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Short Sea Shipping Initiative Presented at:

Short Sea Shipping Initiative Presented at:. FHWA’s Talking Freight Seminar December 17, 2003 Carl J. Sobremisana U.S. Maritime Administration. Presentation Outline. Introduction and Description of Maritime Administration (MARAD) and Short Sea Shipping (SSS) Initiative

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Short Sea Shipping Initiative Presented at:

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  1. Short Sea Shipping Initiative Presented at: FHWA’s Talking Freight Seminar December 17, 2003 Carl J. Sobremisana U.S. Maritime Administration

  2. Presentation Outline • Introduction and Description of Maritime Administration (MARAD) and Short Sea Shipping (SSS) Initiative • Lessons Learned from European SSS • Overview of U.S. Waterway System • Needs and Activities of SSS • Challenges and Accomplishments • Conclusions and Recommendations

  3. U.S. Maritime Administration Mission

  4. History of Short Sea Shipping (SSS) SSS in the Western World began between 1200 B.C. and 900 B.C. by the Phoenicians in the Mediterranean Sea and in the U.S. in 1600 A.D. along the East Coast.

  5. Working Definition“SSS is defined as commercial waterborne transportation that does not transit an ocean. It is an alternative form of commercial transportation that utilizes inland and coastal waterways to move commercial freight off already congested highways, thereby providing more efficient and safer roadways for car passengers while alleviating congestion at critical choke points. A secondary effect of SSS would be reduction of air pollution and overall fuel consumption through economies of scale. Without building more highways, SSS can provide additional capacity with the National Transportation System through greater use of waterborne carriage and can enhance linkages to our North and South American trading partners.”

  6. Lessons from North Europe • Short Sea Shipping: strong and growing • Reduces road congestion • Economizes on fuel & reduces pollution • Viable services require • reliability • high frequencies • short transit times • imaginative infrastructure

  7. U.S. Waterway System

  8. U.S. Army Corps of EngineersNational Data Center - National Waterway System

  9. Exports Imports Top Gateways for International Freight Exports and Imports in Tons Source: Federal Highway Administration

  10. Water transportation is efficient This ONE barge is equal to... • 25,000 miles of inland and coastal waterways • Waterways connections to 152,000 miles of rail • Waterway links to 460,000 miles of pipelines • Port connections to 45,000 miles of interstate highways 180 Trucks

  11. Distance covered per cargo - tonwith the same quantity of fuel

  12. Port of Portland Terminal 5 Barges and deep-seavessels are worked on the same wharf with the same cranes

  13. Barges in Portland Source: JWD Group

  14. Matson Barge for Hawaii Service Source: JWD Group

  15. SSS New Development Activities • NY- NJ Port Inland Distribution Network • MARAD High Speed Ferry and Coastwise Vessel Studies • State of Florida Intra-coastal and Inland Waterway www.dot.state.fl.us/publictransportation/Documents/WaterwayStudy/WaterwayStudy.htm • Gulf of Mexico and U.S. Short Sea Shipping www.gomsa.org

  16. Drivers of Success for Short Sea Vessels • Line haul vessel costs, costs at origin, costs at destination • Adapt vessel to land rather than vice versa • Environmental, Safety, and QOL Factors • Policy Focus and Incentives

  17. TAKING A FRESH APPROACH: Port Inland Distribution Network A Port Authority of New York / New Jersey Concept

  18. TAKING A FRESH APPROACH: DELTA IV ROCKET TRANSPORT • A SPECIALIZED VESSEL DESIGNED TO CARRY ROCKETS FROM THE INLAND WATERWAY STYSTEM TO CAPE KENNEDY: • Operates in Shallow Rivers and Low Bridges. • Also carries commercial cargo

  19. Why the U.S. needs SSS? - Congestion increases for passengers and freight - Air pollution increases in urban areas - Accidents increase: Surface truck traffic in mix with passengers causes safety issues - Economic growth relies on a smooth flow of goods - Existing infrastructure cannot handle the increases 1. Not integrated 2. Highway centric 3. Aging infrastructure 4. Not set up for urban population increases 5. Transport nodes are in urban centers

  20. GROWTH BY REGION: US INTER & INTRA-REGIONAL TONNAGE GROWTH TO 2020 Source: Federal Highway Administration

  21. THE ISSUES: • U.S. global maritime trade expected to double by 2020 • 10,000 more trucks per day projected on the I-95 corridor • Cost of expanding U.S. highway system is significant: • New highway can cost $32 Million per lane mile New highway interchanges can cost over $100 million

  22. Challenges to SSS

  23. THE CHALLENGE: USE ALL ELEMENTS OF THE TRANSPORTATION SYSTEM TO MEET GROWING DEMAND Projected highway congestion in 2020: Source - Federal Highway Administration

  24. US/Mexico Truck Traffic on US Highway Network, 2020 (Tons) Source: Federal Highway Administration US Department of Transportation

  25. Market Challenges • 1. Frequency • One sailing per week insufficient • 2. Container size • Domestic market favored bigger boxes • 3. Overweight containers • 4. Drayage expense to and from port facility S.S. Manulani

  26. Shipping System Market Integration and Ship Operating Challenges • Formation of partnerships with trucking industry • Implement single bill of lading interface and shore-side distribution systems • Develop reliable schedules with trucking, rail, and/or ocean container connections • Structure and implement low cost ship operating crew complement Source: TRB Marine Board 2003 Spring Meeting

  27. SSS Challenges (Continued) • Terminal Operational Challenges • Federal Harbor Maintenance Tax, Stevedoring Costs, Terminal Location, Terminal Facilities • Jones Act Challenges • High Capital Costs of Ships and Crews • Ship Financing Challenges • Mitigating Financial Risks Source: TRB Marine Board 2003 Spring Meeting

  28. Successes and Snags in U.S. Short Sea Shipping Matson’s Pacific Coast Shuttle Distance/Transit TimeLos Angeles to Seattle: 1,144 miles - 2.5 daysSeattle to Oakland: 807 miles - 1 day, 16 hours

  29. New York City SSS Conference Establishment of MARAD Task Force on SSS Creation of of SSS Cooperative (SCOOP) Sarasota, FL SSS Conference MOC with U.S./Canada/Mexico MOC with Gulf of Mexico States Accord (GOMSA) and Gulf of Mexico States Partnership MARAD SSS Accomplishments

  30. International Cooperation on SSS MARAD shared information on SSS in the U.S. at the “Pentaport Seminar to Develop the Port of Incheon as a Logistics Hub in Northeast Asia”

  31. Conclusions

  32. National Freight Policy • There is a need to establish an intermodal freight policy in USDOT that integrates robust SSS within the U.S. Marine Transportation System • Educating the public-at-large, including state departments of transportation, metropolitan planning organizations, shippers, railroads, and truckers of the benefits of SSS

  33. Future SSS Initiatives • Development of Partnerships with the Public and Private sectors • U. S. Department of Transportation Strategic Plan • MARAD Strategic Plan • Creation of a MARAD SSS Program

  34. For further information contact: Carl J. Sobremisana Secretary of the MARAD SSS Task Force (202) 366-5471 E-mail: carl.sobremisana@marad.dot.gov MARAD Web Site: www.marad.dot.gov

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