This white paper, entitled California Marine Transportation System Infrastructure Needs, focuses on the economic significance of the ports and supporting inland transport systems in California. The report identifies critical MTS infrastructure projects required to maintain economic growth, protect the environment and to promote homeland security. The document represents a collaborative effort of the Northern California Marine Transportation System Advisory Council (NORCAL-MTSAC), the Southern California Marine Transportation System Advisory Council (SOCAL-MTSAC), and the California Marine and Intermodal Transportation System Advisory Council (CALMITSAC).
California is the single largest trading entity in the United States. Waterborne commerce through California’s ports accounts for 40% of the national total. Three of the four largest container ports (based on volume) in the country are located in California (Los Angeles, Long Beach and Oakland). The value of trade through the Los Angeles, San Francisco and San Diego Customs Districts was $392 billion in the year 2000. The ability to move cargo efficiently through the ports of California is crucial to the overall economic vitality of the state and the nation. The rest of the U.S. depends on this network, particularly for access to the Pacific Rim. For example, 60 percent of the imported cargo consumed in the Chicago area flows through the Ports of Los Angeles and Long Beach. Approximately 35% of all U.S. waterborne containers move through the San Pedro Bay Ports, with an estimated cargo value of nearly $200 billion.
The inherent trade advantages enjoyed by California, and by extension the United States, could be negated if we do not make a concerted statewide effort to maintain, enhance, modernize and expand the base of port facilities and services at California ports.
The importance of maritime commerce was dramatically illustrated by the 10-day lock-out of west coast ports in September and October of 2002. It has been estimated that the combined 10-day lockout and 23-day backlog disrupted trade valued at $6.28 billion just at the Ports of Long Beach/Los Angeles. Severe terminal, highway or railway capacity constraints can have the same economic effects as the lockout we just experienced. Transport delays will impact the cost of doing business, the environment, and our nation’s ability to compete internationally.
The MTS community in California urges Congress and the Administration to acknowledge the vital role played by goods movement in general and the MTS in particular. In 2003, Congress will establish successor legislation to the Transportation Equity Act for the 21st Century (TEA-21). This report will serve as a framework for dialogue with state and federal agencies, the state Legislature and Congress, with the objective of establishing project funding for MTS infrastructure and security in the new legislation (hereinafter referred to as TEA-3). At the very least, TEA-3 should affirm a national policy, backed up with a commensurate commitment of resources, to enhance the physical infrastructure and operational efficiencies that support the MTS.
As national assets, MTS projects should be entitled to receive direct program funding from dedicated sources that is made available in TEA-3 legislation. The U.S. Government should establish specific programs and mechanisms to meet the needs of the MTS. These programs should be considered investments, not simply grants.
While the economic impacts of ports are positive and widespread, the negative aspects of port operations (e.g. port-generated traffic, noise, wear on local streets, environmental degradation, etc.) are felt locally. TEA-3 should include a “good neighbor policy” that articulates sensitivity to adverse impacts on nearby communities, environmental systems, waterfront access, and quality of life. TEA-3 should provide additional funding earmarked to help local agencies mitigate adverse local impacts derived from MTS project expansion and increases in global trade.
The events of September 11, 2001 highlighted a need to be able to respond quickly to national emergencies. The TEA-3 legislation should affirm by policy that improving access to ports is in the national interest and is the highest-priority transportation objective consistent with goals of assuring safety and national security.
This report identifies recommended MTS infrastructure projects in California. The total magnitude of need in California is $23.7 billion ($7.2 billion in Northern California and $16.5 billion in Southern California.) It should be emphasized that these are needs. The figure does not represent the amount of federal funding requested. The detailed projects listed in the appendices of the report cover a broad range of modes and facilities serving California’s MTS. There a four categories of projects included in the lists: planning, waterside, terminal, and land-side access projects, and are organized by near-term (0 to 5 years), mid-term (5 to 10 years), and long-term needs (greater than 10 years). Of the projects included in the appendices, high-priority projects by region are identified in Tables I and II, below.
Funding
Without adequate funding for MTS infrastructure projects, economic growth, environmental quality, and homeland security are threatened. Therefore, consideration should be given to establishing a dedicated funding source for the MTS. Additional funding recommendations are listed below.
1. Reauthorize the firewalls provided for in TEA-21 to ensure that the funds collected are used for their dedicated purpose and not for deficit reduction, and make every effort to spend down existing balances in the Highway Trust Fund and assure that future funds are spent in a timely fashion.
2. Dedicate funds for National Highway System connectors to intermodal freight facilities.*
3. Significantly increase funds for an expanded corridor/border and gateway program. *
4. Increase funding and promote the use of the Congestion Mitigation and Air Quality Improvement Program (CMAQ) for freight projects that reduce congestion and improve air quality.*
5. Continue the Transportation Security Administration Ports Security Program on an annual basis with a sufficient amount of funds from the General Fund.
