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

2. 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)

3. 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.
Improved freight transportation efficiency over the past 30 years has been a key component of U.S. economic growth and serves as the backbone of a global economy. In 2002, the U.S. Department of Transportation reported that U.S. freight carriers moved more than 19 billion tons of freight valued at more than $13 trillion. Despite the importance of efficient freight movement to our national economy, the Department of Transportation has no comprehensive and coordinated approach to freight planning and infrastructure investment.
While increased productivity, marketing flexibility, and new technologies reduced transportation costs, increased congestion on our highways, railroads, and ports, as well as record fuel and other inflationary costs, has reversed this long-standing trend.
The federal government’s primary direct involvement to date in promoting the efficient movement of goods throughout the nation has been through building our systems of highways and airports and managing our air traffic control system, but it is clear that major changes in transportation planning at the national level will be necessary to keep up with anticipated growth and increased transportation costs. Federal transportation funding has supported the current policy structure, with the federal government investing $40.7 billion in highways per year; yet, virtually no federal investment has been made in railroad or port infrastructure.
We are seeking to change this in the annual Maritime Administration Authorization Act and in the upcoming Transportation Reauthorization bill.

4. North American Rail Network (Bottlenecks & Congestion Areas)

5. Major Freight Truck Bottlenecks

6. America’s Marine Highways: A solution
America’s Marine Highway can be a more integrated component of our surface transportation system. Freight can be shipped via coastal or inland ports to other ports where goods are transferred to truck or rail, for movement to their final destination, thus reducing the volume of traffic on major corridors. These goods can be moved via different types of vessels, depending on the waterway used, that provide cost-effective and environmentally friendly transportation for containers and trailers.
Expanding the use of our commercial waterways can help reduce landside congestion, GHG emissions, energy use, and highway infrastructure dollars spent on construction and maintenance.
One gallon of fuel will transport one ton of cargo 70 miles by truck, 457 miles by rail, and 575 miles by barge.
There are currently over 25 Marine Highway services already running throughout the United States. (The map above provides an overview of existing services.) These services illustrate the alternatives for moving more cargo by water, so other land transport can have alternative routes and increase asset utilization in their services.

7. Marine Highway Corridors
Easing Congestion

8. Energy Independence and Security Act of 2007
Requires the Secretary of Transportation to establish a Short Sea Transportation Program that includes:
Regional Transportation Planning - Encourage the development of multi-jurisdictional and regional coalitions to focus public and private investments on maritime transportation
Marine Highway Corridors - Identify and designate regional marine corridors as an extension of the surface transportation system
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
Incentives, Impediments and Solutions - Working with stakeholders and Congress to identify all necessary means for advancing the program
Vessel Construction - Vessels engaged in Marine Highway operations now also qualify for Capital Construction Fund benefits
The Energy Act of 2007 laid the foundation for the Maritime Administration to play an more integral role in regional transportation planning as an extension of the surface transportation system. The legislation required the establishment of an Advisory Board consisting of industry and government leaders
Identify impediments and recommend solutions
Charter and Membership are being approved
Expected to convene in January 2010
Interim final rule was published and Final Rule which is anticipated to be issued by the end of this calendar year to designate marine highway corridors for federal investment.

9. Next Steps Work to remove obstacles to vessel construction:
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
ARRA projects will be awarded on a competitive basis for projects that will have a significant impact on the Nation, a metropolitan area or a region. Eligibility for these funds include port infrastructure investments and projects that connect ports to other modes of transportation.
Work to remove obstacles to vessel construction:
Short-term incentives (Marine Highway Title XI)
Advance Commercial/DOD Dual-Use vessel initiative
Investigate standard or modular vessel designs to reduce costs
Explore Program funding mechanisms:
Surface Transportation Reauthorization
Future Economic Stimulus
Forthcoming Transportation Reauthorization Freight Program

10. 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.
Delivers critical information to Commercial, Local, State, and Federal organizations to support the Marine Transportation System
Increases awareness of safety and security alerts on inland waterways
Enables fast and centralized communication for
First responders and stakeholders during
an emergency or significant event