DeltaMarine Highway Report

Report to MDOT Delta Marine Highway
Mississippi Ports Operational Evaluation (June 20, 2010)
Table of Contents
INTRODUCTION.....................................................................................................................1
MISSISSIPPI RIVER TRANSPORT: CANOES TO CONTAINER-ON-BARGE .........................3
CONTAINER-ON-BARGE OPERATIONAL CHARACTERISTICS...........................................5
THE STATE OF MISSISSIPPI’S PORTS AND WATERWAY SYSTEM ......................................7
THE PORT CASE STUDIES ................................................................................................. 11
PROPOSED MHY DELTA DEVELOPMENT STRATEGY.................................................... 17
MHY DELTA IN THE CONTEXT OF THE PANAMA CANAL EXPANSION PROJECT....... 20
PROPOSED OPERATIONAL PLAN ..................................................................................... 22
PROPOSED INSTITUTIONAL PLAN ................................................................................... 24
SUMMARY OF FINDINGS AND RECOMMENDATIONS ..................................................... 25

Mississippi Ports Operational Evaluation (June 20, 2010) Page 1
INTRODUCTION
The purpose of this Mississippi Ports Operational Evaluation is to evaluate the State of Mississippi’s
waterway system and its ports, and to recommend container-on-barge1 (COB) operational roles to-
ward expanding Mississippi’s role in international containerized trade markets.
BACKGROUND
In 1999, the State of Mississippi conducted a study of its
ports (Mississippi Statewide Ports Assessment). The focus of
that study was on the physical capacity of each of the
ports, as well as an evaluation of the capital needs to sup-
port the growth of the ports, and the Mississippi economy. As a result of the study, the Mississippi
legislature created the Mississippi Multimodal Capital Improvement Fund for, among other things, inter-
modal improvements at the State’s ports. Significant investments have been made to improve
access to the ports, as well as to improve the operations of individual ports. More recently, the
Mississippi Unified Long Range Transportation Infrastructure Plan (MULTIPLAN) was completed
as a comprehensive analysis of transportation infrastructure and needs throughout the State of Mis-
sissippi. The State’s ports and waterways were fully evaluated and assessed, as described in “Chap-
ter 6 – Ports and Waterways Modal Assessment” of the MULTIPLAN2.
The focus of this particular Mississippi Ports Operational Evaluation is on the operational roles of
each of the state’s waterway systems and ports. It builds on the information and knowledge ga-
thered from the aforementioned efforts.
FUNDAMENTALS FOR A SUSTAINABLE CONTAINERIZED MARINE HIGHWAY CORRIDOR
There exists the need for the development of a sustainable containerized marine highway corridor
operation on a scale comparable to major rail and highway corridors. This report focuses on the
ports and waterways in and around the State of Mississippi as the starting point for defining a
broader regional and national plan. The following are the fundamentals that support this vision.
Container-on-barge Services are Viable and Sustainable. Container-on-barge services have existed for
almost as long as the container trade itself has been in existence, predominantly in Europe and in
China/Hong Kong. COB services are also in existence in the United States, particularly in the
northwest, the Gulf Coast and along the eastern seaboard. The Mississippi river has the most
viable north-south line-haul segments for developing COB operations, on a scale compara-
ble to major rail and highway corridors.
1 Includes containers loaded directly onto barges as well as containers-on-chassis loaded onto barges.
2
A copy can be downloaded at www.gomdot.com.
Vision
There exists the need for the development
of a sustainable COB operation on a scale
comparable to any major rail or highway
trade corridor.

International Gateway Port. The most successful COB examples have at least one major international
container gateway seaport at the mouth of the waterway. The international container gateway is the
critical node between the domestic inland container barge services and the international container
ship services to major offshore container trade markets. The full-scale development of COB, on
par with major highway and rail freight corridors, is dependent on the development of suffi-
cient ocean container handling capacity at and around the mouth of the Mississippi River.
Significant Concentrations of Upstream Economic Activity. Container-on-barge services are most
sustainable if there are significant existing or potential volumes of international maritime containers
moving between the requisite international container gateway port and inland markets. The more
than 20 states served by the Mississippi are the nation’s manufacturing center and
breadbasket, offering enough upstream activity to support full-scale COB operations, on par
with major highway and rail freight corridors.
Reliable, Rapid & Scheduled Services. The conditions and characteristics of the waterway system have
to support a rapid and scheduled service that is reliable. These include channel depth, minimal
locks, and manageable distances. The experience in Europe shows that frequency and level of
service are the most important means for competing with trucking services. What the Rhine
barges offer in higher speeds and faster turnaround times, the Mississippi makes up for in
terms of fleet integration and operational redundancy; Flexibility to service several terminals
and ports, optimizing scheduling, while at the same time enhancing economics by
increasing the scale of the shipment.
Mode Shift Policies and Mechanisms. The European Union encourages modal shift from trucks to rail
and waterways through programs such as Marco Polo, offering market based subsidies designed to
take traffic off the highways and on to the waterways. Major container port gateways like
Rotterdam use modal diversity criteria as part of their tenant lease evaluation process. The
impending growth in container handling terminal capacity along the Gulf Coast presents an
opportunity for instituting mode enhancing strategies and policies. Implementing mode
enhancing tactics at the outset of container traffic development is critical to the success of
container trade development in the region as a whole.
Market Segmentation. Passive supply side approaches and the reliance on trends such as converging
transport costs are not achieving the needed results. Market segmentation provides a tactical means
for optimally directing policies, funding, incentives, promotion, marketing and project development
efforts at segments of the waterway system that provide the most ideal conditions for operating
COB services. The region’s higher value merchandise and trade sectors currently served by
truck and rail intermodal services are sufficient enough in volume and density to respond
favorably to the benefits of COB services.
This report uses the Mississippi ports and waterways system as a basis for outlining a COB opera-
tional framework. It defines the relevant characteristics of COB, the roles and functions of the Mis-
sissippi ports and waterways in the context of COB, and defines the operational characteristics of a
full-scale COB, including line haul segmentation, scheduling and fleet integration strategies.

