1. Maritime Administration America’s Marine Highway Program & Port Infrastructure Development Program Chip Jaenichen, Deputy Administrator Maritime Administration, U.S. Department of Transportation 1

2. Maritime Administration Mission: To improve and strengthen the U.S. marine transportation system - including infrastructure, industry and labor - to meet the economic and security needs of the Nation. 2

3. Shifting Trade Patterns Panama Canal Expansion Post-Panamax Ships Manufacturing and Distribution Shifts

5. Top 1000 “Blue Chip” Multinational Shipper Priorities 5 With Permission from

6. M-5 M-95 M-10 M-90 M-70 M-55 M-5 (AK) M-71/77 M-65 M-40 M-49 M-87 M-64 M-A1 M-75 M-84 M-580 $179.26M Marine Highway & TIGER Grants 2009 to 2012 M-2 LEGEND MH Corridor MH Connector MH Crossing U.S. Interstate M-55 M-70 M-95 M-5 M-90 M-90 Cates Landing, TN $13,000,000 Green Trade Corridor, CA $30,000,000 Tri-City Port, IL $14,500,000 Port Manatee, FL $9,000,000 Davisville, RI $22,300,000 Maine Ports, ME $14,000,000 Tenn-Tom W/W $1,700,000 Cross Gulf $3,340,000 James River $1,100,000 Detroit/Windsor Ferry $2,200,000 Oakland, CA $15,000,000 Mobile, AL $12,000,000 Lewiston, ID $1,300,000 Bayonne, NJ $11,400,000 Catoosa, OK $6,425,000 Brownsville, TX $12,000,000 Corpus Christi, TX $10,000,000

7. 7 7 64 Express Marine Highway Service MARAD Marine Highway Grant Funds provided for purchase of barges MARAD Marine Highway Grant Funds provided for purchase of barges Service started in 2008 Service started in 2008 Moves approx. 450 TEUs per month Moves approx. 450 TEUs per month Provides relief of congested I-64 corridor Provides relief of congested I-64 corridor

8. California Green Trade Corridor Tiger Grant DOT Tiger Grant Funds provided for landside improvements and two barges DOT Tiger Grant Funds provided for landside improvements and two barges Service between Stockton and Oakland to begin in late 2012 Service between Stockton and Oakland to begin in late 2012 TEUs already booked, majority heavy weight freight TEUs already booked, majority heavy weight freight Major relief of congested I-580 corridor Major relief of congested I-580 corridor

9. Critical to Marine Highway Services Communication among multiple stakeholders/partners (including public and private) Coordinated promotion efforts Business, market and finance plans Adequate capital for start-up operations, with a contingency fund Located on a designated Marine Highway Corridor, Connector or Crossing.

10. 10 No GO GO High Vessel Construction Cost Institutional Barriers (HMT, Govt Policy, etc.) Freight & Shipper Uncertainty High Operating Cost Go vs. No-Go (Glass Half Empty) Infrastructure Gaps Tipping Point

11. 11 GO Tipping Point Go vs. No-Go (Glass Half Full) Advisory Committee Recommendations to DOT Secretary Dual Use/M 55 Studies DOD Support & TITLE XI & CCF LNG + Dual Use $ $111 Million Grants

12. Port Infrastructure Development Program Funding Gaps in Infrastructure Repair & Improvements Inadequate Links to Major Corridors (road, rail, Marine Highway) Inefficient Delivery of Federal Services: Slow and Underfunded Channel Dredging Environmental and Permitting Gridlock Regulatory/Enforcement Commerce Delays 12

13. Who Invests Where? 13

14. Public Benefit & Public Stake Category I Engagement Category III Project Management Category II Financing All Ports Low Fed Oversight No Market Interference DOT Proposed Port Infrastructure Development Program Framework Authority: 46 USC, Section 50302Version 11 – 17 Jan 2012 Limited # Ports Moderate Fed Oversight Minimal Market Interference Very Few Ports High Fed Oversight Minimal Market Interference B. Assistance: A. Guidelines & Data: Sector advocate through analysis & showcasing opportunities/consequences regarding port role/investment Possibilities Include: Port Investment Plan Guidelines (With Stakeholders) Strategic Asset Management (With Stakeholders) Port/Terminal Ops Guidelines for AMH (With Stakeholders) National/Regional Studies and Maritime Impact Analysis Condition & Performance Tracking & Measures Direct support to individual ports (upon request) Investment Plan Devel. Support (Possible Planning Grants) Facility Needs Assessments (Possible NEPA Support) Gateway Office Engagement – Delivery of Federal Services Financing: Direct funding support via existing/future programs TIGER I-IV Grants Marine Highway Grants Other Future Grant Programs Loans/Loan Guarantees Possible Cargo Facility Fee Program Eligible for Port Infra Devel. Fund Eligible for MARAD Lead Fed Agency Support Eligible for Project Delivery Initiative Sel. Criteria in Grant Program Project Defined in Grant App. Project Mgt: Increased Federal project assistance where unique Federal interest exists MARAD Co-Manages Project w/Port Design Development Eligible For PID Fund Eligible for Lead Fed. Agency Supp. Elig. For Project Delivery Initiative Strict Sel. Criteria Investment Plan Req’d Project Defined 14

15. Questions? 15