NJ Infrastructure > Infrastructure by Category > Navigable Waterways
Infrastructure by Category:
Navigable Waterways
New Jersey is an important international gateway for both people and freight moving into and out of the United States. There are major seaports and marine terminals located in the northern and the southern regions of the state. They directly serve the immediate 26 county region providing 122,547 direct jobs and 110,000 indirect jobs, contributing more than $15.5 billion in economic activity annually to the region, and more than $2 billion in state and local tax revenues. International waterborne cargo includes bulk cargo (salt, Belgium block, lumber, etc.), liquid bulk cargo (food oil, petroleum products, etc.), containerized general cargo, and automobiles. The primary seaport for the northern region is at Port Newark-Elizabeth Marine Terminal Complex in Essex and Union Counties and at the Global/MOTBY complex in Hudson County, all on New York Harbor. The predominant seaport complex in the south is the South Jersey Port Corporation along the Delaware River at Camden in Camden County in New Jersey.
An evaluation of the adequacy of New Jersey's maritime infrastructure must be considered in terms of waterway access, availability of terminals, and efficiency of movement at intermodal connectors. For containerized freight, it is also important to consider adequacy of international distribution centers to bring this cargo into the domestic freight transportation system. These elements will be analyzed from both the perspective of available capacity (which is related to the service timeframe) and the level of current investment (capital as well as maintenance dollars). This report card analyzes both of these parameters, integrates the findings, and evaluates the condition and performance characteristics of these infrastructure components.
With respect to capital investments for maritime infrastructure, a planning, design and construction period of 10 years is considered minimum and 20 years more likely for major infrastructure development. Hence a planning horizon of 2026 has been select as the point in the future to evaluate current capital construction and projects in-place. Estimates of problematic levels of service are suggested but not necessarily of concern for business interruption, just are the points where there is a potential eroding of productivity (because of congestion, system inefficiency, etc.) and negative impact on economic performance.
North Jersey Ports
The North Jersey maritime port and rail yard system is currently the
largest center for the import/export and transfer of container
freight on the east coast, and the second largest (after Los
Angeles/Long Beach) in the United States. Foreign-Trade Zone No. 49
(FTZ 49), administered by The Port Authority of New York and New
Jersey, ranked number one in the country out of 250 foreign-trade
zones for foreign-value of merchandise received for fiscal year 2004
according to the recently released Foreign-Trade Zone Board.
Last year (2006) was a record-breaking for the Port of New York and New Jersey, which handled more international cargo than ever before, and, for the first time, surpassed the $149 billion mark in the total value of all cargo handled. The Port's container traffic has had an average annual growth of over 7% per year for over a decade. It has more than doubled from about 1.3 million total containers in 1996 to 2.8 million in 2005. At this rate of growth from the new high of 3 million in 2006, the cargo volumes will double again by 2016. By 2026, the number entering the Port could be approximately 11.6 million containers.
To meet the projected increases in volume of cargo coming through the North Jersey ports, a $2.7 billion investment is reconfiguring existing terminals, deepening the harbor's channels and berths, and improving inland intermodal access by truck and rail. Approximately $1.6 billion of this investment is for the U.S. Army Corps of Engineers (USACE) to construct navigation improvements to provide adequate channel and berth access (50-foot draft) for the newest portion of the containership fleet. With this construction, channel and berth depth are not expected to be a limitation through 2026 and beyond. However, there will be an air draft impediment for the containership fleet because of the current height of the Bayonne Bridge, which has a vertical clearance of 151 feet. It is anticipated that the larger vessels will require an air draft of between 185 and 215 feet to enter and leave Newark Bay through the Kill van Kull. A new bridge is estimated to cost approximately $1 billion. The anticipated completion of the enlarged Panama Canal in 2014 will probably further aggravate this chokepoint situation.
Turning to channel maintenance dredging activities, these are the responsibility of the USACE to 45-feet. Maintenance of channels deeper than 45 feet is cost shared with the local sponsor (the Port Authority of New York and New Jersey in this case). Currently, dredged maintenance material is both placed in the ocean at the Historic Area Remediation Site (HARS) and on land when unsuitable for ocean placement. More than a million cubic yards per year falls into this latter category. Currently, the USACE's annual O&M (operations and maintenance) funding from the U.S. Congress does not adequately provide the money needed to complete all of the harbor's maintenance requirements. Each year some projects must be deferred. This problem will grow unless there is a significant increase in the budget for New York Harbor O&M program, particularly after the capital program is completed early in the next decade.
With the current investment and improvements in productivity, the container terminals and their on-dock rail capabilities are anticipated to be adequate to 2026. The impact of additional container exports may impact terminal congestion if volumes grow more rapidly than currently forecasted.
With respect to landside access, currently North Jersey's marine terminals generate nearly 22,000 truck movements each day. According to recent projections, the number of container-related trucks generated by port activity could increase to upwards of 62,000 per day and non-container trucks to approximately 11,000 per day by 2026. A series of eleven (11) projects, are in various stages of project implementation in order to relieve projected volumes of rail and truck traffic in this region. This project known as "Portway Phase I" include numerous roadway network and rail enhancements to increase safety and support seamless connections by separating heavy truck traffic flows from other traffic flows and permitting trains to move through the region without congestion. Some of the projects have been designed for years and are waiting funding, particularly several of the regional rail improvements.
Warehousing and distribution centers need to be located in convenience places for the cargo owners to move their goods to market. Construction of these facilities is typically under the control of private entities. However, because of the need for efficient connections between the seaport and these first points-of-rest, public agencies must work with the private parties to create good connectivity. Local road and highway connectivity is crucial in the truck dominated northern port complex, but rail connectivity may also be important.