MISSISSIPPI RIVER TRANSPORT: CANOES TO CONTAINER-ON-BARGE
The Mississippi River has played a deep role in transportation development throughout the entire
history of the United States. Transportation along the river has evolved from a role of exploration
and discovery to the transportation of large volumes of bulk goods and materials.

PRIMARILY A BULK TRANSPORTATION SYSTEM
The Mississippi River system that feeds the entire United States heartland through its extensive
network of tributaries serves primarily as a bulk transportation network. The dominant method of
transport is by barge tow, a method ideally suited for moving large volumes of bulk cargoes, over
long and short distances.
While the transport of high value goods in containers is generally a role for the highway and rail
modes, containers-on-barge are emerging as a viable opportunity. The next phase in transport
innovation on the Mississippi is the shipment of high value trade merchandise in containers-on-
barge. One such pioneering service is the Osprey Line.
THE OSPREY LINE COBSERVICE
The Osprey Line is a barge transportation company that
offers the only functional COB solution to and from
plants and facilities along the Gulf Intracoastal Waterway
(GIWW) and the lower Mississippi River, as well as Gulf
Coast ports. Its primary service is between the Port of
Houston and the Port of New Orleans and between New
Orleans and Memphis. It also operates other services on
an as needed basis to markets such as Freeport, Victoria,
Beaumont, Lake Charles, Pascagoula, Mobile, St. Louis,
Chicago, Owensboro, Cincinnati, Pittsburgh and other locations.
ADVANTAGES OF FLEET INTEGRATION
The key to Osprey’s success has been its integration into an established general cargo and bulk barge
service. Osprey Line LLC is owned by Kirby Corporation, which operates inland tank barges and
towing vessels, transporting petrochemicals, black oil products, refined petroleum products and
agricultural chemicals throughout the inland waterway system, and Cooper T./Smith, with core
activities in stevedoring, terminals, harbor docking tugs and other maritime services.
While it was initially operated as a standalone service,
using a dedicated fleet of tugs/tows and barges, it was
ultimately purchased by a towing vessel-inland barge
operator and a warehouse operator. The waterway
container trade lanes throughout the Gulf Coast region
did not have the densities to support a dedicated fleet of
equipment best suited for high volume bulk cargoes.
This approach of integrating the container service within
bulk and general barge services allows for the provision
of a regular liner service but at lower throughput
volumes than is normally feasible for a standalone
Cross Sector Subsidy
COB services on the Mississippi are cur-
rently subsidized by the bulk transporta-
tion services sector. The region’s most sus-
tainable COB services are integrated into
larger bulk operations, thereby benefiting
from the economies of fleet scale and vessel
ubiquity.
The Economics of Ubiquity.
Container barges used on the Mississippi
are standard open hopper river barges used
for a wide variety of cargoes and are easily
integrated into a conventional bulk fleet.
The tows and tugs hauling the barges are
also standard. Ubiquity results in a limited
need for repositioning, saving the barge oper-
ator a great deal of money and time.

container service.
CONTAINER-ON-BARGE OPERATIONAL CHARACTERISTICS
While container barges play a relatively
minor role on the Mississippi, they have
been in existence for several decades in
Europe, particularly on the Rhine River
which carries over 3 million twenty foot
equivalent units (TEU) of containers on
barges annually.
European container barges are self-
propelled and generally operate in a sin-
gle configuration. However, when oper-
ating in combination, a self-propelled
barge pushes a tow of 2-5 open hopper
barges.
In comparison, barges on the Mississippi
are attached together into a “tow”. The
tow is either pushed by a towboat or
pulled by a tugboat. A typical barge tow
on the Mississippi accommodates 20 barges, but can accommodate formations with up to 50 barges.
CONTAINER-BARGE CAPACITY
The standard open hopper river barge can carry a
maximum of up to 81 TEU boxes. The average
load ranges from 40-50. The typical self propelled
vessel on the Rhine carries an average of 150 TEU
boxes. Like the standard open hopper barge on
the Mississippi river, they can carry any kind of
cargo, but the larger ones are dedicated to contain-
ers.
The average sailing on the Mississippi and in Eu-
rope can range between 200 and 400 boxes per
sailing. However, the Mississippi is wider and does
allow for significantly larger combinations.
Push barge combinations allow for flexibility to
service several terminals and ports, optimizing
scheduling, while at the same time enhancing the
economics by increasing the scale of the shipment.
Container Barge Configurations
Container Densities on the Rhine

OPERATIONAL FLEXIBILITY OF THE WATERWAY CORRIDOR
An important lesson taken from the Rhine River is the im-
portance of operational flexibility. The greatest COB densi-
ties are concentrated on waterway segments that offer the
fastest operational turnaround. Speed of vessel, distance be-
tween inland ports and COB gateway ports, and the number
of locks are all factors that have the greatest influence on
waterway operations.
TRANSIT-TIME PARADOX
In Europe the greatest densities are closest to the COB
gateway ports. The largest inland port market (Mannheim) is
within 500 miles and is reached within 30 hours by container
barge. Speeds are higher on the Rhine primarily due to the
design of the self-propelled barges. On the other hand,
barge speeds are relatively slower on the Mississippi. Flat
hulled barge tows move slower than the self propelled barges
with V-shaped hulls. Transit times to major markets on the
Mississippi are measured in weeks.
BARGE TOW VS.SELF-PROPELLED APPROACH
The Rhine’s self propelled barge uses its speed to make quick
turnarounds on its container delivery patterns. The Missis-
sippi barge-tow approach makes up for its slower speed
through fleet integration; Barges and tugs are ubiquitous,
used for any type of cargo available at any port.
Both models work in terms of capital utilization and sustainability for the barge operator. Notwith-
standing that the Mississippi tow approach doesn’t offer the agility and flexibility expected by the
container customer, it is the most sustainable market driven approach currently used on the Missis-
sippi. Given the embryonic stage of COB development on the Mississippi, sustainability of service
from the barge operator’s perspective is the most important priority. Speed and agility can slowly
evolve as COB services become more sustainable.
Transit Times are Weeks

