gnansportatlon .L.IbraI‘Y HE $5 24 I 9516" 5 3 '55 I § B 487550 AN ECONOMIC SURVEY- RHODE ISLAND DEVELOPMENT COUNCIL - I955 UNIVERSITY OF IvIICHIGAN LIBRARIES PHOTOGRAPHS - FRONT COVER Top - PETROLEUM TANK FARM - PROVIDENCE Rhode Island Development Council Photograph Center - TUG IN ACTION AT PORT OF PROVIDENCE Providence Journal Company Photograph Bottom - LUMBER UNLOADING AT MUNICIPAL WHARF Rhode Island Development Council Photograph l__ Hransportation umrx fig 3 '56 PORT OF PROVIDENCE AN ECONOMIC SURVEY Preparedfor THE CITY OF PROVIDENCE and THE TOWN OF EAST PROVIDENCE by BHODE ISLAND DEVELOPMENT COUNCIL / With fhe Consulting Services of KN-APPEN -TIPPETTS-ABBETT-MCCARTHY ENGINEERS I955 Transgcstatilce STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS Rlunle Island Development Council EXECUTIVE DEPARTMENT STATE HOUSE PROVIDENCE 2, RHODE ISLAND DENNIS J. ROBERTS GOVERNOR THOMAS A. MONAHAN EXECUTIVE DIRECTOR ADVISORY COMMISSION CHELCIE C. BOSLAND WALTER F. FARRELL JOHN H. MCMAHON CHESTER R. MARTIN FELIX A. MIRANDO RAYMOND H. TRQTT The Honorable Walter H. Reynolds Mayor, City of Providence The Honorable Daniel E. Marso President, East Providence Town Council Gentlemen: I am happy to transmit herewith an Economic Survey of the Port of Providence prepared by the Rhode Island Develop- ment Council in accordance with resolutions passed by the _ Providenc'e City Council and the East Providence Town Council. As the title of the study implies, primary emphasis has been placed on the economic aspects of port development. Present and potential commerce have been analyzed in detail. Tocomplete the survey, it has been necessary to give some consideration to the economic aspects of port facilities and port administration. This has been done without entering any more than necessary into the details of physical facilities planning or public administration. In preparing this economic survey the Rhode Island Development Council has employed the consulting services of port economists of the firm of Knappen-Tippetts-Abbett- McCarthy, Engineers. The representatives of Knappen-Tippetts- Abbett-McCarthy have worked closely with staff members of the Rhode Island Development Council in the compilation and analy- sis of Providence port data. The final report, however, has been prepared by the Development Council. In transmitting this report, I take pleasure in expressing appreciation to the municipal officials and to the representa- tives of industry and commerce who have generously contrib- uted their time and knowledge. Special thanks are due to Mr. Franklin S. Eggleston and Mr. Arthur H. Ferguson of the Providence Chamber of Commerce, who undertook the lab- orious task of compiling rail and truck freight rates between the ports of New England and inland destinations. Technical advice was also contributed by James J. Fisher, Providence Port Agent; Henry Ise, Chief, Division of Harbors and Rivers, Rhode Island Department of Public Works; Honorable James J. Reilly, Councilman from East Providence; Honorable John L. Lewis, Representative from East Providence; Frank H. Malley, Planning Director, Providence City Plan Commission, Charles F. McElroy, Director, Providence Public Works Department; John T. Reaves, Chairman, Providence Maritime Trades Council, Inc.; and Henry A. Whitcomb, Chief, Operations Division, New England Division, Corps of Engineers. While acknowledging the debt of the port study to these advisors, I should make clear that their contribution was principally technical in nature and that the conclusions and recommendations of the report do not necessarily reflect the opinions of the individuals named. In certain instances where the Council and its consultants have been unable to endorse important recommendations re- ceived, reasons have been set forth in full. Re szctfully submitted, Thomas A. Monahan Executive Director PATTERNS OF COMMERCE Total Tonnage Trends --------------------------------------- __ 3 Trends in Detail -------------------------------------------- __ 3 General Ports ----------------- -_- ___________________________ _.. 4 Petroleum Ports- ------------------------------------------- __ 4 Providence and Transportation ------------------------------- _.. 5 Patterns of Commerce - Significance ------------------------- _.. 5 Petroleum Origins and Distribution ------------------------------ -_ 5 Trends in Receipts ----------------------------------- __ 5 Benefits of the Petroleum Trade ----------------------- _.- 5 Physical Facilities ----------------------------------- __ 7 Petroleum Trade - Significance ----------------------- __ 8 Coal Origins and Distribution ------------------------------ _.. 8 Trends in Receipts ----------------------------------- __ 3 Benefits of the Coal Trade ---------------------------- __ 9 Physical Facilities ------------------------------- .._.._..- 9 Coal Trade - Significance ----------------------------- _.- 10 Lumber Origins and Distribution ------------------------------ __ 10 Trends --------------------------------------------- __ 10 Lumber Trade - Significance -------------------------- _- 11 Miscellaneous Commodities Pig Iron and Scrap Iron ------------------------------- __ 12 Chemicals ------------------------------------------ _.. 12 Granite Building Stone -------------------------------- _.. 13 Frozen Fish ----------------------------------------- __ 13 Miscellaneous General Cargo- ------------------------- __ 14 Miscellaneous Commodities - Significance -------------- -- 14 COMPETITION AMONG THE PORTS OF SOUTHERN NEW ENGLAND Facilities at the Ports of Southern New England ---------------- —- 17 Petroleum and Petroleum Facilities -------------------------- -- 17 Channel Depths --------------------------------------------- -- 18 General Cargo and General Cargo Terminals ------------------ -- 18 Other Terminal Facilities ----------------------------------- -- 19 Freight Rates: Areas of Freight Rate Advantage --------------- -- 19 Effect of Shipping and Other Services on the Competitive Position of the Port of Providence ------------------------ -- 21 Conclusion ------------------------------------------------- -- 24 POTENTIAL COMMERCE OF PUBLICLY OPERATED TERMINALS VIA CONVENTIONAL SHIPPING SERVICE Population of Inland Trade Area ------------------------------ __ 25 Industry of the Inland Trade Area ----------------------------- -- 27 Estimating the Ports Commerce Potential ---------------------- -- 28 Potential Receipts Wool ----------------------------------------------- -- 30 Canned Fruits and Vegetables ------------------------- —- 31 Fish and Fish Products- ------------------------------ __ 31 Raw Cotton ------------------------------------------ __ 32 Iron and Steel Products ------------------------------- __ 32 Sugar ----------------------------------------------- -— 33 Coffee ---------------------------------------------- __ 33 Miscellaneous --------------------------------------- __ 33 Lumber --------------------------------------------- __ 34 Potential Shipments Machinery and Tools --------------------------------- __ 35 Iron and Steel Products ------------------------------- __ 35 Wire ----------------------------------------------- -- 38 Cotton Waste ---------------------------------------- __ 36 Miscellaneous --------------------------------------- __ 35 Distribution of Potential Commerce by Area of Origin or Destination ------------------------------------ __ 35 Prospective Commerce Movements Via Conventional Shipping Service- ________________________________________ __ 38 Future Prospective General Cargo Commerce ----------------- -- 40 NEW TYPES OF DOMESTIC GENERAL CARGO SHIPPING SERVICES Container Service ------------------------------------------ -- 43 Train-Ship Service- ----------------------------------------- -- 43 Trailer-Ship Service ---------------------------------------- -- 45 The McLean Sea-Land Service Frequency and Range of Service ----------------------- -- 47 Inland Area to be Served ------------------------------ -- 47 Speed of Service ------------------------------------- -- 48 Rates ----------------------------------------------- -- 48 Facilities Required at Providence --------------------- -- 49 Prospective Commerce Movements by Trailer-Ship ------------ -- 50 Significance of New Trailer-Ship Service to Port of Providence -------------------------------------- -- 53 PORT SERVICES Pilots ----------------------------------------------------- __ 55 Tugs ------------------------------------------------------ -- 56 Wharfage and Dockage -------------------------------------- __ 56 Stevedores and Longshoremen- ------------------------------- -- 57 Permanent Cranes for the Municipal Wharf -------------------- -- 58 Fixed Heavy-Lift Crane ------------------------------------- __ 59 Gantry Wharf Cranes- --------------------------------------- __ 59 Repairs ---------------------------------------------------- _ .50 Lack of Drydock Facilities- ---------------------------------- __ 31 Bunkering -------------------------------------------------- __ 52 Chandlering ------------------------------------------------ _.- 62 Ships’ Brokers --------------------------------------------- -- 62 Banks ----------------------------------------------------- -- 53 Federal Government Services ----------------------- --_ ------- -- 63 Fireboat for Port of Providence ------------------------------ __ 64 Conclusions ------------------------------------------------ __ 65 PHYSICAL SETTING AND TERMINAL FACILITIES Physical Setting -------------------------------------------- .._ 55 Ships Channels --------------------------------------------- __ 67 Private Industrial Terminals- -------------------------------- __ 57 Public Terminal Facilities at the Port ------------------------ -- 68 State Pier #1 ----------------------------------------------- __ 53 Municipal Wharf -------------------------------------------- _.- 70 Adequacy of Private Terminal Facilities ______________________ __ 71 Private Enterprise Operations at the Municipal Wharf ---------- -- 72 Present Adequacy of Public Terminals ------------------------ -- 72 Area for Future Expansion of Public Terminal Facilities -------- -- '74 Hurricanes and Port Development ---------------------------- -- 76 LAND TRANSPORT Railroad Connections- -------------------------------------- -- 78 Additional Rail Service ------------------------------------- -- 79 Truck Transportation -------------------------------------- -- 82 Access to the Port - Providence- ---------------------------- -- 83 Access to the Port - East Providence ------------------------ -- 84 LAND USE PLANNING Land Use Patterns and Zoning ------------------------------- -- 86 Detailed Land Use - Providence Waterfront ------------------- -- 87 Detailed Land Use - East Providence- ------------------------ -- 89 Flexible and Fixed Land Uses ------------------------------ -- 90 Watercourse Legislation and Regulations --------------------- -- 91 Development Opportunities- --------------------------------- -— 92 Conclusion ------------------------------------------------ -- 94 PORT ADMINISTRATION AND PROMOTION Administration of Municipal Port Facility -------------------- -- 96 Financial Status of Municipal Wharf Operations --------------- -- 98 The Municipal Wharf Gross Revenues and Operating Expenses- -------------- -- 99 Bond Financing of Terminal Improvements ------------ -- 99 Net Revenues After Debt Service Costs --------------- -- 103 Summary of Conclusions on Financial Status ----------- -- 103 Port Authority -------------------------------------------- -- 103 Reorganization of Municipal Port Administration -------------- -- 105 Port-Linked Industry -------------------------------------- -- 105 Freight Solicitation- --------------------------------------- -- 107 PORT OF PROVIDENCE AN ECONOMIC SURVEY N.Y. PA WTUC/(ET ALBANY see,/ the patterns of Providence commerce, sea and land, emerge in their true perspective. General freight moving into or out of the area is carried almost exclusively by rail or truck; when points of origin or destination are overseas, routing is usually via the ports of New York or Boston. Mari- time tonnage is larger in total than either rail or interregional truck tonnage; but it is largely limited to receipts of bulk cargoes. In short, the Port of Providence today is a major northeastern coal and oil port with a small nucleus of general cargo traffic. PATTERNS OF COl\/H/IERCE - SIGNIFICANCE It is clear that economic factors affecting the expansion of petroleum, coal, and lumber receipts are not identical with those affecting the expansion of other types of commerce, especially general cargo. Therefore, in evaluating development potentials of the Port of Providence, it will be necessary to consider as separate and distinct, each of the major types of commerce. PE TRO LE UM Ten major oil companies and one electric utility regularly utilize the facilities of the Port of Providence. Their receipts and shipments account for approximately 85 per cent of the port’s tonnage. On the east bank of the Seekonk in East Provi- dence, two other oil companies maintain terminals - and one of the Providence companies has additional storage facilities. PETROLEUM - ORIGINS AND DISTRIBUTION The oil which arrives at the Port of Providence originates chiefly in the Gulf states. Lesser quantities come from the Philadelphia-Baltimore, the New York-Bayonne, and the Car ib- bean areas. The major products received are gasoline, distillate and residual fuel oil, asphalt, crude oil, tar and grease. From the tank farms on shore, products are distributed principally by truck to consumers in Rhode Island and neighboring areas of Connecticut and Massachusetts. A considerable amount is trans-shipped by a privately owned pipe line extending from East Providence to Worcester, Springfield and Hartford; and small quantities are distributed by local water freight to nearby ports. PETROLEUM - TRENDS IN RECEIPTS Since limits between the service areas of Providence and competing ports are rigidly defined by costs per mile of trans- portation, there is no practical possibility of change in the bound- aries. For this reason, trends in Providence petroleum receipts are closely related to the growth of population and the expansion of economic activity in the port’s central service area - that is, the State of Rhode Island. It is true that over a period of several decades, per capita consumption of both oil and gasoline has increased as factories, homes, utilities and means of transportation have shifted to petroleum. The long-term growth in petroleum receipts has, therefore, risen above the corresponding trends in population and general economic activity. But now the change-over to oil has been largely completed. Future trends in petroleum receipts should be nearly identical with general economic trends in the area. BENEFITS OF THE PETROLEUM TRADE The Port of Providence and the State of Rhode Island derive substantial benefits from the petroleum trade. Direct water delivery of oil and gasoline to the area’s center of economic activity results in savings on the cost of distribution. For ex- ample, the “terminal price” in Providence for heavy industrial oil (bunker C fuel oil) was recently quoted at $2.39 per barrel plus ten cents per barrel transportation charges for delivery within six miles of the port. The price for heavy industrial oil shipped through the Port of Providence to Worcester was the RECEIPTS of O PETROLEUM -' "‘“' "°“" P°RT °F j 853f_‘f° / -'~ PROVIDENCE Port of Providence I>euusv/LIvAuIA@ @ \\ e,n.4,ooo NEW I953 L \.::.