Port Re-Designation ProjectPresented to

Maysville Chamber of CommerceMarch 6, 2014

Melissa JohnsonDirector of Real Estate and LogisticsPort of Greater Cincinnati Development Authority

Eric ThomasCentral Ohio River Business Association

www.cincinnatiport.org

Port of Greater Cincinnati Development Authority

Northern Kentucky Port Authority

Northern Kentucky Port AuthorityNorthern Kentucky Port Authority was established by Boone, Campbell and Kenton Counties to facilitate river port projects along the Ohio and Licking Rivers. The NKPA Board facilitates river oriented economic development and other multi-county activities. KentuckyPort Authorities created in the 1970s to develop a system of public port facilities. Licking River port development pursued for several years, abandoned in the 1980s. NKPA participates in multi-county efforts.

What is a Port Re-Designation?

• What is a port re-designation?• The act of expanding port boundaries to capture

transactional volume of goods and commodities that flow through a region.

• U.S. Army Corps of Engineers (USACE) statistical ranking of ports based on freight tonnage.

• What is the “Port of Cincinnati”?• The Port of Cincinnati is a 26-mile reach of riverfront

along the Ohio River. • 12,000,000 tons of cargo.

51stranked port district

6,036 jobs

$54,000 annual average wage

$45,000,000 in state and local taxes

$530,000,000 in business revenue

By the Numbers: Current PortThe current 26-mile designation

Current Cargo Composition

Source: US Army Corps of Engineers

• Huntington District is dominated by coal;• Louisville more diverse with petroleum and dry bulk materials

Re-designation Proposal• Expand current 26-miles to approximate 227-mile

regional harbor to elevate awareness of Ohio and Kentucky as global origins and destinations for river commerce and economic development.

• The re-designation is supported by a USACE scope of work that requires a petition, county-level resolutions and demonstrations of economic relationships between the existing 77 terminals within the proposed 227 miles.

• The re-designation includes 15 counties across the 2 states.

Community Engagement

• Public Engagement• Introductory meetings • Stakeholders

• Legislative Enactments• Contiguous county resolutions

• Supporting Endorsements• Local, state, and federal government• Private sector

Boundary Justifications

• Alternative boundaries• Metropolitan, micropolitan, and business economic

areas (BEAs)• Economic linkages

Economic LinkagesGeographic and/or financial connections between inland waterway shippers, carriers, and terminals.

Demonstrate how terminals, docks, piers, wharves, etc. function as an interdependent economic unit within the proposed boundary.

• Commodity has an origin and destination within the same boundary;

• One firm operates multiple terminals (or docks) within the same boundary;

• Multiple firms in the boundary interact with a specific destination outside of the boundary; and

• Multiple firms use one specific barge operator.

Re-Designation Benefits

• Elevate the port ranking to 9th nationally (approximately) by including an additional 38,000,000 tons of cargo in undesignated areas.

• Significant economic development advantage to promote and market our existing terminals, respective communities and region as destinations for global transport decisions.

• Regional collaboration through the new

State and Regional Awareness

• JobsOhio • Ohio River Strategic Plan

• Cincinnati USA Regional Chamber• Identify long-term sustainable revenue sources for

transportation in Ohio • Advocate for federal transportation bill that

streamlines permitting and incentivizes private investment

• Kentucky Water Transportation Advisory Board

Frequently Asked Questions

• No taxation, tariffs, fees• Not an expansion of Port Authority powers• No costs• Future association / formation • Increased flow of freight / capacity• 15 counties, 2 states, unique collaboration

TimelineAugust 2012

February 2013

April – October 2013

October – January 2014

March 2014

September 2014

Port Authorities of Cincinnati and Northern Kentucky submit joint letter of intent to USACE

Planning Assistance Agreement (PAS) signed

Community Outreach, Economic Linkages

Passage of formal resolutions by legislations

Submit formal petition

Decision by USACE

Eric Thomas

About CORBACentral Ohio River Business Association (CORBA)

River commerce businesses and industry Mile 356 to 560

Port of Huntington, WV to Madison, IN

Our Mission: to unite the river businesses and industry into a common voice in order to promote commerce, safety and security, environmental stewardship, and public relations concerning the Ohio River and its tributaries throughout the central Ohio River region.