STATE OF MISSISSIPPI PORTS AND WATERWAY SYSTEM
The State of Mississippi is blessed with at least three waterway systems along three of its four boun-
daries. The Mississippi River flows along the western boundary of the State and includes the Yazoo
River tributary, the Tennessee Tombigbee (Tenn-Tom) waterway along portions of its eastern
boundary and the GIWW along its southern boundary.
The State of Mississippi’s ports and waterway system is home to sixteen ports, of which six are on
the Mississippi-Yazoo River system, six are on the Tenn-Tom Waterway system and four are located
along the GIWW.
DESCRIPTIONS OF THE INDIVIDUAL PORTS
The MULTIPLAN is a comprehensive analysis of transportation infrastructure and needs through-
out the state. The ports and waterways are fully described in “Chapter 6 – Ports and Waterways
Modal Assessment” and can be viewed or downloaded at www.gomdot.com3.
PORT AND WATERWAY OPERATIONAL ROLES
From an operational standpoint, each of the waterways
and individual ports play a strategic role in supporting
the state’s trade, economic and commercial activities.
They offer different characteristics and play very dis-
tinct roles in the state’s overall transportation system.
Understanding these roles is critical in assessing their
application toward developing a full-scale Mississippi
COB operational network, on par with major highway
and rail freight corridors.
Gateway Ports vs Slackwater Ports. Gateway ports are
major coastal facilities where international cargoes are
transferred to/from international ocean-going vessels
and processed through customs. A slack water (or in-
land) port is a node along a waterway between the
COB gateway port and inland markets. They mainly
serve a role in handling domestic trade, specifically be-
tween domestic locations (production and consump-
tion centers). Although slack water ports are also used
for the export of domestically produced cargoes and
the import of foreign produced cargoes, they are rarely
referred to as gateway ports. By the time imported
cargoes reach a slack-water port, they have been cus-
3http://www.gomdot.com/Divisions/IntermodalPlanning/Resources/Programs/MultiPlan/pdf/Phase%20I/Chapter%
206%20Ports%20and%20Waterways%20Modal%20Assessment.pdf
State of Mississippi Ports
& Waterways System

toms processed at a gateway port, and are usually defined as domestic cargo. The Port of Vicksburg
is an exception as it is designated a Foreign Trade Zone and a Port of Entry and maintains a United
States Customs service.
Mississippi-Yazoo Slackwater Ports. The ports that form the Mississippi-Yazoo system namely
Rosedale, Greenville, Yazoo County, Vicksburg, Claiborne and Natchez Adams County,
predominantly serve their tenants, as well as nearby hinterland markets. They vary in size, offering
between 1-3 berths, each berth ranging in length from 200’ to 800’, and with depths of between 9’
and 22’. Their materials handling capabilities include general cargo, containers, break, dry and liquid
bulks, steel and wood products. Three are operated by a County or Port Authority, one by a tenant,
and one by a stevedoring company (Claiborne County is currently not being operated).
Tenn-Tom Slackwater Ports. The ports along the Tenn-Tom, which include Yellow Creek, Itawamba,
Amory, Aberdeen Clay County and Lowndes County are predominantly tenant driven, but also
serve the nearby hinterland. They vary in size, offering between 1-5 berths, each berth ranging in
length from 800’ to 1,200’, and with depths of between 9’ and 12’. Their materials handling capabili-
ties include general cargo, containers, break, dry and liquid bulks, grains, chemicals, salt, steel and
wood products. Two are operated by a County or Port Authority, two by tenants, and one by a ste-
vedoring company (the Port of Amory does not have an operator).
Gulf Coast Gateway Ports. Two of the four ports along the Gulf Coast Intracoastal waterway, the
Ports of Gulfport and Pascagoula, are classically deepwater ports serving as international gateways;
They have deep draft harbors and serve ocean-going vessels. Bienville and Biloxi have shallow draft
harbors, with the former serving
barges and the latter serving recrea-
tional and commercial fishing
sels. All three cargo ports handle
bulk and break-bulk cargoes.
Gulfport is also a container port
with plans to expand its container
handling, storage and rail inter-
modal capabilities significantly.
The coastal ports (vs slack-water)
have a stronger role in serving hin-
terland markets, as well as serving
their tenants. Pascagoula and Bi-
enville have a strong tenant base
(predominantly petroleum and
chemicals related industries), and
also handle a significant volume of
bulk and general cargo serving in-
dustries in the Mississippi
land. The Port of Gulfport has less
tenant-driven business and is pre-
dominately hinterland driven,
dling bulk and break-bulk cargoes
Freight Corridor Line-Haul Segmentation
The Mississippi River system has the most suitable north-
south line-haul segments for developing container-on-barge operations,
on a scale comparable to major rail and highway corridors.

