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 Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation – Maritime Administration

Transcript of America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower...

Page 1: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

America’s Marine Highways Program

Propeller ClubOctober 4, 2012

Jim MurphyEast Gulf Lower Mississippi System GatewayU.S. Department of Transportation – Maritime

Administration

Page 2: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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.

Page 3: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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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.

Page 4: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

Shifting Trade Patterns

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

Page 5: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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

Page 8: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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

Page 9: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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

Page 10: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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...

Page 14: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

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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

Page 20: America’s Marine Highways Program Propeller Club October 4, 2012 Jim Murphy East Gulf Lower Mississippi System Gateway U.S. Department of Transportation.

Thank you

Jim Murphy

(504) 589 6658

[email protected]

Jim Murphy

(504) 589 6658

[email protected]

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