Maritime Administration Update

Captain Bob LokenDirector PNW and Alaska Gateways

MARAD Update: Working to Support and meet Needs of the Maritime Industry

June 26, 2018

Contents: Around the Compass Supporting Maritime

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N. Leadership

NE. Gateway Representatives

E. National Maritime Transportation Strategy

SE. Funding-n-Finance

S. StrongPorts

NW. Work Force

W. Security-n- National Defense

SW. Marine Highway

N. MARAD Leadership

• Maritime Administrator –Retired Navy RADM Mark Buzby o Confirmed as the new Maritime Administrator on August 3, 2017o Was CEO National Defense Transportation Associationo Kings Point Maritime Academy Graduateo Retired from the Navy after 34 years and his last Navy command was

Military Sealift Command

• Associate Administrator for Ports and Waterways –Lauren Brand (since January 2015)o Directs a national port infrastructure modernization program in excess

of $1.3 billion o Development of the marine highway initiative and manages the

Agency’s offshore energy licensing projects (the Deepwater Port Program)

o Previously Director for the Office of Marine Highway and Passenger Vessels

o Prior Gateway Director for the South Atlantic Gatewayo Prior Senior Director for Business Development at Port Canaveral, FL

N. MARAD Vision, Mission, Guiding Principles and Goals

• Through MARAD, USDOT focus is on– U.S. Merchant Marine– Workforce development– Shipbuilding and repair– Landside port infrastructure– Waterways and intermodal connectors– Landside safety, security, and environmental protection.

• MARAD advocates for– Maritime industry– Manages assets in support of DOD

• Fleet of government-owned cargo vessels (RRF)• Administers and funds the Maritime Security Program (MSP)

– Operates the U.S. Merchant Marine Academy (USMMA) at Kings Point, NY– Provides training ships, funding and other support for the six State Maritime Academies (SMAs

in Maine, Massachusetts, New York, Texas, California and Michigan)– Administers Title XI loan guarantee program– With other DOT modes, addresses most pressing issues facing maritime transportation system– Mediates competing interests for transportation investments– Forges working partnerships with industry, Federal, State and local governments– Administers Federal BUILD (TIGER), INFRA, Shipyard, and America’s Marine Highway grants.

Seattle, WA

NE: MARAD – 10 Gateway OfficesGateway Focus Areas

Advocate for the AOR Stakeholder Outreach Familiar with issues in the AOR Improve delivery of Federal Services Port Infrastructure Development Grant ManagementWorkforce Development Inter-Agency Partnerships America’s Marine Highways (M-A1, M-5, M-84, & M-H1) Port Readiness and Emergency Preparedness Environmental Stewardship Agency Liaison

Pacific Gateway Point of Contacts PNWG: Captain Bob Loken, 206.200.5744, robert.loken@dot.gov

Mid-Pacific: Eric Shen, 202.308.8968, eric.shen@dot.gov

Combines SOCAL, NOCAL, and PAC Islands into Mid-Pacific Gateway

Inland Waterways: Branden Criman, 202.384.6001, branden.criman@dot.gov

Adds Bonneville Dam east Columbia and Snake rivers

Relocate 1 FTE to Inland Waterways Posted on USAJOBS.GOV

V: https://www.usajobs.gov/GetJob/ViewDetails/503108900

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NE. Office of International Activities• The Office of International Activities is responsible for

coordinating the Maritime Administration’s participation in international activities concerned with maritime transportation matters

• Keeping abreast of and engaged in foreign economic and political developments which may affect United States maritime transport interests

• International Trade Specialist that work on multilateral activities at International Maritime Organization (IMO), International Labor Organization (ILO), World Trade Organization (WTO), the Asia-Pacific Economic Cooperation (APEC) Transportation Working Group and Organization of American States (OAS) Inter-American Committee on Ports (CIP)

E. National Maritime Transportation Strategy

• More than 75 percent of all U.S trade is transported by water.

• Develop a National Maritime Transportation Strategy to support growth of U.S. maritime industry and ensure availability of U.S. flag vessels for our nation’s economic and national security.

