Local Port Perspectives on Roles for State DOT

1. Local Port Perspectives on Roles for State DOT Ken Canter, President Kentucky Association of Riverports NWC Annual Meeting – Mobile, AL 11/18/07

2. General Outline for Today • Paducah-McCracken County Riverport • Kentucky Association of Riverports (KAR) • Kentucky Riverport Improvement Project • Project Goals • General Approach • Recommendations • Status

3. Paducah-McCracken County Riverport

4. The TSA Grant was used to make the Riverport and our country more secure.

5. Kentucky Association of Riverports Operating Ports 1. Hickman-Fulton County Riverport Authority 2. Paducah-McCracken County Riverport 3. Henderson County Riverport 4. Owensboro Riverport Authority 5. Louisville-Jefferson County Riverport Authority 6. Greenup-Boyd County Riverport Authority 7. Eddyville Riverport & Industrial Dev. Authority Developing Ports 8. Wickliffe-Ballard County Port Authority 9. Marshall County-Calvert Riverport Authority 10. Meade County Riverport 11. Maysville-Mason County Port Authority Kentucky Riverport Improvement Project

6. Kentucky Riverports Improvement Project • Initiated by KYTC • to conduct a study of the commonwealth’s riverports and • to investigate the roles and responsibilities that other states have taken to capture the benefits of their inland waterway system.

7. Project Objectives • Accelerate growth of Kentucky ports • Identify new markets • Develop new, efficient, economical operations • Identify infrastructure needs • Define roles for Kentucky state government • Develop state-level programs to enhance competitiveness of Kentucky Riverports

8. Past Programs in KY • For several years, the Kentucky riverports were under the jurisdiction of the Kentucky Port and River Development Commission that was part of the Cabinet for Economic Development. The Commission was abolished in 1992 and the commonwealth’s interest in ports was transferred to the Transportation Cabinet in 1998. • Many of the states, including Kentucky, that are served by riverports are prohibited by their constitutions to spend revenues derived from fuel taxes on any program except highways and bridges. This constitutional provision greatly limits the source of dedicated revenues to fund any programs for ports and waterways.

9. Consultant Selection • KYTC contracted with Hanson Professional Services Inc. to assess the current status of assistance to public river ports in Kentucky, evaluate those programs offered by other state governments in support of water transportation, and recommend a course of action for the commonwealth. • Study’s recommendations provide a comprehensive and wide-reaching plan of action to enable Kentuckians to compete in regional, national, and global markets and improve their quality of life by better utilization of the commonwealth’s water transportation assets, including its Riverports.

10. Project Approach • Interactive engaging KYTC and KAR members in a collaborative format • Working to learn what the ports want/need • What the state believes it can provide • Finding the match

11. Kentucky’s Riverports Operating Ports Developing Ports • Challenge in meeting needs of existing mature ports and emerging ports

12. The Process Series of five 2 day meetings with Hanson, KAR & KYTC: Typical Day 1 • Hanson presents new information • Dinner (further discussion in informal setting) Typical Day 2 • Hanson facilitates discussions, strategic thinking • Ideas and concerns expressed • Group works through important issues

13. Review of States Roles For Ports (1) Authorized but not funded (2) Loan program for intermodal projects, including ports

14. Successful State Programs Louisiana Program: Ports Priority Program Annual Funding: $20 Million Match: 10% Local Competition: 38 Ports Remarks: A recently commissioned study by PAL identified nearly $820M of port needs for next five years. The State’s Waterways Infrastructure and Development Fund has never been funded. Note: Current study underway to increase annual funding

15. Successful State Programs Mississippi Program: Multi-Modal Transportation Capital Improvement Type: Grant Annual Funding:$10 Million (Ports - $3.8 Million) Fund Source: Transportation Trust Fund (Fuel Taxes) Match: No Local Competition: 16 Ports Remarks: A Port Fund Committee made up of 10 members, 8 of which typically represent ports, essentially approve grant disbursements.

16. Successful State Programs Minnesota Program: Port Development Assistance Program Type: Loans and Grants Annual Funding:$12.5 Million in 9 years; Revolving Fund Match: 20% Local Competition: 9 Ports Remarks: The program provides grants for projects that may not produce immediate returns and loans for those that can generate direct revenues.

17. The Results Recommendations • Financial – $4M Grant Program • Marketing – $400K Grant Program • Technical – Governance & Organizational Structure – Water Transportation Staff

18. What Has Happened? - ACTION • October 19, 2007 – met with top officials in the KYTC and the legislative director • Draft legislation underway for introduction in early 2008 legislative session • Ports meeting with State legislators

19. What’s Next? • Meeting on November 19th with KY Economic Development Cabinet (some items only need Executive Action) • Introduce draft legislation into the process • Legislature meets in January 2008

20. Conclusion • We have developed program recommendations through an interactive, collaborate process, learning from experiences of other states, and incorporating ideas from the ports and the KYTC • Hope to be able to report back that the program legislation was passed and it is up and running • Local ports welcome and need State support