‘{'-§§:§l’/" /\ -FIGURES IN BARREL$''''' “ I III III @ T E X A 5 I-(‘)’L: I°58I’%I:2 26, 950. 000 \\ ~ \ \ o O @Fmm Y_E-_"_E_ZP_Ek_é.... 2. 558.0” ~ §r .-ID Providence “terminal price” plus approximately 25 cents per barrel transportation charges. Employment of the major petroleum companies in the greater port area is over 1,250. Taxes paid by petroleum companies to the City of Providence and the Town of East Providence total over $430,000 annually. Visiting tankers averaging about eleven weekly utilize the services of pilots, tugs, and ships’ chandlers; crewmen patronize local merchants. PETROLEUM TRADE - PHYSICAL FACILITIES The petroleum traffic makes minimum use of public port facilities. The only indispensable requirement is an adequate channel. Tankers discharging at points along the Providence River normally draw less than 30 feet; those proceeding up the Seekonk, less than 15 feet. For such vessels, the present pro- ject depths of 35 feet (Providence River) and 16 feet (Seekonk River) are satisfactory. The trend, however, is clearly toward larger vessels. As this trend continues, the petroleum companies can be expected to present strong arguments for a deeper channel. On shore, the petroleum companies maintain their own facilities: wharves, delivery pipes, tank farms and offices. Three firms operate small refineries and two have facilities for blending lubricants. Public wharves are not used except by two companies which lease discharge facilities at the Municipal Wharf. As the petroleum traffic expands - and there is every in- dication that it will continue to do so - problems of storage space may become acute. Some additional tidewater frontage may be created by filling, but the possibilities are limited. It may be that expansion will eventually take place at points south of the port boundaries. However, even if economics and a shortage of real estate require this solution, the Provi- dence area will continue to enjoy most of the benefits now derived from the petroleum trade. PETROLEUM TRADE — SIGNIFICANCE The petroleum trade is of first importance in the commerce of the Port of Providence, but its rate of expansion is entirely independent of public terminal facilities or port development programs. If present trends continue, receipts should reach a level of 7,650,000 tons annually by 1970; shipments should total 785,000 tons. Except in the matter of channel maintenance and enlargement, the industry may be expected to take care of its own needs. COAL Four major coal companies maintain docks on the west bank of the Providence River. Their receipts and shipments account for approximately ten per cent, by weight, of the port’s commerce. COAL TRADE - ORIGINS AND DISTRIBUTION Bituminous coal is brought to the Port of Providence via Hampton Roads from mines in the West Virginia - Kentucky area. From the docks of the wholesale operators in Providence, coal moves to consumers either directly or through retailers of whom there are approximately 125 in the State. Distribution is principally by truck with some movement by local water freight or rail. TRENDS IN COAL RECEIPTS As in the case of oil, service areas are limited to Rhode Island and nearby portions of Massachusetts and Connecticut. The costs of land transportation are such as to eliminate all practical possibility of extending the boundaries. Trends in coal receipts are inversely related to trends in receipts of oil. While per capita consumption of petroleum products has gone up, per capita consumption of coal has gone down. Water receipts of coal have actually declined by 60 per cent since 1931. In 1947, 67 per cent of the industrial fuel utilized in Rhode Island was oil. In 1953, the Providence Gas Company discon- mUZmO_>O~_n_ m0 PQOQ WO0|000 0000 II000 I in in ) shown - -/ fre/9/"‘ . /) 3 0 IT” /1 PIOZ7/ecnjfgo O/'n0|/QIT|8hf$ ' /n‘ '//7' w/1/' /1 Prov/'6/ence has 0 frglc;/émf;':;Lg5 c}:/aII7';a_q€ for Special ca(rzc)> rghown. rmrlspzf/‘f/'on w/'7‘/7 all ,borf5 C0 . iflvin w/1/c A32,“ 0:2/anfaye for sper/: rfs (‘ m pew‘/+/'on w/fh 0/ /00 com 3 B ‘D x ‘I O 0 00 I0 0000000000 00000000000000.0000. 000000000 00lL‘ AM vI0QOIOOI _IVIIIIU0000I000000 00 -0 00.000000000000000 I000 000 0000000000000 00 00000000 0 V-v—r00000 000000 00 O 0000000000004 Il00000000000000000 ILlAl 00000l0I0lI 0 I00l0000000000 I 0 0 00000- 0000000 III‘ -"' .41‘- SOUTHBR/DGE .." .. . 5916110 D ' /v MIDDLETOW NEW LONDON NEW HA VE/V -21- In addition, it would appear on the basis of freight rates alone, that Providence would have an opportunity equal to that of New York, Boston and the other New England ports to handle the foreign commerce of the Central Freight Association Territory. Other factors are so much in favor of New York, and to a lesser extent Boston, however, that it is doubtful if any of the commerce of that area would move through the Port of Providence. To substantiate this view, it may be shown that, even though the rates between the Midwest and Philadelphia, Baltimore and Norfolk are generally lower than corresponding rates between the Midwest and New York, these three ports have been able to obtain only a relatively small portion of the competitive general cargo commerce, in comparison with the amount moving through New York. EFFECT OF SHIPPING AND OTHER SERVICES ON THE COMPETITIVE POSITION OF THE PORT OF PROVIDENCE The primary disadvantage that faces the Port of Providence in any attempt ~to expand appreciably its general cargo trade, is the present lack of scheduled ocean ship sailings and the apparently limited schedule of sailings that could be developed. This disadvan- tage overrides the Port’s apparent freight rate advantages in its natural hinterland and even within the City of Providence proper. This problem is not restricted to Providence, but affects, to some degree, every port on the East Coast except New York. For example, there are about 550 to 600 general cargo ship sailings monthly from the Port of New York to foreign ports. From the Port of Boston, there are about 100 to 110 foreign general cargo ship sailings monthly. The infrequent foreign sailings from Providence cannot be considered as “regularly scheduled.” The only regular general cargo service at Providence is that provided by the Luckenbach line, consisting of calls at intervals of a few weeks to discharge cargo from the West Coast. The competitive status of Providence and the Southern New England ports as a group, with respect to the ports of Boston and New York, is indicated by the number of marine terminals and, even more vividly, by the annual volume of waterborne commerce -22.. at these ports, as summarized on the following page. It is seen that the Port of Boston has almostas many marine terminals as there are in all seven of the Southern New England ports (Providence, Stamford, Bridgeport, New Haven, New London, Fall River, New Bedford), and that the Port of New York has almost four times this number. In terms of total waterborne tonnage, the Port of Boston handles an annual volume almost equal to the total for all the Southern New England ports, while the total volume at New York is seven times as great. Moreover, in general cargo commerce, traditionally the chief field of activity for municipal and other public port agencies, the Port of Boston ships and receives over six times the volume, and the Port of New York handles over 150 times the volume of all the Southern New England ports combined. The Port of New York handles about 35 per cent of the general cargo commerce of the nation, and New York and Boston combined handle almost all of the general cargo originating in or destined for New England. As noted previously, the principal reason for this condition is the great disparity which exists in the extent of steamship and ancillary port services available at New York (and to a lesser extent, Boston) on the one hand, as compared to Providence and the other Southern New England ports on the other. The relative levels of service available at Boston, New York, Providence and the Southern New England ports are illustrated, in the following table, by the number of general cargovessels entering these ports each year. Perhaps even more impressive is the fact that steamship lines offering regular berth services at the Port of New York recently scheduled over 1,400 entries at 130 major foreign harbors in a single month (October 1954), whereas only a few unscheduled sailings to foreign ports are made annually from the Port of Providence. The effect of this great disparity in number of sailings is shown by a survey conducted by the U. S. Department of Com- merce for the year 1928, which revealed that 65 per cent (by value) of the exports of New England manufacturers were PORTS OF SOUTHERN NEW ENGLAND COMPARED WITH PORTS OF BOSTON AND NEW YORK Totals for Southern New New York Boston England Ports _f Provic_i_e_I_1_c_1_2 Project Depths Main Channels (feet) 45 40 15 to 35 35 Marine Terminals (number) 830 210 221 27 Total Waterborne Commerce 1952 (short tons) 140,400,000 20,000,000 20,100,000 7,770,000 Total General Cargo Commerce 1952 ** (short tons) 24,900,000*** 1,000,000 160,000 35,000 Annual General Cargo Vessel Arrivals # (number) 7,000 ## 1,200 ## less than 200 50### * ** *** ## ### Includes Providence, Stamford, Bridgeport, New Haven, New London, Fall River, New Bedford. Includes all packaged, bagged, cased and barreled goods, iron and steel products, pig iron, food products, and the like; excludes bulk movements of oil, coal, grain, chemicals, sand and gravel, etc., and lumber, scrap metal, sugar and similar specialized cargoes. Includes 9,254,000 tons of intraport and local general cargo, the major portion of which is general cargo moving between a ship and a wharf via lighters. No other port in the United States makes such extensive use of lighters for handling cargo as New York. In addition to vessels handling only miscellaneous general cargo, includes those carrying specialized cargoes (e.g., lumber, sugar, fish products) frequently handled at general cargo terminals. Approximate average (estimated) for recent years. Total cargo vessels calling at Municipal Wharf in 1952, excluding tankers and colliers; number of cargo vessels in 1953 was 72; number estimated for 1955 is 75 to 80. SOURCE: U. S. Army Chief of Engineers, Annual Report, 1952. ' -24- shipped through the Port of New York. Similar studies conducted by the Federal Reserve Bank of Boston for the years 1939 and 1948 showed that 88 per cent and 81 per cent (by value), respectively, of New England’s manufactured exports were shipped through the Port of New York in those years. In the Federal Reserve Bank’s study, the companies surveyed were requested to state their principal reasons for by-passing New England ports. The most important reasons given were: 1. More frequent ocean ship sailings at New York. A cargo might wait only a few days at New York for a sailing, whereas a wait of a week or more might be incurred at a New England port. 2. More extensive geographical coverage of the shipping service available at New York. All major ports in the world are served by New York, and there are some foreign ports ser- ved directly by no United States port other than New York. The use of another port might involve costly trans-shipment overseas. These factors are the most important restraints to the move- ment of foreign commerce through the Port of Providence as they are also, but in a lesser degree, to movements through Boston. CONCLUSION The bulk of the Atlantic Coast’s scheduled shipping, freight forwarding, customs broker, banking and similar commercial services are concentrated in New York. This domination of a region by one or two ports is not peculiar to the North Atlantic Coast. It usually results when there exists within a coastal region one or two strategically located natural gateways (such as New York or Boston) which are served directly by all the primary arteries of commerce and through which very large volumes of commerce traditionally move. The effect of this domination by a few major traditional ports is to relegate the smaller ports in the region to the handling, primarily, of bulk or special industrial -25- cargoes (oil, coal, ore, sand and gravel, bulk chemicals, lumber) moving in large lots to or from their immediate hinterlands. Moreover, unless several sizeable, consistent general cargo movements (each in the order of several hundred tons and re- peated one or more times each month) can be developed at a “smaller” port, such a port cannot expect to gain the services of even a few of the regularly scheduled steamship lines. With- out such services, the successful promotion and attraction of a portion of the myriad smaller, inconsistent general cargo ship- ments that may be generated in that port’s natural hinterland becomes a virtual impossibility. -26- POTENTIAL COMMERCE OF PUBLICLY OPERATED TERMINALS VIA CONVENTIONAL SHIPPING SERVICE The potential commerce of the publicly operated terminals of the Port of Providence (for the purposes of this section) includes all traffic which might, under the most favorable conditions, move by conventional shipping service into or out of the port’s inland trade area. Of this “potential commerce” only the more promising part may be termed “prospective.” POPULATION OF INLAND TRADE AREA A precise geographical definition of a port hinterland is seldom possible. On the basis of considerations presented in the preceding section, however, the Providence inland trade area may be approximately defined as the port’s limits of motor freight rate advantage for general cargo movements. In 1950, the population of that area was 1,600,000; the distri- bution by States was as follows: Port of Providence Population of Inland Trade Area - 1950 Portion of State’ s Population Total Popula- Population within within Inland State tion of State Inland Trade Area Trade Area Rhode Island 792,000 100.0% 792,000 Connecticut 2,007,000 10.4% 208,000 Massachusetts 4,691,000 12.8% 600,000 T otal 7,490,000 1,000,000 -27- In the ten-year period from 1940 to 1950, the population of the United States increased about 14.5 per cent; during this same period, the population of the State of Rhode Island increased 11.0 per cent and that of the port’s inland trade area as a whole 10.8 per cent. On the basis of U. S. Bureau of the Census and the Rhode Island Development Council projections, it is estimated that the 1970 population of the port’s inland trade area may be 1,825,000 to 1,935,000. If this rate of growth is attained, the demand for consumer goods will increase by at least 14 per cent to 21 per cent and a greater demand for industrial raw materials will be realized. INDUSTRY OF THE INLAND TRADE AREA Manufacturing accounts for about 45 per cent of the total employment within the area, and represents by far the largest single employment group. Within the State of Rhode Island alone, manufacturing employment averaged 127,800 persons during 1939. By 1950, average manufacturing employment in the State had increased 15 per cent to almost 147,000. Rhode Island Development Council projections based on long-term trends indicate a probable 12 per cent to 27 per cent increase in Rhode Island manufacturing