• MARAD hosted two three-day National Maritime Transportation Strategy Symposium in 2014, with over 400 maritime stakeholders developing and identifying five priorities:

1. Expand Capacity of U.S. Gateway Ports2. Ensure the Maritime Capacity to Guarantee Economic and National Security3. Modernize, Educate, Train and Recruit the Next Generation of Mariner Work-Force

a. By 2022 U.S. will require 70,000 new mariners4. Fully Leverage Waterborne Transportation in our National Transportation Network

a. 70 million increase in population by 2045 and 45% cargo increase b. EU 40% vs US 5%

5. Drive Maritime Technology Innovation

• New Administration has updated the draft and it will go out for comment in 2018

SE. 2017 $66 Billion Needed for Port-Related Infrastructure over next 10 Years

• Port Industry identified $66B in Federal Investment– $27.6 billion needed to maintain deep-draft navigation

channels– $6.2 billion needed to modernize deep-draft navigation

channels– $28.9 billion to modernize road and rail connectors to

Ports– $3.13 billion to improve Port facility infrastructure

• Ports plan to Spend $155B over next 5 years

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Source: American Assoc of Port Auth (AAPA) – 2017 America: Keep It Moving

SE. Fixing America’s Surface Transportation ActFAST Act

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• Fixing America’s Surface Transportation (FAST) Act Signed into Law December 4, 2015 Authorizes $305B (all modes) over 5 Years.

• Requires each state to have a State Freight Plan by Dec 2017 identifying critical urban and rural roadways to be eligible for formula funding

• Infrastructure for Rebuilding America (INFRA) replaced FASTLANE. NOFO solicited applications for up to $1.56 billion in FY 2017-2018 INFRA Funds closed on 2Nov2017. Large projects minimum $25 million and Small Projects minimum $5 million. (26) Awards sent to the House for Congressional 60 day review on June 5, 2018. 2019 $950M; 2020 $1B.

– Contacts MARAD HQ Bob Bouchard at (202) 366-5076 or email to INFRAgrants@dot.gov

• Congestion Mitigation and Air Quality Improvement Program (CMAQ) transportation project to attainment (2018-2020 $2.4B) https://www.fhwa.dot.gov/fastact/factsheets/cmaqfs.cfm

• Advanced Transportation and Congestion Management Technologies Deployment (ATCMTD) $60 million. Closed 18June2018. For employing advanced transportation technologies to improve safety, infrastructure ROI, efficiency, and performance. https://www.fhwa.dot.gov/pressroom/fhwa1806.cfm 2019: $60M 2020 $60M

SE. Funding and Financing• Better Utilizing Investments to Leverage Development (BUILD) Grant replaced TIGER. Open for

application $1.5 Billion. 30% ($450 Million) to rural. Minimum Urban grant $5 Million. Minimum Rural Grant $1 Million. Accepting planning grants no minimum (total avail $15 million). Maximum grant award $25 Million. Urban 20% cost share. Rural cost share can be waived. Webinars. Application Deadline 8 pm Eastern 19Jul2018.

• List of TIGER 1-9 applications 2009-2017 https://www.transportation.gov/policy-initiatives/tiger/tiger-application-list

• Build America Bureau (The Bureau) https://www.transportation.gov/buildamerica– Transportation Infrastructure Finance and Innovation Act (TIFIA) https://www.transportation.gov/tifia (3.06% as of

14Jun2018)– Railroad Rehabilitation and Improvement Financing (RRIF) https://www.transportation.gov/buildamerica/programs-

services/rrif– Public Private Partnership https://www.fhwa.dot.gov/ipd/p3/– Port Conveyance Program www.marad.dot.gov/ports/public-benefit-conveyance-program/

• Small Shipyard Grants 2018 $20 million. Closed 22May2018 https://www.marad.dot.gov/ships-and-shipping/small-shipyard-grants/

• Maritime Environment & Technology Assistance (META) funding $3 million to support environmental innovations POC Dan Yuska, email daniel.yuska@dot.gov phone 202-366-0714

• Marine Highway: Call for Project Designation 30Jun2018 and 31Dec2018. Marine Highway Grant NOFOTBA in Summer 2018 for $7 Million Apps due in Fall 2018. Eligibility requires Project Designation of a Service.

