Impacts of ’s Waterways

Photo Credit: Mitch Waxman Background

. NYCEDC initiated a study in Oct 2015 to better understand the value of New York City’s Borough waterways and identify opportunities to grow waterborne commerce (via barge)

. The study included significant outreach to the maritime community: - Tug and barge businesses (operators) - Water-dependent businesses (shippers/receivers) Fuel Barge on - NYS Dept of Environmental Conservation Photo Credit: Mitch Waxman (regulatory) - US Army Corps of Engineers (regulatory)

. As outlined in Mayor deBlasio’s OneNYC, freight transportation by water is encouraged where possible, with ambitious growth goals

. Water freight provides significant public benefits by - Limiting truck use, which o Improves air quality, lowers carbon footprint (Mayor’s 80% reduction by 2050 aka 80X50) o Reduces roadway congestion - Providing good-paying, middle class jobs

2 NYC’s Borough Waterways

12 borough waterways Eastchester Creek have maritime industrial businesses across New York City.

Flushing Bay / Flushing Creek Buttermilk These waterways are Channel connected to the maritime economy by Newtown Creek

Kill Van Kull to Gowanus Creek/ approximately 6 primary channels Head of Bay Mott Basin

Anchorage Channel

Ambrose Channel Vernam Basin Jamaica Bay

Reaches A & B 3 Yesterday: A Brief History of NYC’s Borough Waterways

. In the early 1800’s, many of NYC’s secondary waterways were once tidal estuaries and creeks that were later excavated or filled for commercial use.

th . They became home to NYC’s industrial base Gowanus Canal – Early 20 Century Photo Courtesy: thesixthborough.com (e.g. smelting plants, tanneries, shipyards, coal yards, paint and ink factories)

. The maritime infrastructure (canals with bulkheads) created in the 1800s and 1900s continues to support NYC’s overall economy.

Gowanus Canal – Today Photo Credit: Mitch Waxman

4 Today: Snapshot of Water Freight in NYC’s Borough Waterways

. 4.4M tons of cargo were handled in 20141

. These volumes equate to 4% of all cargo handled in the Port of NY and NJ

. These secondary waterways together would rank as the 81st largest port in the US, larger than Bridgeport, CT (#89)

. There are approximately 35 active businesses using the waterways

. Approximately 700 jobs2 are supported, with average salaries between $90K to $120K/yr Scrap metal business (Pascap) on Eastchester Creek looking North Photo Courtesy: Tugster.com, Will Van Dorp . Inland water freight contributed to economic output of $300M for 2014 Overall, marine support services employs 7,100 direct jobs (including main channels) and contributes to $2B in economic 1. USACE 2014 Waterborne Commerce Data impact3 2. Inland water freight transportation industry and associated support services (direct, indirect, induced) 3. Source: NYCEDC Maritime Support Services Study, 5 2007 Environmental Benefits Cargo Capacity Equivalents 7 . Each year, about 440,000 truck trips are eliminated1, which is equivalent to about 30 days2 worth of traffic on the George Washington Bridge, world’s busiest bridge

. Up to 6.6 million truck miles travelled are saved3 - = $2.65M saved in infrastructure (roadway maintenance) costs4

. 11,220 tons of CO2 are saved per year5

. Inland barging emits 90% and 95% less CO and NO than trucks per mile6

1. Based on 20 tons per truck (220,000 one way trips) 2. Based on 14,000 trucks cross eastbound GWB Overall, marine support services 3. Based on 15 mile truck distance eliminates 3.1M trucks from NYC 4. 6.6Mmiles*$.40/miles 8 5. Source: EDF Green Freight Handbook roads each year ((6,600,000X1,700g/mile)/1,000,000g/metric ton)) 6. Source: Port of Victoria 7. Source: Port of Pittsburgh 8. Source: NYCEDC Maritime Support Services Study, 2007 6

Major Commodities by Weight

Volumes 12000 #1 Aggregate 2001: Closure of 10000 • Fluctuates based on business cycle Landfill

• Customers include building construction 8000

companies, NYCDOT (salt)

• Ex: Crushed stone, sand, gravel 6000 ‘000 ‘000 tons 4000 #2 Fuel 2000 • Due to increase in fuel efficiency, fuel demand has decreased 0

• Customers include distributors of home

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 heating oil 1993 • Ex: Gasoline, alcohol Aggregates Fuel Waste & Scrap Other

#3 Recyclables & Scrap Metal • An export industry that continues to 20% transform as recycling increases 43% • Customers include Sims Municipal Recycling • Ex: Glass, paper, plastic, metal 37%