employment between 1950 and 1970 - to a total of 165,100 to 186,000. (On the basis of 1954 figures, this would represent a 27 per cent to 43 per cent gain.) Rhode Island Manufacturing Employment Minimum Projected Industry Group Average 1950 Average 1970 Textiles 62,719 45,200 Jewelry, Silverware 19,882 31,200 Machinery (not electrical) 11,256 19,300 Fabricated Metal Products 7,293 9,400 Electrical Equipment 6,854 10,000 Rubber Products 6,531 8,500 Primary Metals 5,801 5,900 Other 26,373 35,600 Total 146,709 165,100 -28- Because of the close correspondence noted in the past between the growth of Providence’s inland trade area and the State of Rhode Island, it is believed that these rates of growth are representative of those that will occur in the trade area. Major increases may be expected in the metal fabricating, machinery, electrical equipment, instrument; chemical, plastics, and related industries. Increases might also be made in the food processing, cement, and petroleum refining industries, if addi- tional plants are established in the port’s trade area. It should be noted that the two latter types require locations on navigable wa- ter for maximum economy in the receipt of raw materials and finished products. Textile employment, which declined from an average of 38,705 in 1954, is expected, on the basis of long term trends, to rise to 45,200 by 1970. ESTIMATING THE PORT’S COMMERCE POTENTIAL From the above projections of population and manufacturing employment, it seems reasonable to expect a 15 per cent increase in economic activities within the port’s inland trade area between 1950 and 1970. To determine the effect of this expansion on both potential and prospective waterborne commerce, commodity move- ments have been analyzed in detail and the expansion factor has been applied in the light of information obtained through personal interviews, questionnaires, and official statistics. During the summer and fall of 1954, staff members of the Rhode Island Development Council completed more than 100 inter- views with representatives of major Rhode Island industry groups. Coverage of Selected Manufacturing Industries Proportion of Rhode Island Employ- Industry Type ment Included in Sample - Per Cent Textiles 28 Jewelry, Silverware 20 Machinery (except electrical) 45 Apparel 39 Electrical Machinery 24 Fabricated Metal Products 20 Primary Metals 50 Printing and Publishing 32 SEEKONK RIVER - LOOKING TOWARD EAST PROVIDENCE Rhode Island Development Council Photograph -29- The proportions shown in the above table were used to expand the commerce data received from industrial interviews to a total approximately representative of all similar manufacturing establishments in the inland trade area. Questionnaires were also completed by a limited sample of Rhode Island distributors and out-of-state manufacturers. The data obtained from interviews and questionnaires were supplemented with information on present commerce movements (from port records and the reports of the Corps of Engineers and the Interstate Commerce Commission), and on the production and consumption of various commodities within the inland trade area (from statistics prepared by the State of Rhode Island, the U. S. Bureau of the Census, and the Committee of New England of the National Planning Association). In making this analysis, consideration was limited to commerce movements which originated at or were destined to distant points which could conveniently be reached by conventional water transport. It was then necessary to determine the minimum frequency of ship- ping service which each commodity movement susceptible to the conventional type of general cargo service would require for routing through the Port of Providence. It was found that several of the general cargo commodity movements which were favorably oriented to Providence by freight rate savings would require at least weekly shipping service for their capture by the port. The criterion of weekly general cargo service, then, has been used in the analysis of present movements to determine whether or not they may be considered “potential.” All movements which could be satisfied with weekly or less frequent service have been included; all move- ments requiring more frequent service than once weekly were eliminated from consideration. The volume of commerce found to be “potential” was further analyzed to determine whether it would be sufficient to attract a regularly scheduled line offering weekly shipping service. Commerce volumes of sufficient magnitude to attract this basic service could be considered “prospective” to the port, since these probably would be susceptible to diversion by water transport at Providence. -30- POTENTIAL RECEIPTS From the information received in the course of the interview and questionnaire survey, coupled with an examination of land transport statistics and statistics of production and consumption in the port’s inland trade area, it is estimated that about 190,000 short tons per year of waterborne receipts are potential (but not necessarily prospective) to the port’s public terminal via conven- tional shipping services. This total is summarized in the following table by commodity: Port of Providence Potential Waterborne Receipts at Public Terminals Foreign Domestic ITons per year) R e c e ip t s Wool 15,000 1 5,000 Canned Fruits and Vegetables -- 20,000 Fish and Products 15,000 -- . Raw Cotton -- 10,000 Miscellaneous 15,000 -- Total 45,000 45,000 Other Lumber, Foreign and Domestic 100,000 Total Receipts 190,000 POTENTIAL RECEIPTS - WOOL Expansion of the commerce volumes determined during the interview survey indicated that the potential annual waterborne receipts of wool and wool tops at Providence are about 20,000 tons for the State of Rhode Island alone. During 1952, water- borne receipts of wool at Boston were 145,000 tons. -31- In 1952, about 10,000 tons of wool were shipped into the Providence trade area by rail from the Pacific Coast. In spite of recent reductions in textile employment, it is believed that 30,000 tons annually would be a realistic estimate of Provi- dence’s potential waterborne receipts of wool. About half of this volume would be from foreign sources, principally Australia. POTENTIAL RECEIPTS - CANNED FRUITS AND VEGETABLES During 1952, about 97,000 tons of canned fruits and vegetables were received by water at Boston. Although no canned goods were received at the Port of Providence in that year, the institution of service from the West Coast to Providence in 1954 brought an estimated 11,000 tons to the port in that year. While it appears on the basis of per capita consumption that receipts of about 60,000 tons annually are potential to the port, certain other factors must first be considered. The Atlantic and Pacific Tea Company has a large warehouse near the Municipal Wharf in Providence, and undoubtedly finds it economical to handle large volumes of canned goods by water. The First National Stores, the only other food distributor of comparable size in this area, maintains a warehouse i.n East Providence. At this warehouse large quantities of west coast products are received - partly through the Port of Providence. The other food distributors in the Providence area are probably not of sufficient size to support warehousing facilities of the magnitude needed to handle the large- volume movements. Consequently, it is estimated that Providence’ s potential for this movement is about 20,000 tons annually. POTENTIAL RECEIPTS - FISH AND FISH PRODUCTS For the past several years, approximately 9,000 tons of frozen fish and fish meal have been received annually at the Port of Providence. The frozen fish is shipped from Providence to points throughout the Southeast and Midwest. Consideration is presently being given by a private concern to the construction of a cold storage warehouse at the Municipal Wharf. If this development is undertaken, it should substantially increase the commerce in this commodity. However, as previously noted, it is realistic to recognize that if new cold storage facilities should be built at Gloucester, Massachusetts (a principal center of the frozen fish trade) and not built at Providence, then Providence might be altogether eliminated from this trade. POTENTIAL RECEIPTS - RAW COTTON During 1952, about 20,000 tons of raw cotton were received at the Port of Boston. The questionnaire and interview survey showed that about 25,000 tons of raw cotton, originating in Mississippi, Texas and California, are moved to Providence’s inland trade area by rail annually. At least 10,000 tons of this movement should be considered as potential to the port. POTENTIAL RECEIPTS - IRON AND STEEL PRODUCTS Receipts of semi-finished and finished iron and steel products at the Port of Boston in 1952 were only 66,000 tons. In a pre-war year (1939), over 340,000 tons were received at the port. The 1952 volume was unusually low because steel at that time was in short supply and savings in time by the use of land transport were more important than savings in costs by the use of water transport. At present, the steel supply is more plentiful, and water transport has begun to regain some of its traditional movements. The high handling charges of domestic shipping, however, tend to deter the resumption of this trade. Of greater importance to Providence is the recent construction of the Fairless Plant of the United States Steel Corporation on the Pennsylvania side of the Delaware River near Trenton, New Jersey. From a study of the comparative distances involved, it would appear that land transport from this plant to Providence would be cheaper than water. Since, of the nation’s major steel plants, this is the one nearest to Providence, it is believed that most of the area’s iron and steel requirements will be met from it. UNLOADING FROZEN FISH - MUNICIPAL WHARF Rhode Island Development Council Photograph -33- During 1952, approximately 26,000 tons of pig iron were imported at Providence, principally because of the difficulty of obtaining any iron and steel products in that year. During 1954, only about 2,000 tons were imported. It is believed that neither the import nor coastwise receipt of iron and steel products con- stitute a reliable potential for the port. There may, of course, be sporadic movements of these commodities at the port, depen- ding on the rapidly changing supply-demand situation. POTENTIAL RECEIPTS - SUGAR In 1952, 470,000 tons of refined sugar were received by water at Boston. This level has been maintained since the war. With an average per capita consumption of nearly 100 pounds per year, nearly 80,000 tons per year are consumed in Provi- dence’ s inland trade area. While this volume of commerce is not included in the port’s potential because of the extensive and specialized handling and processing facilities that would be required, it might be worthwhile to determine if this volume would be sufficient to justify construction of such facilities. POTENTIAL RECEIPTS - COFFEE Receipts of coffee at Boston in 1952 totalled 34,000 tons. On the basis of the average per capita usage of 16.6 pounds per year, the present consumption in Providence’s inland trade area is estimated at about 13,000 tons annually. Much of this, however, is supplied by packers with facilities established out- side the Providence port hinterland. It does not appear that the volume processed locally at the present time would be sufficient to support direct waterborne shipment of green coffee from the producing areas to the Port of Providence. POTENTIAL RECEIPTS - MISCELLANEOUS The total miscellaneous receipts of 15,000 tons, all foreign, would be made up of small volumes of packaged chemicals, silk, carbon black, aluminum, hides and skins, jute and hemp, rubber, and other commodities consumed in the area. POTENTIAL RECEIPTS - LUMBER Although lumber is generally considered to be a bulk cargo commodity, large volumes are handled at the Municipal Wharf. Lumber is also handled at a private wharf below the Port of Providence on Narragansett Bay. During 1952, approximately 80,000 tons of lumber were received at the Municipal Wharf. In that same year, rail movements of lumber to the port’s inland trade area totalled about 150,000 tons, principally from the West Coast, but also including an appreciable volume of posts, poles and lumber from the South Atlantic states. Nearly all of the movements of lumber from the West Coast that are susceptible to water transport are presently being handled at the port. It is believed that only about 10,000 tons of West Coast lumber now moving by rail, and about 10,000 tons of the present rail movement from the South Atlantic states, might be diverted to water transport. The remaining tonnage now handled by rail would probably not be susceptible to water transport because of the nature of certain types of lumber and because of the movement, in recent decades, of many Western mills to points far inland from the Coast. At present, the total volume of lumber receipts “potential” to the Municipal Wharf is estimated to be about 100,000 tons annually. POTENTIAL SHIPMENTS The volume of waterborne shipments “potential” to public terminals at Providence via conventional shipping services is less than 25 per cent of the volume of potential receipts. This unbalance is common to all New England ports. These estimated potential shipments at Providence total about 45 ,000 tons annually . The major commodity movements comprising this total are shown in the following table: -35_ Port of Providence Potential Waterborne Shipments at Public Terminals Foreign Domestic ( Tons per year) S hip m e n t s Machinery and Tools 10,000 -- Iron and Steel Products 4,000 6,000 Wire 10,000 2,000 Cotton Waste 10,000 - - Miscellaneous 3,000 -- Total Shipments 37,000 8,000 POTENTIAL SHIPIVIENTS - MACHINERY AND TOOLS During 1952, shipments of machinery and tools from the Port of Boston were less than 14,000 tons, even with the relatively wide range of shipping services and frequent sailings offered at that New England port. Although the interview survey conducted within the State of Rhode Island indicated an outbound potential of about 17,000 tons annually, and the total outbound potential for the port’s inland trade area as a whole is about 30,000 tons per year, it is doubtful whether more than 10,000 tons could be considered poten- tial to the Port of Providence with the limited range of shipping services and sailing schedules (once-weekly) that has been adopted as maximum for purposes of this study. POTENTIAL SHIPMENTS — IRON AND STEEL PRODUCTS Expansion of the commerce volumes established during the questionnaire and interview survey indicates that the potential annual shipments of iron and steel products (principally pipe and fittings) from the Port of Providence is about 10,000 tons annually. Approximately 60 per cent of this movement would be domestic, and the remaining 40 per cent, foreign. -35- POTENTIAL SHIPMENTS - WIRE Approximately 12,000 tons annually of insulated wire (prin- cipally copper wire) appear to be potential to the commerce of the Port of Providence; of this, 10,000 tons would be foreign, 2 ,000 tons domestic. POTENTIAL SHIPIVIENTS - COTTON WASTE At present, about 10,000 tons of cotton waste are annually shipped from Providence’s inland trade area to the Ports of New York and Boston for export. This volume of cargo is potential