1998 Year of the Ocean The U.S. Marine Transportation System 



completed in a timely and cost-effective manner, some major ports could lose business to other 

 U.S. or non-U. S. ports. 



To exploit fully the cost efficiencies of the new "mega" ships, large carriers will limit 

 vessel calls to major load center ("hub") ports. Some hub ports exist today, but by 2020, they 

 will become the preferred distribution points on high-volume trade routes fed by domestic 

 coastal "relay" operations. Smaller ports will take on a new role as they become part of a 

 network of coastal trade facilities. 



The deployment of larger ships will increase dredging concerns — ^both the physical 

 capability to handle large ships and the environmentally sound and cost-effective disposal of 

 dredged material. Large vessels (6,000 twenty-foot equivalent units (TEUs)) require a minimum 

 channel depth of 15 meters (49 feet), increasing only marginally to 15.3-15.5 meters (to 51 feet) 

 for 8,000-10,000 TEU ships. 



In addition to the growth in trade, environmental concerns and a need to relieve road and 

 rail congestion will drive coastwise expansion of markets for movement of freight and 

 passengers. 



Shipbuilding and Repair 



The United States shipbuilding and repair industry is an aggregate of more than 280 

 privately owned facilities. These facilities are located in more than 150 cities, in 30 states and 

 Puerto Rico. Eighteen of the U.S. facilities comprise the Major Shipbuilding Base (MSB). The 

 MSB includes shipyards having at least one shipbuilding position consisting of an inclined way, 

 a launching platform, or a building basin capable of accommodating a vessel of at least 122 

 meters in length. With few exceptions, these shipbuilding facilities are also major repair facilities 

 with drydocking capability. As of January 1, 1997, the total production workforce in the MSB 

 was 34,591 — of which 3,974 were engaged in constructing vessels for commercial operations. 

 Second-tier shipyards, comprised of small or medium size facilities, engage primarily in the 

 construction of vessels for use on the inland and coastal waterways as well as for foreign 

 markets. 



Around 2020, shipyards will begin building vessels to replace those being built today. 

 Sufficient capacity will be available. The integration of ship design and production processes, 

 and the use of robotics and electronically controlled assembly will result in more efficient, cost- 

 effective and timely ship construction. While Far East shipyards will continue to dominate 

 shipbuilding, Japan and South Korea are expected to be less dominant, as China, India, Malaysia 

 and Singapore capture increased market share. Pacific Rim shipyards are also expected to enter 

 markets for more sophisticated vessels. 



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