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



IMPORTANCE TO THE U.S. ECONOMY AND NATIONAL SECURITY 



Transport by water is generally the most economical and efficient means to move goods. 

 Efficient, well managed ports and waterways benefit every American by keeping waterbome 

 commerce flowing. This, in turn, keeps shipping costs down and ultimately makes products more 

 affordable. 



The demand for waterbome cargo initiates a chain of economic activity, which 

 contributes to the overall national economy. This activity generates 15.9 million jobs throughout 

 the country and contributes $78.6 billion to the GDP. For example, with increased farm 

 production, for U.S. farmers to be competitive globally, there must be low-cost and efficient 

 marine transportation to deliver their products to overseas markets. 



Marine transportation, including ports and waterways, is vital to our national security. 

 With the recent reduction of U.S. forces and forward basing of equipment overseas, the ability to 

 rapidly deploy troops and material worldwide is even more critical. During the Gulf War, for 

 example, 95 percent of the supplies for U.S. forces went by ship. 



GLOBAL TRENDS THAT WILL AFFECT MARINE TRANSPORTATION 



Shifts in Trade Patterns 



Shifts in trade patterns will have direct impacts on shipping demand. Trade routes will 

 change in response to available labor pools and markets. As labor-intensive manufacturing 

 continues to migrate from North to South America and eastern to western Asia in search of 

 lower-cost labor, shipping from U.S. East Coast ports via the Suez Canal may become more 

 attractive than trans-Pacific routing. This could reverse the current west-to-east flow of Asian 

 imports. 



Within the United States, domestic waterbome commerce may benefit by a shift in dry 

 cargo shipments from congested highway and rail corridors to coastal waterways. Development 

 of effective intermodal interfaces could also promote domestic trade growth. For example, 

 domestic tug-barge service throughout the Great Lakes, inland waterways, and coastal ocean 

 trades, could provide an integrated water route for Canada-U.S.-Mexico trade. 



Capital Requirements 



Substantial capital investment — both private and public — in new ships, related 

 equipment, and physical intermodal infrastmcture, will be required to meet growing 

 transportation demands. New financing mechanisms will be needed to meet the unique 

 requirements of ports and waterways which do not benefit from direct public use and attention. 

 Future capital requirements and priorities must be set for the allocation of available funds. 

 Increased congestion on the interstate highway system, for example, will provide an incentive to 



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