and refrigerated containers for markets throughout the United States.
Mississippi River System. The Mississippi River system is
the largest waterway transportation system in the United
States. It serves a hinterland of over 20 states, including
America’s industrial heartland and breadbasket. Its cargo
mix is largely bulk, liquid bulk and break-bulk, as well as
project and container. The lower portion (south of Cai-
ro, Illinois) has no locks. Barges and barge tows are the
predominant mode of transportation. The average tow is
20 barges, but tows of up to 50 barges are not uncom-
mon. The river is wide and is very navigable, with a con-
trolling navigable depth of 9ft, with some sections deeper
at 12ft.
Tenn-Tom Waterway System. The Tom-Tom was completed in 1984 to connect the Tennessee and
Tombigbee Rivers, forming a 664 mile waterway system
that extends from the Gulf Coast (Mobile, Alabama) in
the south to the Ohio River (Paducah, Kentucky) in the
north. While it effectively serves a 3-5 state hinterland, it
has a broader reach through the Ohio and Mississippi
River systems. It has the same cargo mix as the Missis-
sippi, with significantly less densities, and accommodates
the same mode of transport, albeit at lower traffic vo-
lumes. The Tenn-Tom has 12 locks, which limits the
barge tow size relative to the larger tows on the Missis-
sippi, and speeds are generally slower due to the locks.
While some sections of the waterway are at 12ft, the con-
trolling navigable depth is 9ft.
Gulf Coast Intracoastal Waterway. The GIWW is a 1,050 mile long navigable inland waterway from
Florida to Texas, a short portion of which runs along the
Mississippi coast. It was completed by 1949 for the pur-
pose of allowing barge transportation along the Gulf
Coast. It has a similar cargo mix to the Mississippi and
Tenn-Tom waterways, albeit less volumes than the Mis-
sissippi. While the Tenn-Tom and Mississippi systems
support mostly slack-water ports, the GIWW has a mix
of both deep draft gateway ports as well as shallow draft
ports.
Significant Concentrations
of Upstream Economic Activity
Container-on-barge services are sustainable
only if there are significant existing or poten-
tial volumes of international maritime con-
tainers moving between the requisite interna-
tional gateway port and inland markets.
The first tier-inland markets are typically
adjacent to or within close proximity to a
navigable waterway.
Tried and Proven
Container-on-barge services have existed
almost as long as the container trade, pre-
dominantly in Europe and in China/Hong
Kong. Container-on-barge services are also
in existence in the United States, particular-
ly in the northwest, the Gulf Coast and
along the eastern seaboard.
The Importance of Market Scale
In order for the waterways to compete and
provide the requisite levels of service and
reliability to the container markets, it is
important to focus on those market segments
with significant scale. Scale is also critical
in terms of attaining measurable and real
benefits to congestion and the environment.

THE ROLE OF MISSISSIPPI’S PORTS AND WATERWAYS IN A COBOPERATIONAL CONTEXT
The State of Mississippi’s ports and waterways have
specific and distinct roles to play in the development of
a full-scale COB operation, on par with major highway
and rail freight corridors.
Mississippi River Corridor. The Mississippi River has the
ideal characteristics as a backbone corridor for COB
services. It offers the greatest reach into the nation’s
inland container markets. It has the largest fleets of
barge vessels, offering the greatest opportunity for in-
tegrating a sustainable COB operation. The lower Mis-
sissippi offers the best operational characteristics and
opportunities for improving barge velocities and
equipment turnaround times.
Gulf Coast Corridor. The GIWW’s role in a COB opera-
tion is to accommodate the development of coastal
container gateway handling capacity. The development
of significant downstream container gateway capacity is
the greatest priority for developing COB services in
and around the State of Mississippi.
A System of Gateway Ports. It is likely that more than
one container port will play a role in the providing the
downstream capacity. Therefore the GIWW will play a
key role of interconnecting the individual COB gateway
facilities, as well as connecting the aggregate down-
stream container capacity to the Mississippi.
Tenn-Tom Corridor. The Tenn-Tom can play a similar
role as the Mississippi River in providing a north-south
waterway corridor for the movement of containers be-
tween inland container markets and the coastal con-
tainer terminals.
A Broader Regional Context. The three waterways are connected and together form a ringed network
of ports and waterways. Each have unique and distinct characteristics that can support COB activi-
ties, to varying degrees.
The State of Mississippi is central to that regional role, and has a strategic opportunity to influence a
broader regional strategy.
The Broader Regional Context

PORT CASE STUDIES
There are two types of ports that will play a key role in
the development of a full-scale COB, the gateway port
and the inland slack-water port.
Gateway Port. The gateway port is the interface be-
tween international waters and the domestic US wa-
ters. This interface is key from an operational stand-
point and from a security and customs standpoint.
Operationally, the gateway is a transfer point of con-
tainers from ocean-going vessels too large to navigate
domestic waters (and virtually all ocean-going vessels
are foreign-owned and cannot legally navigate domes-
tic waters). Administratively, all cargoes entering the
United States must be cleared by Homeland Security
(which includes Customs) for security reasons and for
Duty assessment purposes. The same administrative
rules apply to exports, but to a lesser degree.
For this study, the Port of Gulfport will be used as a
case study of a gateway port in the COB context.
Inland Port. The inland port is the upstream interface
between the waterway (from the gateway) and the
overland multimodal transport network that link to
inland markets. Inland ports typically host industrial
tenants, allowing the tenant direct access to the wa-
terway. While most inland ports are bulk, break-bulk
and special cargo oriented, a large portion of Missis-
sippi’s publicly owned inland ports are adequately
equipped to handle containers at an initial level.
As volumes grow, additional cranes that have suffi-
cient reach to transfer containers to/from barges, as
well as container storage space. While higher contain-
er volumes at gateway ports are critical to COB suc-
cess, inland ports will typically handle relatively small-
er volumes.
For this study, the Port of Vicksburg will be used as a
case study of an inland port in the COB context.
The Gateway Port
The fundamental operational role of the gateway
port is to provide the requisite container densities
in support of full-scale development of COB.
Two Port Case Studies
The Inland Port
The successful role of an inland port as a con-
tainer port is dependent on the operational cha-
racteristics of the waterway on which it is lo-
cated, and its proximity to a viable inland con-
tainer market.