Data source: USACE, 2014

Other = Timber 7

Commodities: Aggregates

Source/Origin • Quarries north of NYC, which are typically adjacent to the Hudson e.g. Clinton Point, Haverstraw • Tilcon is the primary supplier of aggregate to NYC

Industry Trends Clinton Point • Tugs move multiple barges to mooring buoys in NY Harbor • Individual barges then distributed from mooring buoys to aggregate plants in NYC • Increased recycling is impacting the volumes of virgin material

Major Locations Photo Credit: Center for Urban Land Use Interpretation • , Jamaica Bay, Gowanus Aggregates Volume for Secondary Channels

4000

Companies Interviewed 3000 • Tilcon, Peckham, RCA Asphalt, NYCDOT, 2000 1000 Inwood Material Terminal, Seville Ready Mix, ,000 tons

Empire Transit Mix 0

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • NYCDOT terminal in Flushing is being renovated 1993 to receive waterborne aggregates

Data source: USACE 8 Commodities: Fuel

Source/Origin • Fuel originates from terminals in New Jersey and Staten Island via pipeline or rail

Industry Trends • Fuel users transitioning to other fuels (natural gas, renewables) • Fuel efficiency increasing (boilers and engines) • Barges continue to supplement pipeline transportation for redundancy (e.g. JFK airport via Tug and fuel barge on Newtown Creek Buckeye Pipeline) Photo Credit: Mitch Waxman • Oil companies selling facilities (e.g. BP selling property on Newtown Creek) • Some facilities owned by regional/national Fuel Volume for Secondary Channels companies: Motiva, Sprague 5000

• Other facilities owned by local companies: Bayside 4000 Fuel, Schildwachter, Skaggs 3000 2000 Major Locations ,000 tons 1000

• Newtown Creek, Gowanus, Jamaica Bay 0

2010 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 1993 Companies Interviewed Crude Petroleum Gasoline • Bayside Fuel, Sprague, Schildwachter, Skaggs Kerosene Distillate Fuel Oil Residual Fuel Oil Alcohols

Data source: USACE 9 Commodities: Scrap Metal & Waste

Source/Origin • Scrap metal and waste collected in NYC for export Industry Trends • Transition to (residential) recycling • Increased use of barges and rail • DSNY to have four MTS by 2019: Flushing Bay (QN), Hamilton Ave (BK), E 91st Street (MN), Southwest Brooklyn • Once complete, additional 1.3M tons expected on secondary Recyclables barge on Newtown Creek (Sims) waterways Photo Credit: Mitch Waxman • Visy Paper on Staten Island processes Scrap Metal and Waste Volumes for Secondary City paper, move toward single stream Waterways possible 3000 2001: Closure of • Sims under contract to DSNY for 2000 Fresh Kills Landfill recyclables 1000 Major locations ‘000 tons

• Newton Creek, Bronx River 0

Companies Interviewed

2015

1999 1993 1994 1995 1996 1997 1998 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 • Sims Municipal Recycling, Inwood Waste & Scrap (Not Elsewhere Classified) Iron & Steel Scrap Material Terminal

Iron and Steel prices increase 2015: 1.8M of 3M total tons of four fold between 2002 and DSNY residential and institutional 1. Source: http://www.nypress.com/when-times- 1 2 get-tough-the-tough-get-rolling/ 2012 waste moved via rail or water 10 2. City Limits. DSNY. Why do businesses choose to use water transportation?

. Cost effective compared to trucking for most bulk commodities that are heavy and inexpensive (price per unit)

. Businesses can locate closer to customers/end users in urban areas (e.g. Sprague Energy) and reduce transportation costs - Savings of $10.67/ton when shipped via barge compared to 1 Sprague Energy on Eastchester Creek trucking Photo Courtesy: Sprague.com - That saves approximately $44,000,000 for NYC businesses

. Best for transporting goods that are not time sensitive (construction material, aggregates) - Not subject to roadway congestion

Hamilton Asphalt (NYCDOT) on Gowanus Creek

1. Source: Port of Victoria, Texas 11 Water Freight Tonnages 2014, by location

1200 • Newtown Creek is #1 borough waterway in NYC by tonnage, Gowanus Creek 1000 and Channel #2 NYCEDC to focus • Both designated as 800 on these locations

Superfund Sites in 2010, now managed by US EPA 600

• Once a waterway transports tons ‘000 over 1M tons/year, it is 400 considered “high use” by the Army Corps, however this in 200 an informal guideline, among other criteria 0

• Hitting 1M tons/yr does not ensure waterway is guaranteed to be dredged, but increases likelihood

