Marine Log - February 2009 - (Page 24) ICE CLASS TANKERS Source: Institute for Global Maritime Studies Waterways Fuel Tax (B) that is loaded at a instead of the HMT, but port in Canada located in the Great Lakes are not the Great Lakes Saint considered part of the Lawrence Seaway System inland waterways sysand unloaded at a port in tem. the United States. The Institute for (2) GREAT LAKES Global Maritime StudSAINT LAWRENCE ies notes that the tax SEAWAY SYSTEM- For unfairly burdens coastal the purposes of this subshipping because shalsection, the term “Great low draft coastal vessels Lakes Saint Lawrence do not require port Seaway System’ means dredging. Furthermore, the waterway between the domestic movement Duluth, Minnesota and of containers accounts Sept. Iles, Quebec, encomfor only 0.2% of the total passing the five Great HMT collected, and the Lakes, their connecting Harbor Maintenance channels, and the Saint Trust fund is running a Though a number of coastal shipping routes are operational—including two Lawrence River.” $4 billion surplus that more since this map was compiled—the U.S. still only moves about 2 percent of “For too long, the is expected to reach $8 domestic freight by sea HMT has served as a barbillion by 2011. rier to the development of Former Secretary of a robust and vital short Transportation Mary E. Peters has stat- H.R. 528 (January 14th) and H.R. 638 sea shipping industry in the United ed that “the HMT is the most significant (January 22nd) to amend the Internal States, which would have significant ecoimpediment under current law to the ini- Revenue Code of 1986 to exempt users of nomic and environmental benefits,” said tiation of such services to Great Lakes America’s Marine Highways from the Congressman McHugh in introducing his ports” because the “avoidance of the HMT and, this time around, there are very similar legislation. “Providing this HMT is a main motivation for shipping hopes that exemption effort could get exemption to the HMT would give cargo cargo from Canada to the United States some traction. shippers an incentive to move cargo via by trucks instead of water.” The two pieces of legislation appear water rather than by trucks, combating The cost added by the tax is only part very similar. Congressman Cummings’ high congestion, improving the flow of of the problem. Because the HMT is version would provide that: commerce, and reducing air pollution based on the value of cargo, it makes it (1) IN GENERAL- No tax shall be generated by ground transportation. impossible to levy it on a simple flat-rate, imposed under section 4461(a) with “Across the country, enacting this legper-container basis making it impossible respect to cargo contained in intermodal islation would spur significant activity in for operators to structure simple tariffs. cargo containers and loaded by crane on the shipbuilding industry, creating many There have been several attempts to a vessel, or cargo loaded on a vessel by employment opportunities. An example legislate this nuisance tax away and thus means of wheeled technology-in the 23rd Congressional District would far none have succeeded. In January, (A) that is loaded at a port in the be the potential for significant expansion though, Representatives McHugh (NY- United States and unloaded at another at the Port of Oswego, which could result 23), whose district includes the Lake port in the United States or a port in in millions of dollars in economic impact Ontario port of Oswego, N,Y.) and Cum- Canada located in the Great Lakes Saint and the creation of dozens of jobs.” mings (MD-7) respectively introduced Lawrence Seaway System, or The Administrator of the U.S. Saint http://www.eagle.org
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