THE INLAND PORT CASE STUDY
The ideal inland container port needs
to meet four basic ports facilities
criteria. It needs adequate vessel
handling capacity (a barge slip with
sufficient channel depth, berth space, a
barge fleeting area, ro-ro capacity for
containers on trailer), container
handling equipment (a crane with
adequate load and reach), container
storage space and landside transport
access (on-site rail spur to the
container yard, or on-dock rail,
interstate access).
The Port of Vicksburg is an ideal
inland port case study as it has all of
the requisite facilities in place. It is also
operated by a large private stevedoring
company with extensive experience
handling all forms of cargo, including
containers. The Port is also a
designated inland Customs port.
Port of Vicksburg Overview
Located along the Mississippi River.
Halfway between Memphis and New Orleans.
11th ranked U. S. Inland Ports in trip ton miles.
Truck traffic - 165,000 plus trucks annually.
Annual tonnage - 800,000 to 900,000 tons.
55 acres with 600 acres for future development.
Twenty-one tenants employing over 4,000.
Designated Foreign Trade Zone, Port of Entry.
Maintains a United States Customs service.
COB Operational Scenario
The following are operational planning guidelines ap-
plicable at almost any potential inland COB port:
20-30 thousand lifts per year.
10 container barges per week.
345 truck trips per week.
Facilities Requirements for an Inland Container Port
Vicksburg’s Existing Facilities are Ideal
A slack-water harbor; 9,550 feet channel
Barge fleeting area
Adequate berth space with 12-foot depth
T-dock with crane
129,000 square feet warehouse space.
Rail and road loop; Interstate access
Direct access from barge to truck or rail
Inland Customs port
Upgrades Planned/Needed
Repair and upgrade existing track (ST)
Container storage paving (ST)
Up-grade bridge crane – 40 tons (ST)
2-lane to 4-lane access road widening (ST)

Port of Vicksburg Container-on-Barge Site Concept Plan

THE GATEWAY PORT CASE STUDY
Given the lack of significant container gateway volumes in the Gulf Coast, specifically at and round
the mouth of the Mississippi River, the COB gateway port is the most important facility
development aspect of the COB strategy. In addition to the aforementioned operational, security
and administrative aspects of the gateway port, the COB gateway’s primary objective is to build
adequate container densities along the Gulf Coast. The Port of Gulfport is the ideal coastal
gateway port to fit that role.
Port of Gulfport Overview
Established itself as the leading port in Mississippi
Serves Mississippi and markets throughout USA
Handles break-bulk, bulk and container cargo
10 Conventional berths and 1 Ro-Ro ramp
Two 100-ton Gottwald cranes
Over 400,000 sq ft of covered storage
Located on the KCS mainline, also served by CSX
Direct access to State Highway 49 and only 10
minutes from U.S. Interstate 10
On-port rail system
Open container storage with refer plug outlets
Customs secure boundaries
Barge services available at the Port
Existing Conditions
3rd busiest container port on the Gulf
2nd largest green fruit importer in USA
Major poultry exporter before Hurr. Kat.
Current capacity – Over 300,000 TEUs
Future Vision
The port has a 10-year Master Plan
Over $570 million in improvements
Over 1 mil. TEUs after Master Plan
N-S high speed rail into Midwest
Dredging - deepen & widen the channel
Port of Gulfport Master Plan

Container Expansion Plans at the Port of Gulfport
The Port of Gulfport is undergoing a major restoration and expansion program in response to
expected growth in container activity and new business opportunities. The core driver for the
container expansion is the ongoing widening of the Panama Canal, expected completion in 2014,
which is expected to divert a large share of future transpacific container trade from the west coast
ports to the east and Gulf coast ports.
Major Improvements to Handle Containers. In order to handle the ocean container vessels, it will
require deepening of the port’s 36-foot channel to approximately 42 feet. In addition, in order to
accommodate the landside transport needs, significant rail investments are being made including the
purchase of the KCS line from Gulfport to Hattiesburg, and the development of on-dock rail
intermodal facilities and an intermodal yard. Currently, over 90 percent of container freight traffic
travels by truck from the Port of Gulfport, and the rail plans are expected to reduce the growth in
truck traffic.
Landside Container Modal Strategy. With the recently
funded improvements to the KCS rail line, a significant
share of the truck traffic will divert to rail. However,
based on experiences at other US ports, the rail share will
likely ultimately range between 15% and 20%4. An
enhanced landside container modal strategy could target
the role of trucks at a 50% mode share, with the
remainder handled by a combination of rail intermodal
and container barge transportation. This can be achieved
by implementing mode share incentives, such as those
used by the Port of Rotterdam.
THE PORT OF GULFPORT GATEWAY IN THE REGIONAL CONTEXT
While some level of containers are handled by gateway ports in the vicinity of the Mississippi River’s
base (referring to the area along the Gulf coast from New Orleans to Mobile), there is no major con-
tainer gateway. This is the greatest obstacle to COB development. Currently, the entire Gulf Coast
region handles approximately 2 million TEUs annually, 7% of all US ports, of which only 20 percent
is located at the base of the Mississippi, less than 1.5% of US container port volumes.
Gulf Coast Container Expansion Plans. The Panama Canal’s expansion is driving Gulf Coast container
handling capacity. Plans for total container capacity along the entire Gulf Coast totals in excess of 9
million TEUS over the next decade, up from 2 million TEUs currently. The vicinity of the
Mississippi River’s base from New Orleans to Mobile could exceed 4 Million TEUs5 within 10 years:
4 The Southern California ports, which are truly intermodal hubs serving markets in the Midwest and Northeast, enjoy
higher rail intermodal shares, but only as high as 40-45%.
5 Excludes expansion plans at the Ports of Houston, Tampa and other Gulf Coast ports not in the vicinity of the Missis-
sippi River’s base. Mobile is included for reasons explained in the next section.
Mode Shift Tactics at Gateway Ports
The Port of Rotterdam uses the tenant lease
process to secure modal diversity. They in-
clude mode share, specifically waterway mode
share, as a tenant ranking criteria:
Modal Shift (% tonnage on waterways)
Revenue (# of ships calling at port)
Economics (# of jobs created)

