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Not To Throw Cold Water On It, But . . .

By Art van Bodegraven | 06/18/2010 | 12:34 PM

The US Department of Transportation's Secretary, Ray LaHood, announced the inception of the "America's Marine Highway" program in April.  For those weary of bailouts and stimuli, the initial grants involve under $100 million (with an "m" not a "b").

Are short-sea and other maritime transport modes really viable in the US?  I don't know.  I do suspect that longer-distance river transport could be more employed than it is if: 1) shippers stopped to think about it, and 2) locks and other infrastructure  elements were upgraded and maintained.  But, it does seem reasonable that, if Secretary LaHood's concept embodied compelling merit, profit-motivated players in the private sector would have jumped on the notion quite some time ago.

It's appealing that there might be environmental benefits to the movement of goods over water instead of over the road (either rail or highway).  In the wake of BP's catastrophic misadventure in the Gulf, there might be some concern about the environmental risks of a maritime shipping accident involving who knows what kind of cargo.

In the broader economic equation, I'd like to know if marine highway proponents have considered: 1) the cost of added handling and delay if a water link were to be added to supply chains; and/or 2) the added complexity of introducing more players into the complex business relationships that make up end-to-end supply chains. 

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About Art van Bodegraven

Art van Bodegraven

Art van Bodegraven (1939 - 2017) was Managing Principal of the van Bodegraven Associates consultancy and Founding Principal of Discovery Executive Services, which develops and delivers supply chain educational programs. He was formerly Chair of the Supply Chain Group AG, Partner at The Progress Group LLC, Development Executive at CSCMP, Practice Leader with S4 Consulting, and a Managing Director in Coopers & Lybrand's consulting practice. Concentrating in supply chain management and logistics for over 20 years in his 50+ year business career, he has led ground-breaking strategic, operational, and educational projects for leading US and global clients. Art was principal co-author of DC Velocity's Basic Training monthly column for a decade, and was the principal co-author, with Ken Ackerman, of Fundamentals of Supply Chain Management, the definitive primer in the field. His popular blog, The Art of Art, has been a staple of DC Velocity's web site since its inception.



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