to the Port of Providence. POTENTIAL SHIPMENTS - MISCELLANEOUS The total miscellaneous shipments of 3,000 tons shown in the summary would be made up of small volumes of garments, textile products, and other products of the manufacturing industries in the port’ s inland trade area. All would be shipped to foreign destinations. DISTRIBUTION OF POTENTIAL COMIVIERCE BY AREA OF ORIGIN OR DESTDIATION As shown above, the annual volume of commerce presently “potential” to the public general cargo terminals at the Port of Providence is about 235,000 tons including 100,000 tons of lumber receipts, 90,000 tons of general cargo receipts, and 45,000 tons of general cargo shipments. The proportion of the port’s “potential” which could probably be diverted to water transport (that is its “prospective” commerce) is dependent on the availability of an adequate, dependable shipping service and frequent sailings to many ports of the world. Based on the information obtained during the inter- views and an analysis of commodity origins and destinations, the -37- distribution of Providence’s potential commerce among the various areas of the world would be about as shown in the following table. The widespread distribution of the trade areas shown in the follow- ing table makes it apparent that each would require a separate service from Providence. Lumber and general cargo are considered separately be- cause lumber is a specialized commodity moving in large, often shipload, lots, whereas general cargo commodity movements are usually only a few tons each. Port of Providence Distribution of Potential General Cargo Commerce by Area of Origin or Destination To - From Potential Commerce Providence Providence between Providence and (t_(_)ns per year) (tons per year) Pacific Coast 25,000 5,000 East and Gulf Coast 20,000 3,000 Northern Europe and Scandinavia Area 7 ,000 22,000 Mediterranean Sea Area 8,000 11,000 South Pacific Area 15,000 ) 4 000 Other Areas 15,000_ ) ’ T otals 90,000 45,000 Distribution of Potential Lumber Movements Pacific Coast 90,000 __ East Coast 10,000 -- Totals 100,000 -- PROSPECTIVE COMMERCE MOVEMENTS VIA CONVENTIONAL SHIPPING SERVICE As noted previously, several of the services between Providence and the major trade areas listed above would have to be on at least a once-per -week schedule to attract commerce in the port’ s trade area which might utilize conventional general cargo shipment. The nature of many of the major commodities handled (for example, machinery, textile materials) is such that less frequent service would almost entirely discourage these movements through the port. As indicated in the foregoing table, the general cargo com- merce “potential” to a shipping line serving the U. S. Pacific Coast totals 30,000 tons per year, or an average of about 600 tons (500 tons inbound and 100 tons outbound) per week. Consideration of the competition of land carriers for all movements between points on the U. S. mainland indicates that this average weekly potential must be further reduced to allow for the strong resistance of railroads and truckers, currently transporting more than half of the cargoes concerned, against any diversion of their present traffic. This competition would probably reduce the commerce “potential” to a weekly intercoastal service to 450 to 500 tons, if not less. In determining whether it would be reasonable to expect that an intercoastal line could be induced to establish a weekly service at Providence for this volume of commerce, three principal factors must be considered: 1. The great degree of unbalance between inbound and outbound movements - a vessel entering the port with about 400 tons of cargo would leave with an average of 100 tons or less and 300 tons of unused space; 2. The proximity of New York and Boston - at least a portion of this commerce is presently being handled at New York and Boston, and shipping lines would generally prefer to LUMBER STORAGE AREA - MUNICIPAL WHARF Providence Journal Company Photograph -39- retain as much as possible of their operations at those ports where larger volumes of cargo can be concentrated; and 3. Additional costs - the cost of pilotage, towage and terminal services at Providence, while not excessive, would have to be distributed over a relatively small volume of cargo (as compared to New York or Boston), resulting in a high average cost per ton. While it is often true that a general cargo vessel will call at a port for 200 to 500 tons of cargo, the establishment of a regularly scheduled berth service at a port usually requires a considerably larger commerce potential. In view of the above factors, it is doubtful if a shipping line could be induced to schedule regular service at Providence for much less than about 1,000 tons of general cargo per visit, particularly since at least some of this cargo would in any event accrue to the line concerned at either of the nearby ports of New York or Boston. With only 450 to 500 tons of general cargo “potential” to weekly intercoastal service at the Port of Providence, and even less commerce “potential” tocoastwise and the various foreign services, it is doubtful that additional shipping lines could be induced at present to provide weekly scheduled calls at the port. The movement of lumber, which is a specialized cargo and thus is not considered above, differs considerably from that of general cargo. Lumber movements must be large enough in themselves to command relatively frequent shipping schedules, since this commodity is most economically handled in shipload lots. However, lumber does not require as frequent nor as rapid a service as the high-value general cargo com- modities. Based on these considerations, the entire 90,000 tons of “potential” lumber receipts from the West Coast (including approximately 80,000 tons now moving through the port and an additional potential of 10,000 tons which presently moves all- -40- rail from that area) is considered “prospective” to the port. In the more distant future, waterborne receipts may decline, as western mills move inland. The 10,000 tons “potential” receipts from the South Atlantic Coast does not appear to be sufficient to command an adequate shipping service. To summarize, the volume of waterborne commerce presently “prospective” to the Port of Providence is about 90,000 tons of intercoastal lumber receipts, most of the latter already moving by water. There are at present no general cargo movements which could be considered immediately “prospective” to a regular weekly shipping service of the conventional general cargo type. However, it is likely that occasional unscheduled general cargo service would be pro- vided at the port from time to time, whenever sufficient cargo was offered. Moreover, for certain commodity movements where the usual requirements for frequent service can be modified by the use of warehouse storage, it is possible that additional infrequently scheduled services on an approximate once- monthly schedule, as now provided by the Luckenbach Line, might be supported at some future time. FUTURE PROSPECTIVE GENERAL CARGO COMMERCE The volume of general cargo potential to conventional shipping services at the port is expected to increase at a rate approximating the rate of industrial development anticipated for the port’s inland trade area -- 15 per cent or more by 1970. This increase in potential would somewhat improve the port’s chances of attracting one or more additional shipping services and thus realizing at least a part of its general cargo potential. The possibilities, however, of obtaining the necessary additional shipping services of the conventional type would be greatly heightened and, to a considerable extent, would -41- be largely dependent on the development within the port’ s inland trade area of one or more shippers or consignees who could be relied upon to generate fairly large individual movements (each in the order of a few to several hundred tons) for the port, on a regular, consistent basis. To assist in attracting a scheduled service, such movements must not only occur regularly each week or each month, but must also be consistent in overseas origins or destinations; that is, they must move to or from the same general range of foreign ports (the Mediterranean, the Caribbean, or Northern Europe, for example) each time. Sources generating ocean-borne movements of this magni- tude, regularity and consistency, and requiring the service of conventional general cargo shipping lines, apparently do not exist at present in the port’s inland trade territory. Neither the sampling interview survey conducted by the Development Council nor the past solicitation efforts of municipal port officials have uncovered individual commerce sources meeting these criteria. Although considerable ocean-borne general cargo commerce is generated within the port’s inland trade territory, it is comprised principally of a large number of relatively small shipments moving to or from a wide variety of places overseas, frequently on irregular schedules. While the few major, consistent movements necessary to attract additional scheduled services may well develop in the years to come, positive evidence that such a development is impending was not found during the course of this survey, as far as the conventional type of general cargo shipping service is concerned. NEW TYPES OF DOMESTIC GENERAL CARGO SHIPPING SERVICES During World War II, a large number of dry cargo (bulk and general) vessels in the coastwise and intercoastal trades were diverted to foreign service. Only a few of these vessels were returned to domestic service after the war. Since that time, the number in the coastwise trade has continued to decline and, while the number of vessels in the intercoastal trade has slowly increased, the pre-war level of service has never been regained. Vessels in Domestic Dry Cargo Service (as of June 30 of year shown) Number of Ships in Number of Ships in Year Coastwise Service Intercoastal Service 1939 229 137 1952 58 36 1953 59 43 1954 44 58 With only a few vessels in the coastwise and intercoastal dry cargo trade since World War II, shipping schedules are necessarily irregular. Moreover, high rates due to high ship operating costs and terminal expenses and relatively slow speeds have diverted many domestic cargoes to rail and truck transport, causing a further decline in this shipping service. The primary cause of these high costs and slow speeds is the inefficiency inherent in loading and unloading freight in groups of small packages. In an effort to expedite terminal operations, _43_ reduce vessel time in port, and minimize the labor involved in handling and rehandling each unit package in the transfers be- tween ship and shore, several new methods of cargo movement by water carriers have been tested. Principal of the special types of shipping service designed to speed vessel loading and reduce costs of waterborne general cargo movements are: container service, train-ship service, and, more recently, trailer-ship service. CONTAINER SERVICE One approach to the solution of the general cargo handling problem has been the use of various types and sizes of containers to be moved intact from shipper to receiver. It has been stated (Via Port of New York, July 1954) that more than 3 ,000 steel Eontainers of 275 cubic feet capacity each are in use by a score of steamship lines and several freight forwarders at that port. Fundamentally, however, the method is merely a concentration of many small packages into fewer large packages. The contain- ers must still be moved in and out of trucks or railroad cars at each end of the water movement. The next step is apparent: the use of a freight car or truck as the container. TRAIN -SHIP SERVICE The best known train-ship service is the Seatrain Line, which has been in operation for more than twenty years and which now operates between New York, Savannah, New Orleans, and Texas City. The ships operated by Seatrain Line have a speed of 16 knots or more and carry approximately 100 rail- road cars on four decks. Cars are transferred between shore and ship by specially designed shore-based heavy-lift equipment, which lowers them to the various decks through hatches. Move- ment within the ship is on rails. The Interstate Commerce Commission has recently granted Seatrain Line a permanent operating certificate for the New York-Savannah trade, which had been operated on a temporary basis for several years. -44- In addition to the Seatrain operation, other operations of a similar functional character have been established between Florida and Cuba and in Western Europe. The Newtex Corporation (steam- ship operators) is presently considering the initiation of a train- ship service between New England and the Southwest, with Provi- dence as a possible location for its northern terminal. There would appear to be a reasonable basis for such a service in the commerce which now moves between these two sections of the nation and which can probably be expected to increase with the further development and expansion of regional and national economies. Typical of the types of commerce which might utilize this service would be machinery and electrical equipment moving to the Southwest, and industrial chemicals (organic and inorganic) moving to New England. A detailed commercial and economic study would have to be made, however, before definite conclusions could be reached as to the magnitude of the commerce movement which would ultimately utilize a train-ship service between Providence (or any other New England port) and the Southwest. Among the principal points which might be included in such a study are the following: 1. Examination of the cargo records of the Newtex Corporation to determine the types and volumes of commodities which moved by ship in past years between New England and the Southwest; 2. Similar examination, if possible, of the records of other coastwise shipping companies which operated comparable services in the past; 3. Comparison of New England manufacturing industries (and their products) with those now developing in the Southwest; 4. Review of the types and volumes of commodities which are produced in the Southwest and are con- sumed in New England; and -45- 5. Analysis of present and possible future consumption requirements of New England (for products of the Southwest) and of the Southwest (for New England’ s products), in the light of population, industrial and over-all economic trends in the two regions. It should be noted that the approval of the Interstate Commerce Commission must be obtained prior to the initiation of a new service of this type. The problem of obtaining Commission approval should be considerably simplified by the fact that Newtex already possesses operating rights between New England and Texas ports. Neverthe- less, it must be demonstrated to the Commission that a train-ship service between these points would be both desirable and justifiable economically and in accord with the national transportation policy established by the Congress in the Interstate Commerce Act. TRAILER-SHIP SERVICE With the recent rapid increase in motor truck haulage over substantial distances, similar experiments with the movement of truck trailers by water have been inaugurated. All have the common operating method of carrying trailers by water with the road haulage at each end performed by