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					                                TRANSPORTATION
The U.S. water transportation sector, a major driver of the U.S. economy, could be
subject to significant adverse consequences under the administration’s new national
ocean policy.1 The policy has the potential to seriously disrupt the water transportation
sector through new access restrictions, limits on shipping vessel size and horsepower,
new air and water quality regulations, new taxes and fees on transportation and port
usage, higher energy costs, and inconsistent standards and rules. The viability of the U.S.
railroad and trucking and warehousing industries is also at risk, as they are closely tied
with this sector through their storage and transportation services to and from vessels
docked at U.S. ports and harbors.

Economic Impact

      Water transportation sector contributed $10.7 billion to GDP in 2007, with an
       operating surplus of $4.9 billion2
      Almost 267,000 individuals were employed by the water transportation, port
       services (cargo, handling, and other), and shipbuilding and repair industries in
       20083
      In addition, both the U.S. freight railroad and truck transportation/warehousing
       industries are intricately tied to the water transportation sector; the freight railroad
       industry produces $265 billion in economic activity every year and supports 1.2
       million jobs,4 while the U.S. truck transportation and warehousing industry
       provided 2.1 million jobs5 and is estimated to have generated over $332 billion in
       revenue in 20086
      In 2008, U.S. waterborne trade totaled 2.3 billion metric tons7
      7,119 oceangoing vessels made 60,578 U.S. ports of call in 2008, 35% by tankers,
       31% by containerships, 17% by dry bulk camers, 10% by Roll-on/roll-off vessels,
       ro-ro containers, and vehicle carriers, and 6% by general cargo ships8
      In 2008, just under 10 million passengers spent 64 million passenger nights
       traveling on 4,212 of the seventeen largest North American cruise lines;9 in 2008,
       cruise lines and their passengers spent over $19 billion on purchases, generating
       an economic impact in excess of $40 billion and nearly 360,000 U.S. jobs that
       paid more than $16 billion in wages10
      From 2003 to 2008, the average size of vessels transiting U.S. ports increased by
       6%11

Risks Associated With New National Ocean Policy

      Establishment of new access and use restrictions that impact ships, tankers, and
       cruise ships, as well as transportation modes such as tugs and barges transiting
       inland waterways12
      Measures which in the past may have been traditionally established with little
       controversy and substantial industry participation (such as Areas To Be Avoided,
       Precautionary or Prohibited Areas, marine protected and other areas, Mandatory
       Vessel Traffic Routes, Vessel Traffic Separation Schemes, Lightering Areas,
        Particularly Sensitive Sea Areas, Pilot Boarding Areas, Safety Zones Around
        Vessels and Terminals, Anchoring and No Anchoring Grounds or Areas, and
        Security Zones in Ports and Waterways) are instead established arbitrarily without
        the proper risk analysis and with little opportunity for stakeholder input13
       Unjustified and irrational application of the precautionary approach as applied to
        the creation of new restrictions under well established methods as noted above14
       Limitations on shipping vessel size or horsepower15 that result in increased air and
        water emissions and heightened safety risk
       New and duplicitous16 air and water quality regulations, including specification of
        the level of waste treatment technology and limitations on the amount of
        discharge in marine areas17
       New taxes and fees on transportation and port usage18
       Rising energy prices as a result of domestic offshore energy exploration and
        development restrictions that would cause serious harm to the transportation
        sector, a major consumer of energy19
       Conflicts in legal requirements within federal requirements across Executive
        Branch agencies as well as between federal and state requirements

Bottom Line

       There is a critical need for a consistent set of federal requirements for commercial
        marine vessels regardless of location within U.S. navigable waters and the EEZ.
        Regional coastal and marine spatial plans could create mass confusion and drive
        waterborne commerce away from the U.S. due to variation of rules among regions
        and inconsistency with International Maritime Organization standards.


