P R E P A R E D F O R :
M I S S I S S I P P I D E P A R T M E N T O F T R A N S P O R T A T I O N
P R E P A R E D B Y :
R ...
“DEVELOP A SUSTAINABLE CONTAINTER ON
BARGE OPERATION ON A SCALE COMPARABLE TO
ANY MAJOR RAIL OR HIGHWAY TRADE
CORRIDOR.”
V...
Europe, Asia USA
 COB services have existed almost
as long as the container trade, pre-
dominantly in Europe and in
China...
Cross Sector Subsidy Economics of Ubiquity
 COB services in the region are
currently subsidized by the bulk
transportatio...
Delta
Marine
Highway
Action Plan
This point in the
development of
container capacity in
the Gulf is a
convergence of trend...
D E V E L O P I N G A D D I T I O N A L C O N T A I N E R
C A P A C I T Y N E A R T H E B A S E O F T H E
M I S S I S S I ...
America’s Heartland is a Watershed
Region for Internat’l Trade Flows
EastCoast
PortMarkets
WestCoast
PortMarkets
a = % US ...
America’s Heartland is a Watershed
Region for Internat’l Trade Flows
The addition of a third
alternative mode of
landside ...
A System of
Container
Gateway Ports
Port of Gulfport – Plans
expand to over 1 million
TEUs
Port of Mobile –
Recently built...
Phase I:
Container
Gateway Ports
• Volumes -
Development of
significant container
volumes at and around
the base of the
Mi...
Phase II:
Vicksburg to
Memphis
As the container
volumes start to build
at the gateway ports,
line-haul services
should beg...
Phase III:
Complete the
Loop
Notwithstanding the
need for gateway
densities, the
development of inland
container traffic a...
Mode Shift Tactics at
Gateway Ports
Inland Mode Shares
at the Port of Rotterdam
 Modal Shift (% tons on waterways)
 Reve...
T H E S I N G L E L A R G E S T P R O J E C T T H A T H A S A
M A J O R I M P A C T O N T H E D E V E L O P M E N T O F
C ...
West Coast Ports Handle Most of
Asian Container Traffic
The west coast handles
approx 75% of Asian
trade with the United
S...
Bulk of Asian Container Trade is
Actually Land-Bridged
Three quarters of Asian
container trade volumes
are land-bridged ac...
Panama Canal’s Role as a
Land-Bridge is Fast Changing
The Asia-East Coast lane
represents 57% of
Panama Canal trade.
When ...
Gulf Coast will Contest the Diverted
West Coast Asian Container Flows
The Panama Canal
expansion presents an
opportunity f...
Key Role in Accommodating Canal
Related Container Growth
The MHy Delta comes at
a crucial time. The
Canal project is
estim...
• FOCUS CONTAINER
CAPACITY AT PORTS
WITH ACCESS TO
TRIPLE PLAY MODES:
• RAIL
• BARGE
• HIGHWAY
TRIPLE PLAY
National Contai...
F O C U S E D O N T H E S U S T A I N A B I L I T Y O F S E R V I C E S .
G I V E N T H A T T H E M H Y D E L T A W I L L ...
Line Haul
Segmentation
The Mississippi River is
associated with long
distances and disparate
markets, relative to the
shor...
Tier I – Regular
Fixed Schedule
Services
Run between two points
on a fixed regular basis;
For example, once a
week, on Wed...
Tier II – Regular
Weekly Services
Run at least once a
week, without a
particular time or day
established. This type
of ser...
Tier III –
Inducement
Services
These services are non-
scheduled with the
greatest flexibility for
balancing demand with
s...
Start with Bulk Fleet
Integration
Long Term Growth
Strategy is Also Needed
 The Mississippi bulk oriented
barge fleet app...
MHy Delta is a Multi-
Jurisdictional Project
Identify a Multi-
Jurisdictional Entity
 There are many aspects
that impact ...
Issue Recommendation
1. No gateway at base of
Mississippi River
2. Gulf coast ports serve
“truck-able” markets
3. Bulk bar...
Upcoming SlideShare
Loading in …5
×

Delta Marine Highway Presentation

832 views

Published on

DEVELOP A SUSTAINABLE CONTAINTER ON BARGE OPERATION ON A SCALE COMPARABLE TO ANY MAJOR RAIL OR HIGHWAY TRADE CORRIDOR.

