February 2010
CMC's 2010 Connecticut Maritime
Economic Impact Study Published
The Maritime Industry in Connecticut is a crucial component of the State’s economic and cultural identity. Maritime commerce has played a key role in the State’s development. Now the maritime industry, with growth potential in the commercial, transportation, recreational, and naval commerce business sectors, is positioned to be one of the State’s driving economic engines into the future. The purpose of this report is to assess the contribution Maritime and related industries make to the overall State economy and to estimate the effect that dredging projects might have on the performance of Maritime Industries and consequently to the overall State economy.
In terms of economic potential, Connecticut is one of just 12 states with 3 or more of the 105 largest deepwater ports in the country, each with $100 million or more in annual foreign trade.
With its three deepwater ports, Connecticut has a natural advantage envied by surrounding states. Although Connecticut shares Long Island Sound with New York, commercially Connecticut is much more dependent on Long Island Sound for the movement of goods, fuel, and people. Over 90 percent of the shipping entering Long Island Sound will call on Connecticut’s ports. Examples of the interdependence and impact of the maritime industry are numerous.
Connecticut’s maritime-dependent industries, their suppliers and related economic activity (total direct, indirect, and induced effects) accounted for over $5 billion in business output within the State of Connecticut; more than 30,000 jobs; approximately $1.7 billion in household income; and $2.7 billion in State GDP.
As a consequence of these direct, indirect, and induced economic effects within the statewide economy, maritime industries annually account for over $56 million in taxes paid to local communities, $54 million in State tax revenues, and over $224 million in Federal tax revenues.
Wages within Connecticut’s maritime-dependent industries averaged nearly $63,000 per year per job in 2007. This average wage is 15 percent higher than the average wage of $55,000 reported for all jobs in Connecticut in 2007.
Click here to go to Executive Summary and Full Report - (Dated 5/18/10).
(If you have difficulty with above link,copy the following address into browser:)
http://www.ctmaritime.com/final_conn_maritime_report_051810.pdf
March 2008
CMC Supports Harbor Improvement Projects Act
SUMMARY:
This bill allows the transportation commissioner to initiate harbor improvement projects on behalf of the state, or for the state on behalf of the federal government, and creates a harbor improvement account to fund these initiatives. The bill also places responsibility for contracts for harbor improvement projects with the Department of Transportation (DOT). The bill removes financial limits on state grants-in-aid to municipalities for harbor improvement projects.
NEW HARBOR IMPROVEMENT PROJECTS:
The bill authorizes the transportation commissioner to initiate harbor improvement projects on behalf of the state, or for the state on behalf of the federal government. The bill specifies that harbor improvement projects include the preparation of plans, studies, and construction to alter or improve state, municipal, and other properties in or adjacent to Connecticut waters of, for the purpose of improving the state economy and infrastructure. The bill requires the Connecticut Maritime Commission to recommend and rank projects and submit them to the transportation commissioner. DOT must contract to provide goods and services to harbors and waterways for these projects, and fund these contracts. The commissioner may enter into agreements with other state agencies or municipalities to provide this funding. DOT must administer all contracts entered into. The contracts are subject to final negotiation regarding the scope and budget of the project. Under the bill, contract periods may vary by contract, payments must be made on a reimbursement basis no later than the dates of service of an executed contract, and appropriate documentation indicating that services have been rendered must be provided with payment requests. DOT may choose to release all or part of the funds as an upfront payment, provided funds are held in a non-interest-bearing account and spent no later than 60 days after it provides them.
HARBOR IMPROVEMENT FUND:
The bill creates the harbor improvement fund, as a separate, non-lapsing account within the General Fund. The bill specifies that deposits to the account must include (1) the proceeds of notes, bonds, or other obligations issued by the state for the purpose of harbor improvement or dredging project; (2) funds appropriated by the General Assembly for harbor improvement or dredging project; (3) any other funds required or permitted by law. The commissioner must use the account to fund harbor improvement projects he or she initiated and for federal dredging projects. Funds used for the latter must (1) support, in full or in part, local or state matching requirements; (2) cover incremental costs for environmental regulatory requirements or management practices, including beneficial use; or (3) cover all of part of the costs where federal funds are inadequate. If the account is used to cover inadequate federal funds, the commissioner must pursue reimbursement from the federal government.
