January 28, 2008 Traffic Congestion & Air Quality Conference: Short Sea Shipping in California Fresno, California Presentation Points: 1. Definition 2. Purpose 3. Current Use at the Port of San Diego 4. Future Prospects 5. Environmental Impacts January 28, 2008 Traffic Congestion & Air Quality Conference: Short Sea Shipping in California Fresno, California • Definition: • MARAD America’s Marine Highway Includes Coastal waters, U.S. Inland Waterway System and Great Lakes Development of a Short Sea Fleet Water Transportation to Compliment Surface Transportation • Port of San Diego – Coastal – Canada and Mexico – Includes Container on Barge, Break-bulk Barges, and Bulk Barges – Includes Ro-Ro Ships January 28, 2008 Traffic Congestion & Air Quality Conference: Short Sea Shipping in California Fresno, California • Purpose: • Alleviate Anticipated Port Congestion at Major Ports Due to Growth • Reduce Truck Trips and Traffic Congestion at Major Ports and Surrounding Communities • Generate Jobs and Enhance Economic Impact of Ports Nationally, Statewide, Regionally, and Locally • Develop Strategic Relationships between Ports, Ocean Carriers, Trucking Companies, Exporters and Importers • Opportunity For Maritime Industry to Be Proactive in Reducing Diesel Emissions January 28, 2008 Traffic Congestion & Air Quality Conference Short Sea Shipping in California Fresno, California • Current Use at the Port of San Diego: • Lumber from PNW – 225,000 Metric Tons Per Year of Packaged Bundled Lumber for Weyerhaeuser & Dixieline via ocean-going barges • Aggregates from Mexico – 400,000 Metric Tons Per Year of Sand from Ensenada, Mexico for Hanson via Ocean-going Barges (previously 800,000 Metric Tons, but lower due to economy downturn) • Automobiles from Mexico – 50,000 Vehicles from Silao, Mexico for General Motors via Ro-Ro • Lost Opportunity – 1000 Containers Per Week via Container on Barges – Failed Due to Pier Pass Implementation in LA/LGB January 28, 2008 Traffic Congestion & Air Quality Conference Short Sea Shipping in California Fresno, California • Container on Barges – LA/LGB and Port of San Diego • Container on Barges – Mexico and Port of San Diego (Punta Colonet) • Automobiles Via Ro-Ro Vessels – Mexico and Port of San Diego (Lazaro Cardenas) • Fruit Via Refrigerated Break-Bulk Vessels – Mexico and Port of San Diego (Lazaro Cardenas) • Impediments to Short Sea Shipping – Labor Costs – Port Costs – Lack of Port Infrastructure – Harbor Maintenance Tax Both Ends and/or Tax Incentives January 28, 2008 Traffic Congestion & Air Quality Conference: Short Sea Shipping in California Fresno, California • Environmental Impacts: • California – Reduction in Port Congestion and Truck Impacts – Timing Due to Prop. 1B Funds Addressing Air Emissions – Developments of Port Clean Air Plans & Clean Truck Plans – Federal Interest Due to MARAD Efforts • San Diego – Seeking Prop. 1B Funds Related to Air Emissions for Cold Ironing & Truck Replacements and/or Retrofits – Developed a Clean Air Program and Requesting Authority to Proceed on Developing Emission Control Measures and Truck Program at February 12, 2008 BPC Meeting – Maritime Business Plan Update for Cargo Development & Infrastructure Improvements Due to GrGrowthowth to be Accepted at February 12, 2008 BPC Meeting January 28, 2008 Traffic Congestion & Air Quality Conference: Short Sea Shipping in California Fresno, California • Conclusions: • Creation of a National Short Sea Shipping Program is Now – Federal Interest – AAPA Interest • Creation of a State Short Sea Shipping Program is Now – Environmental Impacts Due to Growth Must be Addressed or There Will Be No Growth – Gentrification Is a Reality and Won’t Go Away – Short Sea Shipping Is Real Alternative to Same Old Same Old • Cooperation Between California Ports is NecNecessaryessary – CAPA – Outside the Box Creativity.