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
832
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Delta Marine Highway Presentation

  1. 1. P R E P A R E D F O R : M I S S I S S I P P I D E P A R T M E N T O F T R A N S P O R T A T I O N P R E P A R E D B Y : R N O G R O U P W W W . R N O G R O U P . C O M A U G U S T 1 7 , 2 0 1 0 “MHy Delta” Delta Marine Highway
  2. 2. “DEVELOP A SUSTAINABLE CONTAINTER ON BARGE OPERATION ON A SCALE COMPARABLE TO ANY MAJOR RAIL OR HIGHWAY TRADE CORRIDOR.” VISION
  3. 3. Europe, Asia USA  COB services have existed almost as long as the container trade, pre- dominantly in Europe and in China/Hong Kong.  COB services are also in existence in the United States, particularly in the northwest, the Gulf Coast and along the eastern sea-board. COB Services are Tried and Proven
  4. 4. Cross Sector Subsidy Economics of Ubiquity  COB services in the region are currently subsidized by the bulk transportation services sector.  The region’s most sustainable COB services are integrated into larger bulk operations, thereby benefiting from the economies of fleet scale and vessel ubiquity.  Container barges used on the Mississippi are standard open hopper river barges used for a wide variety of cargoes and are easily integrated into a conventional bulk fleet.  Ubiquity results in limited need for repositioning, saving the barge operator a great deal of money and time. Fleet Integration Offers Sustainability
  5. 5. Delta Marine Highway Action Plan This point in the development of container capacity in the Gulf is a convergence of trends, and an opportunity to influence the mode choice decision process; With the shipper, the forwarder/agent, third- party service provider, port terminal developers and operators, and the carriers. Convergence of Trends
  6. 6. D E V E L O P I N G A D D I T I O N A L C O N T A I N E R C A P A C I T Y N E A R T H E B A S E O F T H E M I S S I S S I P P I R I V E R I S A N A T I O N A L I M P E R A T I V E Regional Gateway Port Strategy
  7. 7. America’s Heartland is a Watershed Region for Internat’l Trade Flows EastCoast PortMarkets WestCoast PortMarkets a = % US 2008 port container traffic; b = % 2009 US population 50% 30% 44%26% 7% 43% a b a b a b
  8. 8. America’s Heartland is a Watershed Region for Internat’l Trade Flows The addition of a third alternative mode of landside transport, in addition to truck and rail, reduces the growth in truck traffic Every 1 million TEUs in additional port capacity at the base of the Mississippi could cut the growth in truck trips by 172 thousand trips, and 63 million trucks miles EastCoast PortMarkets WestCoast PortMarkets a = % US 2008 port container traffic; b = % 2009 US population 50% 30% 44%26% 7% 43% a b a b a b Strategic Imperative
  9. 9. A System of Container Gateway Ports Port of Gulfport – Plans expand to over 1 million TEUs Port of Mobile – Recently built a 800,000 TEU terminal, with likely plans to expand further Port of New Orleans - Currently at 330,000 TEUs, plans to expand to 1 Million TEUs Seapoint – Planned ship-to-barge port handling 900k TEUs
  10. 10. Phase I: Container Gateway Ports • Volumes - Development of significant container volumes at and around the base of the Mississippi River, New Orleans to Mobile. • Mode Share - Enhanced mode-share incentives will need to be implemented so as to encourage mode diversion. • Inter-Gateway Services - High-speed container services between the ports will allow for the re- positioning of loads in co-ordination with liner schedules.Sea Point Mobile Gulfport New Orleans
  11. 11. Phase II: Vicksburg to Memphis As the container volumes start to build at the gateway ports, line-haul services should begin to evolve along the Mississippi and Ten-Tom waterway on either side of the State. The gateway ports are positioned in such a way that the growth of COB services will be possible on either side of the State. Sea Point Mobile Gulfport New Orleans Vicksburg Yazoo County Rosedale Greenville Claiborne County Natchez Adams County Itawamba Yellow Creek Amory Aberdeen Clay County Lowndes County