6. Increase funding for the Commercial Vehicle Operations Program.
7. Restore equal taxation of gasohol with that of gasoline and redirect gasohol tax revenues to the Highway Trust Fund with some portion dedicated to goods movement improvements.
8. Credit all interest earned on the fund balances in the Highway Trust Fund directly to the trust fund.
9. Increase funding for the Section 130 grade crossing program.
10. Increase funding for the Railroad Rehabilitation and Improvement Financing (RRIF) program and remove overly restrictive regulatory requirements that have hindered program implementation.
Other new sources of funding should be seriously considered and evaluated with respect to their impacts on the goods movement industry, including:
The Transportation Finance Corporation proposed by AASTHO
The federal gas tax increase proposed by ARTBA
The Railroad Trust Fund proposed by Congressman William Lipinski
The Freight and Intermodal Transportation Fund proposed by California State Senator Betty Karnette
SUMMARY
Three core messages from this document should be conveyed to California’s legislative delegation in Washington, D.C.
1. The flow of goods to and from California ports and along associated inland transportation corridors must be recognized for the huge economic benefit it brings to the producers, manufacturers, transporters and consumers of those goods throughout the entire nation.
2. Given the magnitude of this flow of goods, Congress must establish viable funding sources that will allow the goods movement infrastructure to keep pace with the steadily increasing growth of this sector. This may entail the creation of new sources of funds given that existing funding programs are already oversubscribed and/or dedicated.
3. The funding needs of the MTS in California are great and cover a broad range of modes and facilities. The total funding need for the recommended MTS projects in California is $23.7 billion ($7.2 billion in Northern California and $16.5 billion in Southern California.) As shown in Tables I and II, within this comprehensive infrastructure program, the MTS Advisory Councils in Northern California and Southern California have identified high-priority projects costing $716 million and $3,850 million, respectively.
Table I: Northern California High-Priority MTS Infrastructure Needs
PROJECT LOCATION, DESCRIPTION / COST ESTIMATE ($000) |
Metropolitan Community Portal / $10,000 Physical Oceanographic Real Time System (PORTS) / $700 Bay Area Transportation Plan Update: Goods Movement Study / $750 LTMS Environmental Windows Study / $2,700 Oakland Harbor Improvements / $293,000 · -50’ Channel Deepening 1 · Associated berth deepening & wharf upgrades Port of Oakland Maritime Security / $55,000 · Worker ID System · Terminal Traffic controls · Surveillance & Monitoring · Utility upgrades; Security lighting Port of Oakland Street Improvements / $10,000 · Maritime St. Realignment · 7th St. grade separation · Air cargo access road Oakland-Stockton Inland Port rail shuttle (CIRIS) · Capital Expenses / $36,000 · Operating expense (6 yrs) / $12,000 Port of San Francisco Security Improvements / $72,000 Port of San Francisco Terminal & Pier Improvements · Pier 45 Truck Access Improvements / $5,000 · Pier 35 Seismic Strengthening and shed upgrades / $22,000 Port of San Francisco Road & Rail Improvements · Illinois St. Bridge and Port Rail Improvements / $32,000 · Amador St. Transportation Corridor Improvements / $30,000 Port of Stockton Multiple Terminal Renovations / $52,000 Port of Stockton Channel Deepening / $68,000 Port of Sacramento Southport Road Reconstruction / $11,000 Port of Sacramento container Barge Feasibility Study / $600 Port of Richmond Multiple Terminals Renovations and Seismic Retrofits / $3,000 |
TOTAL – NORTHERN CALIFORNIA HIGH-PRIORITY PROJECTS - $715,750 |
Table II: Southern California High-Priority MTS Infrastructure Needs
PROJECT LOCATION/ DESCRIPTION |
Gerald Desmond Bridge Replacement/I-710 Corridor Project / $605,000 I-710 Corridor/Gerald Desmond Bridge Gateway Program: Interchanges with I-5, I-405, SR 91 & Arterial Streets / $1,609,000 Near- and off-dock Rail Yard Expansion / $400,000 Port of Hueneme Security Enhancements / $660 Ports of Los Angeles and Long Beach Security Programs / $70,000 POLB Alameda Corridor/Pier B Street Railyard Expansion / $67,000 POLB Alameda Corridor Terminus/Port Rail Mainline System / $19,400 Port of San Diego TAMT Intermodal Viaduct / $138,000 Port of San Diego 28th Street Intermodal Access / $22,000 Alameda Corridor-East Construction Authority Phase I Grade Separations / $401,200 OnTrac: Grade Separations of Melrose Street and Placentia Avenue and closure of Bradford Street / $40,500 OnTrac: Orange County Gateway Project (8 grade separations or trench) / $477,200 |
TOTAL – SOUTHERN CALIFORNIA HIGH-PRIORITY PROJECTS - $3,849,960 |
Go to: California MTS Infrastructure Needs - Full Report
Appendix 1 - Northern Calif MTS Infrastructure Needs (Word doc)
Appendix 2 - Southern Calif MTS Infrastructure Needs (Word doc)
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