Port of Gulfport – Plans expand to over 1 million TEUs.
Port of Mobile – Recently built a 800,000 TEU terminal, with likely plans to expand further.
Port of New Orleans - Currently at 330,000 TEUs, plans to expand to 1 Million TEUs.
Seapoint – A planned ship-to-barge container transfer facility to handle 900,000 TEUs.
AMULTI-FACILITY CONTAINER GATEWAY STRATEGY
With their container expansions complete, the Ports of
Gulfport, Mobile, New Orleans and the Seapoint
project each can play an important role in the
development of COB; As a system of facilities, they
present an even greater opportunity for success, similar
to the relationship between the Ports of Rotterdam
and Antwerp at the base of the Rhine. Their
combined planned capacity will provide sufficient
container volumes to support the development of a
full-scale COB corridor6, on par with major highway
and rail freight corridors. Even though they are
separate facilities, they are all strategically located
within close proximity to each other, forming
sufficient critical mass at the base of the Mississippi
River. These facilities are located along the GIWW,
spaced out at distances of less than 100 miles.
National Imperative. Developing additional container capacity at the base of the Mississippi River is a
national imperative. It is an opportunity to reduce the incremental impact of port container growth
on the US highway system. Every 1 million TEUs in additional port capacity at the base of the Mis-
sissippi could cut the growth in truck trips by 172 thousand trips, and 63 million trucks miles5. The
addition of a third mode of landside container transport reduces the growth in container truck traf-
fic. The same container port capacity built at a location without the benefit of an inland waterway
network results in additional truck trips.
Fair Share of the Trade Pie. The development of 4 million TEUs in capacity at the base of the Missis-
sippi poses little competitive threat to the industry. It represents about 6% of the USA's containe-
rized ocean trade market in 2020, and 10% of the transpacific ocean container market.
Stimulate Inland Growth and Development. The development of 4 million TEUs in container capacity
at the base of the Mississippi will sustain 40 small inland ports upstream, averaging 10 barges per
week5. Or 10 larger inland ports the size of the Port of Mannheim on the Rhine, handling 50 barges
per week, and 130,000 TEUs a year. This will stimulate growth and development inland, and help
to counterbalance the continued pressure on coastal regions from high population migration rates
over the past few decades.
6 Assuming container-on-barge captures a 25% enhanced mode share of inland container traffic.
A System of Container Gateway Ports

PROPOSED DEVELOPMENT STRATEGY
Given the plans to develop additional container capacity
at the base of the Mississippi River, there is a need for a
COB strategy around these facilities. Moreover, the tim-
ing for implementing such a strategy is ideal. Building
the service in tandem with the growth in container vo-
lumes is key to ensuring COB integration into the overall
multimodal transportation logistics framework.
The State of Mississippi sits in a strategic position
to spearhead a regional COB strategy. Successful
implementation of this strategy will have
significant positive transportation and economic
implications for the state, the region and the
nation.
The Delta Container Marine Highway (Mhy Delta)
development strategy builds on a regional “delta”
network of waterways and ports that surround the
State of Mississippi, .
Mississippi River. The Mississippi River, because of
its role as the most prominent water transportation
corridor in the nation, will be an important aspect
in the development of river-based container
services. The Lower Mississippi River, from the
southern border of Illinois, downstream to the
Gulf of Mexico, will be the initial focus of the
strategy.
Gulf Coast Intra-Coastal Waterway. The GIWW will
be the basis for the development of COB gateway
capacity, and the main corridor interconnecting the
ports, and linking them to the Mississippi River.
Tenn-Tom Waterway. The Tenn-Tom will close the
loop on the Mhy Delta, creating a ring of
waterways and ports handling container traffic.
The Ohio River will play a part in closing the
northern end of the loop, completing a closed
circuit supply chain network.
A Convergence of Trends
This time and point in the development of
container capacity in the Gulf is a conver-
gence of trends, and an opportunity to influ-
ence the mode choice decision process; With
the shipper, the freight-forwarder/agent,
third-party service provider, port terminal
developers and operators, and the carriers.
The
Delta Container Marine Highway
Development Strategy

Phased Mhy Delta Development Strategy
APHASED APPROACH
Notwithstanding the existing services in the region, full-scale development of COB services at a
level comparable with any major highway or rail corridor, require a phased approach. There are
certain aspects of the strategy that need to be fully implemented before major COB volumes can be
realized.
Phase I: Container Gateway Ports. There are three critical elements that would need implementation at
the gateway ports.
Volumes - The most critical phase is the development of significant container volumes at and
around the base of the Mississippi River, New Orleans to Mobile. Without the development
of at least 4 million TEUs in gateway throughput volumes, COB services will not have the
opportunity to evolve into densities on par with major rail and highway corridors.

Mode Share - Enhanced mode-share incentives
will need to be implemented so as to encourage
mode diversion. In order for such incentives to
work, they would need to be coordinated among
the gateway ports, in an approach similar to the
gateway ports that serve the Rhine River.
Inter-Gateway Services - The development of
high-speed container services between the ports will allow for the re-positioning of loads in
co-ordination with liner schedules. This is a common practice among closely positioned
gateway ports on the east and west coasts. Moreover, the largest existing COB service in the
Gulf region is between New Orleans and Houston.
Phase II: River-Based Line-Haul Services . As the container volumes start to build at the gateway ports,
line-haul services should begin to evolve along the Mississippi and Ten-Tom waterway on either side
of the State. The gateway ports are positioned in such a way that the growth of COB services will
be possible on either side of the State. The State has 12 inland river ports, six on either side, which
can potentially serve as inland nodal points.
Mississippi River Services – The Mississippi River is currently responsible for the nation’s
largest bulk barge volumes. It also handles the largest river-based container volumes in the
region, primarily between New Orleans and Houston and New Orleans and Memphis. As the
container volumes begin to grow, the State of Mississippi’s inland ports will begin to play an
increasing role as inland container nodes. For this report, the Port of Natchez was evaluated
as a case study inland container port and was found to be ideal. The inland container port
planning criteria outlined in this report can be utilized by the other Mississippi River ports in
an effort to compete for traffic.
Tenn-Tom Waterway Services – While there are currently no sustained container services
along the Tenn-Tom, the waterway does have the advantage of having the largest container
gateway at its base. The Port of Mobile currently has a capacity of 800,000 TEUs with plans
to expand to 1.2 million TEUs. There are at least 6 inland ports within the State of
Mississippi located along the Tenn-Tom. The inland container port planning criteria outlined
in this report can be applied be any of these inland ports in an effort to contest for the
container traffic.
Phase III: Complete the Loop to Markets Beyond Mississippi. Notwithstanding the need for gateway
densities, the development of inland container traffic along the Mississippi or Tenn-Tom waterways
will be driven by the location of inland consumer/producer markets. There are several major
population centers located along the Mississippi and Ohio River systems that are likely to attract
significant volumes beyond the State of Mississippi’s borders. These markets will generate the bulk
of the container traffic along either the Mississippi or Tenn-Tom waterways, and the services that
call on the State’s ports are likely to be part of longer line-hauls serving markets beyond the State.
Regardless of the sequence in the phasing of services, and whether the State’s ports are served first
or added on to services that serve markets beyond, the implication is the same. The development of
the containerized barge services will occur on either or both sides of the State of Mississippi as well
as along its base along the GIWW.
The Leading Intermodal State
Mhy Delta in combination with the proposed
intermodal yard at Palmers Crossing near
Hattiesburg, will make Mississippi the lead-
ing intermodal state in the USA.

