Missouri Governor Meets With Port Officials, Container-On-Vessel Proponents

Missouri Gov. Michael Parson visited the Mississippi River town of Herculaneum on August 12 to find out more about statewide efforts to develop container-on-vessel (COV) freight options.

He was joined by a group of Missouri lawmakers, Jefferson County elected officials, representatives from the port authorities of Jefferson County, Kansas City and Jefferson City, and others.

Also present was Sal Litrico, CEO of American Patriot Container Transport LLC (APCT) and a member of the American Patriot Holdings LLC executive management team, which is developing a purpose-built container vessel designed for U.S. inland waterways. The patented vessels APCT is developing would be able to carry larger quantities of containerized freight at more rapid upriver speeds on an all-water route, connecting Missouri ports in Jefferson City, Kansas City and the St. Louis region to the lower Mississippi River — and ultimately to Asia, Europe and other foreign ports.

The Herculaneum site is being considered due to its strategic location on the Mississippi River, just south of St. Louis, the northern most ice-free port on the Mississippi River with easy access to the interstate system and access to the Class I railroads. Mark Denton, Manager of the Riverview Commerce Park at the Port of Herculaneum, said that $2 million has been invested in the port facility since 2013, and a million tons of commodities now move through the 18-acre site annually, but he sees additional growth on the horizon.

“We were very fortunate to meet Sal [Litrico] and the others involved in this initiative and we want to be a part of this and see how it goes,” said Denton, but he pointed to his colleagues at Doe Run as the entity that would be the real catalyst for the future growth, as they own the property that would be repurposed to house the new container terminal.  “We’re looking at two potential berth spots for APCT vessels coming in, and warehousing and railroad expansion and things of that nature, as we see things growing in the future.”

Litrico said a common footprint would be used for the development of the terminal in Herculaneum and the other Missouri terminals at the ports in Kansas City and Jefferson City. He said the due diligence process is expected to be complete by March 2020, with an anticipated operational date of March 2022.

The hybrid vessels are designed to carry 1,700 TEUs (twenty-foot equivalent units).  Litrico discussed COV as a necessary change to bring added value to the supply chain, creating a new, lower-cost transportation option for Midwest cities.

“We’re implementing a whole new system that starts with a strategic, state-of-the-art Gateway Terminal, linked to strategic state-of-the-art container terminals in the Midwest, connected by innovative and patented vessels that carry critical mass at the lowest landed cost on an all-water route, providing significant savings to shippers without compromising reliability,” he said.

The Liner vessel will carry up to 2,500 TEUs at speeds of 13 mph. upriver with virtually no wake, making round trips from Plaquemines Port Harbor & Terminal District in Louisiana to Memphis possible in 7 days and to the St. Louis region in 10 days.

After listening, Parson said he recognized the potential statewide initiative as a visionary plan that could provide opportunity for Missouri. “If you really look at Missouri and look at the ports we have running down both sides of the state–something no other state has–and you look at our highway system going north, south, east and west, and you look at our rail system spanning across the country to the east and west coasts, to Canada and Mexico, we have the ideal, prime location in Missouri to capture these kinds of investments in our state,” Parson said. “We’re going to put everything on the table that we can to find a solution.”

Taulby Roach, Bi-State Development president & CEO, spoke about the important role of Bi-State Development, through its St. Louis Regional Freightway enterprise, in creating the needed partnerships and collaboration between states. “One of the biggest portions of that is, how do we create a cogency for the private sector to do better economic business within our state and the bi-state region?” said Roach. “That’s our job, that’s why I’m here today, and that’s why we’re looking to advance this project forward and gain Gov. Parson’s and the Missouri Legislature endorsement on this idea.”

Mary Lamie, executive vice president of Multi-Modal Enterprises at Bi-State Development, talked about the expectation for freight volume to increase by 40 percent in the next three decades and the importance of the Midwest capturing a part of those increased freight volumes.

She said changes in global trade patterns are affecting how containers move in and out of the United States, creating an opportunity for vessels to become a huge gamechanger as they continue to grow larger and larger.

Seeking to connect more freight via the inland waterways to those freight assets, Lamie has been engaged in the COV effort, and recognized the need to partner with sister cities like Kansas City and Jefferson City within Missouri, as well as with ports in Louisiana and Illinois, MoDOT and the U.S. Department of Transportation.

Sandy Sanders, executive director of the Plaquemines Port Harbor & Terminal District, where the Gateway Terminal for the new COV service would be developed, provided additional insight on those opportunities.

“In 10 years, there’s going to be a 10 billion ton increase in maritime cargo,” Sanders said. “If that cargo is going to the Gulf Coast, you need a true gateway port.”

Parson indicated that Missouri lawmakers would decide if a statewide initiative would move forward. Jefferson County Executive Dennis Gannon said he and the other partners hoped to get a working group together in Jefferson City to further advance the plans.

Regarding the high-water events the Midwest faced in 2019 and the disruptions that could impact COV operations, Litrico said there were many lessons learned, and adjustments to terminal and intermodal plans to ensure reliable operations are being considered.

“We’ve reached out to all of our partners to see how they were impacted in 2019 and what we need to do differently from our conceptual design to remain in business and to keep our customers in service,” Litrico said. “Some very insightful information came from that and we’re looking at that to apply it to our business plan.”