We pursue this mission by: providing a forum for the exchange of interest, ideas, and concern among our members, and support and advance the ideas and needs of our members to each other, to government agencies and municipalities, and to other stakeholders with interest in or concern for commerce along the Ohio River.

CORBA’s founding ideals …The river is a proven means of transport,

more viable today than it was in the 19th century.Re-introduce the “harbor” as a component of the greater “port”

complex (which includes highway, rail, and airports).Educate the public about the important role the harbor plays now

and will continue to play into the future.Create a voice to advocate on behalf of the harbor’s businesses and

industry.Develop a brand identity for the “Ports of Cincinnati and Northern

Kentucky” and then market the brand!Pursue re-designation of the port boundaries with USACE.

More on CORBA …Not-for-profit (Ohio) corporation; a business association.Formally organized in November 2011.Made up of businesses who work on or depend upon the

rivers (the “harbor”) in the Central Ohio River region with Cincinnati being at the center.

In the midst of a membership drive.

www.corba-usa.org

CORBA’s Targeted Reach

CORBA Members include:Tow and Barge Fleet OperatorsTerminals – Liquid and DryCommercial Passenger OperatorsShipyard / Boat and Barge RepairsShippersUtilitiesRestaurant and Entertainment, and MarinasPort Authorities, Municipalities, and Counties

Port Re-designations / RankingsCurrent rankings based on freight tonnage:(14) Huntington, WV-Tristate – from 14 miles to about 200. Ohio River, the Big Sandy, and the Kanawha(17) Pittsburgh, PA – now 200 miles along its three rivers. Ohio, Monongahela, and Allegheny(51) Cincinnati, OH – 26 miles from the Ohio / Indiana state

line east(67) Louisville, KY – 15 miles including both banks of the

Ohio River

U.S. Marine Highway ProgramEnergy Independence and Security Act, 2007 US DOT Maritime Administration (MARAD)

“To expand the use of waterborne transportation while relieving landside congestion

and reducing carbon emissions.”Integrating Marine Highways into the nation’s surface

transportation systems.Over 29,000 nautical miles of navigable waterways

including rivers, lakes, and coastal routes.

U.S. Marine Highway ProgramMARAD designated inland marine highways as “M”,

not unlike the interstate highway “I-” system.Entirety of the Ohio River is designated M-70, and is

joined in that designation by the Missouri River.Each “highway” has a sponsor.

Ohio DOT is the sponsor for M-70.

U.S. Marine Highway Program continued

Currently five working groups:(1) Market Analysis - looking at and mapping out freight flows and

manufacturing distribution centers along the M-70(2) Infrastructure - identifying infrastructure gaps needed to support

reliable scheduled service (3) Operations - identifying transit times, optimal schedules, and point to

point pricing structures(4) Communications - mapping communication coverage gaps along the

M-70/M-29(5) Aspects of fuel/energy transportation - existing and emerging

resources   For more information, contact Fred Jones fred.jones@dot.gov

What will the new Panama Canal mean for the U.S?

Impact multi-modal land-bridge between the east & west coasts of the U.S.

Shift of ships calling on the east coast and away from the west coast.

Potential for ships calling at ports in the Gulf of Mexico.

Gulf ports such as New Orleans critical to any potential for the inland river system (Mississippi and Ohio Rivers).

Container on barge? Port’s economic impact study.

Why Transport on the Inland River System is Important:Oldest form of bulk transport in the history of mankind.90% of all worldwide trade is by water.Barge transportation allows for high volumes of bulk cargoes

transported in a safe, clean, environmentally sound, energy efficient, and cost effective manner.

If not for barge transport, our nations highways and rail system would be choked with up to 6.3 million more railcar trips, or 25.2 million more truck trips per year.

Marine transport will continue into the long term future.Question is: Can the inland waterways do more to solve

current land transport congestion?

www.corba-usa.org

Thank you

March 6, 2014

Melissa JohnsonDirector of Real Estate and Logistics

Port of Greater Cincinnati Development Authoritywww.cincinnatiport.org

@PGCDA

Eric ThomasCORBA – Central Ohio River Business Association

www.corba-usa.org