Page 134: of Maritime Reporter Magazine (June 1996)

U.S. PORTS REPORT

PACIFIC RAINBOW

T JD K. A I Analyzing Need\ Cost & Safety In U.S. Ports

The U.S. Coast Guard's (USCG; planned expansion of the radar- based vessel traffic service (VTS) system — dubbed VTS 2000 — is a project which was recently ana- lyzed by the U.S. General

Accounting Office (GAO). The

GAO found that support for the

VTS 2000 project was not wide- spread, with objections mainly lim- ited t6 the cost/benefit ratio of the system to a particular port. Most opposed user fees or other funding approaches that would pass the cost of VTS 2000 from the federal

System development is broken down into many areas, including: software development; system design; system testing; contract- ing; construction of land based support facilities; and system engi- neering.

The GAO's investigation centered on eight of 17 potential ports which are considered candidates for VTS.

It is worthy of mention, however, that development of VTS 2000 has not proceeded to the point where a great deal of site-specific informa- tion is available. In fact, the

While many U.S. ports are in need of Vessel Traffice Service (VTS) systems, a recent report from the General Accounting Office (GAO) suggested that the U.S. Coast Guard (USCG) should receive more input from local users of the system to determine what is necessary and economically feasi- ble. According the the USCG's VTS 2000 plan. 17 U.S. ports would be outfitted with the VTS sys- tem by the year 2004.

Long Beach, Philadelphia/Dela- ware Bay and San Francisco), most key stakeholders said that the existing systems were sufficient and were needed. At two of the ports, users were already provid- ing financial support. At the remaining two, stakeholders inter- viewed seemed willing to fund determine the presence of vessels in and around ports, and provides information to vessels such as: traffic; tides; weather conditions; and port emergencies. Other safe- ty measures include training ves- sel operators, improving naviga- tional aides (such as buoys and markers), dredging wider, deeper some type ot vlo operation it nec- essary to ensure that VTS coverage continues.

Several key issues will have an effect, it seems, on the establish- ment of privately funded or pri- vately operated VTS systems. The

GAO found that these include the private sector's ability to fund the initial start-up costs of such a sys- tem, the private sector's exposure to liability, and the USCG's role in planning and overseeing a private- ly funded system.

VTS

A VTS system is one of several methods for improving navigation- al safety and protecting the marine environment. A VTS system helps channels and inspecting vessels.

Under authority of the Ports and

Waterways Safety Act of 1972, as amended, the USCG operates VTS systems in eight ports in the U.S.

Operation and maintenance costs for these systems totaled about $19 million in 1995, and the costs were borne by the USCG.

To better analyze the need for

VTS, a Port Needs Study was con- ducted, and two sets of locations as possible candidates for VTS were ascertained (see Table 1).

Of the 15 ports analyzed, it was shown that 10 would enjoy a net benefit from a new or improved

VTS system in 15 years. The (Continued on page 123) government to those using the sys- tem. While the debate will contin- ue, the GAO does report that the port of New Orleans would be a big benefactor of the technology. The estimated net benefit of installing a VTS in this location is $253.7 million (see Table 1).

Age-Old Battle: Safety vs. Cost

The cost to implement the VTS 2000 project is estimated between $260 to $310 million, with about $42 million in federal funds for operation each year if, as planned,

VTS is installed at 17 locations. At present, the USCG plans to pay these costs from its budget, and not pass them on to local ports or users (i.e. shipping companies).

USCG does not plan to determine how many of the 17 ports under consideration should operate VTS 2000 systems until fiscal year 2000, and development plans have not reached the stage where specif- ic components have been selected for any port.

In addition, most of the shipping industry professionals in the ports targeted by the GAO said they had lacked any involvement to date with the VTS 2000 program, although the USCG is expected to work more closely with these stakeholders as more specifics emerge.

However, at the four ports where

VTS systems already exist (Houston/Galveston, Los Angeles/

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