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2012 Freight in the Southeast Conference America’s Marine Highway Services March 16, 2012 Lauren Brand, Director

2012 Freight in the Southeast Conference America’s Marine Highway Services March 16, 2012 Lauren Brand, Director Office of Marine Highways & Passenger Vessel Services US DOT – Maritime Administration. Vision.

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2012 Freight in the Southeast Conference America’s Marine Highway Services March 16, 2012 Lauren Brand, Director

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  1. 2012 Freight in the Southeast Conference America’s Marine Highway Services March 16, 2012 Lauren Brand, Director Office of Marine Highways & Passenger Vessel Services US DOT – Maritime Administration

  2. Vision • America’s Marine Highways are a routine intermodal choice among shippers and freight forwarders, providing reliable scheduled liner services; • Expanded use of Marine Highways make measurable improvements to environments impacted by transportation; • Shippers request Marine Highway services as a more efficient means of moving their goods because of both its cost effectiveness and its pubic benefits; • Marine Highway services are self sustaining and profitable across the U.S., using both ships and barges;

  3. M-5 (AK) Marine Highway Grants - September 2010 M-5 M-90 M-84 M-90 M-87 M-71/77 M-90 M-75 M-580 M-95 M-55 M-70 M-70 M-64 M-40 M-5 M-65 M-49 M-95 M-55 LEGEND MH Corridor MH Connector MH Crossing U.S. Interstate M-10 M-A1 M-2 M-5 (AK)

  4. M-5 (AK) America’s Marine Highway - Programmatic NEPA Project in Five Major Regions West Coast (4 States) M-5 Great Lakes & St. Lawrence Seaway (7 States) M-90 M-84 East Coast (15 States) M-90 M-87 M-71/77 M-90 M-75 M-580 M-95 Inland Waterways (13 States) M-55 M-70 M-70 M-64 M-40 M-5 M-65 M-49 M-95 M-55 Gulf Coast (5 States) LEGEND MH Corridor MH Connector MH Crossing U.S. Interstate M-10 M-A1 M-2 M-5 (AK)

  5. M-5 (AK) Marine Highway Cooperative Agreements- Sept. 2010 M-5 M-90 M-84 M-90 M-87 M-71/77 M-90 M-75 M-580 M-95 M-55 M-70 M-70 M-64 M-40 M-5 M-65 M-49 M-95 M-55 LEGEND MH Corridor MH Connector MH Crossing U.S. Interstate M-10 M-A1 M-2 M-5 (AK)

  6. Initiatives & Market Studies • Examining the potential for marine highway services to provide relief of congested landside corridors and to provide additional transportation options. • Identifying types of vessels which would be suited for marine highway routes. • Collecting data from various modes and sources regarding the most congested corridors and types of freight being moved. • Identifying markets which could be served.

  7. SHIPPER CONCERNS • Multiple shippers interviewed – key concerns are: • Reliability • Consistency of schedule • Visibility • Cost • Risk of delays in ports

  8. Bottom Line • Under current market and regulatory conditions, sustainability of services are difficult to predict • Therefore, policy and regulatory changes are required in order for services to be economically sustainable.

  9. Policy Options • Revision in the collection of the Harbor Maintenance Tax • Government support for Ship Construction • Tax credits for shippers who use more environmentally sustainable modes of transportation • Investment in Port Infrastructure • Amend the Tonnage Tax for U.S. flag ships • Implement Marco Polo type startup assistance program • Fund LNG fuel distribution capability • Ensure users and beneficiaries pay for services commensurate with costs of providing them. 11

  10. HMT & Tonnage Tax

  11. Focus on States • MAP 21 (Moving Ahead for Progress in the 21st Century) S. 1813: • February 29, 2012 recommended for consideration by the Senate • Maritime projects will be able to compete in State DOT programs for: • CMAQ funds • Up to $400 million for infrastructure projects more cost effective than highway options • Up to $1 billion for infrastructure projects of national or regional significance

  12. Focus on States • 38 State DOTs influence America’s Marine Highways • Which State DOT department will consider it? • 9 = maritime, ports, waterways or marine • 8 = planning • 6 = intermodal • 4 = freight • 3 = rail & marine/railroads & harbors • 1 = aviation & ports • 1 = trade development • 6= have no department that addresses maritime

  13. Next Steps 2012 MTSNAC – Marine Highway Subcommittee Regional Roundtables Issue “Call for Projects”

  14. Thank you America’s Marine Highways Program http://www.marad.dot.gov Existing MH Corridors Map Existing MH Corridor, Project and Initiative descriptions References (Studies) Report to Congress (April 2011) Lauren Brand 202-366-7057 Lauren.Brand@dot.gov

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