The potential for cost savings and revenue increases related to improved accuracy and timeliness of critical information on currents and water levels can be significant. Consider that more than 99% of U.S. international commerce outside North America, by weight, valued at nearly $500 billion, moves by ship. So a 1% improvement in the overall efficiency of America's marine transportation system would translate into more than $2 billion in savings across our economy within a decade. And, in our global economy, U.S. exports are expected to grow from about 22% of Gross Domestic Product today to over 30% in the year 2000.
The rapid growth in the size of vessels means that effective use of all available draft and width is critical. Although the main shipping channels are dredged, many deep-draft ships cannot enter U.S. ports except near times of high water. Real-time water level and current information is needed for safe navigation and to permit increased exports by maximizing use of limited channel depths.
Containership operations might reap as much as $6,000 to $24,000 in revenues for every inch of increased draft and thus cargo carried per trip. Real-time water-level systems have led to a tripling of coal exports from Philadelphia (from 1.5 to 5 million tons), an increase of 0.5 million tons of coal exports from Baltimore in the first year of operation, and an increase in grain exported from Portland amounting to $20,000 per shipload. And the benefits are not just felt in the port community. Everyone benefits, from the ship owner, the crew, the port, dockside workers, the land-based transportation crews, all the way back to the mining communities providing the coal. And this increased efficiency makes the U.S. all the more competitive in international markets.
Real-time information on currents and water levels can also avoid delays or optimize ship scheduling that is valued at as much as $3,000 per hour per ship. For lack of real-time water level information there are lost opportunities to enter or leave port on especially favorable tides, or to confidently remain at dock transferring cargo. For lack of real-time water level and current information there may be unacceptable risks in transiting, docking and undocking a ship or an inability to complete desired maneuvers in confined waterways. And the costs cascade because, for example, one ship's delayed departure means another's delayed berthing with associated delays in the land transport and delivery of goods.
In the future real-time information coupled with electronic charts has the benefit of increased operational time, e.g., working in poor or zero visibility. Having an "all-weather" ability to enter or leave port eliminates the extremely expensive delays associated with unplanned ship and hence port facility schedule changes.
Significant returns on investment in this activity will be realized in the form of broad societal gain and improved transportation efficiency
Revised: April 1998