CONTENTS Summary 1 Chapter 1 Background 3 Nature of the Cargo 3 Volumes Produced and Shipped 8 Geography of Commodity Flows 8 Chapter 2 Motivation for Increasing Waterborne Shipments 13 Public Safety 13 Environmental Concerns15 Issues with Shipment of Toxic Inhalation Hazard Materials by Railroad 17 ChapterB Current Operating Environment 19 Current Logistics Systems 19 Regulatory and Security Environment 21 Chapter 4 Movement of Toxic Inhalation Hazard Materials 24 in Europe and Canada Background 24 Regulatory and Security Environment24 Market Description 25 Chlorine and Anhydrous Ammonia Production Strategies in Europe and Canada27 Differences from the U.S. System 30 Conclusions 30 Chapter 5 Vessel Requirements Existing Fleet-Inland 32 Existing Fleet-Coastwise 32 Rail and Truck Fleets 33 Functional Requirements 33 Conclusions on Vessel Requirements 34 Chapter 6 Economics of Expanded Operations 36 Market Conditions 36 Transportation Rate Pressure 36 Capital Requirements 38 Risk40 Chapter 7 Obstacles 41 Geographical Dispersion 41 Financial Risk of Catastrophes 41 Operational41 Regulatory 42 Market 42 Infrastructure Conditions 42 Externalities to Consider 42 Chapter 8 Potential Courses of Action 45 Background 45 Limit Risk to Carriers and Shippers-Institute Insurance Program45 Require Safer Equipment and Technology 46 Dilute the Ammonia 46 Establish Incentives 46 Restrict Movements through High-Population Areas (High Threat Urban Areas)47 Maintain and Improve the Infrastructure and Guarantee Its Condition 47 Encourage the Location of New Plants and Facilities Near Marine Terminals 47 Integrate the Value of Marine Transportation into National Planning47 Chapter 9 Conclusions 48 Obstacles and Challenges 48 Alternatives 48 References 49 Appendix A Jones Act Tankers53 Appendix B Articulated Tug/Bargc| (ATBs) 55 Appendix C Bibliography 58