highway tractor. The American and Overseas Chartering Corp. began service on the Hudson River between New York and Albany in May 1952. Operations were suspended in April 1953, but were resumed in November 1953 and are continuing today. The vessels used are two converted LST’s with a speed of 15 miles per hour. Trailers are loaded and unloaded by a roll-on, roll-off method. On October 7, 1954, the president of the corporation stated that the two ships had performed more than 900 voyages, carrying more than 250,000 tons of cargo with very few delays. The Alaska Freight Lines, Inc. is presently moving trailer vans (the van only, with the wheels and chassis detached) between Seattle and Alaska. The vans are loaded and unloaded by shore- based heavy-lift equipment. A tug and barge service, handling loaded truck trailers and other cargo, has been in operation for -45- several years on the Gulf Intercoastal Canal. On November 18, 1954, a new ferry service for trailers was inaugurated between Port Newark, New Jersey, and San Juan, Puerto Rico, when a 10,000-ton Liberty ship took on 25 loaded truck trailers for delivery to San Juan. THE MCLEAN SEA-LAND SERVICE The most recent development in the trailer-ship field is the proposal of the McLean Trucking Company to build, initially, four ships of 10,000 gross tons each, 638 feet long and 90 feet wide, with a cruising speed of 19 knots, a draft of 20 feet, and a capacity of 286 trailers on four decks. Trailers would be loaded on these ships through stern ports to the two main decks, via bridge-ramps from the shore. These decks would hold a total of 208 trailers. Space for 78 trailers on two other decks would be reached by elevators from the main decks. The project of the McLean Company is presently before the Interstate Commerce Commission in a proceeding involving merger between McLean and the S. C. Loveland Company, a domestic water carrier which already has water carrier rights to serve the Atlantic Coast territory. In January, 1955, a further step was taken which may have the effect of speeding progress towards establishment of the McLean sea-land service. The newly formed McLean Securities Corporation of New York, headed by Mr. Malcolm P. McLean, formerly of the McLean Trucking Company, purchased control of the Pan-Atlantic Steamship Corporation. A press report indicates that Pan-Atlantic, under its new ownership, may acquire trailer- ships to supplement its own services and also to charter to the McLean Trucking Company — if and when the Interstate Commerce Commission approves merger of the McLean Trucking Company and the S. C. Loveland Company. The following paragraphs discuss the service to be offered if the decision of the Interstate Commerce Commission is favorable. -47- THE MCLEAN SEA-L.AND SERVICE- FREQUENCY AND RANGE OF SERVICE In the initial operation, the McLean Company proposes to offer three sailings and arrivals weekly at both New York and Providence as the northern termini of its coastwise service. If it appears to be desirable, however, the weekly sailings and arrivals at either New York or Providence might be reduced to two, in order to provide a once-weekly service at Norfolk, Baltimore, and Philadelphia as northern termini. No service would be offered between Providence and any of the other northern termini. All vessels, both northbound and southbound, would call at a central terminal to be located at Wilmington (or Southport) North Carolina. As southern termini, Charleston, South Carolina, Savannah, Georgia, and Jacksonville, Florida, would receive weekly service from each of the northern termini. The McLean Company estimates that the proposed initial service would be doubled by 1960. If and when this is done, daily service would be provided between Providence and Wilming- ton and twice-weekly service between Providence and Charleston, Savannah, and Jacksonville. THE MCLEAN SEA-LAND SERVICE- INLAND AREA TO BE SERVED Initially the McLean Company plans to route all its New England traffic through the Port of Providence, excluding of course the traffic of western Connecticut and south-western Massachusetts which normally would use facilities at New York. If, as appears probable, service is ultimately offered at Boston also, Providence wouldfbe restricted to serving an area bounded approximately by a line through New Haven, Pittsfield, Worcester, and Brockton. The McLean Company has estimated, however, that there would ultimately be sufficient traffic moving to and from this area to support daily service at Providence, even after daily service is provided at Boston. On the basis of the announced intentions of the McLean Trucking Company and the Newtex Corporation to serve two such widely separated coastal areas as the South Atlantic Coast and the Texas Gulf Coast, it appears that at the outset there would not be areas of serious competition between these two carriers. It would appear that the proposed Newtex train- ship service would complement other services, present and contemplated. THE MCLEAN SEA—LAND SERVICE - SPEED OF SERVICE The transit times estimated by the McLean Company are: Providence-Wilmington 38 hours Wilmington - C harleston 1 2 hours Wilmington-Savannah 1 6 hour s Wilmington-Jacksonville 21 hours The McLean company also expects to load or discharge a full shipload of trailers (approximately 4,300 tons of cargo) in four hours, as compared with the loading or discharging time of 25 to 40 hours (three to five 8-hour days) for a conventional general cargo service. It is estimated that the over-all transit time for this service will be one or two days slower than motor carrier service, equal to carload rail service, and substantially faster than less-than- carload rail service. ~ THE MCLEAN SEA-LAND SERVICE - RATES In a service of the type proposed by the McLean Company two basic alternative methods of operation are possible: the service can be operated either primarily as a ferry service avail- able to any and all truckers, or primarily as a means of transport- ing trailers owned by affiliated trucking companies. Revenues in the latter case would be derived by participation in joint through- rates rather than by merely charging tolls based on the size of the vehicles carried. PROPOSED SEA-LAND SERVICE KEY Marine Terminal-Cioss A Other Prmcipai Points of Service iers Area of Service r.. PI 3 Q m 9 A n 5 +6 0 e e n L h c o M C Marine Terminal-Class B 0 Truck Termina|s'McLean (D '-Traiiership Routes MCLEAN TRUCKING COMPANY V _..... ,_:\;_"_-.- - N. 5 5 '4 ' Q CHAQLESTON /vom-*ogz._x ‘ (9 I I COLL/({)ViBU$ W? 5.... .”...J,. I . 6) /ND/ /VAPOL/S Mal .-1....-.2 . . . 6/ . . . . . .. ..u"".“""". .1. ...m.. .. .. ,4.../a..a.."m.... I I OI I 01 av... “"w“"."...w... I 1/ "..“.“.3.".“““... . Mn . I /. M m.. .~ . 9.. N ....... 2. . FM”: 2/. v I H/CAGO ° . NEW 0131.5 -49- The McLean Company has apparently chosen the second method of rate-making. Joint through-rates will be established with both truck and rail common carriers. Port-to-port rates (based on commodity carried) will also be established for the use of exempt and private carriers. It is possible, however, that there might be a conflict between McLean and other trucking companies in the fact that the McLean company would enter into joint rates with common carrier truck lines and, at the same time, provide this type of service itself. The American and Overseas Chartering Corp. faced the same problem when it initiated its service on the Hudson River in 1952. At first the company offered solely a ferry service, but later it joined in a truck-water -truck tariff with trucking lines. A water differential tariff was filed and considerable truck and trailer equipment was purchased. The company finally discarded the idea of getting its own cargo on a water differential tariff in May 1954. The president of the corporation summarized his experience by saying, “ . . . you cannot expect a highway common carrier to patronize your service if you are at the same time an actual or potential competitor for his customers." While definite rates are not as yet available for this service, the McLean Company has estimated very approximately that the savings which would result from the use of their service for move- ments between inland points in New England and inland points in the Carolinas, Georgia, and Northern Florida would range from four per cent to ten per cent of the present all-land rates. Slightly larger savings have been estimated for direct port-to- port movements. THE MCLEAN SEA-LAND SERVICE — FACILITIES REQUIRED AT PROVIDENCE In consultation with the City of Providence and its Port Agent, the McLean Company has chosen a site in Providence at Fields Point, just to the south of the new transit shed at the Municipal Wharf. This company estimates that it would require an area of about ten acres for its ultimate development, with a special slip- -50- type ship berth. In addition to the special berth, the facilities required would include a two-level loading and unloading ramp, paved parking areas for the trailers, and accessory buildings and freight sheds. The McLean company estimates that these facilities would cost approximately $1,500,000 exclusive of land cost. It is planned that these facilities would be provided by the City of Provi- dence and leased to the McLean company. In furtherance of this, the Providence City Council, on March 19, 1954, adopted a resolution encouraging McLean’s proposal. By authorization of the State Legis- lature, a proposal to issue municipal bonds in the amount of $2,000,000 for this purpose was submitted to the electorate in November 1954 and passed. PROSPECTIVE COMMERCE MOVEMENTS BY TRAILER-SHIP The McLean Trucking Company, in the proceedings before the Interstate Commerce Commission on the McLean-Loveland merger, presented an estimate of the total “traffic currently moving between New England and North Atlantic States north of Maryland on the one hand, and North Carolina, South Carolina, Georgia, Florida, and Alabama on the other, which could profitably be transported by ‘sea-land’ trailerships operating between New York-Providence and Wilmington-Charleston-Savannah-Jacksonville.” This estimate follows: M~illions of Tons Type of Carrier Annually Common Carrier Motor 4.1 Unregulated for-hire and private motor 2.7 Carload Rail 6.6 Less-Carload Rail 0.5 Water 0._ 1_ 4 0 TOTAL 1 . In their initial operations, the McLean company estimates that they would attract about 15-1 / 2 per cent of this traffic, or approximately 2,170,000 tons annually. About half of this, 1,060,000 tons, is estimated by the McLean company to be the volume which -51- would move through Providence initially with three -time per week service. When daily service is instituted, McLean expects the volume moving through Providence to reach 2,120,000 tons per year. The major commodities that the McLean Company expects to handle are: northbound -- cotton piece goods, cotton yarn, rayon piece goods, tobacco, wire and cable, metals (other than iron and steel), machinery, plywood, and other textiles and pro- ducts; southbound -- paper and products, cotton piece goods, machinery, paint, food products, drugs, electrical appliances, hardware, and wire and cable. In the proceedings before the Interstate Commerce Commission, witnesses for Eastern Railroads have estimated that the total annual tonnage “susceptible” to trailer-ship service in East-South service is about six million tons. Of this total, they estimate that McLean could attract only 1,155,000 tons. The interview survey conducted within the State of Rhode Island by the Rhode Island Development Council indicates a prospective annual commerce volume of 295,000 tons for the McLean Company service from this State alone. In addition to 220,000 tons of prospective commerce specified by various industries, a substantial volume of commerce would un- doubtedly be generated by firms which indicated that they would use the proposed service if schedules were adequate and appreciable savings in transportation costs could be made, but which were un- able, at the time of the interview, to furnish commerce estimates. Based on the present commerce movements of these firms, it is conservatively estimated that an additional 75,000 tons of commerce annually would be prospective to trailer-ship service at Providence from the State of Rhode Island alone. About 35,000 tons of this volume would consist of shipments from the port. Commerce Volume for McLean Company Trailer-Ship Service State of Rhode Island Tons Annually Inbound Cotton Piece Goods 72,000 Cotton 19,000 Synthetic Yarns 14,000 Cotton Cloth 10,000 Cotton Yarn 9,000 Cotton Waste and Linters 9,000 Miscellaneous and Unspecified 56,000 Total - Inbound 189,000 Outbound Wire 20,000 Finished Cloth 18,000 Machinery and Tools 9,000 Cotton Yarn 9,000 Miscellaneous and Unspecified 50,000 Total - Outbound 106,000 '~I_ Total Commerce 295,000 For the purpose of estimating the trailer-ship commerce prospective to the Port of Providence, it was assumed that this service would also be offered (ultimately) at Boston and that Providence would be limited to serving a fairly extensive tributary area for trailer-ship service, extending westward to New Haven and Pittsfield and northward to Worcester and Brockton. (The popu- lation within this area was approximately 4,200,000 persons in 1950, and its manufacturing employment about 710,000, as com- pared to a population of 790,000 persons and a manufacturing -53- employment of 130,000 for the State of Rhode Island alone.) The total commerce volume prospective to the Port was then determined by expanding the volume generated within the State of Rhode Island to a figure representing the total available within the tributary (trailer-ship) area of the Port, on the basis of relative population and manufacturing employment. Even though it was assumed, for the purposes of this estimate, that similar service would be offered at Boston, it was found that the volume of trailer-ship cargo which would be presently prospective to the Port of Providence would be in the order of 1,600,000 tons annually or a weekly average of 31,000 tons. It is estimated that about 60 per cent of this total would consist of inbound movements, and the remainder in shipments. Since the proposed capacity of the vessels is 4,300 tons, it is clear that the volume of cargo would be adequate to support three to four round trips per week. Furthermore, additional commerce movements would probably be generated when the proposed service is placed in operation. SIGNIFICANCE OF NEW TRAILER—SHIP SERVICE TO PORT OF PROVIDENCE The decline of domestic general cargo shipping services during the pre-war years and their virtual disappearance from the coasts of the United States in the postwar period have resulted in the withdrawal from Providence of five or more regularly scheduled shipping lines. These lines had served the once pro- sperous trade between this city and New York, Philadelphia, Baltimore, Norfolk, and other major U. S. ports. As noted earlier, the principal factors which led to the failure of these long established services to compete successfully against modern rail and truck transport were: (1) the considerable increases which occurred, particularly in postwar years, in cargo handling and vessel operating costs; and (2) the delays and relative slow- ness of delivery inherent in the old, conventional