REMOVAL OF SPENDING LIMITS:
The bill removes two financial restrictions on the state's grants-in-aid to municipalities for harbor improvement projects: (1) a per-project cap of two thirds of the net cost of the project as approved by the commissioner and (2) a $ 1 million limit on the total allowable state funding per municipality.
February 2006
CMC Adopts State of Connecticut Maritime Policy
PURPOSE:
The State of Connecticut is committed to recapture Connecticut’s Maritime Heritage of Product and Passenger Transportation. Long Island Sound should be viewed as a huge sheet of underutilized transportation infrastructure. It could be used, as it once was, for the movement of both persons and goods. Coordinated marketing of the capacity of Connecticut’s deep-water ports to expand niche connections with cargo sources is a critical link to the Sound. The creation of inter-modal sea-land transportation hubs that enable existing and emerging coastline vehicular choke points to be bypassed will support the overall transportation strategy of the State.
Maximizing the potential of coastal traffic lanes must be accomplished within the relatively protective environs of Long Island Sound. One of the most challenging environmental issues related to port viability is maintaining accessibility; i.e., dredging and sediment management. Although the focus will be on the three deepwater ports of Bridgeport, New Haven, and New London, dredging and economic development issues apply to all ports and waterways in Connecticut.
DREDGING AND SEDIMENT MANAGEMENT:
Dredging Priorities: The degree of accessibility to Connecticut ports and waterways is controlled by the depth of the navigation channels. Most, if not all of the ports’ channels have unauthorized depth established by Congress. It is the responsibility of the U. S. Army Corps of Engineers (ACE) to maintain these depths. The authorized depth of a channel is commonly referred to as the controlled project depth. The ACE receives funds from Congress for specific projects. Congress does not provided the ACE with funding for all of the project needs within any specific fiscal year, thus priorities must be established.
It is the policy of the State that maintenance dredging of the channels in Connecticut ports, harbors, and waterways to the federally authorized project depth is the top maritime priority. The State can ill afford to lose existing commercial and recreational activities within its ports and harbors due to reduced channel clearance caused by naturally occurring shoaling. The highest priority is to maintain the channel depth at the State’s three largest commercial ports: Bridgeport, New Haven, and New London, but not to the exclusion of maintaining the smaller commercial and recreational ports and waterways along the coast of Connecticut. Funds for maintenance dredging must and will be aggressively sought from Congress. The State will develop and maintain a capital program as necessary and actively assist in facilitating the regulatory process for State approval of Federal maintenance dredging projects. The need for deepening existing channels will be considered in coordination with expanding economic development plans for any given port. Privately maintained channels that feed into federally supported channels are also important, particularly to the recreational use of Connecticut’s waterways. State support of these non-federally designated channels will be provided as time and money will allow.
PERMIT PROCESS:
Any dredging project requires permits and authorizations from various State and Federal agencies. A key consideration for obtaining a permit is the disposal of the sediment to be removed from the channel. Sediment management in Long Island Sound is subject to and complicated by the Federal Marine Protection, Research and Sanctuaries Act, commonly known as the Ocean Dumping Act (ODA), which promulgates detailed Federal regulations for open water disposal of dredged sediments. The U.S. Environmental Protection Agency (EPA) has designated the Western Long Island Sound and Central Long Island Sound dredged sediment disposal sites pursuant to the ODA. EPA needs to complete the site designation process for the Eastern Long Island Sound. However, future use of these sites for disposal is conditioned upon the U.S. Army Corps of Engineers (acting in coordination with the EPA, the States of New York and Connecticut) preparing a comprehensive dredge material management plan (DMMP) for Long Island Sound. Preparation of the DMMP is crucial to the ability to maintain Connecticut's ports and waterways for two reasons: (1) EPA has put an eight-year time limit on preparation of the DMMP, and (2) many of Connecticut's ports and waterways will need to be dredged within the eight-year time period if the ports served are to remain viable.
