Category: Policy

Great Lakes Short Sea Shipping (try saying that fast three times)

Posted on by Rondi Watson

Steven Fisher, Executive Director of the American Great Lakes Ports Association, made the case for the value of the Great Lakes navigation system and discussed the legislative and regulatory issues posing challenges to the maritime industry at the MIC’s annual meeting on July 20, 2011.

Fisher noted that throughout the United States, road and rail congestion threaten economic growth and quality of life. Transportation planners (including the MIC) are examining how short sea shipping via the Great Lakes can ease some of the burden on the land-based transportation modes.

View Fisher’s discussion of all topics (4:39)

Safe, Cost-Effective, Environmentally Sustainable

Fisher asserted that waterborne transportation has demonstrated that it is the safest, most fuel efficient, cost-effective and environmentally sustainable mode of moving goods in the global economy. Vessels on the Great Lakes burn significantly less fuel and produce fewer emissions and have far fewer accidents than trains or trucks.

Great Lakes Harbor Dredging

Bottom line: there’s not enough money to properly dredge many Great Lakes commercial harbors.

Most ports require regular dredging to remove sand and silt that naturally accumulate in shipping channels. This work is the responsibility of the U.S. Army Corps of Engineers, but its FY 2012 budget only provides $22.4 million to dredge Great Lakes navigation channels, less than half the amount necessary.  As a result, many ports are becoming difficult for ships to navigate, and in some cases, shipping channels have become blocked and two are slated for closure.

Congress should provide adequate funds in the Fiscal Year 2012 Energy and Water Development Appropriations Bill to address the backlog of dredging projects at Great Lakes ports,

Harbor Maintenance Trust Fund and Political Gridlock

Bottom line: The money being collected from waterborne commerce is not dedicated to commercial ports.

The Harbor Maintenance Tax is a fee collected from domestic commercial cargo loaded or unloaded from vessels using US ports in order to fund the Army Corps of Engineers’ operation and maintenance activities. This includes the dredging that is needed to keep the Great Lakes ports up and running.

Despite the fact that adequate revenue (approximately $1.3 billion annually) is being collected, Congress has traditionally used about half of the fund’s money to offset general spending. Fisher noted that although there is significant support in Congress to enact legislation to ensure that funds collected for harbor maintenance are spent for their intended purpose, the current political gridlock in Washington DC is hindering the progress of this initiative.

View Fisher’s discussion of Great Lakes dredging and funding (1:16)

Aquatic Invasive Species and the Great Ships Initiative

Bottom line: there is widespread agreement in both the maritime industry and the environmental community that the best way to prevent the transfer of aquatic invasive species is to keep them off ships in the first place. For that reason, there is considerable research being done to develop technology to treat ballast water and remove or kill aquatic nuisance species.

In 2007, the Great Ships Initiative (GSI) opened the world’s first fresh water ballast treatment technology test facility, located in Superior, Wisconsin.

View Fisher’s discussion of the GSI (1:13)

Future of the Shipping Industry on the Great Lakes

Bottom line: both the US and Canada are continuing to invest in the future of the shipping industry on the Great Lakes.

The Great Lakes St. Lawrence Seaway, which is managed and operated jointly by Canada and the United States, is a unique and significant navigation route into the North American heartland for deep-draft vessels coming from the Atlantic Ocean and beyond.

Fifty years after its construction, both countries recognize that it provides important economic benefits by transporting cargoes such as grain, iron ore, and steel into and out of the Great Lakes region. Recent policy changes in Canada have spurred $400 million investment in rebuilding its Great Lakes fleet.

View Fisher’s discussion of future prospects for the GL maritime industry (1:05)

Photo credit, Laker in Duluth Canal: Minnesota Extension Service, Don Breneman

Photo credit, Laurentian Great Lakes: NOAA, Great Lakes Environmental Research Laboratory

Video editing: Brian Heaton

Roads, Trails, or Both?

Posted on by James Gittemeier, BPAC Vice-Chair

Priorities for Duluth’s Transportation System

As discussed in our previous blog, approximately $45 million in federal funds are being programmed for Duluth area transportation projects for 2012-2015.

The draft Transportation Improvement Program (TIP) spells out costs and timeframes for a total of 36 high-priority projects over four years and is now open for public comment.

Balancing the needs of all users

It seems we easily divide ourselves into those who drive versus those who ride the bus versus those who bike and so forth….an “us versus them” scenario.