• MARAD Port Finance Agent: Kirk Claussen, email kirk.claussen@dot.gov phone 202.366.5660

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SE. U.S. DOT Financing Programs (other)

• Private Activity Bonds (PABs) – www.fhwa.dot.gov/ipd/finance/tools_programs/federal_debt_financing/private_activ

ity_bonds/ (tax-exempt bonds issued by or on behalf of a local or state government )

• Federal Ship Financing Program (commonly referred to as “Title XI”) – www.marad.dot.gov/ships-and-shipping/federal-ship-financing-title-xi-program-

homepage/

• Construction Reserve Fund (CRF) – www.marad.dot.gov/ships-and-shipping/construction-reserve-fund/(Financial assistance program which provides tax deferral benefits to U.S.-flag operators to defer the gain attributable to the sale or loss of a vessel)

• Capital Construction Fund (CCF) – www.marad.dot.gov/ships-and-shipping/capital-construction-fund/ (Program encourages construction, reconstruction, or acquisition of vessels through the deferment of Federal income taxes on certain deposits of money or property)

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SE. Other Funding and Financing• USDOT

– FHWA pax and vehicles Ferry grants ($80M formula grants) https://www.fhwa.dot.gov/fastact/factsheets/ferryboatfs.cfm

– FTA pax Ferry grant https://www.transit.dot.gov/funding/grants/passenger-ferry-grant-program-section-5307 (annual $60M awarded 8 May 2018)

• Other Government Agency (OGA) funding: – EDA Planning and Infrastructure https://www.eda.gov/funding-opportunities/– FEMA Port Security Grant Program https://www.fema.gov/port-security-grant-program Closed

on June 20, 2018– EPA DERA Grants open $40 Million applications Closed 12Jun18

https://www.epa.gov/cleandiesel/clean-diesel-national-grants– EPA Water Infrastructure Finance and Innovation Act (WIFIA) for eligible

water and wastewater projects up to 49%. Future USACE application for financing dredging outside on Navigation Channel. https://www.epa.gov/wifia

– NPS Maritime Heritage Grants, Boating Infrastructure Grants (BIG), and Clean Vessel Act Program http://www.nps.gov/maritime/grants/apply.htm

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A joint venture between AAPA, a working group of 57 industry expert volunteers, and the Maritime Administration.

Toolkit will help ports obtain funding by developing investment grade plans that:• Clearly identify future port needs; examples of what works • Built with modules on planning, fundingand executing projects• Determine the most cost-effective, sustainable and efficient solutions to port problems; and• Position port projects for federal funding or financing such as INFRA grants or TIFIA; and Assist ports in obtaining private sector investment funds. • Funding Strategy Module was released in November 2014 http://www.aapa-ports.org/topic.aspx?ItemNumber=21265• Phase II Port Planning and Investment Toolkit released in Jan 2017http://www.aapa-ports.org/advocating/PRDetail.aspx?ItemNumber=21653• YouTube video https://www.youtube.com/watch?v=JwDYxYtMCAw&t=10s

S. Port Planning & Investment Toolkit A Maritime Industry Joint Venture

S. State Freight Plans

• To receive funding under the National Highway Freight Program, the FAST Act requires each State to develop a State Freight Plan by December 5, 2017. A State Freight Plan must: – Cover a five-year forecast period; – Be fiscally constrained; – Include a “freight investment plan” with a list of priority projects; and – Describe how the State will invest and match its National Highway

Freight Program funds.

Freight Planning and Policy Provisions: https://www.fhwa.dot.gov/fastact/factsheets/fpppfs.cfm

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S. State Freight PlansWhy Include Maritime Assets in State Freight Plans?

• State Freight Plans will guide state infrastructure investments through the development of funding - constrained lists of projects to be funded by the National Highway Freight Program

State Freight Plans

• Will designate critical urban and rural corridors for inclusion in the National Highway Freight Network,

• Will provide ports with an opportunity to integrate into the wider surface transportation system within their State.

• If ports want to benefit from a State’s freight investment, they need to participate in the State Freight Plan development by joining groups such as State Freight Advisory Committees.

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Documents the Ports as-is, to-be, and where MARAD can assist

PortTalk engages Ports, State DOT, MPOs, and other stakeholders in a facilitated telecon to foster dialogue and develop regional maritime transportation plans

Increase attention on Intermodal Connectors with each state creating a Natl Highway Freight Network to prioritize federal investments

Regional PortTalk Roundtable: Hosted 1 day meeting focusing on bringing a region to the table for discussions. Sponsored by state DOT and consists of Ports, MPOs, State DOT, MARAD, and Industry to address issues and generate solutions.