types of domes- tic general cargo services. -54- It has been seen that the only way in which domestic general cargo commerce can be successfully revived, would be by effecting major improvements and economies in cargo handling and terminal operation, reductions in over-all costs of these movements, and the speedy dispatch and delivery of general cargo shipments. One of the most effective means by which these ends could be achieved is through the institution of a modern trailer-ship service utilizing the best in modern ship and terminal design and operating techniques. The McLean company proposes to institute such a service at Providence. The Legislature of the State of Rhode Island and the responsible municipal officials and people of the City of Providence exhibited knowledge of this problem and sound judgement in lending their support to the institution of the service proposed by McLean. This service will have value not only to the Port, by increasing the tonnage of freight moving across its wharves, but also the people of Rhode Island and of New England in general, by offering them once again a general cargo service which can take advantage of the economies inherent in efficient waterborne transport. -55- PORT SERVICES Port services and the charges to which they give rise are important elements in interport coinpetition. Most important among the services ordinarily required by a vessel visiting the Port of Providence are pilotage, towage, wharfage, dockage, stevedoring; repairs, bunkering, chandlering; such on-shore services as are provided by banks, ships; brokers, and federal government agencies; and fire protection. PILOTS There are at present 38 licensed pilots in the State of Rhode Island, most of them members of the Narragansett Bay Pilots’ Association or the Rhode Island Pilots’ Associa- tion. About one-half are actively employed in their profession. The services of these pilots are engaged through the pilots’ associations by representatives of the shipping companies. Vessels are boarded at Brenton Reef Lightship and pilots are responsible for navigation between that point and the dock, in- bound and outbound. Fees charged by pilots are $4.00 per foot for vessels of 16 feet of draft and under, $4.50 per foot for vessels of 17 feet draft, and $5.00 per foot for vessels of 18 feet draft and over. This schedule was adopted in 1952 and compares favorably with schedules in other northeastern ports. TUGS Four tugs, owned by the Providence Steamship Company, operate in the Port and upper Bay area. All have diesel engines, the largest being rated at 1,500 horsepower, the next at 1,200 horsepower, and the two smallest at 700 horsepower. Tug crews average six men, as required by federal legis- lation applying uniformly to ports between Portland, Maine and Norfolk, Virginia. Crewmen are members of the Maritime Union and captains are licensed by the Coast Guard. Most vessels entering or leaving the Port of Providence require the services of two tugs. The rates are $90.00 for one tug and $80.00 for an additional tug inbound; the same fees are again charged for an outbound vessel. Before 8 a.m. or after 4 p.m. an overtime fee of $14.00 per hour is charged, and on Saturdays, Sundays, or Holidays, there is an extra fee of $75.00 per tug. These rates are generally comparable with those at other northeastern ports. It should be noted, however, that if the amount of cargo discharged or taken on is small - as is usually the case with general cargo vessels at the Port of Providence - tug fees per ton or cargo may appear high. WHARFAGE AND DOCKAGE Charges of another type are wharfage and dockage assessed at the Port of Providence against cargo passing over a pier or wharf. Because of the different methods used for calculating these charges, the best method of comparison is to present typical costs at various terminals. The charges shown in the following table are averages for a Victory ship which occupies a berth for 36 hours and discharges 1,000 short tons of general cargo. Charges are based on the usual method of handling cargo at each terminal. 143: >,:.=zo1i!0:§!¢;\_!.é;!."A SCRAP IRON - INDIA STREET WHARF Providence Journal Company Photograph -57- Typical Terminal Charges £o_r_t Terminal Dockage Wharfage Total Providence Municipal Wharf $ 100 $ 200 $ 300 State Pier #1 91 200 291 Boston B&M RR Wharves at Mystic * Terminal 125 125 Castle Island Piers 125 350 475 Mystic Terminal 125 385 510 NYC RR Piers 125 872 997 Commonwealth Pier No. 5 (Port of Boston Authority) 125 390 515 New York All railroad piers (CRNJ, NYC, PRR, LVRR) 0 * 0 New York City piers 400 300 700 Port of New York Authority: Hoboken 456 0 456 Newark 228 0 228 * No charge for rail cargoes; a charge is levied on truck cargoes STE VEDORES AND LONGSHOREMEN Three stevedoring companies are available to undertake the loading and unloading of vessels at the Port of Providence. These companies hire gangs of longshoremen and own or rent cargo handling equipment. There are about 180 experienced longshoremen in the Provi- dence area. Typical gangs range from 14 to 21 men depending on the commodity: Lumber 14 men Pig Iron 16 men General Cargo 21 men In general, one gang is needed for each hold that is unloaded. However, on very large ships several gangs may be used at each hold. -58- Clerks and checkers are supplied in accordance with the size of the vessel. For example, a vessel with two holds may be required to employ a checker for each hold, a chief clerk, an assistant clerk and a runner. Hourly wages for longshoremen are uniform for New England and New York, union contracts running from October first to the following September thirtieth. Fringe benefits are also generally the same, but vacation time varies somewhat from port to port. The number of tons of a given cargo which can be handled per hour by a gang of longshoremen varies. Standards of per- formance are influenced by experience, the practices of the port, and equipment. While it is difficult to make completely reliable comparisons between neighboring ports, it seems clear that stevedoring costs at Providence and at other northeastern ports are substantially higher than at southern ports. In a recent press interview (Evening Bulletin, February 16, 1955) John T. Sasso, Boston district sales manager of the Lucken- bach Steamship Company indicated that recent stevedoring costs at Providence have been high because of a shortage of longshoremen and because of their relative inexperience with general cargo. These complaints both stem from the fact that general cargo shipping in Providence is at present infrequent and irregular. As more general cargo vessels visit Providence, production rates should increase and more trained longshoremen should become available. Indeed, the longshoremen’s union is now considering an increase in membership - a step which could be justified, in part, by the continuance of the Luckenbach service. PERMANENT CRANES FOR THE MUNICIPAL WHARF The possible need at the Municipal Wharf for permanently installed cranes has been examined with particular consideration to two specific types - a 20-ton fixed crane and travelling gantry cranes, which had been suggested by private individuals in the past as desirable supplementary equipment for the wharf . It has been found that the costs of purchase, erection, and maintenance -59- for such cranes could not be justified in the light of the nature and volume of present and foreseeable future commerce at the wharf. FIXED HEAVY—LIFT CRANE The simplest type of fixed, heavy-lift crane suitable for use at a general cargo wharf would be an electrically operated stiff-leg derrick. A crane of this type, having a 20-ton capacity at about 40-foot radius, would cost approximately $35,000 to $50,000, including the construction of a permanent foundation for it. Movements of stone block or similar heavy items requiring heavy-lift equipment occur at the Municipal Wharf only a few times each year. These occasional movements are not sufficient to justify such an investment, especially since floating derricks and truck-mounted cranes, with capacities up to 10 and 60 tons, respectively, are available for hire at Providence. GANTRY WHARF CRANES In the case of permanent, travelling wharf cranes for miscellaneous general cargo purposes, the most effective type is the high-speed level-luffing gantry crane having a three to five ton capacity. Wharf cranes of this type and capacity cost approxi- mately $80,000 to $120,000 each. Gantry cranes are used extensively at European ports to load and unload miscellaneous general cargo as well as such specialized cargoes as pipe and iron and steel products. The practice at U. S. seaports, however, is to use ship’s tackle for the loading and unloading of most cargoes handled at general cargo terminals. There are few exceptions to this at U. S. ports. These exceptions occur principally in instances where fairly high-volume movements of the heavier and larger types of special cargoes, such as iron and steel products, take place with sufficient frequency to justify the replacement of the locomotive or heavy -60- truck crane, which would otherwise be required, by permanent gantry-type equipment. Moreover, the few gantries used for these special purposes at American general cargo terminals are frequently of a heavier type (up to ten and fifteen ton capacity at 30 to 40-foot radius) than the lighter high-speed gantries used for miscellaneous general cargo at European ports. It has been found that, under the conditions and practices prevalent in this country, the use of ship’s tackle is usually the more efficient and less expensive method of handling most gen- eral cargo items and is generally preferred by steamship companies, terminal operators, and stevedore companies. Among the factors which make the use of a ship’ s tackle the more desirable method are the experience and efficiency of U. S. longshoremen in this type of operation and the avoidance of the extra terminal charge which would normally be assessed for the use of wharf cranes. In a few instances where standard high-speed general cargo gantries are known to have been in- stalled at East Coast terminals, it has been found that their use, for other than special purposes, has been at best infrequent. Excluding the coal handled at the upstream berth of the Municipal Wharf, over 95 per cent of the wharf’ s dry cargo tonnage (including lumber) is handled by ship’s tackle. In view of this, expenditures of the magnitude necessary to install high-speed gantries on the wharf cannot now be justified. More- over, it appears very doubtful that sufficient justification for such expenditures would develop in the foreseeable future. REPAIRS At Providence, the range of repair services extends to all work short of drydocking. For example, repairs can be made on generators, engines, reduction gears, and shafts; tools, gears, and other parts can be fabricated; plumbing can be installed. In recent years, the demand for engine work has declined. Modern Diesels and water-jacke~t-type boilers require little maintenance other than routine replacement of worn parts. Propeller repairs, though normally a drydock operation, have been completed at Providence. The propeller has been raised to or near the surface by ballasting the bow. Temporary underwater repairs have been accomplished by divers. -51- LACK OF DRYDOCK FACILITIES The lack of drydock facilities at Providence appears to have had little, if any, effect on the development of the Port or on the volume of its business. Private enterprise has not seen fit to risk capital for this type of development at Provi- dence, since the need or demand for drydock services in the past has apparently been insufficient to make such an invest- ment attractive. Moreover, on the basis of current and fore- seeable future shipping requirements at the Port, it is very doubtful that the expenditure of public funds for such a purpose could be justified. Extensive drydock facilities are available at the nearby ports of Boston and New York, about one-half day or less sailing time from Providence. Further, ship traffic at Providence is relatively small in volume and consists, for the most part, of vessels which can conveniently obtain drydock services at any of several major ports elsewhere on the East Coast. In all of 1952, for example, only 475 entries were made at the Port by vessels having drafts in excess of 18 feet. Most of these en- tries were accounted for by ships which visited the Port several times each during the year. Moreover, all of the major seagoing vessels calling at Providence are based at other ports and, since almost all are in the coastwise trade, they frequently visit one or more of the major East Coast ports which possess drydock facilities. In addition, the drydock facilities now existing at Boston, New York, Philadelphia, Baltimore, and other points on the Northeast Coast appear to be more than adequate to meet the normal peacetime demands of shipping in this region. Further, the nation’s wartime needs for major ship-building and ship repair facilities during both world wars forced a nation—wide over expansion of drydock facilities, as measured by peacetime require- ments. Finally, it should be noted that either a fixed or a floating drydock, with the appurtenant structures and equipment necessary for a modern facility, would cost several millions of dollars. It is estimated, for example, that a drydock having sufficient capa- city to accept vessels of the Liberty and the T-2 tanker classes would cost approximately five to six million dollars. In view of the apparent surplus of drydock facilities on the Northeast Coast and the lack of any pressing need for such at Providence, it must be concluded that an expenditure of even a much lesser amount for this purpose could not be justified. BUNKERING Fueling facilities are abundantly available at Providence but are little used. Ship operators can usually plan to purchase their fuel at ports nearer the sources of supply. Only an emer- gency could justify the purchase at Providence of oil brought from the Gulf Coast or coal brought from Hampton Roads. CHANDLERING Ships’ provisions of all sorts can be purchased at Providence. Among the articles regularly supplied are food, beverages, fixtures, rope, and paint. It is a common practice for vessels to restock at the beginning of each round trip. In the case of some articles, however, a full year’ s supply may be purchased at one time. Frozen food, for example, is usually purchased in large lots. It is in the nature of ships’ chandlering that business facilities can readily be expanded to meet new demands. No large investment is required, nor is there any problem of site location - provided the place of business is reasonably acces- sible to the port area. - SHIPS’ BROKERS Providence ships’ brokers are prepared to attend to all details involved in the shipping or receiving of waterborne cargoes. In the case of shipment to foreign destinations, brokers complete all consular invoices, certificates of origin and other necessary documents. In the case of foreign receipts, brokers see the goods through customs. In all cases, brokers are ready to arrange connecting transportation, warehousing, stevedoring, chandlering, towing and pilotage. PIG IRON - MUNICIPAL WHARF Providence Journal Company Photograph -53- BANKS Rhode Island banks offer