  12. 12. Phase III: Complete the Loop Notwithstanding the need for gateway densities, the development of inland container traffic along the Mississippi or Tenn-Tom waterways will be driven by the location of inland consumer/producer markets. Sea Point Mobile Gulfport New Orleans Upper Mississippi Ohio River Region Cairo/Paducah
  13. 13. Mode Shift Tactics at Gateway Ports Inland Mode Shares at the Port of Rotterdam  Modal Shift (% tons on waterways)  Revenue (# of ships calling at port)  Economics (# of jobs created) Cargo Type Inland Mode Barge Rail Pipe Truck Total Liquid Bulk 39% 1% 51% 9% 43% Dry Bulk 86% 5% 0% 9% 30% Container 33% 16% 0% 51% 15% General Cargo 6% 3% 0% 91% 13% Total 48% 5% 21% 26% 100% Mode Shift Tactics at Gateway Ports The Port of Rotterdam uses the tenant lease process to secure modal diversity. They include mode share, specifically waterway mode share, as a tenant ranking criteria:
  14. 14. T H E S I N G L E L A R G E S T P R O J E C T T H A T H A S A M A J O R I M P A C T O N T H E D E V E L O P M E N T O F C O N T A I N E R C A P A C I T Y O N T H E G U L F C O A S T I S T H E E X P A N S I O N O F T H E P A N A M A C A N A L MHy Delta in the Context of the Panama Canal Expansion Project
  15. 15. West Coast Ports Handle Most of Asian Container Traffic The west coast handles approx 75% of Asian trade with the United States. The bulk of the remaining 25% is handled by the east coast ports, via the Panama Canal.
  16. 16. Bulk of Asian Container Trade is Actually Land-Bridged Three quarters of Asian container trade volumes are land-bridged across the US interior and thru the Panama Canal.
  17. 17. Panama Canal’s Role as a Land-Bridge is Fast Changing The Asia-East Coast lane represents 57% of Panama Canal trade. When the canal expands, the share of Asia trade to the West coast will drop, increasing the east coast port traffic through the Canal. The result is a significant increase in container traffic through the Gulf of Mexico. The growth increment in the Asia-East Coast trade lane will be highly contestable by well positioned Gulf coast ports.
  18. 18. Gulf Coast will Contest the Diverted West Coast Asian Container Flows The Panama Canal expansion presents an opportunity for additional container capacity to be developed along the Gulf coast to better serve the heartland region. Based on port expansion plans, the base of the MsCoBISC will account for 6% of US container gateway volumes by 2020. EastCoast PortMarkets Gulf Coast Port Mkts. WestCoast PortMarkets 13% c 6% d 7% e c = % US 2020 port container traffic thru Gulf Coast ports d = ports at base of Mhy Delta, e = rest of Gulf Coast ports
  19. 19. Key Role in Accommodating Canal Related Container Growth The MHy Delta comes at a crucial time. The Canal project is estimated to be completed in 2014. The Gulf Coast container port expansion plans are largely to be completed by 2020. In order to successfully serve its role in accommodating the Canal expansion container growth impact, the MHy Delta will need to be implemented over the course of the next 4-6 years. MhyDelta Network
  20. 20. • FOCUS CONTAINER CAPACITY AT PORTS WITH ACCESS TO TRIPLE PLAY MODES: • RAIL • BARGE • HIGHWAY TRIPLE PLAY National Container Port Policy MhyDelta Network
  21. 21. F O C U S E D O N T H E S U S T A I N A B I L I T Y O F S E R V I C E S . G I V E N T H A T T H E M H Y D E L T A W I L L E S S E N T I A L L Y B E A P R I V A T E S E C T O R E N D E A V O R , I T I S C R I T I C A L T H A T T H E P R O P O S E D A P P R O A C H B E B A S E D O N O P E R A T I O N A L P L A N S T H A T H A V E S H O W N S O M E L E V E L O F S U C C E S S O N T H E M I S S I S S I P P I R I V E R . Proposed Operational Plan
