Marad Rule Expands Marine Highway Concept

The Maritime Administration’s final rule establishing its Marine Highway program broadens the concept from earlier proposals, in ways that could add more port facilities and types of cargo that relieve congestion on land.

Marad said its new rule, announced Wednesday and slated to be published in the Federal Register on April 8, makes clear that a range of water shipments of truck- and rail-hauled cargoes plus passenger movements will qualify in its program.

It rejected requests to broaden program definitions to include bulk, breakbulk and heavy-lift cargo. Marad said that was beyond the original scope of using marine highways to carry intermodal containers and wheeled equipment, which is generally seen as taking truck-hauled containers and trailers off congested landside routes for part of their trip.

But it specified that the program will also include rail ferries and “car floats” that put railcars on barges equipped with track sections. That allows vessels to move a limited number of freight cars across a harbor area, for instance, instead of moving them through the regular rail network or by shifting their loads to trucks.

Marad also rebuffed a suggestion, contained in comments responding to the proposed rule it offered in October 2008, that marine highways should be limited to operations that can eventually pay for themselves. “A path to profitability alone does not establish a rationale for governmental involvement in the project,” it said, as the decision should “be based on the potential to produce public benefits” that include cutting air pollution along congested land routes.

It also clarified that short-distance marine “connectors” and “crossings” that help land facilities link to larger waterways or cross harbors will qualify for help in the program, which some commenters had sought as a way to include more port areas.

Marad’s new rule does not include financial incentives to boost the use of marine highway, which were sought by many who submitted comments. But Transportation Secretary Ray LaHood said in a speech Wednesday that qualifying projects will be aided not only by targeted Marad funds but also by broader discretionary grant programs.

See also “DOT Launches Formal Marine Highway Program”

Contact John D. Boyd at jboyd@joc.com.