Federal Approval Advances American Feeder Lines Coastal Shipping Project

The principal parties in a successful bid for official American Marine Highway status view the development of coastwise feeder and domestic marine freight services as “essential and inevitable for the United States.” The project that was among those designated by Secretary of Transportation Ray LaHood under the new program is titled “Atlantic and Gulf Coast Short Sea / Feeder Service,” and was developed by American Feeder Lines.

The sponsors of the project’s application, James I. Newsome, President and CEO of South Carolina State Ports Authority (SCSPA), and Steven M. Cernak, Port Director of The Port of Galveston, were pleased to learn of the Secretary’s decision.

Jim Newsome noted the marine highway program's ability to serve as a forward-looking and environmentally-friendly alternative to traditional cargo flows. “The Port of Charleston enjoys a strategic location in the Southeast, so a feeder system out of Charleston to other seaports can provide significant benefits such as reduced congestion and enhanced environmental sustainability,” said Newsome. “Charleston is a natural fit for this kind of project.”

The Port of Galveston’s Steven Cernak stated, “This is good news for the Port of Galveston and for other American ports. The Maritime Administration understands the marine highway will be an increasingly important part of the country’s maritime activity.” He added,” Here on the Gulf we will take as much good news as Washington is able to give us in support of this initiative.”

American Feeder Lines’ plan is to establish container feeder and domestic freight service in support of the international container lines that serve the East and Gulf coasts. As the container lines put larger ships into service, especially with the planned opening of the Panama Canal’s new locks, a feeder system will complement the continuing drive toward greater efficiency. Ports like Charleston and Galveston will play key roles in this effort. (The application also had the support of Norfolk and New York/New Jersey, and other ports.) AFL will build ten state-of-the-art, environmentally improved container ships in two U.S. shipyards for the start of the new system.

AFL began ten years earlier when partners Percy R. Pyne IV and Tobias Koenig concluded that the U.S. will have to look to the water for its growing transportation needs. .

“It is a standard practice in logistics in Europe and elsewhere in the world,” AFL co-founder, Tobias Koenig of Koenig & Cie said. “Marine transportation and its efficiencies are recognized as important aspects of the Continent’s transportation network. And it makes perfect sense for the States.”

“It is significant that our application achieved this distinction in what is the first year of this new national program,” Percy Pyne, American Feeder Lines co-founder agreed. “It is great to know our government now is taking seriously the promise of the marine highway.”

“Marine highways and this particular project are made for these times,” said Jim Newsome. “I think American Feeder Lines is a forward-looking and environmentally-efficient alternative to current methods of transportation on the East Coast. They are experienced, credible owners”

“This project could help position the East and Gulf region to realize the benefits of larger ships serving our coasts following expansion of the Panama Canal in 2014 and before,” Jim Newsome continued. The Port of Charleston can handle ships up to 48 feet of draft and carrying more than 8,000 20-foot equivalent units (TEUs).

Steven Cernak said, “Early on in his administration Secretary LaHood talked about how the maritime sector is a great resource that has been underutilized in this country. With this new program he is taking steps to do something about it and I think the logistics sector will grasp the opportunity. We in Galveston certainly intend to.”

AFL co-founders Mr. Pyne and Mr. Koenig said, “We are grateful to Secretary LaHood and Maritime Administrator David Matsuda who have shown confidence in our project and for the support that it signifies from the Obama Administration.”

Information on the American Marine Highway program and the August 11,2010, announcement can be found on the MARAD website:

http://www.marad.dot.gov/ships_shipping_landing_page/mhi_home/mhi_home.htm