complete financial service to shipping. This includes the extension of credit for inbound or outbound cargoes and the payment or transmission of funds on ships’ accounts. Two Rhode Island banks maintain foreign departments, one of these being rated the second largest in New England. FEDERAL GOVERNMENT SERVICES Federal agencies most directly concerned with port facilities are the United States Army Corps of Engineers and the United States Coast Guard. The civil works program of the Corps of Engineers includes, among many other projects, the dredging of channels in navigable waters. The Providence River and Seekonk River projects are administered by the office of the New England Region at Boston, which works closely with the Division of Harbors and Rivers of the Rhode Island Department of Public Works. Navigational aids in Narragansett Bay and in the navigable rivers of Rhode Island are the responsibility of the Boston Office of the United States Coast Guard. The Coast Guard is also charged with enforcement of maritime laws (including the licensing of Bay pilots for the coastal trade), search and rescue activities, and the promotion of safety and efficiency of the merchant marine. The Providence office is staffed by a shipping commissioner and representatives of the Inspection Bureau. Several other federal agencies perform routine duties at the Port of Providence. These include the Bureau of Customs, offering full Custom House service; the Public Health Service, enforcing quarantine regulations (other than agricultural) and providing health services for merchant marinemen; the Immigra- tion and Naturalization Service; the Bureau of Animal Industry, enforcing agricultural inspection and quarantine regulations; the Weather Bureau; and the Passport Division of the Department of State. FIREBOAT FOR PORT OF PROVIDENCE The Port of Providence presently depends exclusively on land-based fire fighting equipment for its fire protection. The question of the possible need for a fireboat to serve that part of the Port lying within the City of Providence has been considered from time to time in the past and was examined in a survey by the National Board of Underwriters in 1949. At that time the Underwriters concluded that a fireboat was not needed at Providence, giving as their chief reason the fact that the City did not have more than a mile of occupied waterfrontage. In this connection, it should be noted that the fire experience, both within the City proper and along its waterfront, has apparently been relatively good and that in- surance rates for Providence are among the lowest in the nation for cities of its size. In April, 1955, a new study of fire protection along the waterfront within the City of Providence was completed by John B. Dunn, Providence Commissioner of Public Safety. This report indicates that substantial improvements in water- front fire protection have been achieved since 1949; that the initial costs of a fireboat and land station meeting the standards of the National Board of Fire Underwriters would, today, approxi- mate $300,000; and that operations would cost $75,000 per year. The report concludes that purchase of a fireboat by the City would not, at this time, be advisable. The evidence assembled in the 1949 and 1955 reports relates exclusively to the Providence section of the Port. In the port as a whole, however, including East Providence and Pawtucket, much more than a mile of occupied frontage exists. It is recognized that, if the recently assembled data for Provi- dence could be put together with similar data from East Provi- dence and Pawtucket, the recommendation with regard to a fireboat might still be negative. Until the Port as a whole has been considered, however, the question cannot be regarded as settled. If it is found that cooperative purchase and maintenance of a fireboat is unnecessary or impractical, consideration should be given to the possibility of progressive development -65- of waterborne fire fighting equipment. For example, as an initial step in this direction, a small general-purpose utility boat, equipped with some fog and high-pressure fire fighting gear, might be developed to replace the Harbor Master’s launch, when that vessel is retired from service. The possibility of enlisting the assistance of the Town of East Providence and other municipalities adjacent to the port in the financing and operation of a new craft of this type should be examined by City officials. The objective of a new craft of this type would be to hasten this development by proportioning the associated financial burden among all the communities which, with Providence, would benefit. CONCLUSIONS Services utilized by vessels calling at the Port of Providence are generally comparable in quality and cost to services offered at competing ports of similar size in the Northeast. The fact that rising costs of port services have imposed a heavy burden on shipping is a problem which is not peculiar to Providence: it is shared by all American ports. The fact that general ports such as New York and, to a less extend Boston, can offer more complete and, in some cases, more economical port services constitutes a competi- tive advantage which is a natural consequence of their larger scale of operations. PHYSICAL SETTING AND TERMINAL FACILITIES It is the function of a port, as the word itself implies, to serve as the gateway between land and water. In this chapter and the two which follow, attention will be focused on the water ap- proaches to the Port, on terminal facilities, on land transport, and on the use of land in the area immediately surrounding the Port. PHYSICAL SETTING The Port of Providence is located at the head of Narragansett Bay, 27 miles north from the Atlantic Ocean. Within the Bay may be found abundant, safe, natural anchorage areas for the deepest draft vessels. Approaches to the wharves are by natural deep water to North Point and by dredged channels through the Provi- dence and Seekonk Rivers. Tidal currents in the approaches and channels are in- consequential except in the constricted parts of the Seekonk River. At these points, namely India Street Bridge and Red Bridge, the tidal current has an average velocity of 1.5 knots. This velocity is not considered sufficiently high to create navigational problems. The mean tidal range in the Port is about 4.6 feet, although extreme combinations of wind and other natural causes have upon occasion increased this to eight feet or more. Except for power- ful hurricane conditions, tidal action does not create difficulties for shipping. In general, wind is not a problem for commercial vessels at the Port of Providence. Providence is also fortunate in that hazards resulting from fog are rare. -57- SHIPS’ CHANNELS The authorized federal project for the Providence River calls for an approach channel 35 feet deep at mean low water and generally 600 feet wide in the lower reaches from the deep water of Narragansett Bay opposite North Point to the turn below Fields Point, a distance of about 8.1 miles. Above Fields Point, the project channel is the same depth, with a width of up to 1,700 feet, for 2.6 miles up to Fox Point, at the confluence of the Providence and Seekonk Rivers. The existing project was Completed in 1949. Actual depths in the channel are 33 feet up to Fields Point, and 35 feet from Fields Point to Fox Point. The authorized federal project for the Seekonk River calls for a channel 16 to 18 feet deep at mean low water and 150 to 250 feet wide extending 3.2 miles from Red Bridge to the wharves in Pawtucket. From the Pawtucket wharves to Division Street Bridge, a distance of 0.2 miles, the project calls for a 16 to 18 foot channel 60 to 100 feet wide. Actual controlling depths of the Seekonk channel are 13 to 14 feet except for areas in the outer quarters of the upper channel, which measure ten feet. There is no federal project in the section of the Seekonk River between Fox Point and Red Bridge, but depths are in excess of 16 feet. - PRIVATE INDUSTRIAL TERMINALS The Port of Providence, including the waterfrontage of both the City of Providence and the Town of East Providence to Red Bridge, is used primarily for the receipt of industrial bulk cargoes consumed by the manufacturing and distributing indus- tries of Rhode Island and nearby sections of Connecticut and Massachusetts. In consequence, all but three of the port’s twenty- seven wharves and piers are privately operated facilities, most of which are used to handle the industrial cargoes of their owners. As is the case at most of the coastal ports of the nation, the principal commodities handled through the Port of Providence are the bulk petroleum products which are piped across the wharves of the oil companies serving the Rhode Island area. Most of these products, representing over 85 per cent of the tonnage handled at the Port, move across nine terminals operated by the major oil companies. (Two major oil companies utilize the Municipal Wharf.) The remaining private wharves are used principally for the handling of coal, chemicals, and scrap iron and for the mooring of Block Island steamers. PUBLIC TERMINAL FACILITIES AT THE PORT The principal publicly owned and operated terminal facilities at Providence are State Pier #1 at 242 Allens Avenue, and the Municipal Wharf at Fields Point. In addition, there is the small public wharf on the east bank of the Providence River immediately below the Point Street Bridge, which is used normally for the mooring of the Harbor Master’s vessel and, occasionally, other small craft. STATE PIER #1 Land for State Pier #1, Providence, Rhode Island was ob- tained by condemnation May 1, 1911 by the State Harbor Improve- ment Commission. Waterfront property on Allens Avenue, Provi- dence, Rhode Island, bordering on the westerly side of the Provi- dence Harbor Line and comprising approximately 748,523 square feet with a water frontage of approximately 700 linear feet was acquired. Cost of land on Allens Avenue was $255,017.78. Funds for purchase of land and construction of piers were obtained from proceeds of Harbor Improvement Bond Issues of $500,000.00 in 1910 and $500,000 in 1913. A new pier was constructed 120 feet wide by 600 feet long of creosoted piling and yellow pine lumber, having a reinforced con- crete floor with a wearing surface of asphalt. A steel pier shed was designed in 1913 for erection on State Pier #1 equipped with accommodations for passengers including quarters for immigration and customs officials, modern freight handling facilities and storage space for freight and baggage. This steel pier shed was 400 feet long and 110 feet wide. PH YSICA L CHARACTER/ST/C5 0/-' THE PORT OF PPOVIDENCE D E L M F S A E R A SINCE I800 DEEP WATER CHANNEL T 0 O F 6 ll CHANNEL //Iliiiii ”i”Z’Z’§§Q’T The January 1916 report of same commission states that the cost of construction of State Pier #1, including engineering and administration expense, was $470,320.10. This probably included grading of land and construction of a road from Allens Avenue to the pier shed. In 1913, a wooden detention shed was erected at the rear of the steel shed on Pier #1. This was used by the U. S. Immigration Service until 1915 when the second floor of the steel shed was equipped especially for immigration offices. In February, 1931 State Pier #1 was destroyed by fire, only the pilings and a wooden shed at the rear being saved. The total cost of reconstruction, as reported by the Harbor Commission in 1934, was $397,218.13. In 1939, the John J. Orr Company erected a shed on leased space. Lack of water traffic in recent years has led to a policy of leasing available space at State Pier #1 to various tenants. The areas leased at present are shown in the table on the following page. The leases generally contain a clause by which the land or building space can be recovered by the State by giving the tenant reasonable notice. This pier, although somewhat narrow, could be reconverted as an auxiliary general cargo terminal, if and when the commerce demands of the Port necessitate such action. Present water depths are 23 to 24 feet at mean low water. -70.. State Pier #1, Providence 1954 _N3..1e2_ Arse American Oil Company Old Colony Wharf Company Standard Auto Sales Providence Pipe & Sprinkler Co. 1. Front Area (Vacant) 2. Front Area (Vacant) 3. Front Area (Vacant) Driveway T ot al 33,188.40 sq. ft. 142,429.04 sq. ft. 14,522.25 sq. ft. 19,830.00 sq. ft. 53,527.40 sq. ft. 24,080.00 sq. ft. 15,631.00 sq. ft. 32,960.00 sq. ft. 336,168.09 Sq. ft. Part steel shed Ground area for shed Seaboard Sales Co. J. J. Orr & Son MUNICIPAL WHARF The Municipal Wharf, which has been owned and operated by the City of Providence since 1916, is located at Fields Point on the west bank of the Providence River. This terminal handles virtually all of the general cargo and lumber commerce of the Port. In addition, large quantities of oil and coal are handled under lease and berthing agreements with private companies. At the Municipal Wharf, the total area of City property now allocated to marine terminal and related industrial and long-term storage purposes is approximately 125 acres. In addition, adjoining the Municipal Wharf on the south is a shallow-water area of about 50 acres, which provides an excellent site for virtually any expansion of public wharf facilities which might become necessary in the future. Of the existing land area, approximately 55 acres are currently leased for the storage of coal, oil, and lumber and miscel- laneous other purposes. STATE PIER #1 — PROVIDENCE Rhode Island Department of Public Works Photograph -71- The Municipal Wharf is fronted by a masonry bulkhead approximately 4,300 feet in length, providing berthing space for seven ships of the Liberty and Victory types. About 1,000 feet of this bulkhead, at the upstream end of the wharf, is leased to two private companies for the handling of coal and oil. The re- maining 3,200 feet of wharf is used primarily for the berthing of lumber and general cargo vessels, although berthing privileges have been granted another oil company for its tankers. Approximately 143,000 square feet of floor area is provided in two transit sheds at the wharf. ‘The newest of these sheds, pro- viding almost 80,000 square feet of uninterrupted floor space under an arched roof, is one of the most modern facilities of this type in the country. In addition to the areas allocated to the storage of lumber, coal, and oil, the Municipal Wharf has available almost 60 acres of land for miscellaneous open storage and development purposes. The wharf apron, transit sheds, and a portion of the open storage area are served by a network of terminal tracks which are connected to the New York, New Haven, and Hartford Rail- road. Highway access to the wharf area is good, being provided by local roads connecting with Allens Avenue and Narragansett Boulevard. ADEQUACY OF PRIVATE TERMINAL FACILITIES In general, existing private industrial terminal facilities are of a size and adequacy commensurate with the needs of the industries concerned. Moreover, private enterprise has demon- strated its willingness and ability to perpetuate, improve, and expand these facilities as the needs of the various industrial users require. It is concluded, therefore, that the adequacy and availability of private industrial terminal facilities in general have not been in the