Published on March 11, 2014
Port Re-Designation Project Presented to Maysville Chamber of Commerce March 6, 2014 Melissa Johnson Director of Real Estate and Logistics Port of Greater Cincinnati Development Authority Eric Thomas Central Ohio River Business Association
www.cincinnatiport.org Port of Greater Cincinnati Development Authority
Northern Kentucky Port Authority Northern Kentucky Port Authority Northern Kentucky Port Authority was established by Boone, Campbell and Kenton Counties to facilitate river port projects along the Ohio and Licking Rivers. The NKPA Board facilitates river oriented economic development and other multi-county activities. Kentucky Port Authorities created in the 1970s to develop a system of public port facilities. Licking River port development pursued for several years, abandoned in the 1980s. NKPA participates in multi-county efforts.
What is a Port Re-Designation? • What is a port re-designation? • The act of expanding port boundaries to capture transactional volume of goods and commodities that flow through a region. • U.S. Army Corps of Engineers (USACE) statistical ranking of ports based on freight tonnage. • What is the “Port of Cincinnati”? • The Port of Cincinnati is a 26-mile reach of riverfront along the Ohio River. • 12,000,000 tons of cargo.
51st ranked port district 6,036 jobs $54,000 annual average wage $45,000,000 in state and local taxes $530,000,000 in business revenue By the Numbers: Current Port The current 26-mile designation
Current Cargo Composition Source: US Army Corps of Engineers • Huntington District is dominated by coal; • Louisville more diverse with petroleum and dry bulk materials
Re-designation Proposal • Expand current 26-miles to approximate 227-mile regional harbor to elevate awareness of Ohio and Kentucky as global origins and destinations for river commerce and economic development. • The re-designation is supported by a USACE scope of work that requires a petition, county-level resolutions and demonstrations of economic relationships between the existing 77 terminals within the proposed 227 miles. • The re-designation includes 15 counties across the 2 states.
Community Engagement • Public Engagement • Introductory meetings • Stakeholders • Legislative Enactments • Contiguous county resolutions • Supporting Endorsements • Local, state, and federal government • Private sector
Boundary Justifications • Alternative boundaries • Metropolitan, micropolitan, and business economic areas (BEAs) • Economic linkages
Economic Linkages Geographic and/or financial connections between inland waterway shippers, carriers, and terminals. Demonstrate how terminals, docks, piers, wharves, etc. function as an interdependent economic unit within the proposed boundary. • Commodity has an origin and destination within the same boundary; • One firm operates multiple terminals (or docks) within the same boundary; • Multiple firms in the boundary interact with a specific destination outside of the boundary; and • Multiple firms use one specific barge operator.
Re-Designation Benefits • Elevate the port ranking to 9th nationally (approximately) by including an additional 38,000,000 tons of cargo in undesignated areas. • Significant economic development advantage to promote and market our existing terminals, respective communities and region as destinations for global transport decisions. • Regional collaboration through the new
State and Regional Awareness • JobsOhio • Ohio River Strategic Plan • Cincinnati USA Regional Chamber • Identify long-term sustainable revenue sources for transportation in Ohio • Advocate for federal transportation bill that streamlines permitting and incentivizes private investment • Kentucky Water Transportation Advisory Board
Frequently Asked Questions • No taxation, tariffs, fees • Not an expansion of Port Authority powers • No costs • Future association / formation • Increased flow of freight / capacity • 15 counties, 2 states, unique collaboration
Timeline August 2012 February 2013 April – October 2013 October – January 2014 March 2014 September 2014 Port Authorities of Cincinnati and Northern Kentucky submit joint letter of intent to USACE Planning Assistance Agreement (PAS) signed Community Outreach, Economic Linkages Passage of formal resolutions by legislations Submit formal petition Decision by USACE
About CORBA Central Ohio River Business Association (CORBA) River commerce businesses and industry Mile 356 to 560 Port of Huntington, WV to Madison, IN Our Mission: to unite the river businesses and industry into a common voice in order to promote commerce, safety and security, environmental stewardship, and public relations concerning the Ohio River and its tributaries throughout the central Ohio River region. We pursue this mission by: providing a forum for the exchange of interest, ideas, and concern among our members, and support and advance the ideas and needs of our members to each other, to government agencies and municipalities, and to other stakeholders with interest in or concern for commerce along the Ohio River.
CORBA’s founding ideals … The river is a proven means of transport, more viable today than it was in the 19th century. Re-introduce the “harbor” as a component of the greater “port” complex (which includes highway, rail, and airports). Educate the public about the important role the harbor plays now and will continue to play into the future. Create a voice to advocate on behalf of the harbor’s businesses and industry. Develop a brand identity for the “Ports of Cincinnati and Northern Kentucky” and then market the brand! Pursue re-designation of the port boundaries with USACE.
More on CORBA … Not-for-profit (Ohio) corporation; a business association. Formally organized in November 2011. Made up of businesses who work on or depend upon the rivers (the “harbor”) in the Central Ohio River region with Cincinnati being at the center. In the midst of a membership drive. www.corba-usa.org
CORBA’s Targeted Reach
CORBA Members include: Tow and Barge Fleet Operators Terminals – Liquid and Dry Commercial Passenger Operators Shipyard / Boat and Barge Repairs Shippers Utilities Restaurant and Entertainment, and Marinas Port Authorities, Municipalities, and Counties
Port Re-designations / Rankings Current rankings based on freight tonnage: (14) Huntington, WV-Tristate – from 14 miles to about 200. Ohio River, the Big Sandy, and the Kanawha (17) Pittsburgh, PA – now 200 miles along its three rivers. Ohio, Monongahela, and Allegheny (51) Cincinnati, OH – 26 miles from the Ohio / Indiana state line east (67) Louisville, KY – 15 miles including both banks of the Ohio River
U.S. Marine Highway Program Energy Independence and Security Act, 2007 US DOT Maritime Administration (MARAD) “To expand the use of waterborne transportation while relieving landside congestion and reducing carbon emissions.” Integrating Marine Highways into the nation’s surface transportation systems. Over 29,000 nautical miles of navigable waterways including rivers, lakes, and coastal routes.
U.S. Marine Highway Program MARAD designated inland marine highways as “M”, not unlike the interstate highway “I-” system. Entirety of the Ohio River is designated M-70, and is joined in that designation by the Missouri River. Each “highway” has a sponsor. Ohio DOT is the sponsor for M-70.
U.S. Marine Highway Program continued Currently five working groups: (1) Market Analysis - looking at and mapping out freight flows and manufacturing distribution centers along the M-70 (2) Infrastructure - identifying infrastructure gaps needed to support reliable scheduled service (3) Operations - identifying transit times, optimal schedules, and point to point pricing structures (4) Communications - mapping communication coverage gaps along the M-70/M-29 (5) Aspects of fuel/energy transportation - existing and emerging resources For more information, contact Fred Jones firstname.lastname@example.org
What will the new Panama Canal mean for the U.S? Impact multi-modal land-bridge between the east & west coasts of the U.S. Shift of ships calling on the east coast and away from the west coast. Potential for ships calling at ports in the Gulf of Mexico. Gulf ports such as New Orleans critical to any potential for the inland river system (Mississippi and Ohio Rivers). Container on barge? Port’s economic impact study.
Why Transport on the Inland River System is Important: Oldest form of bulk transport in the history of mankind. 90% of all worldwide trade is by water. Barge transportation allows for high volumes of bulk cargoes transported in a safe, clean, environmentally sound, energy efficient, and cost effective manner. If not for barge transport, our nations highways and rail system would be choked with up to 6.3 million more railcar trips, or 25.2 million more truck trips per year. Marine transport will continue into the long term future. Question is: Can the inland waterways do more to solve current land transport congestion?
Thank you March 6, 2014 Melissa Johnson Director of Real Estate and Logistics Port of Greater Cincinnati Development Authority www.cincinnatiport.org @PGCDA Eric Thomas CORBA – Central Ohio River Business Association www.corba-usa.org
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