MHY DELTA IN THE CONTEXT OF THE PANAMA CANAL EXPANSION PROJECT
The development of the Mhy Delta comes at a convergence of several trends and one major project.
Trends such as increased US consumption of Chinese imports, the dominance of Transpacific con-
tainer trade, the lack of capacity at east and
west coast ports, the continued densification
of container traffic in the Gulf of Mexico and
the Caribbean Basin, are all factors that con-
tribute to the need for container capacity
along the Gulf Coast, and the development
of alternative modes of inland container
transport. However the single largest project
that has a major impact on the latter is the
expansion of the Panama Canal.
PANAMA CANAL EXPANSION PROJECT
The program entails the construction of two new sets of locks - one on the Pacific and one on the
Atlantic side of the Panama Canal. It also includes the widening and deepening of existing naviga-
tional channels. The upper end vessel size through the canal will be 8,000 – 10,000 TEUs.
Impact on Vessel Economics. Widening the Panama Canal will allow larger vessels to use it, making it
more economical to reach the ports east of the canal. Ships carrying cargo destined east of the canal
that usually would dock at West coast ports will make the full haul instead. In the vessel business, it
is important to make a sufficient amount of delivery turns so as to pay for the capital cost of the
vessel. The larger the vessel, the more
cargo it carries, and the further it can go
and remain economical.
Impact on Canal Trade Routes. The west
coast handles 70-80 percent of Asian
trade with the United States. The bulk
of the remaining 20-30 percent is han-
dled by the east coast ports, via the Pa-
nama Canal. This Asia-East Coast lane
represents 57% of Panama Canal trade.
When the canal expands, the share of
Asia trade to the West coast will drop,
increasing the east coast port traffic
through the Canal. The result is a signif-
icant increase in container traffic
through the Gulf of Mexico. The
growth increment in the Asia-East Coast
trade lane will be highly contestable by
well positioned Gulf coast ports.
Widening the Canal Allows Larger Vessels
64% of Panama Canal container trade flows are with
East Coast USA ports

After the Canal Expansion. The Asia – East Coast trade lane will remain the Canal’s largest, but the
east coast will experience facilities limitations. Container traffic in the Gulf of Mexico will grow, and
the Gulf Coast region will need additional container port infrastructure.
IMPACT ON USLANDBRIDGE TRADE LANES
The American heartland has historically been served by container ports on the east and west coasts.
The heartland serves as a watershed between the east and west coast. Although the region is home
to 30% of the nation’s population, only 7% of the nation’s container capacity is proximate to the
region, specifically along the Gulf coast.
The Panama Canal expansion presents an opportunity for additional container capacity to be devel-
oped along the Gulf coast to better serve the heartland region. Based on port expansion plans, 13%
of the nation’s 2020 container capacity will be on the Gulf coast, with 6% at the base of the Missis-
sippi River, up from 1.5% currently.
KEY ROLE IN ACCOMMODATING CANAL RELATED CONTAINER GROWTH
The Mhy Delta comes at a crucial time.
The Canal project is estimated to be
completed in 2014. The Gulf Coast
container port expansion plans are large-
ly to be completed by 2020.
In order to successfully serve its role in
accommodating the Canal expansion
container growth impact, the Mhy Delta
will need to be implemented over the
course of the next 4-6 years.

PROPOSED OPERATIONAL PLAN
The proposed operational plan is focused on the sustainability of services. Given that the Mhy Del-
ta development will essentially be a private sector endeavor, it is critical that the proposed approach
be based on operational plans that have shown some level of success on the Mississippi River.
LINE-HAUL SERVICE AND SCHEDULING PLAN
Given the long distances associated with the Mississippi River and its disparate markets, relative to
the short legs along the Rhine’s more tightly spaced markers, the most likely operations plan is a
tiered service structure that is dictated by the distances and market reach of individual line-haul
segments.
Selected Line-Haul Segment Distances Tiered Service Structure