Community MPO export: Travis Black email: travis.black@dot.gov phone 202.366.9087

S. PortTalkA Regional Maritime Collaboration

MTSNAC is your Federal advisory committee within MARAD that advises the U.S. Department of Transportation on issues related to the marine transportation system

MTSNAC is comprised of over 40 leaders from commercial transportation firms, port and water stakeholders, labor, and Federal, state and local public entities

Captain Greg Faust, Director of Marine Operations WSF; Susan Hayman VP Foss Maritime Company, and Richard Berkowitz, Director of Pacific Coast Operations, Transportation Institute

MTSNAC current focus Impediments hindering effective use of short sea transportation for freight and passengers Expand capacity of U.S. international gateway ports to accommodate larger vessels; Improve waterborne transport to reduce congestion and increase mobility Strengthen maritime capabilities essential to economic and national security Modernize the maritime workforce and inspire and educate the next generation of mariners

Drive maritime innovation Provide advice

Written comments for consideration can be emailed to MTSNAC@dot.gov

S. Marine Transportation System National Advisory Committee (MTSNAC)

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SW. American Marine Highway1. Route Designation

Pacific AreaM-H1 HawaiiM-A1 Cook InletM-5 PacificM-5 Connector AlaskaM-84 Columbia, Snake, Willamette RiversM-580 StocktonFuture

• Extend M-5 Connector to Arctic• Add Route into Salish Sea

Marine Highway Link: http://www.marad.dot.gov/ships-and-shipping/dot-maritime-administration-americas-marine-highway-program/

Marine Highway Call for Project Designations 22701 Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 /

Notices MH Project submissions due June 30, 2018, Dec 31, 2018

MARAD POC Tim Pickering Timothy.pickering@dot.gov Ph. 202-366-0704

M-H1

SW. Critical Elements for Creating 2. Designated Marine Highway Project

• Proposed Project is a service that is located on a designated Marine Highway Route

• A public/private partnership between ports, vessel operators (service provider), labor, and most importantly, shippers

• A solid business case including analysis of competing modes • An efficient operational plan

• Adequate capital for start up and initial operations

• A coordinated promotion effort by key stakeholders• Submitted to Secretary USDOT for Approval of Project

Designation

• MH Route + Service Project Designation = Eligibility for MH Grants

• FY 2018 ($7M) Notice of Funding in Summer 2018 applications due in the Fall– Only Designated Service Projects Eligible

• Development and Expansion of documented vessels• Port and Landside Infrastructure

• 2017 MH Grants under review• 2016 MH Grant awards

– Baton Rouge–New Orleans Shuttle on the M-55 - $1,758,595– Illinois Intrastate Shuttle on the M-55 - $713,000– James River Expansion Project on the M-64 - $476,748– New York Harbor and Container and Trailer on Barge - $1,632,296 – M-55/M-35 Container on Barge Project - $96,000– Potomac River Commuter Ferry Project - $173,361

SW. Funding3. Marine Highway Grants

W. Jones Act• The Jones Act (46 U.S.C. § 55102) requires that merchandise

being transported by water between U.S. points must travel in U.S.-built and U.S.-citizen owned vessels that are registered in the United States.

• U.S. Customs and Border Protection (CBP) has direct responsibility for enforcing the Jones Act and the Department of Homeland Security (DHS) may grant waivers of the U.S.-flag requirements only in the interest of national defense.

• MARAD’s role in the waiver process is to canvass the U.S.-flag domestic shipping market to locate suitable coastwise qualified vessels, and then report the results to CBP.

W. Cargo Preference Law• Congress enacted several measures known as “cargo preference” laws

between 1904 and 1954. • 100 percent of military cargo, and at least 50 percent of most non-military

government cargo transported by ocean, must be carried on U.S. flag vessels subject to vessel availability and fair and reasonable rates.

• The cargoes generated because of these programs help ensure the availability of a fleet of privately-owned U.S.-flag ships. These ships, mariners, and the supply networks they employ are available to transport Government supplies and equipment in the event of an emergency or armed conflict.

• Link and contact – https://www.marad.dot.gov/ships-and-shipping/cargo-preference/– Phone (202) 366-4610 Email: cargo.marad@dot.gov

On October 8, 1996, the President signed the Maritime Security Act of 1996 establishing the Maritime Security Program (MSP). The 2003 and 2016 NDAA extend the current MSP through FY 2025.

Under this program, participating operators must commit their ships, crews, global network of intermodal facilities and transportation resources upon request by the Secretary of Defense.

The NDAA of 2013 requires that the Secretary of Transportation, in consultation with the Secretary of Defense, to establish a fleet of active, commercially viable, militarily useful, privately-owned vessels to meet national defense and other security requirements

MSP Ships receive a subsidy and all operating agreements are currently filled by 60 ships.

