prepared for AASHTO’s Standing Committee on Water Transportation Presented by Alan Meyers, AICP Cambridge Systematics October 13, 2011 Workshop: Finalizing the AASHTO Water Bottom Line Report

History and Intent of the WBLR Follow on to the AASHTO Freight Rail Bottom Line Report, part of a series addressing all freight modes Intended to communicate to a wide range of audiences (expert and lay) that state officials interact with Key facts about the waterborne freight system Critical issues, trends, red flags, opportunities Recommendations for federal and state action, consistent with state positions and broader AASHTO policy 1

WBLR Still Relevant and Timely 2 Increased attention to marine transportation at Federal level, in many state DOTs, in state economic development agencies, and in Chambers of Commerce Increased global visibility – Panama Canal, infrastructure development and growth in Asia and Europe, continued debate about role and value of global trade Increased domestic need – underinvestment in highways, rising truck and fuel costs – bulk and containers The same unsolved problems – planning, review, approval, and funding of navigation channels and structures, terminals, and landside connections

WBLR Development Process So far Outline and draft documents presented and discussed at various SCOWT meetings Reached broad agreement on technical content and policy issues; consensus on many recommendations (not all) Brief hiatus due to recession, changing SCOWT, uncertain Federal direction Moving forward Opportunity to define how work is completed 3

4 Chapter 1 – We Are Here Because of Water Historical context Sail, rail, truck, global and intermodal eras How water shaped our geography and economy Key time-series data on growth in waterborne trade and containerization

5 Chapter 2 – Waterborne Freight Provides Irreplaceable Benefits Key benefit metrics International trade volume, value, commodities, partners Domestic trade volume, value, commodities, partners Avoided environmental impacts – fuel consumption, emissions, congestion Direct and indirect economic benefits – shipper cost savings, employment, etc. Military freight Other MTS uses

6 Chapter 3a – Planning and Funding Waterborne Freight Transportation (about the MTS) Introduces the MTS Explains its core elements MTS waterways, including locks and dams MTS ports and terminals MTS surface transportation connectors and corridors Differentiates ocean, lakes, and river systems

7 Chapter 3b – Planning and Funding Waterborne Freight Transportation (institutional challenges) Two ‘red flag’ areas Federal issues −Federal expenditures have failed to keep pace with needs; problems with trust fund sufficiency and use; federal security mandates have been unfunded; MTS leadership has not been assigned or seized Stakeholder disconnects −Port development and landside investments; land use planning; industry interests; environmental regulation; economic development; port competition and redundancy

8 Chapter 4 – MTS Planning and Funding Deficiencies Are Becoming Critical Why? Limited, aging infrastructure and loss of navigable waterways Growing demand and need Critical adaptation challenges −Customer demands −Dimensional improvements to channels, locks, bridges −Maintenance and capacity enhancement for ports, terminals −Landside congestion −Environmental constraints Uncertainty and risk −Failure to adapt, economic downturns, trade policy, technology, safety and security, climate change and variability

9 Chapter 5 – Recommendations Addressed three general problem statements #1: “Nobody knows exactly how important our MTS is, what it does for us, or what happens if we fail to maintain and improve it.” #2: “There is no guiding assessment of MTS deficiencies and needs, and no guiding framework for MTS improvements.” #3: “The mechanisms for funding and delivering MTS improvements are fundamentally broken.” Specific recommendations were offered For #1 and #2, general agreement For #3, general agreement on recommendations about using current mechanisms (HMT, Marine Highway, Reauthorization); no consensus on how to move beyond the current mechanisms

10 Policy Guidance Education

Suggestions and Choices 11 Education ExpandRefreshRetainDefer Emphasize the lead story – irreplaceable economic and transportation benefits – and update with latest available metrics Update MTS data and system descriptions Expand discussion of who is responsible for what part of the MTS, and why; describe federal roles and processes, different types of state roles and activities (?) Brief inventory of “Best Practices” (success stories, positive directions) (?) Update the “Red Flags” (federal issues, stakeholder disconnects) and real-world effects

… (continued) 12 Education ExpandRefreshRetainDefer Update discussion of critical need -- Post-recession trade forecasts -- Opportunities (Panama Canal, US “reshoring” and export growth initiatives, next-gen equipment and operations, AMH, etc.) -- Threats (aggressive foreign development and competition, global security and stability, domestic impediments, etc.) Add list of major state-level needs (?) Retain or update the “three problems” – MTS value, MTS planning, MTS funding and delivery

… (continued) 13 Policy Guidance ExpandRefreshRetainDefer Retain, update, or defer the recommendations related to MTS value Federal government to clearly define the physical extent of the MTS and produce a system map Federal government to develop and apply a comprehensive benefit evaluation methodology to the mapped system, addressing (a) current and future value; (b) replacement cost; and (c) effect of declining performance from failure to maintain

… (continued) 14 Policy Guidance ExpandRefreshRetainDefer Retain, update, or defer the recommendations related to MTS planning Federal government to prepare MTS Condition and Performance Evaluation Study, similar to highways (build on USACOE Great Lakes Study, other research) AASHTO to develop “best practice” guidance for states and identify research needs and opportunities States to proactively identify MTS needs and opportunities, coordinate key stakeholders, promote best multimodal practices

… (continued) 15 Policy Guidance ExpandUpdateRetainDefer Retain, update, or defer recommendations related to existing MTS project funding and delivery mechanisms −Spend down trust funds (support RAMP or similar?) −HMT exemption for Marine Highway −Address MTS specifically in reauthorizing legislation

… (continued) 16 Policy Guidance ExpandUpdateRetainDefer Defer recommendations of new MTS project funding and delivery mechanisms … … but provide inventory of approaches and proposals for consideration – US and non-US USACOE project review, funding, program implementation Alternative revenue streams (user fees, et al) Dredged materials and streamlined environmental review System planning (national, state, local) and prioritization USDOT and MARAD roles Global best practices

17 Feedback, Discussion, Next Steps