THE JONES ACT: A COMMERCIAL AND PUBLIC POLICY SUCCESS
International Propeller Club of the United States RIVERS OF TRADE: LINKING AMERICA'S HEARTLAND TO THE WORLD Darrell Conner Government Affairs Counselor, K&L Gates LLP
[email protected] Phone: 202-661-6220
A Commercial & Public Policy Success
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Economic Impact
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National Security
“It is the sense of Congress that United States coastwise trade laws promote a strong domestic trade maritime industry, which supports the national security and economic vitality of the United States and the efficient operation of the United States transportation system.”
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Homeland Security “The task of securing U.S. seaports and foreign cargoes is daunting by itself. …Were the Jones Act not in existence, DHS would be confronted by the difficult and very costly task of monitoring, regulating, and overseeing all foreigncontrolled, foreign-crewed vessels in internal U.S. waters.” Dr. Daniel Goure, October 2011
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Domestic Industry Growing Crude oil revolution continues to explode
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Changing Transportation Needs “What has happened in shale plays across the country has stood the transportation network on its ear.”
Richard Kinder CEO and Chairman of the Board
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Significant Increases in CBR
2012
2013
2011
2010 2009 2008
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New Opportunities Gulf to USAC
Mbbls
Midwest to Gulf
Mbbls
9000
40000
8000
35000
7000
30000
6000 25000 5000 20000 4000 15000
3000
10000
2000
5000
1000 0
0 2008
2009
2010
2011
2012
2013
2008
2009
2010
2011
2012
2013 Source: EIA
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Shipbuilding Boom
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Tanker/ATB Construction Surge Carrier
Shipyard
Order
SeaRiver Maritime, Inc.
Aker Philadelphia
Two 115,000 DWT product tankers
American Petroleum Tankers
General Dynamics NASSCO Five 50,000 DWT LNG-conversion-ready product tankers with 330,000 barrel capacity Aker Philadelphia Four 50,000 DWT product tankers with 330,000 barrel capacity
2015/2017
Seabulk Tankers, Inc.
General Dynamics NASSCO Three 50,000 DWT product tankers with 330,000 barrel capacity
2015
Bouchard Transportation Co., Inc.
VT Halter Marine, Inc.
2015
Kirby Offshore Marine
Gunderson Marine
Moran Towing Corp.
Bay Shipbuilding Company Two 150,000 barrel and one 110,000 barrel capacity articulated tug barges Donjon Shipbuilding One 185,000 barrel capacity articulated tug barge Aker Philadelphia Two 50,000 DWT LNG-conversion- ready product tankers
Crowley Maritime Corp.
Seabulk Tankers, Inc. Philly Tankers Kirby Corporation
Two 250,000 barrel capacity articulated tug barges Two 185,000 barrel capacity articulated oceangoing oil and chemical tank barge
Bay Shipbuilding Company Two 155,000 barrel capacity articulated oceangoing oil and chemical tank barge
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Est. Delivery
2014
2015
2015 2015 2016 2016/2017 2016/2017
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Inland Tank Barges In 2013, 336 inland tank barges were delivered, collectively adding 8,210,500 barrels of capacity.
Number of Vessels
Recent Deliveries by Year
# Delivered in 2013
Capacity (bbls)
400
241
30,000
300
1
20,000
1
17,500
1
17,000
100
1
16,000
0
91
10,000
200
2011
2012
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2013
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The Big Myth Comparing Foreign Flag to U.S. Flag Vessels is Comparing Apples to Oranges!
Governed by Domestic Laws
Governed by Flag State
DOMESTIC
INTERNATIONAL
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Jones Act Support Runs Deep
“This is a very exciting time for American maritime…I appreciate the many benefits of Jones Act and this vibrant homegrown American industry.” – House Transportation Committee Chairman Bill Shuster (RPennsylvania).
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“My boss is on the record supporting the Jones Act, and so am I,” Transportation Secretary Anthony Foxx
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A Public Policy Success Supports U.S. economic, homeland and national security at no cost to government Ensures domestic defense shipyard industrial base Sustains a pool of skilled mariners essential to national security
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American Maritime Today
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QUESTIONS Darrell Conner Government Affairs Counselor
[email protected] Phone: 202-661-6220