exists. 30 Sea Point service was developed as a container transshipment terminal in Venice,Louisiana, with plans to provide an alternative to west coast ports. Through these feederoperations, containers move into south Louisiana and are transshipped on COB to “MiddleAmerica”(defined on their route map to include the Gulf Coast and the Mississippi Riverbasin.) The Sea Point business plan consisted <strong>of</strong> <strong>of</strong>fering the shipper a trade<strong>of</strong>f between thesavings on inland transportation costs using barges and the added time required for “all watertransit”.31 The Port <strong>of</strong> Baton Rouge had promoted COB service as the preferred alternativefor container movements to the Gulf and Midwest states. 32West Coast Corridor Feeder Service ProspectsUnlike the East Coast, the prospects for a viable feeder service on the West Coast have beenconsidered dim by some because <strong>of</strong> labor issues, and lack <strong>of</strong> port density and minimal freightvolumes along the north-south cargo routes. A recent study conducted at the University <strong>of</strong>Southern California (USC) study has concluded that a RoRo feeder services on the WestCoast would be a viable option and possibly instrumental in alleviating congestion at thethree “mega-ports” <strong>of</strong> Los Angeles-Long Beach (LA/LB), San Francisco-Oakland, andSeattle-Tacoma. The study evaluated opportunities for re-directing empty container flows tosecondary ports, and for feedering and transloading the movement <strong>of</strong> international containersto and from the manufacturing areas on the U.S.-Mexico border. The study evaluated thetype <strong>of</strong> maritime and port operation best suited for these market segments, and determinedthat RoRo SSS vessels are most suitable for initial operations. This study also argued infavor <strong>of</strong> the establishment <strong>of</strong> regional port systems to provide an appropriate institutionalapparatus for the coordination <strong>of</strong> public and private investments in SSS. 33 The study foundthe feeder port concept feasible for RoRo services that require the movement <strong>of</strong> container-on-chassis/tractor-trailers. Because RoRo service can move the local export and importcontainers and international empty boxes within the regional port transload system, terminalhandlingcosts are avoided since they require only loading and unloading ramps. The studyidentified significant congestion and air quality benefits from a feeder port system comparedto the current pricing strategies implemented for relieving port congestion (e.g., PierPass feescharged trucking services for peak hour container pickup.) Pricing measures such asPierPass have the effect <strong>of</strong> shifting traffic in time. The impact <strong>of</strong> a feeder service, the studyconcluded, would be to shift traffic in place by strengthening container handling capacity atsmaller ports such as San Diego, Port Hueneme, Stockton, and Sacramento in California andports <strong>of</strong> Portland and Vancouver in Oregon. Figure 18 depicts the envisioned West Coastfeeder port service.30 As pointed out by Mr. James Pugh, MARAD, in comments sent on September 22, 2009.31 Sea Point website, http://sea-point.net/container/.32 Port <strong>of</strong> Baton Rouge website, http://www.portgbr.com/content.php?display=container.33 Le-Griffin and Moore, “Potential Impact <strong>of</strong> Short Sea Shipping in the Southern California Region”,University <strong>of</strong> Southern California (USC), Department <strong>of</strong> Civil and Environmental Engineering, <strong>Research</strong>Project Report, METRANS Project 65-A0047, February, 2006.ONR SSS Final Report 30
Figure 18 – Envisioned West Coast SSS Feeder Service CorridorSource: Le-Griffin and Moore, USC, February, 2006.To summarize, Section 2-1 described the existing SSS markets, as identified by MARAD infive key corridors served by about 16 carriers. Section 2-2 identified 3 prototype SSSmarkets: Inland Tug-Barge markets, Coastal/Great Lakes RoRo and Fast Ferry markets, andthe Coastal Feeder Network, showing that:• The traditional tug-barge service and new ATBs serve an important niche market for lowmargin,low priority shipments, and that they should remain a core market for SSSservice;• The Coastal and Great Lakes services need to be augmented by the service <strong>of</strong> a morerobust self-propelled fleet <strong>of</strong> vessels for RoRo, LoLo, and break-bulk service; thissegment has not been able to be sustained given the high costs <strong>of</strong> stevedoring services,short shipment distances that make competition with the trucks more difficult, andabsence <strong>of</strong> mass cargo volumes;• The Coastal container feeder markets have yet to be developed; they <strong>of</strong>fer the greatestpotential for incremental improvements in serving congested and capacity constrainedcoastal corridors for delivery <strong>of</strong> import containers.To assess the extent to which SSS services in these markets are potentially sustainable, and toidentify the factors that would make SSS a viable alternative for moving freight, accuratecost and operational data are needed. Many <strong>of</strong> the companies that in the past have beenactive are no longer in business, partly because <strong>of</strong> the current economic downturn.Operational data are currently lacking, partly because <strong>of</strong> the privately- held nature <strong>of</strong> thebusinesses. Sections 3 through 5 will attempt to provide a better understanding <strong>of</strong> theeconomic performance <strong>of</strong> these SSS operations.ONR SSS Final Report 31