america’s marine highways program propeller club october 4, 2012 jim murphy east gulf lower...
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America’s Marine Highways Program
Propeller ClubOctober 4, 2012
Jim MurphyEast Gulf Lower Mississippi System GatewayU.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. ships and
tugs are a routine choice to transport freight and passengers.
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Shifting Trade Patterns
• Panama Canal Expansion• Post-Panamax Ships• Manufacturing and Distribution Shifts
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Top 1000 “Blue Chip” Multinational Shipper Priorities
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With Permission from
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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
• Will identify National Freight Network• Will establish State Freight Advisory
Committees
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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
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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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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A Focus on States
36 State DOTs influence America’s 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
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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.
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No GOGO
High Vessel Construction Cost
Institutional Barriers (HMT, Govt Policy, etc.)
Freight & Shipper Uncertainty
High Operating Cost
More Than Half Empty?
Infrastructure Gaps
Tippin
g Po
int
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GOGO
High Vessel Construction Cost
Institutional Barriers (HMT, Govt Policy, etc.)
Freight & Shipper Uncertainty
High Operating Cost
Infrastructure Gaps
Tippin
g Po
int
Or is it...
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GO Tippin
g Po
int
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
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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
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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.
Bottom Line
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Provides additional capacity to the regional surface transportation system
Provides competitive transportation options for shippers
Reduces highway maintenance costs and air emissions
Tenn Tom Waterway Pilot Project
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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
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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
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Thank you
Jim Murphy
(504) 589 6658
Jim Murphy
(504) 589 6658
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