Maritime Administration America’s Marine Highway

Program & Port Infrastructure Development Program

Chip Jaenichen, Deputy AdministratorMaritime Administration, U.S. Department of Transportation

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Maritime Administration

Mission:To improve and strengthen the U.S. marine

transportation system - including infrastructure, industry and labor - to meet

the economic and security needs of the Nation.

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Shifting Trade Patterns

• Panama Canal Expansion• Post-Panamax Ships• Manufacturing and Distribution Shifts

Top 1000 “Blue Chip” Multinational Shipper Priorities

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With Permission from

M-5

M-95

M-10

M-90

M-70M-55

M-5 (AK)

M-7

1/77

M-65

M-40

M-49

M-87

M-5 (AK)

M-64

M-A1

M-7

5

M-84

M-580

$179.26M Marine Highway & TIGER Grants 2009 to 2012

M-2

LEGEND

MH Corridor

MH Connector

MH Crossing

U.S. Interstate

M-55

M-70

M-95

M-5

M-90

M-90

Cates Landing, TN$13,000,000

Green Trade Corridor, CA$30,000,000

Tri-City Port, IL$14,500,000

Port Manatee, FL$9,000,000

Davisville, RI$22,300,000

Maine Ports, ME$14,000,000

Tenn-Tom W/W$1,700,000

Cross Gulf$3,340,000

James River$1,100,000

Detroit/Windsor Ferry$2,200,000

Oakland, CA$15,000,000

Mobile, AL$12,000,000

Lewiston, ID$1,300,000

Bayonne, NJ$11,400,000

Catoosa, OK$6,425,000

Brownsville, TX$12,000,000

Corpus Christi, TX$10,000,000

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64 Express Marine Highway Service

MARAD Marine Highway Grant Funds provided for purchase of barges

Service started in 2008

Moves approx. 450 TEUs per month

Provides relief of congested I-64 corridor

California Green Trade Corridor Tiger Grant

DOT Tiger Grant Funds provided for landside improvements and two barges

Service between Stockton and Oakland to begin in late 2012

TEUs already booked, majority heavy weight freight

Major relief of congested I-580 corridor

Critical to Marine Highway Services

• Communication among multiple stakeholders/partners (including public and private)

• Coordinated promotion efforts• Business, market and finance plans• Adequate capital for start-up operations,

with a contingency fund• Located on a designated Marine Highway

Corridor, Connector or Crossing.

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No GOGO

High Vessel Construction Cost

Institutional Barriers (HMT, Govt Policy, etc.)

Freight & Shipper Uncertainty

High Operating Cost

Go vs. No-Go (Glass Half Empty)

Infrastructure Gaps

Tippin

g Po

int

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GO Tippin

g Po

int

Go vs. No-Go(Glass Half Full)Advisory Committee

Recommendations to DOT Secretary

Dual Use/M 55 Studies

DOD Support & TITLE XI & CCF

LNG + Dual Use $

$111 Million Grants

Port Infrastructure Development Program

• Funding Gaps in Infrastructure Repair & Improvements

• Inadequate Links to Major Corridors (road, rail, Marine Highway)

• Inefficient Delivery of Federal Services:• Slow and Underfunded Channel Dredging• Environmental and Permitting Gridlock• Regulatory/Enforcement Commerce Delays

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Who Invests Where?

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Public Benefit & Public Stake

Category IEngagement

Category IIIProject Management

Category IIFinancing

All PortsLow Fed Oversight

No Market Interference

DOT Proposed Port Infrastructure Development Program Framework

Authority: 46 USC, Section 50302Version 11 – 17 Jan 2012

Limited # PortsModerate Fed Oversight

Minimal Market Interference

Very Few PortsHigh Fed Oversight

Minimal Market Interference

B. Assistance:

A. Guidelines & Data:

Sector advocate through analysis & showcasing opportunities/consequences regarding port role/investment

Possibilities Include:• Port Investment Plan Guidelines (With Stakeholders)• Strategic Asset Management (With Stakeholders)• Port/Terminal Ops Guidelines for AMH (With

Stakeholders)• National/Regional Studies and Maritime Impact Analysis• Condition & Performance Tracking & Measures

Direct support to individual ports (upon request)

• Investment Plan Devel. Support (Possible Planning Grants)• Facility Needs Assessments (Possible NEPA Support)• Gateway Office Engagement – Delivery of Federal Services

Financing:

Direct funding support via existing/future programs

• TIGER I-IV Grants• Marine Highway Grants • Other Future Grant Programs• Loans/Loan Guarantees• Possible Cargo Facility Fee

Program• Eligible for Port Infra Devel.

Fund• Eligible for MARAD Lead

Fed Agency Support• Eligible for Project Delivery

Initiative • Sel. Criteria in Grant Program• Project Defined in Grant App.

Project Mgt:

Increased Federal project assistance where unique Federal interest exists

MARAD Co-Manages Project w/Port• Design Development• Eligible For PID Fund• Eligible for Lead Fed.

Agency Supp.• Elig. For Project

Delivery Initiative

• Strict Sel. Criteria• Investment Plan Req’d• Project Defined

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Questions?

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