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SHORT SEA SHIPPING: WATER HIGHWAYS THE COUNCIL OF STATE GOVERNMENTS EASTERN REGIONAL CONFERENCE AUGUST 12, 2007 PowerPoint Presentation
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SHORT SEA SHIPPING: WATER HIGHWAYS THE COUNCIL OF STATE GOVERNMENTS EASTERN REGIONAL CONFERENCE AUGUST 12, 2007 - PowerPoint PPT Presentation


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SHORT SEA SHIPPING: WATER HIGHWAYS THE COUNCIL OF STATE GOVERNMENTS EASTERN REGIONAL CONFERENCE AUGUST 12, 2007 Secretary of Economic Affairs Secretary of Transportation Port Users Seaport Council Council Chair Lt. Governor Tim Murray Lt. Governor Chair Secretary of Environment

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SHORT SEA SHIPPING: WATER HIGHWAYS THE COUNCIL OF STATE GOVERNMENTS EASTERN REGIONAL CONFERENCE AUGUST 12, 2007


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slide1

SHORT SEA SHIPPING: WATER HIGHWAYS

THE COUNCIL OF STATE GOVERNMENTS

EASTERN REGIONAL CONFERENCE

AUGUST 12, 2007

slide2

Secretary of

Economic

Affairs

Secretary of

Transportation

Port Users

Seaport Council

Council Chair

Lt. Governor Tim Murray

Lt. Governor

Chair

Secretary of

Environment

Port Mayors

Secretary of

Finance

Director of

Massport

The Massachusetts Governor’s Seaport Advisory Council

Mission Statement

“Develop the commercial maritime resources of the Commonwealth both physically and institutionally into a “Port of Massachusetts”, each of the several ports working cooperatively doing better what each does best and thereby creating and enhancing an integrated land/sea transportation network as access to the global market place in support of the economic development needs of the Commonwealth”

Advise Governor

Port Development

Port Security

Port Governance / Planning

Short Sea Shipping

slide3

Prologue

Come Full

Circle

Short Sea Shipping

Public / Private Partnership =

Not as a Competitor, But as an Intermodal Partner

slide4

SSS

SHORT SEA SHIPPING IS TWO DIMENSIONAL

“The movement of goods and people by water without crossing a major ocean”

slide7

International Diversion

Failures Abound

  • Port NYNJ to Albany
  • Gulf Service
  • Pacific Northwest

92%+ of Freight = 53 footers

Driven by Deep Water Ports

the ducks
THE DUCKS

92% OF ALL FREIGHT ON

OUR HIGHWAYS MOVES IN 53’ DOMESTIC TRAILERS

slide9
DOMESTIC MOVES

NOT

THE 40 FOOT CONTAINER

slide10

International Diversion

Steamship Lines Make it Impossible

Starts as steamship to barge

Service reaches critical mass to be profitable

Steamships won’t absorb increasing customs, border and barge fees

Steamships instead make another port of call

The Short Sea service fails

slide11

TIME CHANGES EVERYTHING!

1

Acceptance Index

0

Time

slide12

The Problem

Strangulation of the Region’s Commercial Highway System

  • Bi-state highways b/w NJ & NY moved > 250 million vehicles in 2002
  • The number of trucks is expected to double in the next 10 years
slide13

HM Tax

Access

Vessels

Costs

CCF

Continuing Hurdles for Short Sea

  • Large, High Cost Terminals
  • Few Quick Turn-around Low Cost Operations
  • Road Access to Terminals
  • Congestion
  • Landside Delays

MARAD Capital Construction Fund Not Available for Contiguous Trade

  • No Action by AAPA
  • Port Canaveral Legislation Needs Support
  • No SEA 21
  • No Jones Act Vessels
  • Domestic Yards: >40-60% Costs
slide14

Port of New Bedford

Port of Fall River

Port Canaveral

Studies and Research

Massachusetts Short Sea Study September 2006

  • Components of Massachusetts Study
  • Short Sea Shipping Models for Smaller Ports
  • History of Applicable US Short Sea Shipping
  • US Short Sea Shipping Initiatives
  • Factors that would Support SSS Port Canaveral
  • Factors that would Support SSS Fall River/New Bedford
slide15

Port Pairing Study

Short Sea Market Analysis

  • Short Sea Shipping Models for Smaller Ports
  • Relate Models to Fall River & New Bedford
  • Identify Impediments & Localize to MA
  • Identify Potential SS Routes: Origin & Destination Points
  • Identify Benefits: Economic, Environmental
  • Identify Drivers for Success in Model Oriented Way
slide16