1
  See Interim Framework for Effective Coastal and Marine Spatial Planning, December 9, 2009, available
at http://www.whitehouse.gov/sites/default/files/microsites/091209-Interim-CMSP-Framework-Task-
Force.pdf (accessed May 12, 2010), Page 2 (―CMSP provides an effective process to better manage a
range of social, economic, and cultural uses, including…Commerce and Transportation (e.g. cargo and
cruise ships, tankers, and ferries‖), Id. at 7 (―Multiple existing uses…e.g. …marine transportation…would
be managed in a manner that reduces conflict, enhances compatibility among uses and with sustained
ecosystem functions and services, and increases certainty and predictability for economic investments.‖),
and Interim Report of the Interagency Ocean Policy Task Force, September 10, 2009, Pages 11-12,
available at
http://www.whitehouse.gov/assets/documents/09_17_09_Interim_Report_of_Task_Force_FINAL2.pdf
(accessed May 12, 2010) (―…shipping…[is an] example[] of new or expanding uses expected to place
increasing demands on our ocean, coastal, and Great Lakes ecosystems.‖)
2
  U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009, available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).
3
  U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009, available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).
4
  Association of American Railroads, The Economic Impact of America’s Freight Railroads, February
2010, available at
http://www.aar.org/~/media/AAR/BackgroundPapers/Economic%20Impact%20of%20US%20Freight%20
RRs%20%20Sept%202009.ashx (accessed May 10, 2010).
5
  U.S. Department of Labor, Bureau of Labor Statistics, Career Guide to Industries, 2010-2011 Edition,
Truck Transportation and Warehousing, available at http://www.bls.gov/oco/cg/cgs021.htm (accessed May
10, 2010).
6
  U.S. Census Bureau, Annual & Quarterly Services, 2008 Annual Survey Data, Truck Transportation,
Messenger Services, & Warehousing-NAICS 48/49, available at
http://www2.census.gov/services/sas/data/48/2008_NAICS48.pdf (accessed May 10, 2010).
7
  U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009, available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).
8
  U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009,available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).
9
  U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009, available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).
10
   See Cruise Line International Association, About CLIA, available at http://www2.cruising.org/about.cfm
(accessed July 7, 2010).
11
   U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009, available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).
12
   See Marine Spatial Planning, A Step-by-Step Approach Toward Ecosystem-based Management,
UNESCO Guide No. 53, 2009, available at http://www.unesco-ioc-
marinesp.be/uploads/documentenbank/d87c0c421da4593fd93bbee1898e1d51.pdf (accessed May 12,
2010), Page 23, Box 6, Environmental Law Institute Seminar on Arctic Coastal and Marine Spatial
Planning and the Role of the Arctic People, March 11, 2010, Session 1, Coastal and Marine Spatial
Planning: Purpose and Concept, Remarks at 21:00 by Kate Moran, Senior Policy Analyst, Division of
Energy & Environment, White House Office of Science & Technology Policy, Executive Office of the
President, available at http://www.eli.org/audio/03.11.10dc/03.11.10dc.1.mp3 (accessed May 12, 2010)
(―The Gulf of Mexico is one major ecosystem that has a lot of influence from the Mississippi River system
that actually provides some of that heavy stress on existing uses.‖), and Interim Report of the Interagency
Ocean Policy Task Force, September 10, 2009 available at
http://www.whitehouse.gov/assets/documents/09_17_09_Interim_Report_of_Task_Force_FINAL2.pdf
(accessed May 12, 2010), Page 11 (―transportation operations…generate various forms of pollution…
modification to rivers and streams, can adversely affect the habitats of aquatic and terrestrial species.‖) and
Page 36 (―Runoff from…transportation activities…– even hundreds of miles away – negatively impacts
water quality...‖).
13
   See Marine Spatial Planning, A Step-by-Step Approach Toward Ecosystem-based Management,
UNESCO Guide No. 53, 2009, available at http://www.unesco-ioc-
marinesp.be/uploads/documentenbank/d87c0c421da4593fd93bbee1898e1d51.pdf (accessed May 12,
2010), Page 23, Box 6, and Id. at Table 8, 73-75 (also listing Marine Nature Reserves or Ecological
Reserves with no take/no access/no impact zones, Marine Wilderness Areas, Marine Parks, Marine
Monuments, Habitat/Species Management Areas, Protected Seascapes, Managed Resource Protected
Areas, Fish Spawning Areas, Fish Nursery Areas, Marine Mammal Breeding Areas, Marine Mammal
Feeding Areas, Marine Mammal Migration Routes, Marine Mammal Stopover Areas, Seabird Feeding
Areas, Sea Grass Beds, Coral Reefs, Wetlands, Protected Archeological Areas, Submerged Archeological
Sites, Ceremonial Sites, Sites for Collecting Food/Materials for Ceremonies, Taboo Areas, and Scientific
Reference Sites). For an analysis concluding that some measures, such as vessel fairway establishment and
modification and safety zone designations, may not require congressional action, see Marine Spatial
Planning in U.S. Waters, An Assessment and Analysis of Existing Legal Mechanisms, Anticipated
Barriers, and Future Opportunities, Environmental Law Institute, December 2009, available at
