America’s Marine Highways Program

Propeller ClubOctober 4, 2012

Jim MurphyEast Gulf Lower Mississippi System GatewayU.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.

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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.

Shifting Trade Patterns

• Panama Canal Expansion• Post-Panamax Ships• Manufacturing and Distribution Shifts

Top 1000 “Blue Chip” Multinational Shipper Priorities

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With Permission from

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

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

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

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

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

Thank you

Jim Murphy

(504) 589 6658

James.murphy@dot.gov

Jim Murphy

(504) 589 6658

James.murphy@dot.gov

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