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the jones act : a commercial and public policy success. I nternational Propeller Club of the United States RIVERS OF TRADE : LINKING AMERICA'S HEARTLAND TO THE WORLD Darrell Conner Government Affairs Counselor, K&L Gates LLP darrell.conner@klgates.com Phone: 202-661-6220.
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the jones act: a commercial and public policy success International Propeller Club of the United States RIVERS OF TRADE: LINKING AMERICA'S HEARTLAND TO THE WORLD Darrell Conner Government Affairs Counselor, K&L Gates LLP darrell.conner@klgates.com Phone: 202-661-6220
Economic Impact $92.5 BILLION in economic output $9.9 $29.0 BILLION BILLION in tax impact in labor income 478,440 JOBS
National Security “Preserving a strong U.S.-flag commercial fleet is also an important component of our strategic sealift capability.” General William Fraser III, then Commander, U.S. Transportation Command, February 2014 “It is the sense of Congress that United States coastwise trade laws promote a strong domestic trade maritime industry, which supports the national security and economic vitality of the United States and the efficient operation of the United States transportation system.”
Homeland Security “The task of securing U.S. seaports and foreign cargoes is daunting by itself. …Were the Jones Act not in existence, DHS would be confronted by the difficult and very costly task of monitoring, regulating, and overseeing all foreign-controlled, foreign-crewed vessels in internal U.S. waters.” Dr. Daniel Goure, October 2011
Domestic Industry Growing Crude oil revolution continues to explode
Changing Transportation Needs “What has happened in shale plays across the country has stood the transportation network on its ear.” Richard Kinder CEO and Chairman of the Board
Significant Increases in CBR Rail Cars carrying Crude oil in 2013 400,000+ 2008 9,500 Rail Cars carrying Crude oil in 2008
New Opportunities A GROWth TREND for waterborne Midwest to Gulf Gulf to USAC Mbbls Mbbls Source: EIA
Shipbuilding Boom AMERICAN MARITIME PARTNERSHIP 10
Inland Tank Barges In 2013, 336 inland tank bargeswere delivered, collectively adding 8,210,500 barrels of capacity.
The Big Myth Comparing Foreign Flag to U.S. Flag Vessels is Comparing Apples to Oranges! Governed by Domestic Laws Governed by Flag State DOMESTIC INTERNATIONAL AMERICAN MARITIME PARTNERSHIP 13
Jones Act Support Runs Deep “My boss is on the record supporting the Jones Act, and so am I,” Transportation Secretary Anthony Foxx “This is a very exciting time for American maritime…I appreciate the many benefits of Jones Act and this vibrant homegrown American industry.” – House Transportation Committee Chairman Bill Shuster (R-Pennsylvania).
A Public Policy Success • Supports U.S. economic, homeland and national security at no cost to government • Ensures domestic defense shipyard industrial base • Sustains a pool of skilled mariners essential to national security
American Maritime Today AMERICAN MARITIME PARTNERSHIP 16
Questions Darrell Conner Government Affairs Counselor darrell.conner@klgates.com Phone: 202-661-6220