Continued funding of the Portway project and others like it by NJ Department of Transportation and other agencies is vital to the success of the intermodal infrastructure necessary to maintain smooth flow of cargo movement to the inland warehouses and distribution centers. With respect to warehousing and distribution centers, the report card does not specifically address their adequacy to handle the forecasted cargo volumes because this infrastructure is typically constructed and held by the private sector as mentioned. However without sufficient capacity in this component, the rest of the system cannot fully meet its design potential to serve the region and the nation's demand for freight.
Northern Seaport Complex Report Card
INFRASTRUCTURE CAPITAL INVESTMENT MAINTENANCE
Waterways
- Channel Depth
- Bridge Clearance
A
D+
D
--
Terminal Capacity A- B
Intermodal Connectors
- Roads
- Rail
C-
C-
C
C
South Jersey Ports
The Port of Camden was established in 1834. Its waterway access is
through a 103-mile, 40-foot deep navigation channel from Philadelphia
to the mouth of the Delaware Bay. The Delaware River Ports (from
Philadelphia and Camden, N.J. to Wilmington, Del.) handle more than
100 million tons of goods annually and are home to the largest
petrochemical complex on the East Coast. Philadelphia alone is the
world's largest freshwater port. Most of the goods handled at these
ports are imported breakbulk and bulk cargoes that are transferred to
trucks and trains that move the freight within a 200 to 300-mile
radius. Cargoes include lumber, steel and cocoa. In 2006, the Port of
Camden hit a new record with a total cargo volume in excess of 3.8
million tons. The Delaware River Port Authority forecasts a 2 to 2.5
fold increase in cargo of all types over the next 20 years and has
planned investments of $650 million for terminal development to
receive this cargo.
Nevertheless, the port faces a significant infrastructure challenge in its waterway. For over ten years, the USACE has tried to convince the concerned stakeholders that deepening the main channel of the Delaware River to 45 feet is in the public interest, does not threaten the Delaware River ecosystem and is economically justified. Criticism from the US Government Accountability Office (GAO), State and Federal Regulatory Agencies, Federal and State elected officials, economic and environmental experts, environmental organizations, community organizations and the public, have prevented this project from beginning. Most East Coast ports have deepened or are in the process of deepening their channels to more than 40 feet. The current depth limitation makes the Delaware River Channel the shallowest channel among competitive ports. The current USACE cost estimate for this project is $277 million with $185 million being paid by the federal government (lacking budgetary support from the President) and $92 million being paid by the Delaware River Port Authority. Failure to deepen the Delaware will make all river ports in three states unable to accept the most modern container ships, relegating them to secondary status. Already most petroleum ships must be lightered (loads reduced) in order to transit the channel. This expensive and potentially environmentally damaging practice would be eliminated with deeper water.
With respect to landside access, the South Jersey Port Corporation, with a grant from NJ Department of Transportation, is investing in road and rail improvements. Construction is underway to install a loop track, build a new crane rail crossing and upgrade track at the Beckett Street and Broadway terminals. The $2.5 million capital investments are expected to double the number of railcars processed in a year. Investments in other intermodal connectors, including local roads, are still needed.
Southern Seaport Complex Report Card
INFRASTRUCTURE CAPITAL INVESTMENT MAINTENANCE
Waterways D- C+
Terminals B+ B
Intermodal Connectors
Roads
Rail
C-
D+
C
C
There is an opportunity for greater synergy between North Jersey ports and the South Jersey ports. The ports to the north are concentrating on efficiently handling containers and automobiles whereas the south Jersey ports are concentrating on providing niche services for breakbulk and bulk cargoes. Finding ways to provide the transportation connections between the two areas would provide the state with a greater opportunity to leverage the import and export freight handling capabilities and capacities of each to minimize congestion, improve reliability to cargo owners and keep transportation costs low. This partnership could be a win-win for both regions of the state while providing new economic development opportunities along the corridor connecting these gateways.
Conclusion
Investments in New Jersey's seaports and waterways are necessary as
the expansion of facilities must keep pace with projected freight
growth, particularly the container facilities. The various agencies
and authorities' plan and continue to plan for the future
transportation infrastructure requirements for freight. There may be
a possibility of linking the two seaport regions in the north and the
south to leverage greater market share, productivity and more jobs
for the state. Leadership from Trenton is needed to help guide the
development of this potential economic bridge.
In general, there are sufficient capital investments to keep pace with the demand for infrastructure capacity in the channels, terminals and intermodal connectors. If additional investment is needed, it is at the locations between the port areas and the main road and rail routes to eliminate chokepoints. However, continued system monitoring and additional planning will be necessary to ensure that the available transportation capacity at New Jersey's seaports, waterways and intermodal connectors is adequate to meet the demands for international gateways both for import as well as export cargo over the coming decades.
Further, it is equally important that the current system of channels, terminals, and the supporting intermodal infrastructure is adequately funded and maintained to provide efficient and effective transportation services. Public agencies will have to partner with private entities to ensure that international and regional distribution centers are not overburdened.
The ASCE grading system considered three factors: 1) State of Repair 2) Functionality and 3) Planning and available funding. ASCE assigns a Grade of C to New Jersey Ports and Navigable Waterways.
Raising the Grade
The plans for the future expansion and modernization of the current
facilities must be fully funded. This funding must be effectively
utilized and should come from a variety of sources both public and private.
References
The Portway Extensions Concept Development Study - Final Report 2003
http://americanhistory.si.edu/ONTHEMOVE/collection/object_465.html
http://delawareriverkeeper.org
US Army Corps of Engineers, Project Fact Sheets, January 2006