More Short-Sea Shipping Talk

Charles Carter, Managing Partner, Port Tobacco at Weanack shares what he knows of the challenging history of container-on-barge efforts:

"I find the mode of transport that often makes the most sense is often the least used. I own a tiny marine terminal on the James River in Virginia about 20 miles SE of Richmond. There's quite a history of container-on-barge (COB) efforts here, but not so many successful ones. Sometimes, failures can highlight issues as well as successes.
 
"In 1996, a ship agency set up a COB run 75 miles up the James River from Hampton Roads to the Port of Richmond. It only took a few runs before trucking firm cut their rates.  End of story and COB move.
 
"In 1998, Waste Management built a marine terminal here to accept containerized municipal solid waste from New York City (NYC) and transport it 12 miles to a landfill. The waste stream was already coming 360 miles down I-95 to the landfill from NYC, but the political implications were misjudged. Fears of accepting 'all of NYC's waste' were vastly overstated but resulted in the state legislature banning the waterborne commerce of solid waste. Litigation ensued and a settlement was reach some years later. However, the opportunity was lost.
 
"In 2003-2004, Norfolk Tug put together a COB program up the James from Hampton Roads to here and to Richmond.  The ILA was reasonable at the departure dock, Overnite trucking had the container volume and was very interested, and the pieces finally seemed to be coming together.  Trucking costs, traffic congestion, fuel costs and port congestion all favored this COB move.  Then, the proposal came before a quasi-state-agency for a blessing.  Hampton Roads was booming with ocean-borne cargos and the COB was viewed as a possible hindrance at the terminals, and, as possibly requiring some form of future labor concessions (still have not figured that one out).  End of story and proposal.
 
"In 2008, T. Parker Host ship agency put together a COB on the James from Portsmouth to Richmond that is still running today. TPH sold out to Norfolk Tug last year and the program is known as James River Barge Lines http://www.64express.com/ or the '64 Express' (~90 miles of interstate between Norfolk and Richmond called I-64).  Problem is that the truckers have once again slashed rates, the MarAd subsidy only goes so far and volumes have been hard-fought. At higher volumes unit costs drop and subsidies are not needed.  Yet this viable COB move is endangered. We'll see.
 
"I realize these are hardly 'short sea' and may be more aptly called 'short river', and, it's more a container ferry than COB.  But, I believe there are COB runs across the coasts that would stand on their own with a little initial encouragement. This could come in the form of "green credits" or tax credits for pollution reduction, business loans or other policy support. 
 
"Infrastructure and repairs to infrastructure may become even more dear in the future, which some see as a time of massive federal (municipal, corporate and personal) debts and debt service. You can wear out a road or rail line, but I've never heard of wearing out a waterway (well, not the kind without locks anyhow). Perhaps major ports will add efficient and lower-emissions barge moves to their repertoire of clean trucks, alternative fuel dock equipment and shore power.
 
"In short, the article is right on the money but it is interesting to note that in all of the various attempts at establishing a James River container ferry, neither the HMT, Jones Act, shipping time, infrastructure, taxes nor labor were "fatal" issues. In each case, politics and often the politics of competing modes and entities had a greater impact. If that limitation is passed, securing sufficient volume and duration of cargos to grow - and lower unit costs - seems to be the next hurdle.
 
"It comes down to leadership and interests. If you don't know who the leaders are, you don't really have one.  How many in the tug and barge industry can name our leaders who will charge up the political hill for us on these issues? Where are the interested companies and why are they unable to find a voice in the clamor and scrabble of politics? We need strong leaders and we need strong supporters or we are just watching a good idea die."


Another reader compares how competitive the waterways are against rail:

"I'm a sailor, USCG licensed captain, and real estate analyst.While doing some work for the Port of San Francisco a few years ago I learned a few little trivial facts. One was that the last break-bulker to call at San Francisco no longer did, because they couldn't beat the price the railroad offered to carry newsprint from British Columbia. Another was that the industrial park next to the Port of Sacramento was full of boxes. The boxes were on trailers and the Port of Sacramento had no quay cranes or container yards. At the time Sacramento was in trouble because the cost of channel maintenance was eating them alive. I'm told that Port of Oakland stepped in as a strategic move.

"There are any number of things that COULD be done in short-sea shipping, but as yet they don't cost out. Yes. It would be possible to use the coastal ports of Northern California instead of Highway 101. First you put the box on a truck. Take it to where it's put on a barge. Bring the tug around and hook up the tow. Offload it in Humboldt Bay. Put it on a truck again... How long do you suppose that would take? Nor can I imagine that it would work out cheaper than, say, Seward Trucking, from Oakland to Fortuna or Willow Creek.

"The counter example is rail which has been massively overhauling their systems for a generation, most recently to serve, or even develop*, the container port - distribution center linkages. The money is there. So is the investment.

"Meantime, while the dream of short-sea shipping replacing truck is alive, the reality is that there are any number of shipping companies, mostly towing, mostly rivers, whose stories appear in every issue of your magazine. Depending on government mandates, discriminatory taxes and subsidies is the Jones Act course. You can tell how well that has preserved the American presence on the high seas."