Port Pairing

Specific Links that Tell a Story

What Moves

$

$

$

$

At What Cost

Catchment Area Size

Volumes

slide17

Port Pairing

Catchment Areas

Prospective Cargo Hinterlands for Short Sea Shipping Traffic

Between Jacksonville and the Bristol County Ports

Source: Global Insight Transearch Database

slide18

200

150

100

50

200

200

50

50

100

100

150

150

50

100

150

200

Today

Tomorrow

The Model

slide19

New Bedford / Fall River

The Model

The Specifics

Short Haul

Bayonne

Long Haul

Jacksonville

slide20

Shipper Preferences

% Diversion

14

12

Jacksonville

10

Bayonne

8

7%

6

Break Even Diversion

4

2

5

10

15

20

25

30

35

40

% Differential Cost

slide21

Shipper Preferences

  • Truck Load Only LTL Demands Faster Times & Fewer Hand-offs
  • Reliability Issues Due to Experience with International Shipments
slide22

The Mathematical Model & What it Predicts

Assumptions: Service Hurdle/ Cost Hurdle

DECISION TREE

To Limit Model to Workable Numbers

Service Hurdle

> 2 Days

≤ 2 Days

NO!

Cost Hurdle

≤ Cost

> Cost

NO!

Will Consider!!!!

slide23

Distance/Volumes Favor Short Sea

Competition Index

Diversion Begins

1

0

Distance

Volume

slide24

1.9M Trailer Loads Move to Bristol County

What We Learned

1.4M Trailer Loads Move From Bristol County

To Work:

Larger vessels need to penetrate 7% of market share

Smaller vessels need to penetrate 2-3.5% of market share

slide25

Minimum Requirements for Success

  • Distances of at Least 400 – 500 miles
  • Back-haul Opportunities
  • Critical Mass to Support Frequency of Service
  • Adaptable, Efficient Terminals
  • Flexible Labor Contracts
  • Jones Act Vessels (Barges, Fast Ships, Small
  • Flexible Ships)
slide26

Advantages

  • Guaranteed Times
  • Landings Closer to Origin/Final Destination
  • Less Dredge Requirements – Smaller Ships
  • Utilization of Smaller Ports
  • Expanded Opportunities for Deep-water Ports
  • Quicker Delivery Times
  • Cost Benefits ( Ferry, Small Trucks, People)
in summary
IN SUMMARY
  • Very difficult to reach breakeven on short hauls

(< 300 miles)

  • Demand is Elastic – Shipper (trucker) preference can and will change in the right economic climate
slide28

Short Sea Partners

North Atlantic Ports Association

US Maritime Administration

Coastal Coalition

I-95 Corridor Coalition

slide29

Memorandum of Cooperation

BETWEEN

Port Canaveral, Florida

as represented by

For the Canaveral Port Authority

Chairman of Board of Commissioners,

Tom Goodson

AND

The Ports of Massachusetts

The Seaport Advisory Council

as represented by

The Honorable Timothy P. Murray, Lieutenant Governor

The Commonwealth of Massachusetts

Chair, of the Seaport Advisory Council

For the Port of New Bedford

Mayor Scott W. Lang

For the Port of Gloucester

Mayor John Bell

For the Port of Fall River

Mayor Edward Lambert

And

For the Port of Salem

Mayor Kimberley Driscoll

slide30

State Action Needed for Short Sea

  • Terminal Access (Land / Water)
    • Dredging
    • Road Networks
    • Rail
  • Terminal Facilities
    • Small Municipal Based
    • Quick Turn Around
slide31

The Port of Fall River

The Future as a Short Sea Hub

slide33

Rail and Highway Infrastructure

  • Only public active dockside rail in the Commonwealth
  • Access to Route 195
slide34

The project site

Fall River Multi-use Terminal Project

slide36

Flex Space

Project Overview

LEVEL ONE

MARINE INDUSTRIAL

  • Marine cargo Short Sea Shipping, global trade
  • Cruise, Excursion Vessels, Charters
  • (Vertical Integration)
  • Performing Arts
  • Exhibition
  • Office
  • Restaurant (level 3)

Construct a State of the Art Multi-use Facility on Fall River State Pier

UPPER LEVELS

SUPPORTING USES

slide38

Contact Information:

Richard Armstrong

Office of the Governor/ Lieutenant Governor

Director of Port Development

Executive Secretary

Massachusetts Seaport Advisory Council

40 Center Street

Fairhaven, MA 02719

rick.armstrong@state.ma.us

http://www.state.ma.us/seaports

(508) 999-3030 telephone

(508) 999-6442 fax