past, nor are likely to become in the foresee- able future, a matter of direct concern or responsibility to the community or to the local public bodies concerned with port matters. -72- PRIVATE ENTERPRISE OPERATIONS AT THE MUNICIPAL WHARF It is noted, however, that the City of Providence, through its Department of Public Works and Port Agent, leases portions of its surplus waterfront lands and wharf and warehousing facilities to private companies. This is being done today at the Municipal Wharf on a basis which brings a good financial return to the City. This benefits the community further by providing terminal and storage sites for coal, oil, lumber, and food distributing companies, some of which might be forced to establish elsewnere than at Providence if these facilities were not available. Moreover, the leasing of these facilities has been accomplished without lessening the efficiency and effectiveness of the Municipal Wharf as a public general cargo terminal, as measured by current and foreseeable future commerce requirements. The City and its Port Agent are currently considering tentative plans to further expand its docking space and terminal facilities to accommodate two additional private companies: one, a food proces- sing and cold storage firm and the other, a transportation company planning the institution of a major coastwise sea-land transport service at the port. Both of these developments would bring appreciable direct and indirect financial benefits to the community. On the basis of the tentative plans being considered, the improve- ments necessary for the establishment of these two companies at the Port of Providence can be effected without jeopardizing the other ‘functions of public port operations. This type of development, having as its objective the encouragement of private enterprise at the port and being based on a self-liquidating financial program, should receive the continuing support of the community. PRESENT ADEQUACY OF PUBLIC TERMINALS As noted, State Pier #1, with berthing space for two ships, is infrequently used as a marine terminal. However, it could be re- turned to that use to augment the port’s public facilities at the Municipal Wharf, if and when the need arises. The Municipal Wharf, with seven berths (including those allocated for the use of colliers and tankers) accommodated a POPT FACILITIES AT THE PORT OF 5 PROVIDENCE ‘ O OIL STORAGE T E R M I NAL S I com. ' on. E LUMBER O___6ENERAL omco A OTHER I [:3 PORT RELATED E] STORAGE -73- total of 202 ships in 1953. Of these ships, 108 moored at the two berths leased to oil and coal companies, and the remaining 94, including 22 tankers, 35 lumber ships, and 37 general and special cargo ships, utilized the five “public” berths. At no time was there congestion at any of these berths and there was no occasion when ships could not berth immediately on arrival. This was also the case in 1952 and 1951 when 199 and 176 ships, respectively, berthed at the terminal. In addition to 470,000 tons of oil and 111,000 tons of coal, 132,000 tons of lumber and general cargo (including pig iron and fish products) were handled at the Municipal Wharf in 1953. Most of the lumber and general cargo was handled at four of the terminal’s five public berths, with the fifth being occupied frequently by the tankers of an oil company accorded berthing privileges there. These berths, supported by 143,000 square feet of éovered transit space, about 15 acres for the storage of lumber, and an additional 60 acres for open storage and development purposes, are entirely adequate to meet the current public terminal re- quirements of the Port of Providence. Indeed, the terminal has the excess capacity in berthing and storage facilities which is usually required by a port of Providence’s type, size, and location (near to a major port like New York), if it is to capture any part of the local area’s traffic normally served by public terminals. Moreover, it is estimated that the basic facilities now ex- isting at the Municipal Wharf would be ample to meet normal commerce requirements to at least 1970. Also, there is now available sufficient space to permit further development of private storage and processing facilities, if opportunities to lease some of the open area for these purposes materialize. Additional special berthing and terminal structures would be required prior to 1970, however, if the coastwise sea-land service referred to above is instituted. Other relatively minor improvements to terminal facilities would be required from time to time. These would consist prin- cipally in the repaving of wharf apron and storage areas and in -74.. modifying and extending the terminal’s storm drainage system. Municipal officials responsible for port operations are fully cognizant of the improvements necessary. Considerable re- paving work has recently been completed and more work of this type is programmed for the near future. This is in addition to a repair program, nearing completion, made necessary by the unusual hurricane damage sustained earlier in the year by some of the terminal structures. The present depth of water at the Municipal Wharf (about 30 feet below mean low water) is adequate for the ships currently using the terminal. If and when further deepening becomes neces- sary, the berths along the downstream 1,200 feet of wall apparently could be dredged to about 35 feet without difficulty and without endangering adjoining sections of the bulkhead wall. Available information indicates that the maximum depth attainable along the upper 3,000 feet of wall is approximately 30 feet. In view of the nature of operations at the Municipal Wharf, the apparent depth limitation of 30 feet at the upstream berths would not affect marine commerce appreciably in the foreseeable future. It is recommended, however, that the design criterion of 35 feet used for the newer, 1,200-foot downstream length of wall be considered the minimum for all future construction, and that study be given to the practicability of increasing this to 38 or 40 feet when. further terminal expansion becomes necessary. AREA FOR FUTURE EXPANSION OF PUBLIC TERMINAL FACILITIES The terminal’s location at Fields Point makes practicable the progressive expansion of wharf and supporting land facilities without the expropriation of valuable private waterfront properties and structures. The method of development used in the past - employing the progressive extension downstream of a bulkhead wall and the reclaiming of submerged land by filling behind the wall - is not only an economical form of construction but also results in the most efficient basic type of marine terminal layout - a marginal wharf. By continuing in the future the same marginal wharf type of development at Fields Point, an additional 50 acres of submerged land could ultimately be reclaimed for terminal, warehouse, and related industrial purposes. .m>< WZNAJ< L mfimm ‘Ck awn: m .vm awuud m.u_C.¢mn_Ou.m u¢> .._mn uuabau 10¢ m._a<.:<>< \WQ \WwQ '3/\V X80/( MQN -JQ\UJO\O{‘I‘ D0‘- 0 . 0-80 0 M20 ..\...¢.-.._..'.~.._ .J.\.........\...,....\ . a...0 . l...0 - |.. .\~0.t.0.l. 0.0- 0 t-\.0.\.:.\.0.\./ _.~.r .~./_ ’ I-I‘. II‘ SNOliV'I7V..LSNI 000~ 0~0' Q0 .0‘. .\.'..-..\ WJ h¢H\-v .0 .0. 0 0 - . 00-./J ... G‘IJ1II 0-Iinud ‘4‘1‘11‘4‘1|0lI'0Oli0U0.\0,O\ . . .... . ......, ...../a......,......,.\...J5. ... . ... . ... I0 00"‘. O Ill.‘ 0 . O G 0.. 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S Q23 §:oa mofit -75- Obviously, those sections of reclaimed land adjacent to the water should be reserved for wharves and sheds; and port-linked industries should be given the preference for adjoining sites. However, since the development of additional terminal facilities is not of immediate concern at the Port of Providence, only the general layout of the area which may become available will be discussed at this time. The principal consideration with respect to the marine terminal is the length of berth required for modern vessels. Other details, such as apron widths, transit storage space, and the like, should be considered at the time when expan- sion of the Municipal Wharf is imminent. The berth should be made long enough to accommodate the largest general cargo vessel anticipated in the foreseeable future. Liberty and Victory ships have over-all lengths of 442 feet and 455 feet, respectively. Larger general cargo ships of the Mariner type, with lengths up to 525 feet, have been recently put into ser- vice. It is considered that a berth length in the order of at least 575 to 600 feet should be provided wherever possible to permit ample clearances fore and aft of all vessels which are likely to carry general cargo in the next several decades. The proposed harbor line and future bulkhead line facing the Providence River channel departs at its southern end from the presently established State Harbor line. It is recommended that the line be set as a straight-line extension of the bulkhead presently existing in front of the new transit shed. This would afford 3,100 feet of uninterrupted berthing space from the northern end of the new shed, and would be ample for five large, modern vessels or seven smaller ships. Moreover, the provision of a bulkhead in a straight line for a long distance permits a vessel to berth anywhere along the length, providing the flexibility necessary in berthing arrangements at marine terminals. The next section of the proposed harbor line and future bulk- head line is 700 feet long, and meets the eastern bulkhead line at an angle of about 100 degrees. This length was chosen to provide a berth where a modern vessel could moor without interfering with vessels berthed at the other bulkheads. Consideration was also given to the problem of providing adequate rail connections at the southern end of the channelward bulkhead and at the eastern -76- end of the 700-foot bulkhead, and sufficient length was allowed on each of these bulkheads to make such connections possible without requiring a ship to use a berth without apron tracks. The final section of the proposed harbor line and future bulkhead line is 1,500 feet long, and follows the extension (beyond the present State Harbor line) of the boundary between the cities of Providence and Cranston. This bulkhead would provide adequate berthing space for two large vessels or three small ones. It should be noted, however, that this line has been chosen at this time for convenience only. If it appears in the future that additional area would be needed, this line could be moved further to the south. Similarly, if considerations of political boundaries or other considerations make it advisable, this line could be moved a short distance to the north. Except for the possible development of special facilities for the projected sea-land service referred to earlier, there would probably be little or no need for the expansion of berthing facilities at the Municipal Wharf prior to 1970. Thus the additional space available for future expansion should be ample to meet virtually all foreseeable requirements for public terminal facilities at the Port for many years beyond that date. HURRICANES AND PORT DEVELOPMENT Coastal storms of Hurricane intensity present a recurrent problem to north Atlantic ports. Four such storms have struck the Narragansett Bay area in the past 16 years, two of them (Hurricanes Carol and Edna) arriving within a period of twelve days in August and September 1954. In the course of these storms, port terminal installations and commodities stored at or near the waterfronts suffered severe damage or destruction by wind, wave action, and flooding. Cargo vessels in Port were, in general, not seriously affected. The geographical and meteorological factors involved, and the extent of losses suffered in Rhode Island in 1954 have been reviewed, in some detail, in the Rhode Island Development Council’s “Hurricane Rehabilitation Study,” October 1954. -77- To meet the hurricane challenge, the people and the govern- ment of Rhode Island have proposed a number of alternative protection measures (Rhode Island Development Council, “Hurricane Tidal Protection in Narragansett Bay,” January 1955). Through the Rhode Island Congressional delegation, the assistance of the U. S. Army Corps of Engineers in evaluating these proposals is being actively sought. Several of the structures under consideration would, if built, provide effective protection against flooding and wave damage for the entire port area. It is assumed that this would be accomplished with minimum effect on navigation. Until such time as protection can be assured, several measures of caution may serve to reduce losses. First, the U. S. Weather Bureau has announced a reorganization of its east coast hurricane warning services. This should, in the event of another hurricane’ s striking, facilitate the proper deployment of vessels in Port, the removal of valuable goods from low lying areas, and the erection of temporary protective structures. Second, new buildings in the low lying areas should - to the extent economically practical - take advantage of modern wind-proof and waterproof construction techniques. Third, to the extent practical, inventories of lumber and perishible goods in transit should be kept to a minimum during the height of the hurricane season. The danger is not one to be minimized: the experiences of 1954 have made this clear. But neither should the spectre of hurricanes be allowed to assume undue proportions. The means of reducing losses are at hand, and complete protection may, by vigorous action, be achieved within the next few years. LAND TRANSPORT Port activity is inseparable from the connecting land transport system by which incoming cargoes are distributed and outgoing cargoes assembled. At Providence the principal port-linked land transport facilities are rail and highway. There is also a privately owned pipeline, used for distributing petroleum products to Worces- ter, Springfield, and Hartford. RAILROAD CONNECTIONS The State of Rhode Island and the Port of Providence are served by the New York, New Haven, and Hartford Railroad, which operates about 400 miles of trackage, 30 freight yards, and 70 freight stations in the State. The main lines of this system connect Providence and East Providence with Boston, Worcester, New London, New Haven, Hartford, and New York. The New Haven Railroad connects with 23 other railroads through some 50 freight connections, thus linking the port with the major rail lines serving the United States and Canada. Industries and piers along the City of Providence’s water- front on the west bank of the Providence River are served by short branch lines and spurs from the New Haven’s main line tracks and yards in the City. One of the main switching tracks for this part of the Port is on Allens Avenue, with switching leads to State Pier #1 and the various industrial terminals and plants in this area. Operations along this line are controlled so as to minimize interference with highway traffic during rush hours. The City’s Municipal Wharf on the west bank and the indus- tries in the vicinity are served by the New Haven via an extensive CENTRAL RIR‘ I» \ ‘Z .\~ 5 B . 9- ‘’~ N. 01. REGIONAL M A “ , 9 . 4 ‘ _ RAIL NETWORK -___/__ _/7 :' 13. lo 1/ >. 1 “A E PAWTUCKET I 2‘ dd 7; wEsT- 6/ I, L I N C O L N > ./-"' \ ’,,,; I \ I . \ ---- "Y % ', < SMITHFIELD \ aaaaaa ” \ 4- \ E--L \ ