M-55 Tenn-Tom W/W $1,700,000 M-95 Mobile, AL $12,000,000

Cross Gulf $3,340,000 Brownsville, TX $12,000,000 Davisville, RI M-95 $22,300,000 M-10 M-A1 Port Manatee, FL $9,000,000 LEGEND

MH Corridor MH Connector MH Crossing M-2 U.S. Interstate M-5 (AK) A Focus on States 36 State DOTs influence Americas Marine Highways Which State DOT department will consider it? 6 = maritime, ports, waterways or marine (Florida) 8 = planning (Texas) 6 = intermodal (Georgia & Tennessee) 5 = freight (Mississippi) 3 = rail & marine/railroads & harbors

1 = aviation & ports 1 = trade development (Alabama) 6= have no department that addresses maritime Critical for forming Marine Highway Services Need communication among multiple partners (including public and private) Promotion efforts must be coordinated between all partners Need business, market and finance plans Need adequate capital for start-up operations, with contingency fund Need to be located on a designated Marine Highway Corridor, Connector or Crossing. More Than Half Empty? Institutional Barriers

(HMT, Govt Policy, etc.) Freight & Shipper Uncertainty High Vessel Construction Cost High Operating Cost Infrastructure Gaps Tipping Point GO No GO 12 Or is it... Institutional Barriers (HMT, Govt Policy, etc.)

Freight & Shipper Uncertainty High Vessel Construction Cost High Operating Cost Infrastructure Gaps Tipping Point GO GO 13 More Than Half Full? Advisory Committee Recommendations to DOT Secretary

Dual Use/M 55 Studies DOD Support & TITLE XI-CCF LNG + Dual Use $ $111 Million Grants Tipping Point GO 14 HMT & Tonnage Tax 15 Bottom Line In the current market and regulatory environment

launching new services is definitely challenging. However, changing dynamics may be bringing us closer to the tipping point. 16 Tenn Tom Waterway Pilot Project Provides additional capacity to the regional surface transportation system Provides competitive transportation options for shippers Reduces highway maintenance costs and air emissions 17

Tenn Tom Waterway Pilot Project Current Challenges Lack of start-up capital Lack of comfort from shippers (frequency, reliability, visibility) Lack of a complete supply chain 18 Tenn Tom Waterway Pilot Project Some Solutions $1.76M MARAD Marine Highway Grant for floating, wheeled or fixed infrastructure Transportation operator partnerships that tie all modes into a complete supply chain

Increased comfort factor from shippers 19 Thank you Jim Murphy (504) 589 6658 [email protected] t.gov 20

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