Deep-Draft Navigation User Charges : Recovery Options and Impacts
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1977-08-01
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Abstract:Alternative cost recovery options for Federal deep-draft navigation expenditures are investigated and the impacts of user charges on waterborne trades and commodity traffic, both foreign and domestic (Great Lakes and coastwise), are assessed. In addition, the foreign experience in port governance, pricing, and investment policies is examined, including representative levels of port-use fees. A detailed commodity traffic analysis for petroleum, grain, coal, iron ore, and general cargo has revealed that 100-percent recovery of total Federal deep-draft costs by uniform (on vessel or cargo tonnage for example) user charges will not substantially disrupt domestic or foreign waterborne traffic levels or patterns. However, port-specific user charges can significantly affect future port development and traffic levels in certain smaller and more costly ports, and encourage port consolidation. Action by domestic overland carriers, waterborne carriers, and shippers may act to minimize any adverse impacts. For traffic which navigates both inland river and coastal ports, effects of potential double (shallow- and deep-draft) user charges are examined. In general, a vessel-based system use-recovery approach will tend to minimize impacts across waterborne trades and commodity flows as well as traffic using both shallow- and deep-draft systems.
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