This paper examines the Maritime Transportation System (MTS) as a critical infrastructure underpinning global trade and United States national security. It surveys the scope and complexity of MTS — encompassing ports, waterways, and intermodal connections — and quantifies its economic contribution, including its role in handling 95% of U.S. international trade. The paper then identifies the primary risks MTS faces, ranging from accidents and environmental pollution to terrorism and transnational criminal networks. It analyzes the security vulnerabilities created by underfunded enforcement agencies and ineffective deterrence policies, and concludes by outlining the elements of a sustainable MTS framework, including public-private partnerships, governance structures, and integrated organizational management systems.
The Maritime Transportation System (MTS) is one of the critical infrastructure systems that promote economic activity by enabling the transfer of goods between national and international destinations throughout the globe. Because of its role in promoting economic activity, MTS is one of the most important elements of United States national security. However, maritime systems have become increasingly vulnerable to risks that could jeopardize smooth operations and contribute to direct and indirect financial losses. Some of these risks include organizational and environmental risks as well as security risks such as terrorism. The risks to the smooth operations and effectiveness of maritime systems are classified into four major categories — human, natural, organizational, and technological factors — since they emerge from both natural and man-made disasters. In recent years, there has been significant focus on promoting the sustainability of the Maritime Transportation System by addressing these risks and enhancing operational effectiveness.
The Maritime Transportation System is a crucial infrastructure system given its role in promoting economic activity by facilitating the transfer of goods across national and international destinations. The maritime domain broadly incorporates all aspects related to the sea, ocean, or other navigable waterways. Consequently, MTS comprises ports, waterways, and intermodal landside connections that facilitate the transportation or movement of people and goods from, to, and on the water. Given this scope, MTS is characterized by a high level of complexity and dynamic operations. Generally, maritime-related activities consist of the transportation of people, vessels, cargo, and other conveyances associated with these various connections.
Notably, MTS includes approximately 25,000 miles of navigable channels, nearly 300 locks at various locations, several recreational marinas, more than 1,400 designated intermodal connections, and more than 3,700 marine terminals. Given the complexity and diversity of its operations, MTS is the cornerstone of international trade and globalization. Ships carry cargoes to every corner of the world twenty-four hours a day throughout the year. In light of continued growth in world commerce, the role of MTS in world trade is expected to grow steadily. This expected growth is also driven by the fact that more people around the world are gaining access to basic materials, goods, and products.
Shipping accounts for nearly 90% of international trade to individuals and communities throughout the globe. The significance of shipping in world trade is evident in the fact that it is the most efficient and cost-effective means of global transportation of products. Shipping therefore provides a reliable, cost-effective method of moving goods worldwide, which in turn promotes commerce and helps create prosperity among people and countries. Global maritime transport also supports a considerable number of wealth-generating and poverty-alleviating activities in both developed and developing countries. These activities help improve living standards while providing job opportunities to more than 1.5 million people throughout the world, particularly in developing countries.
The social and economic impacts of shipping and maritime-related activities have contributed to the significance of MTS in the modern world. One of the major factors that has enabled MTS to achieve its significant role in the world economy is free market forces, which have allowed it to realize a high level of efficiency. These market forces have played a major role in the expansion of the global economy and promoted low-cost transportation of products throughout the globe.
Maritime Transportation System has considerable social and economic impacts on the lives of people and the development of nations. The social impacts are largely attributed to job creation and improved access to essential materials, goods, and products. Economic dependence on MTS has grown substantially because of the system's role in promoting economic activity across the world. In the past four decades, maritime trade has quadrupled to the point where it currently exceeds 6 billion tons annually, accompanied by an annual growth rate of approximately 4%.
The economic significance of MTS is evident in the contribution of waterborne and maritime-related activities to economic growth and national development. These activities contribute over $649 billion to the United States Gross Domestic Product every year while sustaining more than 13 million jobs. Marine Transportation System activities also contribute more than $212 billion in yearly port sector taxes for local, state, and federal governments.
Given recent growth in economic activity, MTS currently generates more than $750 billion of U.S. GDP and handles 95% of all international trade. This critical infrastructure is an important aspect of United States national security because of the direct and indirect links between economic activity and security. The United States' economic and military security initiatives are closely tied to the operations and well-being of MTS. Therefore, the economic and social well-being of the United States is dependent on a safe, efficient, and environmentally responsible Maritime Transportation System.
Despite its significance to the social and economic well-being of people and nations, the Maritime Transportation System poses several risks with regard to fatalities, loss of property, and environmental pollution. These risks mainly emerge from accidents involving ships carrying passengers, which can generate considerable human casualties. Ship safety has emerged as a major concern in light of the increased function and significance of MTS. As MTS continues to grow as an important infrastructure system in the modern economy, it continues to pose significant risks related to human fatalities and property loss whenever accidents involve passenger or cargo vessels.
The environmental pollution risks posed by MTS are mainly attributed to the operations of ships, particularly with regard to fuel consumption. These environmental risks have attracted significant concern because of the recent increase in global warming and the severe damage to world ecosystems caused by greenhouse gas emissions into the Earth's atmosphere.
The risks posed by MTS have prompted numerous studies on improvements to ship safety, carried out in attempts to develop a framework for risk assessment based on a holistic risk model. As these studies demonstrate, it is important to establish the concept of risk-based design for passenger ships, in which the foundation of risk assessment is a vessel's ability to survive in volatile and risky conditions. This can be achieved by adopting a holistic approach to the risk assessment framework provided by the International Maritime Organization.
Lessening the risks posed by MTS also requires a framework that assesses risks to ships at both the design and operational stages in a proactive and systematic manner. This approach would help generate insights into the process of risk evolution and identify the most critical variables contributing to specific risks, enabling their mitigation through the most suitable and effective means.
"Terrorism, piracy, and transnational criminal networks"
"Governance frameworks and public-private partnerships"
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Samija, Suzana. "Maritime Transport Management for the Purpose of Efficiency and Safety of Shipping Services." Faculty of Maritime Studies. Accessed May 16, 2015. http://www.geocities.ws/icts_papers/Papers/Samija.pdf
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