  22. 22. Line Haul Segmentation The Mississippi River is associated with long distances and disparate markets, relative to the short legs along the Rhine’s tightly spaced markers. The most likely operations plan is a tiered service structure that is dictated by the distances and market reach of individual line- haul segments. The proposed operational plan has a three-tiered structure that is based on existing services that have worked thus far in the Gulf region.
  23. 23. Tier I – Regular Fixed Schedule Services Run between two points on a fixed regular basis; For example, once a week, on Wednesday, departing at 6pm. They work best along segments connecting with international ports serving ocean shipping lines operating on a fixed schedule basis. The service is also most viable along segments with the highest container potential. They operate almost independent of the bulk fleet schedules, except to rely on the supply of barges and tows from the bulk fleets. Sea Point Mobile Gulfport New Orleans Tier I RegularFixed ScheduleService Cairo/Paducah Upper Mississippi Ohio River Region
  24. 24. Tier II – Regular Weekly Services Run at least once a week, without a particular time or day established. This type of service offers greater flexibility for balancing demand with supply, and is best applied to segments that do not connect with a COB gateway port. This service is more dependent on the bulk fleet schedules, as well as the supply of barge equipment. Sea Point Mobile Gulfport New Orleans Tier II Regular Weekly Service Tier I RegularFixed ScheduleService Cairo/Paducah Upper Mississippi Ohio River Region
  25. 25. Tier III – Inducement Services These services are non- scheduled with the greatest flexibility for balancing demand with supply. They are almost fully integrated into the larger bulk barge services. Sea Point Mobile Gulfport New Orleans Tier III Inducement Services Tier II Regular Weekly Service Tier I RegularFixed ScheduleService Cairo/Paducah Upper Mississippi Ohio River Region
  26. 26. Start with Bulk Fleet Integration Long Term Growth Strategy is Also Needed  The Mississippi bulk oriented barge fleet approach to transportation service delivery is not the most ideal for providing a container barge service.  Nonetheless, what the Mississippi bulk barge loses in speed it makes up in fleet integration and adaptability.  A barge operator can provide a sustainable container barge service using bulk equipment, if it integrates the COB service into a larger bulk barge fleet  In order to develop a full-scale COB service, comparable to major rail and highway corridors, the service will likely have to grow out from the shadow of the bulk operation.  Incentives should be introduced to encourage alternative vessel technologies to the industry. Vessel Operations Plan
  27. 27. MHy Delta is a Multi- Jurisdictional Project Identify a Multi- Jurisdictional Entity  There are many aspects that impact the success of the project that are not within the jurisdiction of the State of Mississippi.  Coordination of Gateway Port Investment Decisions  Cooperation of Enhanced Mode-Share Strategies  Fleet Integration and Conversion Strategies  National Security  There are several options for pursing a multijurisdictional approach.  1) State of Mississippi to coordinate among all the entities, and across all these issues.  2) Use an existing entity that is already recognized as a multijurisdictional entity and that receives its funding from multiple entities. AASHTO? Proposed Institutional Plan
  28. 28. Issue Recommendation 1. No gateway at base of Mississippi River 2. Gulf coast ports serve “truck-able” markets 3. Bulk barge tows not agile enough for container trade 4. Involves many states, ports and pvt. entities 1. Gateway development strategy & funding 2. COB plus enhanced mode-share incentives 3. Fleet integration plus fleet development incentives 4. Identify multijurisdict’l entity and fund it Summary of Findings and Recommendations

×