http://www.elistore.org/Data/products/d19_13.pdf (accessed May 12, 2010), Pages 42-43 (―The Coast
Guard’s relevant jurisdiction covers state and federal waters and beyond. It has the authority to establish
and modify vessel fairways that keep certain uses out of shipping corridors and safety zones that keep
vessels out of areas used for other purposes…the Coast Guard must consider many other uses of marine
waters, including environmental protection, and in some cases consult with officials or representatives of
those use interests…The authority…will add some flexibility in mapping to maximize marine uses and
avoid conflicts where possible—in some cases protecting other uses from shipping and in other cases
protecting shipping from other uses.‖)
14
   See Interim Report of the Interagency Ocean Policy Task Force, September 10, 2009, Pages 14-15,
available at
http://www.whitehouse.gov/assets/documents/09_17_09_Interim_Report_of_Task_Force_FINAL2.pdf
(accessed June 17, 2010) (―Decision-making will also be guided by a precautionary approach as reflected
in the Rio Declaration of 1992 which states in pertinent part, ―[w]here there are threats of serious or
irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-
effective measures to prevent environmental degradation‖…) and Interim Framework for Effective Coastal
and Marine Spatial Planning, December 9, 2009, Page 8, available at
http://www.whitehouse.gov/sites/default/files/microsites/091209-Interim-CMSP-Framework-Task-
Force.pdf (accessed June 17, 2010), (―CMSP would be guided by the precautionary approach...‖).
15
   See Marine Spatial Planning, A Step-by-Step Approach Toward Ecosystem-based Management,
UNESCO Guide No. 53, 2009, available at http://www.unesco-ioc-
marinesp.be/uploads/documentenbank/d87c0c421da4593fd93bbee1898e1d51.pdf (accessed May 12,
2010), Page 23, Box 6.
16
   Water transportation operations are subject to numerous existing state and federal environmental statutes
(and their associated regulations), including the Ocean Dumping Act, Clean Water Act, Resource
Conservation and Recovery Act, Oil Pollution Act, Emergency Planning and Community Right-To-Know
Act, Clean Air Act, Federal Insecticide, Fungicide, and Rodenticide Act, Hazardous Materials
Transportation Act, and Coastal Zone Management Act. See Profile of the Water Transportation Industry,
Sector Notebook Project, Office of Compliance, U.S. Environmental Protection Agency, Chapter V,
September 1997, Publication # EPA/310-R-97-003, SIC Code 4, available at
http://www.epa.gov/compliance/resources/publications/assistance/sectors/notebooks/watersctp2.pdf
(accessed May 25, 2010).
17
   See Marine Spatial Planning, A Step-by-Step Approach Toward Ecosystem-based Management,
UNESCO Guide No. 53, 2009, available at http://www.unesco-ioc-
marinesp.be/uploads/documentenbank/d87c0c421da4593fd93bbee1898e1d51.pdf (accessed May 12,
2010), Page 23, Box 6, Interim Report of the Interagency Ocean Policy Task Force, September 10, 2009,
Page 15, available at
http://www.whitehouse.gov/assets/documents/09_17_09_Interim_Report_of_Task_Force_FINAL2.pdf
(accessed May 12, 2010) (―Human activities that may affect ocean, coastal, and Great Lakes ecosystems
should be managed using ecosystem-based management and adaptive management, through an integrated
framework that accounts for the interdependence of the land, air, water, ice, and the interconnectedness
between human populations and these environments.‖) and Interim Framework for Effective Coastal and
Marine Spatial Planning, December 9, 2009, available at
http://www.whitehouse.gov/sites/default/files/microsites/091209-Interim-CMSP-Framework-Task-
Force.pdf (accessed May 12, 2010), Page 9 (―…the health and well-being of the Great Lakes, our coasts,
and the ocean are in large part the result of the interrelationships among land, water, air, and human
activities. Effective management of environmental health and services, maritime economies, commerce,
national and homeland security interests, and public access necessitate connecting land-based planning
efforts with ocean, coastal, and Great Lakes planning.‖)
18
   See Interim Framework for Effective Coastal and Marine Spatial Planning, December 9, 2009, available
at http://www.whitehouse.gov/sites/default/files/microsites/091209-Interim-CMSP-Framework-Task-
Force.pdf (accessed May 12, 2010), Page 29 (―The NOC…would make a determination on how best to
meet the needs identified in the capacity assessment and to support the initial regional steps through
existing mechanisms, and possibly new resources and/or funding mechanisms.‖) and Marine Spatial
Planning, A Step-by-Step Approach Toward Ecosystem-based Management, UNESCO Guide No. 53,
2009, available at http://www.unesco-ioc-
marinesp.be/uploads/documentenbank/d87c0c421da4593fd93bbee1898e1d51.pdf (accessed May 12,
2010), Page 32 (―Marine spatial planning (MSP) is not possible without adequate financial
resources…Most governments that undertake MSP have to rely on direct allocations to their budgets from
general tax revenues… Alternative financing can include…user fees…‖).
19
   U.S. Department of Transportation, Maritime Administration, U.S. Water Transportation Statistical
Snapshot, July 2009, available at
http://www.marad.dot.gov/documents/US_Water_Transportation_Statistical_snapshot.pdf (accessed May
10, 2010).

				
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