It is the policy of the State to work with the Connecticut Congressional delegation to aggressively seek federal funds necessary for the preparation and implementation of the DMMP as well as funding for all Federal maintenance dredging projects needed in Connecticut.
It is the policy of the State to establish a long-range schedule of priorities for continued maintenance dredging for Connecticut ports, harbors, and waterways. Sedimentation rates and past maintenance dredging requirements for many waterways are well established.
Dredging projects need to be routinely scheduled based on the data and well enough in advance to obtain the necessary funding.
It is the policy of the State to compile information from all stakeholders on the need to increase the authorized project depth of any Connecticut port. The need will be primarily driven by expanding economic development and the real need to accommodate larger vessels. However, changes in technology, commercial vessel size, and factors related to safety and security will also be critical factors.
ECONOMIC DEVELOPMENT:
Economic development of the Connecticut ports has several important factors. Accessibility to the ports by water is the most important factor as described above. However, accessibility to the ports by land is also critical to the moving of goods and people from the waterfront to the commercial distribution system. Steps need be taken to leverage the State’s port and rail infrastructure for freight. Similarly, steps need to be taken to initiate or expand high-speed passenger ferry service on both an inter-state and intra-state basis.
It is the policy of the State to promote and support projects that will facilitate the intermodal connection of water, rail, and highway systems. Incentives will be developed and provided to encourage private-public maritime investment projects that will facilitate interstate and intrastate freight movement between hub/marshalling centers. Coordinated marketing of the capacity of Connecticut’s ports, particularly the deep-water ports to expand niche connections with cargo sources, will be conducted by the appropriate State agencies. Port-related land use policies that fully transform coastal industrial sites into inter-modal sea-land transportation hubs will be introduced. Similar marketing and land use policies will be introduced for the smaller ports and the passenger transportation system.
It is the policy of the State to promote competitive passenger movement options between high-density population centers. Persons traveling along the Sound would bypass congested highways. However, ferries operating between Connecticut ports or from Connecticut ports to New York ports need to interface with land-based modes of transportation. Like the issues of moving goods, the State will promote and support projects that will support inter-modal connection of water, rail, bus and highway systems in cooperation with the industry, utilizing public-private resources.
It is the policy of the State to promote the recreational use of Connecticut’s ports and harbors which provide additional economic benefits. Reduced access to Long Island Sound due to the shoaling of channels would have a significant impact on the State’s boating and tourist industries.
July 2005
CMC Policy Group Assist the Development
of New Maritime Commission
Connecticut Maritime Commission: Mission
The Connecticut Maritime Commission is the primary body within the State of Connecticut to develop and recommend maritime policy to the Governor and the General Assembly. It is responsible for developing and updating a long-term strategic plan for all ports and waterways in the State of Connecticut with a focus on the three deep water ports. Within its purview, the Connecticut Maritime Commission will review, recommend and develop policies as they relate to the maritime sector and Public Act No.04-143. The maritime policy will address issues concerning the maritime sector, related industries and port infrastructure (public and private).
For additional information Please Contact:
Chuck Beck
Transportation Maritime Manager
Connecticut Department of Transportation
2800 Berlin Turnpike
Newington, CT 06131
Phone:(860) 594-2550
Fax: (860) 594-2574
E-mail:charles.beck@po.state.ct.us
May 2002
Connecticut’s Ports: Transportation Centers
for People and Goods
by Joan Yim, Parsons Brinkerhoff
Follow this link CMC: Stats and Studies to
download Executive Summary and the complete report.