Aggregate Fuel Waste & Scrap Other

Other = timber Gowanus Creek Channel and Canal volumes combined, though USACE classifies as two different waterways Data source: USACE 12 Newtown Creek – 8 businesses using the waterway

Nycon Supply Corp Channel Characteristics • Superfund site Sims • Authorized depth: 12’ to 23’ Motiva Ferrara Bros • Current depth: 3’ to 16’ • Last dredged: 1951, 80,000 CY Allocco Recycling

Metro Fuel Maritime Industrial Users • 9 active users Amaco/BP 4 scrap: Sims Municipal Recycling, TNT, Empire Transit Mix Charles King, Allocco Recycling 4 fuel: Motiva, Metro Fuel, Amaco / BP, TNT Scrap Bayside 1 public facility: NYCDEP Charles King • 3 possible users Bayside 2 aggregates: Empire Transit Mix, Nycon Supply Corp (concrete)

2500 1 fuel: Getty 2000 Maritime Activity 1500 • Tons/year: 1M+ 1000 ‘000 ‘000 tons • Vessel calls/year: 1,001 500

0

1996 2013 1993 1994 1995 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2014

Aggregates Fuel Waste & Scrap 13 Eastchester Creek – 3 businesses using the waterway, 1 of which is in NYC Channel Characteristics • Authorized depth: 10’ Sprague • Current depth: 2’ to 7’ • Last dredged: 1989, 2010, 25,000 CY for $3M Canal Asphalt ($120/CY)

RCA Asphalt Maritime Industrial Activity • 3 Active Users RCA Asphalt Getty 1 scrap: Pascap 1 fuel: Sprague Oil 1 aggregate: RCA Asphalt

Peckham Pascap • 4 Possible Users 1 fuel: Getty 3 aggregate: Canal Asphalt, Peckham Industries, TBC

Photo Credit: Digital Globe Maritime Activity • Tons/year: 360,000 • Vessel calls/year: 332

14 Westchester Creek & Bronx River - 3 businesses using the waterways Channel Characteristics • WC: Authorized depth: 12’ • WC: Current depth: 12’ • WC: Last dredged: 1991104,000 CY for Schildwachter Oil $1,092,661 ($10.45/CY) • BR: Authorized depth: 10’ • BR: Current depth: 10’ • BR: Last dredged: 1991, 64,158 CY for Castle Hill Recycling $770,629 ($12.01CY)

Maritime Industrial Users • 3 Active Users Casa Ready Mix 1 scrap: Sims Metal Sims Metal Management Management 1 fuel: Schildwachter Oil 1 aggregate: Casa Ready Mix

• 1 possible user 1 waste/scrap: Castle Hill Recycling Photo Credit: Digital Globe Maritime Activity • WC Tonnage/year: 49,000 • WC Vessel calls/year: 44 • BR Tonnage/year: 293,000 • BR Vessel calls/year: 510

15 Waterway infrastructure

Physical components of borough waterways that require maintaining

 Federal Channel • Navigation channel that receives federal authorization for US Army Corps of Engineers to construct and maintain (usually via dredging)  Berth • Where barges moor to load/unload • Requires sufficient water depth to place a barge adjacent to a bulkhead • Responsibility for dredging rests with berth owner/user  Connector • Links berth with channel • Responsibility for dredging rests with berth owner/user  Bulkhead • Wood or steel retaining wall • Needs to be maintained • Supports equipment to load/unload barges

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Dredging & Downward Spiral of Waterborne Commerce

Due to regulatory or financial Therefore, overall tonnage constraints, many maritime- 1 decreases along a dependent businesses do not 2 particular waterway. dredge berth or connector.

Once tonnage falls below a critical threshold (1M

3 tons/yr), Army Corps less If the Army Corps does not inclined to dredge federal dredge federal channel, fewer channels. 4 business are unable to use channels for commerce.

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Why does this matter? With fully operable waterways…

Truck traffic decreases o An estimated 60,000 to 90,000 truck trips could be eliminated if potential sites are dredged . Environmental savings of 11K tons CO2/yr Silted . Infrastructure savings of $2M+ berth = Private sector businesses supported unable to o 35 businesses actively receiving product barge supported City priorities are aligned Peckham on Eastchester Creek relies on 10,000 truck trips/year o 80 X 50 (emissions reductions) o Vision Zero (fewer trucks = fewer fatalities) o OneNYC (increase in water freight) o SMIA (Significant Maritime Industrial Areas) and PMAZ (Priority Marine Activity Zones) Resiliency and redundancy promoted o RRAP (Regional Resiliency Assessment Program) 18