1. Coastwise Coalition

2. An integrated, multi-modal system in which coastwise and inland shipping operates in conjunction with rail and trucking to: Increase overall system capacity and efficiency Increase transportation options for truckers, shippers, and passengers Achieve a net environmental benefit Coastwise Coalition OBJECTIVE

3. Coastwise Coalition

4. RELATIVE CAPACITY: BARGE, RAIL, TRUCK

5. USDOT/MARAD lacks sufficient tools and resources Existing policy doesnt recognize the marine highway potential No programs to encourage new service development No incentives for shippers or trucking to try SST Harbor Maintenance Tax is a discouragement Planning agencies ignore freight and marine transportation Limited ship construction financing and not well suited Marine mode is not integrated into NTS in policy terms Ferry program limited to passengers and mostly earmarked WASHINGTON & MARINE HIGHWAYS Coastwise Coalition

8. SST Definition …. means carriage of cargo contained in intermodal containers or loaded by means of wheeled technology and which is loaded and unloaded in a US port, or a port in Canada on the Great Lakes or Seaway. Coastwise Coalition

9. Short Sea Transportation (SST) Program Among the elements are the designation of SST projects to mitigate landside congestion and various encouragements for the use of SST. DOT would encourage states, multi-state entities and regional agencies to factor water transportation in their transportation plans and solutions to landside bottlenecks and capacity challenges. Coastwise Coalition

10. Cargo and Shippers DOT would enter into MOUs with other Federal entities to transport federally owned or generated cargo using a SST project when practicable. DOT would consult shippers and others in logistics and develop proposals for short term incentives to encourage use of SST. Coastwise Coalition

11. Financing of SST Vessels Subject to appropriations DOT may make loan guarantees for the financing of the construction, reconstruction or reconditioning of a vessel for a SST project. This would be separate from, but very much like, the existing Title XI program. Guarantee obligations outstanding at one time may not exceed $2 billion. $25 million is authorized for each of FYs 2008 through 2011. Coastwise Coalition

12. Vessel Finance (contd) Vessels in the SST trade would be made eligible for the use of Capital Construction Fund monies in financing the purchase, construction, or reconstruction of vessels. Interagency Coordination A board of public and private sector entities would identify and seek solutions to any impediments to the use of SST. Coastwise Coalition

13. Research on SST DOT would be authorized to conduct research regarding: environmental and transportation benefits of SST alternatives for other forms of transportation; technology, vessel design and other improvements to reduce emissions, increase fuel economy and lower costs of SST and increase efficiency of intermodal transfers; identify and seek solutions to impediments to designated SST projects. Coastwise Coalition

16. RIDE THE MARINE HIGHWAY Paul H. Bea Jr. pbea@phbpa.com (202) 607 6415 Coastwise Coalition