EXECUTIVE SUMMARY:
The
Connecticut Maritime Coalition is a non-profit association of over 30
businesses and organizations working to facilitate the competitiveness
of Connecticut’s maritime industries. In March of 2002, the Coalition contracted with Parsons
Brinckerhoff to review the numerous studies, articles and reports
addressing Connecticut’s maritime cluster and to recommend actions
to improve the public’s understanding of the maritime industry and
its importance to the State’s transportation system. The report’s focus is on the ports in Bridgeport, New Haven
and New London. Funding for this report was made available through a
grant from the Connecticut Department of Economic and Community
Development, in partnership with the Connecticut Economic Resource
Center.
THE REPORT NOTES THAT:
- In
1997, the maritime industry cluster accounted for 349 businesses,
12,225 jobs, with and aggregate sales of $2.61 billion;
- In
2000, Connecticut’s ports handled 19.2 million short tons of
cargo representing a 12.5% increase over the previous year; of
this total, 16.6 million short tons were handled at the three
major ports of Bridgeport, New Haven and New London; and
- In
a 2000 survey of ferry operators, it was determined that of the 4
major operators reporting annual figures to the Federal Highway
Administration, there were over 2.1 million passenger boardings
and nearly 852,000 vehicle boardings of ferries servicing
Connecticut’s ports.
The
report further notes that Connecticut’s three major ports are “niche”
ports handling bulk products such as petroleum and sand and gravel and
breakbulk cargo such as bananas and fruits. Connecticut’s ports are found to have many of the attributes
of successful niche ports and opportunities for growth are considered.
Key
challenges facing the ports are identified. These include the required periodic maintenance dredging of
navigation channels to support safe passage of vessels and to retain a
cost-competitive advantage for the ports. Another most pressing challenge includes the need to be
prepared for Federal port security requirements that are likely to be
enacted by Congress in this year.
In
general, the report concludes that the three major ports, taken as a
whole, provide a diversity of facilities and services, which is
critical to attracting cargo, maintaining support services for
vessels, expanding landside intermodal business, providing access for
essential bulk materials, and supporting environmental benefits to the
State.
The
following table identifies the report’s key findings and
recommendations.
Summary of
Findings and Recommendations
|
| The Ports
of Connecticut and, in fact, the entire cluster of maritime
industries, contribute to the overall economic well being of the
State of Connecticut and its residents.
|
An “umbrella”
state maritime policy should be developed to set the context for
growth strategies and coordinated actions to achieve them.
|
| The Ports of Connecticut are critical
links in the intermodal movement of goods and people to and from
the State, within the region, and internationally as well.
|
|
| The Ports of Connecticut are “niche”
ports which have a significant number of positive attributes
typically associated with successful niche ports; building on
these strengths, the ports have realistic opportunities for
growth through increasing tonnage of current cargo, attracting
new cargo and customers, and diversifying port operations in
conjunction with other ports.
|
A market
study of goods movement demand into and out of the State needs
to be undertaken for a baseline planning year that will be used
to identify near-term, mid-term, and long-term growth scenarios.
|
| Those Ports of Connecticut with ferry
terminals are part of an intermodal system to move people and
goods, which are positioned for expansion should user demand and
government policies support new locations and expanded
facilities for new vessels such as high-speed ferries.
|
An
in-depth ferry system demand survey and analysis should be
conducted including variables related to speed of vessels, types
of services, operating schedules, and origin and destination
preferences.
|
| The Ports of Connecticut require
periodic dredging to provide safe navigation channels and to
support cost-competitive shipping important to the state’s
economy.
|
|
| The Ports of Connecticut include two
critical national seaports, the controlled access port of New
London/Groton and the strategically important fuel oil terminal
at New Haven elevating the importance of implementing security
measures at these ports. Bridgeport
is also critical to meeting the State’s need for waterborne
commerce and petroleum supplies.
|
A lead “homeland
security” agency at the State level should interact with the
ports and Federal agencies in assuring that all public and
private terminals are prepared to comply with expected new
Federal requirements.
|
|