Well, in reality the transportation system—and the public spaces they are a part of—are used by people in a much more complex way. You might drive to your job or to shop, but there will always be some amount of walking involved, from car to final destination and back again. You might use the sidewalks for walking from place to place, but also for stopping to talk to your neighbor in a common space. You might ride your bike down the big hill but put it on a DTA bus for the trip back up.

Looking through this lens, from the perspective of the users of the transportation system, you can see how this TIP has a major focus on how to really connect people in the safest and most efficient way possible. 

Continuing to fix the highways

Preservation work on the two major bridges is needed to refurbish the Blatnik (I-535) in 2012 and the Bong (US Highway 2) in 2014. These TIP projects not only have the highest price tags and but also will receive the most attention—yes, just when the I-35 reconstruction “megaproject” is finished, there will be several more years of high-profile road construction projects, on the bridges this time!

Improvements for those who walk, bike, or take the bus

While the highway projects are devoted solely to cars and trucks, funding is also included to provide a safe alternative to driving.  A paved pedestrian and bicycle pathway, running parallel to I-35, will connect the whole city from west  to east. The Munger Trail will eventually extend all the way to the Lakewalk by constructing short segments of a new Cross-City Trail each year. The popular Duluth Lakewalk will in turn be extended from 60th Avenue East to Highway 61, and then out to Brighton Beach up the north shore.

Funding for the Duluth Transit Authority will purchase new buses and provide operating support for both its regular route and STRIDE bus service.

And thanks to recent Complete Streets efforts in Duluth, local street projects will take into account how the roads are being used by people every day and will be designed accordingly.

The projects funded in the draft 2012-2015 Duluth area TIP balance the need to move vehicles efficiently with the needs of all people who use these public spaces, including those who utilize public transportation, those who traverse the roads by bicycle and those who are on foot.

Which makes sense to us – what do you think?

A Lot Has Changed Since 1993…Except the Federal Gas Tax

Posted on by Ron Chicka, AICP

According to MinnesotaGasPrices.com, the average statewide price this week is $3.85 per gallon and rising.

Ouch.

But how much of the price at the pump is due to federal taxes?  It may be less than you think.

The United States federal excise tax on gasoline is 18.4 cents per gallon (24.4 cents for diesel fuel)—and has remained the same since 1993.  Since it’s a flat rate (not a percentage of the price, like a sales tax), tax revenues do not rise even if gas prices do.

This means the buying power of these revenues is significantly less that it was18 years ago.  That’s like you never seeing an increase in your paycheck to match inflation…since 1993.

Estimates by the Wisconsin Transportation Development Association suggest that the federal government would need to increase the tax to at least 28 cents per gallon just to recapture the purchasing power lost to inflation since 1993.

In this era of “no new taxes” and calls for streamlining government, I know that the topic of the gas tax is a controversial one.  But as a deadline looms for the reauthorization of the federal surface transportation program, it’s no wonder that funding is such a stumbling block.

Is raising the gas tax worth it to you?

Are safe, driveable roads worth $9 a month to you?

Posted on by Ron Chicka, AICP

A large majority of Americans think spending on transportation infrastructure is important, according to a recent national poll.

It’s interesting to note, however, that the majority also opposes paying more of their own money to improve or modernize our transportation systems.

  • 80 percent believe that improving and modernizing transportation systems will boost local economies and create jobs.
  • Seventy-one percent oppose an increase in the gas tax.
  • Sixty-four percent oppose new tolls on existing roads and bridges.
  • Fifty-eight percent oppose paying a fee based on the number of miles they drive.

I can certainly sympathize with these respondents, who are feeling the pinch of a tight economy and reacting accordingly.  I know gas prices at $4.00 inspire a lot of anxiety in plenty of people, myself included.

However, my recent trip to the Transportation Development Association conference in Madison highlighted the issue of the federal gas tax that helps to build, repair and maintain a first-rate nationwide transportation infrastructure.

The gas tax is currently a flat rate of 18.4 cents per gallon – the same as it’s been since 1993. Unfortunately, prices of asphalt and other road-building materials haven’t held so steady, so the budget for keeping roads safe and efficient is approaching a breaking point.

TDA has pointed out that an increase in the federal gas tax by 10 cents per gallon would cost the average family $9 more a month.  Are faster, safer commutes and trips worth that much to you?

Or perhaps the better question is, for critical transportation infrastructure–where would you prefer the money come from?