MSP ship crews are a major source for the DOD surge fleet and contributes approximately 2,400 mariner positions to the U.S. deepwater seafarer base

MSP fully funded for $300M in 2018 Appropriations.

W. Maritime Security Program (MSP)

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Initiated in 1976 - Subset of the National Defense Reserve Fleet (NDRF) program to support the rapid worldwide deployment of U.S. military forces.

MARAD manages and maintains the bulk of our Nation’s surge capacity, which is organized in the Ready Reserve Fleet.

This has went from a total of 6 ships in 1977; 102 ships in 1994; to its current level of 46 ships

Maintained in 5 and 10-day readiness status by commercial U.S. ship managers that are under contract for maintenance and repair, activation, manning, and operation.

The RRF provides nearly one-half of the government-owned surge sealift capability.

National and Humanitarian Emergencies and Disaster Relief Missions Used as training platforms by Navy and Army and various law enforcement

agencies

W. Ready Reserve Force (RRF) Highlights

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W. 16 Strategic Ports

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Guam has transitioned to a 'Special Consideration’ Commercial Strategic Seaport

W. Disaster Relief Capability: pre-scripted missions

Port Infrastructure Recovery: Crane Ships and Over Shore Operations

SAFEPORT: Crane Ships can remove “suspect” containers from box ships.

SAFESTOR: Emergency vehicles shelter on RoRos: Hurricane Mitchell Cape Decision 53 water craft and vehicles loaded

OTHER: Deliver Relief SuppliesCommand and Media CenterCharter Commercial Vessel CapabilitiesHotel ServicesPlatform for Destroying chemical gases

Emergency Worker Support: School Ships double as relief ships.

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That the U.S. merchant marine must be capable of serving in times of war or national emergency, and be composed of the best-equipped, safest, and most suitable types of vessels, constructed in the U.S., and

crewed by appropriate inventory of trained and efficient citizen mariners

There is shortage of senior-level mariners with unlimited credentials

There are sufficient Mariners for an initial surge of 4 to 6 month but inventory seriously impacted when surge exceeds 6 month

Working closely with the USTRANSCOM, the U.S. Navy’s Military Sealift Command, the U.S. Coast Guard and the commercial maritime industry to develop and maintain an adequate number of trained mariners.

MARAD provides funding and support for mariner training programs to produce USCG credentialed officers for the U.S. Merchant Marine through the U.S. Merchant Marine Academy at Kings Point (USMMA) and State Maritime Academies (SMAs).

2018 NDAA includes provisions for designating colleges as Maritime Centers of Excellence who expand there curriculum to train maritime workers

NW. U.S. Merchant Marine

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NW. U.S. Training Ships

GOLDEN BEARCALIFORNIA MARITIME ACADEMY

STATE OF MAINEMAINE MARITIME ACADEMY

KENNEDYMASSACHUSSETTS MARITIME ACADEMY

EMPIRE STATESUNY MARITIME COLLEGE

GENERAL RUDDERTEXAS A&M MARITIME ACADEMY

STATE OF MICHIGANGREAT LAKES MARITIME ACADEMY

KINGS POINTERUS MERCHANT MARINE ACADEMY

Six Regional Academies and One Federal Academy meet Merchant Marine Act ‘36 Maritime Objectives

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NW. Training Ship RecapitalizationNational Security Multi-Mission

Vessel (NSMV)

Goal: Invest In essential marine transportation careers, to support America’s National Security and Economic Vitality Training ship 100 officers/crew, 600 cadets 10,000 nm range Surge mode 760 personnel u/w or 1,000 personnel in port Dimensions 600’ x 105’ x 25’ Diesel Electric, Integrated Electric Drive, Single shaft, bow

thruster, design speed 18 kts Received $300m in 2018 Appropriation for NSMVP

Questions

Captain Bob Loken Eric Shen Branden CrimanPNW & AK Gateways Mid-Pacific Gateway Inland Waterways Gatewayrobert.loken@dot.gov eric.shen@dot.gov branden.criman@dot.gov(206) 220-7717 Office (213) 629-8616 Office (314) 539-6783 (Office)(206) 200-5744 Cell (202) 308-8968 (Cell) (202) 384-6001 (Cell)

Port of Vancouver, WA

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Port of Grays Harbor, WA

StrongPorts link: http://www.marad.dot.gov/ports/strongports/Through Planning & Engagement – Finance – Project Support