Leaders from the inland, ports and shipbuilding sectors offered their ideas this week for a new strategic plan that organizers say will chart a sustainable, long-term direction for the nation’s maritime industry.
The second symposium on creating a National Maritime Strategy was held Tuesday at Department of Transportation Headquarters in Washington, organized by the U.S. Maritime Administration. In addition to the maritime industry, the strategy has strong support from the Obama administration and the Congress.
Integrating rivers, sea and coastal commerce into a national freight strategy is an important goal, DOT Secretary Anthony Foxx told the gathering because the United States will grow by 100 million people by 2050. This will necessitate the movement of more than 14 billion additional tons of freight to serve the growing population. “As we continue to improve rail and highways, we can’t forget the inland waterways and ports — they are the backbone of our country.”
Foxx said he has made it a priority at DOT to update the nation’s transportation strategy in all sectors and chart a long-term course. One component of the maritime plan, he said, is keeping a strong Jones Act, which requires that cargoes moved between U.S. ports be hauled on U.S.-built and owned ships that are crewed by U.S. mariners.
The one-day symposium focused on the needs of U.S. inland waterways, ports and shipyards, while the first meeting in January dealt with possible ways to rejuvenate the U.S.-flagged fleet, which has been in decline in recent years. Officials have also been meeting with stakeholders around the country, and Acting Marad Administrator Paul “Chip” Jaenichen says that his agency will produce a draft plan by the end of the fiscal year (Sept. 30), if not before.
Participants cited many challenges facing the inland, port and shipbuilding sectors: recruiting workers, complying with a growing number of environmental rules and laws, harnessing the LNG production boom, funding inland infrastructure improvements, promoting short-sea shipping routes.
Port directors and a representative of the trucking companies said that while ports are innovating and modernizing, the infrastructure just outside port entrances remains outdated and inefficient. This causes costly backups and traffic congestion.
Shipyards said they are busy at the moment, thanks to Jones Act vessel orders, including a robust demand from the energy sector — especially in oil and gas sector — and from ATBs. “There’s a lot out there but we can’t declare victory,” said Tom Wetherald, director of strategic planning and business development at NASSCO/General Dynamics. “If we want to avoid a boom and bust, we need to find ways to continue that market.”
LNG was a recurrent topic at the symposium, with participants from all sectors mentioning the opportunities for shipyards to build LNG ships, for vessels to use LNG fuel, and eventually for U.S-made ships to carry the cargo to the international market. But this will require a ramping up of ship design and construction technology to make these large and sophisticated ships, and for port infrastructure to receive the cargoes.
For the inland industry, priorities for a national strategy include support of the Jones Act, and setting national standards for the tug and barge industry on operating, manning and licensing. “Uncertainties are difficult for our industry,” said Tom Allegretti said, president American Waterways Association. “Too many states want to regulate us on a state-by-state basis.”
There was general agreement that maritime transportation needs to be part of any new national freight strategy, taking equal billing with railroads and highways. Participants also agreed that more needs to be done to advertise the benefits of water transportation to the general public, which is largely ignorant of the economic benefits of the industry. “Ninety-nine percent of the population doesn’t know we exist,” said Jaenichen, the acting Marad administrator.
He said Marad is “continuing to listen” to the industry and will post the draft strategy for public comment.
