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East Coast Marine Highway Report

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East Coast Marine Highway Report EAST COAST MARINE HIGHWAY INITIATIVE M-95 STUDY FINAL REPORT October 2013 PREPARED FOR: East Coast Marine Highway Initiative Awarding Authority New Bedford Harbor Development Commission Maryland Port Administration New Jersey Department of Transportation Canaveral Port Authority I-95 Corridor Coalition DISCLAIMER AND LIMITATIONS This document is disseminated under the sponsorship of the East Coast Marine Highway Initiative Awarding Authority, a cooperative formed between the ports of New Bedford, Baltimore and Canaveral, the New Jersey Department of Transportation, and the I-95 Corridor Coalition. The cooperative agreement was funded by the U.S. Maritime Administration. The statements, findings, conclusions, and recommendations in this report are those of the researchers and staff, and do not necessarily reflect the views of any government agencies or organizations that funded the study. This report does not constitute a standard, specification, or regulation. Certain forward-looking statements are based upon interpretations or assessments of best available information at the time of writing. Actual events may differ from those assumed, and events are subject to change. Findings are time-sensitive and relevant only to current conditions at the time of writing. Factors influencing the accuracy and completeness of the forward-looking statements may exist that are outside of the purview of the consulting firm. Parsons Brinckerhoff’s report is thus to be viewed as an assessment that is time-relevant, specifically referring to conditions at the time of review. Neither the United States Government nor any agency thereof, nor any of their employees, nor any of their contractors, subcontractors or their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or any third party's use or the results of such use of any information contained in this document in whole or in part. Questions regarding this report or its contents should be directed to: East Coast Marine Highway Initiative Awarding Authority: Edward Anthes-Washburn, Port of New Bedford, MA, Deputy Port Director, +1 508 961 3000 Parsons Brinckerhoff: Blair Garcia, Parsons Brinckerhoff, Project Manager, +1 757 466 9671 Jeff Schechtman, Parsons Brinckerhoff, Principal-in-Charge, +1 843 566 4521 ABSTRACT The East Coast Marine Highway Initiative partnership, led by the New Bedford Harbor Development Commission, sponsored a study to craft strategies for the development of financially viable Marine Highway services along the M-95 Marine Highway Corridor. Those services are intended to provide freight shippers with alternatives to truck and rail transportation. Operational, utilization, and cost parameters for nine potential East Coast Marine Highway services were developed for the study using cargo routing data from the Federal Highways Administration’s (FHWA) Freight Analysis Framework (FAF3). Based on the estimated average cost per load, four of the nine potential services were selected for further assessment of viability. Those services were: a short-haul loop linking New England and Mid-Atlantic ports, with a focus on New Bedford and Baltimore; two long-haul East Coast routes linking New York or Delaware River markets with Port Canaveral and Miami, FL; and a “pendulum” serving both short and long-haul markets, linking New England, Delaware River/Chesapeake Bay, and South East ports. Analysis of the profit and loss summaries created for each of the four service options found that the identified M-95 services face market, operational, and regulatory challenges to becoming financially self-sustaining. However, the study found that there are service characteristics that would increase the likelihood of a service becoming self-sustaining, including: 1) Encompass a wide geographic scope (e.g. East and Gulf Coast); 2) Transport heavier weight and/or hazardous cargos that garner higher rates for existing transport modes; 3) Provide service between a maximum of three ports; and 4) Utilize right-sized vessels, such as a potential dual-use vessel. EAST COAST MARINE HIGHWAY INITIATIVE M-95 STUDY FINAL REPORT October 2013 PREPARED FOR: East Coast Marine Highway Initiative Awarding Authority c/o New Bedford Harbor Development Commission 52 Fisherman’s Wharf New Bedford, MA 02740 PREPARED BY: Strategic Consulting 1401 K Street NW, Suite 300 Washington, DC 20005 IN ASSOCIATION WITH: A. Strauss-Wieder, Inc. PHB Public Affairs Mercator International LLC TEC Inc. PHB Public Affairs TABLE OF CONTENTS Index of Tables & Figures ................................................................................................................................... i Glossary of Acronyms .......................................................................................................................................... ii Glossary of Abbreviations ................................................................................................................................. v EXECUTIVE SUMMARY ................................................................................................................................... ES-1 LITERATURE REVIEW ............................................................................................................................................. ES-2 STAKEHOLDER OUTREACH .................................................................................................................................. ES-2 MARKET ANALYSIS .................................................................................................................................................. ES-3 OPERATIONAL DEVELOPMENT .......................................................................................................................... ES-3 BUSINESS PLAN AND VIABILITY ........................................................................................................................ ES-4 ENVIRONMENTAL ANALYSIS ............................................................................................................................... ES-4 CONCLUSION AND FINDINGS ............................................................................................................................... ES-5 INTRODUCTION ................................................................................................................................................... I-1 PROJECT OBJECTIVES AND GOALS ........................................................................................................................I-4 APPROACH & METHODOLOGY ................................................................................................................................I-4 MARINE HIGHWAY DEFINITION ............................................................................................................................I-5 SECTION 1: DATA COLLECTION ........................................................................................................... 1-1 1.1. LITERATURE REVIEW ....................................................................................................................................... 1-1 1.1.1 Impediments ..................................................................................................................................... 1-1 1.1.2 Benefits ................................................................................................................................................ 1-6 1.1.3 Markets and Operations ............................................................................................................... 1-9 1.1.4 Government Policy and Activity .............................................................................................. 1-16 1.1.5 Success Factors .............................................................................................................................. 1-21 1.1.6 Conclusions ...................................................................................................................................... 1-23 1.2. STAKEHOLDER OUTREACH .......................................................................................................................... 1-25 1.2.1 Site Visits .......................................................................................................................................... 1-26 1.2.2 Agency Interviews ........................................................................................................................ 1-33 1.2.3 Private Sector Interviews .......................................................................................................... 1-34 1.2.4 Shipper Validation Exercises .................................................................................................... 1-34 1.2.5 Listening Sessions ......................................................................................................................... 1-34 1.2.6 Stakeholder Outreach Findings ............................................................................................... 1-34 SECTION 2: MARKET ANALYSIS ........................................................................................................... 2-1 2.1. POTENTIAL CARGO DEMAND ........................................................................................................................ 2-1 2.1.1 Long haul International Cargo ..................................................................................................
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