Local Port Perspectives on Local Port Perspectives on Roles for State DOTRoles for State DOT

Ken Canter, President

Kentucky Association of Riverports

NWC Annual Meeting – Mobile, AL 11/18/07

General Outline for TodayGeneral Outline for Today

Paducah-McCracken County RiverportPaducah-McCracken County Riverport Kentucky Association of Riverports (KAR)Kentucky Association of Riverports (KAR) Kentucky Riverport Improvement ProjectKentucky Riverport Improvement Project Project GoalsProject Goals General ApproachGeneral Approach RecommendationsRecommendations StatusStatus

Paducah-McCracken County RiverportPaducah-McCracken County Riverport

The TSA Grant was used to make the Riverport The TSA Grant was used to make the Riverport and our country more secure.and our country more secure.

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Kentucky Association of Riverports

Operating Ports1. Hickman-Fulton County Riverport

Authority2. Paducah-McCracken County

Riverport 3. Henderson County Riverport 4. Owensboro Riverport Authority5. Louisville-Jefferson County Riverport

Authority6. Greenup-Boyd County Riverport

Authority7. Eddyville Riverport & Industrial Dev.

Authority

Developing Ports 8. Wickliffe-Ballard County Port

Authority 9. Marshall County-Calvert

Riverport Authority 10. Meade County Riverport 11. Maysville-Mason County Port

Authority

Kentucky Riverport Improvement Project

Kentucky Riverports Improvement ProjectKentucky Riverports Improvement Project

Initiated by KYTC Initiated by KYTC

to conduct a study of the commonwealth’s riverports and to conduct a study of the commonwealth’s riverports and

to investigate the roles and responsibilities that other states to investigate the roles and responsibilities that other states have taken to capture the benefits of their inland waterway have taken to capture the benefits of their inland waterway system. system.

Project ObjectivesProject Objectives

Accelerate growth of Kentucky ports Identify new markets Develop new, efficient, economical operations Identify infrastructure needs Define roles for Kentucky state government Develop state-level programs to enhance

competitiveness of Kentucky Riverports

For several years, the Kentucky riverports were under the For several years, the Kentucky riverports were under the jurisdiction of the Kentucky Port and River Development jurisdiction of the Kentucky Port and River Development Commission that was part of the Cabinet for Economic Commission that was part of the Cabinet for Economic Development. The Commission was abolished in 1992 and Development. The Commission was abolished in 1992 and the commonwealth’s interest in ports was transferred to the commonwealth’s interest in ports was transferred to the Transportation Cabinet in 1998. the Transportation Cabinet in 1998.

Many of the states, including Kentucky, that are served by Many of the states, including Kentucky, that are served by riverports are prohibited by their constitutions to spend riverports are prohibited by their constitutions to spend revenues derived from fuel taxes on any program except revenues derived from fuel taxes on any program except highways and bridges. This constitutional provision greatly highways and bridges. This constitutional provision greatly limits the source of dedicated revenues to fund any limits the source of dedicated revenues to fund any programs for ports and waterways.programs for ports and waterways.

Past Programs in KYPast Programs in KY

KYTC contracted with Hanson Professional Services Inc. KYTC contracted with Hanson Professional Services Inc. to assess the current status of assistance to public river to assess the current status of assistance to public river ports in Kentucky, evaluate those programs offered by ports in Kentucky, evaluate those programs offered by other state governments in support of water other state governments in support of water transportation, and recommend a course of action for the transportation, and recommend a course of action for the commonwealth. commonwealth.

Study’s recommendations provide a comprehensive and Study’s recommendations provide a comprehensive and wide-reaching wide-reaching plan of actionplan of action to enable Kentuckians to to enable Kentuckians to compete in regional, national, and global markets and compete in regional, national, and global markets and improve their quality of life by better utilization of the improve their quality of life by better utilization of the commonwealth’s water transportation assets, including its commonwealth’s water transportation assets, including its Riverports. Riverports.

Consultant SelectionConsultant Selection

Interactive engaging KYTC and KAR members in a Interactive engaging KYTC and KAR members in a collaborative format collaborative format

Working to learn what the ports want/need Working to learn what the ports want/need

What the state believes it can provide What the state believes it can provide

Finding the match Finding the match

Project ApproachProject Approach

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Operating Ports

Developing Ports

Kentucky’s Riverports

Challenge in meeting needs of existing mature ports and emerging ports

The Process

Series of five 2 day meetings with Hanson, KAR & KYTC:

Typical Day 1 Hanson presents new information Dinner (further discussion in informal setting)

Typical Day 2 Hanson facilitates discussions, strategic thinking

Ideas and concerns expressed Group works through important issues

Review of States Roles For PortsReview of States Roles For Ports

(1) Authorized but not funded(1) Authorized but not funded

(2) Loan program for intermodal projects, including ports(2) Loan program for intermodal projects, including ports

Successful State Programs

LouisianaProgram: Ports Priority Program

Annual Funding: $20 Million

Match: 10% Local

Competition: 38 Ports

Remarks: A recently commissioned study by PAL identified

nearly $820M of port needs for next five years. The State’s Waterways Infrastructure and Development Fund has never been funded.

Note: Current study underway to increase annual funding

Successful State ProgramsSuccessful State Programs

MississippiProgram: Multi-Modal Transportation Capital Improvement

Type: Grant

Annual Funding: $10 Million (Ports - $3.8 Million)

Fund Source: Transportation Trust Fund (Fuel Taxes)

Match: No Local

Competition: 16 Ports

Remarks: A Port Fund Committee made up of 10 members, 8 of which typically represent ports, essentially approve grant disbursements.

Successful State ProgramsSuccessful State Programs

MinnesotaProgram: Port Development Assistance Program

Type: Loans and Grants

Annual Funding: $12.5 Million in 9 years; Revolving Fund

Match: 20% Local

Competition: 9 Ports

Remarks: The program provides grants for projects that may

not produce immediate returns and loans for those

that can generate direct revenues.

The Results

Recommendations

Financial – $4M Grant Program Marketing – $400K Grant Program Technical – Governance & Organizational

Structure – Water Transportation Staff

What Has Happened? - ACTION

October 19, 2007 – met with top officials in October 19, 2007 – met with top officials in the KYTC and the legislative director the KYTC and the legislative director

Draft legislation underway for introduction Draft legislation underway for introduction in early 2008 legislative session in early 2008 legislative session

Ports meeting with State legislatorsPorts meeting with State legislators

What’s Next?

Meeting on November 19th with KY Economic Development Cabinet (some items only need Executive Action)

Introduce draft legislation into the process

Legislature meets in January 2008

Conclusion

We have developed program recommendations We have developed program recommendations through an interactive, collaborate process, through an interactive, collaborate process, learning from experiences of other states, and learning from experiences of other states, and incorporating ideas from the ports and the incorporating ideas from the ports and the KYTCKYTC

Hope to be able to report back that the program Hope to be able to report back that the program legislation was passed and it is up and runninglegislation was passed and it is up and running

Local ports welcome and need State supportLocal ports welcome and need State support