SHORT SEA SHIPPING INITIATIVES and the IMPACTS on October 2007 the TEXAS TRANSPORTATION SYSTEM: TECHNICAL Published: December 2007 REPORT 6
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Technical Report Documentation Page 1. Report No. 2. Government Accession No. 3. Recipient's Catalog No. FHWA/TX-08/0-5695-1 4. Title and Subtitle 5. Report Date SHORT SEA SHIPPING INITIATIVES AND THE IMPACTS ON October 2007 THE TEXAS TRANSPORTATION SYSTEM: TECHNICAL Published: December 2007 REPORT 6. Performing Organization Code 7. Author(s) 8. Performing Organization Report No. C. James Kruse, Juan Carlos Villa, David H. Bierling, Manuel Solari Report 0-5695-1 Terra, Nathan Hutson 9. Performing Organization Name and Address 10. Work Unit No. (TRAIS) Texas Transportation Institute The Texas A&M University System 11. Contract or Grant No. College Station, Texas 77843-3135 Project 0-5695 12. Sponsoring Agency Name and Address 13. Type of Report and Period Covered Texas Department of Transportation Technical Report: Research and Technology Implementation Office September 2006-August 2007 P.O. Box 5080 14. Sponsoring Agency Code Austin, Texas 78763-5080 15. Supplementary Notes Project performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration. Project Title: Short Sea Shipping Initiatives and the Impacts on the Texas Transportation System URL: http://tti.tamu.edu/documents/0-5695-1.pdf 16. Abstract This report examines the potential effects of short sea shipping (SSS) development on the Texas transportation system. The project region includes Texas, Mexico, and Central America. In the international arena, the most likely prospects are for containerized shipments using small container ships. In the domestic arena, the most likely prospects are for coastwise shipments using modified offshore service vessels or articulated tug/barges. Only three Texas ports handle containers consistently (Houston accounts for 95% of the total), and three more handle containers sporadically. Other ports could potentially offer a limited container service but will most likely require equipment and infrastructure upgrades to be competitive. The report identifies several triggers, which—if they were to occur—could abruptly change the level of SSS activities in the region. Even with a doubling of current SSS volumes, the effects on the Texas highway and rail systems will most likely be insignificant, with the possible exceptions of Freeport and Brownsville. 17. Key Words 18. Distribution Statement Short Sea Shipping (SSS), Coastwise, Central No restrictions. This document is available to the America, Mexico, Texas ports, Gulf Intracoastal public through NTIS: Waterway, GIWW, Marine Highways National Technical Information Service Springfield, Virginia 22161 http://www.ntis.gov 19. Security Classif.(of this report) 20. Security Classif.(of this page) 21. No. of Pages 22. Price Unclassified Unclassified 98 Form DOT F 1700.7 (8-72) Reproduction of completed page authorized SHORT SEA SHIPPING INITIATIVES AND THE IMPACTS ON THE TEXAS TRANSPORTATION SYSTEM: TECHNICAL REPORT by C. James Kruse Director, Center for Ports & Waterways Texas Transportation Institute Juan Carlos Villa Research Scientist Texas Transportation Institute David H. Bierling Assistant Research Scientist Texas Transportation Institute Manuel Solari Terra Assistant Transportation Researcher Texas Transportation Institute and Nathan Hutson Research Scientist Associate Center for Transportation Research Report 0-5695-1 Project 0-5695 Project Title: Short Sea Shipping Initiatives and the Impacts on the Texas Transportation System Performed in cooperation with the Texas Department of Transportation and the Federal Highway Administration October 2007 Published: December 2007 TEXAS TRANSPORTATION INSTITUTE The Texas A&M University System College Station, Texas 77843-3135 DISCLAIMER This research was performed in cooperation with the Texas Department of Transportation (TxDOT) and the Federal Highway Administration (FHWA). The contents of this report reflect the views of the authors, who are responsible for the facts and the accuracy of the data presented herein. The contents do not necessarily reflect the official view or policies of the FHWA or TxDOT. This report does not constitute a standard, specification, or regulation. v ACKNOWLEDGMENTS This project was conducted in cooperation with TxDOT and FHWA. The authors wish to acknowledge the involvement and direction of the Texas Department of Transportation project monitoring committee—specifically: Project Director Randy Bena, P.E. Program Coordinator Lonnie Gregorcyk, P.E. Project Advisor Jack Moser, P.E. Project Advisor Ken Barnett, P.E. Project Advisor Norma Garza, P.E. Project Advisor Scot Sullivan, P.E. vi TABLE OF CONTENTS Page List of Figures................................................................................................................................ x List of Tables ................................................................................................................................ xi Executive Summary...................................................................................................................... 1 Introduction................................................................................................................................. 1 The Research............................................................................................................................... 1 Conclusions................................................................................................................................. 1 Chapter 1: Introduction and Background................................................................................. 3 Project Purpose ........................................................................................................................... 3 Project Background..................................................................................................................... 3 The Landside Picture: Growing Congestion on All Modes.................................................... 3 Characteristics of Short Sea Shipping..................................................................................... 6 Potential Effect on Texas...................................................................................................... 10 Overview of U.S. Gulf Port System.......................................................................................... 11 Service Providers .................................................................................................................. 12 Existing Services................................................................................................................... 12 Organization of Report ............................................................................................................. 12 Chapter 2: International Short Sea Shipping Possibilities (Texas-Mexico, Texas-Central America) ......................................................................................... 15 Overview................................................................................................................................... 15 Ports .......................................................................................................................................... 15 Services..................................................................................................................................... 17 Linea Peninsular.................................................................................................................... 17 CG Railways, Inc.................................................................................................................. 17 Analysis of Current Trade......................................................................................................... 18 2005 Trade Analysis by Tonnage ......................................................................................... 18 2005 Trade Analysis by Container Traffic ........................................................................... 20 Observations ............................................................................................................................. 22 Limited Trade Volumes ........................................................................................................ 22 Competition and Service Operations .................................................................................... 23 Trade Agreements................................................................................................................. 26 Vessel and Port Characteristics............................................................................................. 26 What Commodities Might Be A Target For SSS New Service? .............................................. 28 Corpus Christi ....................................................................................................................... 28 Houston and Others............................................................................................................... 28 Brownsville........................................................................................................................... 28 Possible Triggers for Further SSS Development...................................................................... 29 Panama Canal Feeder Service............................................................................................... 29 Disruption in the Trans-Pacific Trade..................................................................................