Returning to Our National Waterways Dabney Hegg U.S. Senate Committee on Commerce, Science and Transportation

Committee on Commerce, Science and Transportation The Committee has jurisdiction over: Inland Waterways, Except Construction and Dredging Coast Guard Interstate Commerce Marine and Ocean Navigation Merchant Marine This Translates in Oversight of: Coast Guard (navigation, safety, security, vessel documentation, enforcement etc.) Maritime Administration (cargo preference, Jones Act, marine highways, port development) U.S. Customs and Border Protection (CBP) (cargo security, and Jones Act enforcement) National Transportation Safety Board (NTSB) Federal Maritime Commission (FMC) Research and Innovative Technology Administration (RITA)

Freight Transportation The U.S. supply chain is a competitive advantage and major economic engine employing more the 8 million people. Higher fuel costs, congestion, aging infrastructure are all driving up logistics costs as a percentage of our GDP. By 2030 our population is predicted to grow to 364 million, vehicle miles traveled to grow by 150%, and freight rail to increase by 92%. By total tonnage, 78 % of domestic freight moves by truck, 16 % by the freight-rail system, and 6% by barges and coastal shipping. 50% of freight moves to west coast ports from Asia. Shippers are diversifying their gateways into the United States to use more east coast and gulf ports such as Savannah, Norfolk and Houston to serve Mid-Atlantic and Mid-West markets. This industry shift is driven by costs, ease of conducting business, and minimizing risk. The widening of the Panama Canal in 2014 will dramatically alter the flow of cargo from Asia to the United States and will optimize the potential for inland waterways to be a more significant mode for freight transportation.

North American Rail Network (Bottlenecks & Congestion Areas)

Major Freight Truck Bottlenecks

America’s Marine Highways: A solution

7 Marine Highway Corridors Easing Congestion Easing Congestion

8 Energy Independence and Security Act of 2007 Requires the Secretary of Transportation to establish a Short Sea Transportation Program that includes: o Regional Transportation Planning - Encourage the development of multi- jurisdictional and regional coalitions to focus public and private investments on maritime transportation o Marine Highway Corridors - Identify and designate regional marine corridors as an extension of the surface transportation system o Marine Highway Projects – Identify regional maritime transportation projects on approved marine highway corridors that can provide a public benefit by transitioning freight off the roads to relieve highway congestion and transportation bottlenecks o Incentives, Impediments and Solutions - Working with stakeholders and Congress to identify all necessary means for advancing the program o Vessel Construction - Vessels engaged in Marine Highway operations now also qualify for Capital Construction Fund benefits

Next Steps American Recovery and Reinvestment Act of 2009 Provides the Secretary of Transportation with $1.5 billion is discretionary funds for capital investments in our surface transportation infrastructure. Grants States the flexibility to utilize highway formula funds for port infrastructure development. Maritime Administration Authorization Act of 2010 Building on the Energy Policy Act of 2010 by authorizing the allocation of grants to fund projects identified to support the development of marine highways Support President’s Budget which recommends a start up of this program of $15 million for Fiscal Year 2010 Establishes a Port Infrastructure Development Program to assist States, territories, municipalities, and port facilities, at their request, with the management and federal coordination of their port infrastructure development projects

Next Steps Cont…. Harbor Maintenance Tax (HMT) Relief S.551 introduce by Senator Lautenberg eliminates the HMT for domestic moves Tax Credits The Committee is reviewing a proposal to authorize federal tax credits for shippers that utilize marine highways for the transportation of containerized freight National Inland Waterways Information Gateway Development of the Marine View information technology system to serve as a web-based tool to collect, stores, analyzes data and exchange information relevant to the inland waterways.