The proposed operational plan has a three-tiered structure that is based on existing services that
have worked thus far in the Gulf region.
Tier I – Regular Fixed Schedule Services. These run
between two points on a regular fixed schedule basis; For
example, once a week, on Wednesday, departing at 6pm.
They work best along segments connecting with
international ports serving ocean shipping lines operating
on a fixed schedule basis. The service is also most viable
along segments with the highest container potential.
They operate almost independent of the bulk fleet
schedules, except to rely on the supply of barges and
tows from the bulk fleets.
Tier II – Regular Weekly Services. They run at least once a week, without a particular time or day
established. This type of service offers greater flexibility for balancing demand with supply, and is
best applied to segments that do not connect with a COB gateway port. This service is more
dependent on the bulk fleet schedules, as well as the supply of barge equipment.
Tier III – Inducement Services. These services are non-
scheduled with the greatest flexibility for balancing
demand with supply. They are almost fully integrated
into the larger bulk barge services.
VESSEL OPERATION PLAN
The Mississippi bulk oriented barge fleet approach to
transportation service is not the most ideal for providing
a container barge service. The reasons why are discussed
earlier in the report, the most important of which is
speed and agility. Nonetheless, what the Mississippi bulk
barge loses in speed it makes up in fleet integration and
adaptability.
Fleet Integration is a Viable Sustainable Strategy. A barge operator can provide a sustainable container
barge service using bulk equipment, if it integrates the COB service into a larger bulk barge fleet.
Growth Strategy. Whether this approach will help grow the service beyond basic sustainability
remains to be seen. In order to develop a full-scale COB service, comparable to major rail and
highway container/intermodal corridors, the service will likely have to grow out from the shadow of
the bulk operation.
Start with Bulk Fleet Integration. Given the proven sustainability of the bulk fleet integration
approach, it should be the core to the initial vessel operations plan. However, incentives should be
introduced to encourage alternative vessel technologies to the industry.
Restating the Benefits of COB
Container-on-barge proponents commonly
use bulk terms and figures to communicate
the barge’s comparative cost advantage;
Typically 1 Barge carries 70 truckloads of
dry bulk cargo and 144 of liquid bulk
cargo. Implicit are the fuel cost savings,
environmental impacts, road maintenance
reductions, safety benefits, and producer
price reductions, etc. However, containers
are not bulky. They cube-out before they
weigh-out. The average container-loaded
barge translates to approximately 34
truck loads.
COB Saves Time for Shippers
While trucks travel faster than barges and
deliver a container in less time than a barge,
they have a longer time derivative per TEU.
On average, the line-haul time for a con-
tainer delivered by truck takes 2.5 times
longer per TEU than it takes by barge.
Time derivative savings are more relevant for
large volume customers.

PROPOSED INSTITUTIONAL PLAN
The Mhy Delta, although centered around the State of Mississippi, is a cross-jurisdictional project.
It involves several states, specifically those states situated along the Mhy Delta system, the multiple
authorities and commissions that have jurisdiction over the gateway and inland ports, port and
terminal operating entities, the barge operating companies, and ultimately the shippers and receivers
of container cargo. While the Mhy Delta is essentially a Mississippi plan, there are many aspects
that impact the success of the project that are not within its jurisdiction.
Coordination of Gateway Port Investment Decisions. The expansion of container handling capacity at
the base of the Mhy Delta along the Gulf Coast is the highest priority for the project. While the
expansion of the Port of Gulfport is the State of Mississippi’s, the expansion in New Orleans and at
Seapoint are the State of Louisiana’s, and the Port of Mobile is the State of Alabama’s. The
decision-making for these expansion projects should remain as is, what is needed is increased inter-
port coordination.
Cooperation of Enhanced Mode-Share Strategies. The coordination and cooperation of enhanced
mode share strategies is also very critical. Inter-port competition is a very real aspect within the
international container trade sector, and plays an important part in keeping US ports globally
competitive. However, landside modal diversion presents a delicate balance between policy driven
objectives and competitive motivations. Cooperation will be critical to success.
Fleet Integration and Conversion Strategies. While the existing approach of integrating container
barge services into bulk barge services is sustainable, a container barge fleet conversion plan is also
required. While this is largely a private sector issue, it is impacted by national laws and policies
governing the US Maritime sector. Any form of fleet conversion must be to the benefit of the US
Maritime industry as a whole. Hence, the success of this strategy will require coordination and
cooperation at the industry, Federal and State levels.
National Security. The development of the Mhy Delta presents several opportunities toward
developing a more secure international logistics supply chain. The Mhy Delta is a closed loop
transportation system that is ideal for implementing new technologies and innovations to enhance
trade security. Implementation of these technologies and innovations will require coordination and
input from the department of Homeland Security and other Federal, State and Local agencies.
AMULTI-JURISDICTIONAL ENTITY
There are several options for pursing a multijurisdictional approach. One is for the State of
Mississippi to coordinate among all the entities, and across all these issues. The second is to use an
existing entity that is already recognized as a multijurisdictional entity which receives its funding
from multiple entities.

SUMMARY OF FINDINGS AND RECOMMENDATIONS
The State of Mississippi has the strategic opportunity of driving the development of the next major
innovation in intermodal container transportation. The development of the Mississippi Container-
on-Barge Intermodal Supply Chain network is critical to the success of container trade growth in the
region. The following are the key findings and recommendations:
Container Gateway Capacity
Issue. There is not sufficient container handling capacity at the base of the Mississippi River to support the
development of full-scale container-on-barge operations throughout the Mississippi River system.
Strategy. Pursue a multi-port, multistate (Alabama, Louisiana and Mississippi) gateway container develop-
ment strategy for the Gulf-Coast. In the State of Mississippi, we recommend the continued investment in con-
tainer handling, storage and intermodal facilities at the Port of Gulfport.
Enhanced Mode Share
Issue. Gulf coast and east coast ports are historically truck ports; Their container markets are largely within a
1-2 day truck drive. Intermodal shares of port landside traffic are typically in the teens.
Strategy. Introduce a second intermodal mode, container-on-barge, to supplement rail intermodal as an alter-
native to trucking, and introduce enhanced mode-share incentives that are tied to terminal operator leases.
Mississippi Bulk Vessel Fleets
Issue. Current container-on-barge tows on the Mississippi take 1-2 weeks to reach major markets like Mem-
phis, St Louis and Chicago, compared to a 2-day turnaround on the prominent European waterways.
Strategy. Continue to use the existing approach of integrating container-on-barge services into the bulk fleets.
This allows the Mississippi container barge operator to offer a sustainable level of service. However, incentives
should be developed to gradually introduce self propelled vessels on specific line-haul segments that offer quick
turn times.
Multijurisdictional Institution
Issue. The development of Mhy Delta is cross-jurisdictional, involving multiple states, ports and private enti-
ties. There is no single multijurisdictional entity tasked with developing and promoting Mhy Delta.
Strategy. Identify an existing multijurisdictional entity to spearhead the effort and provide it with a specific
mission and dedicated funding.

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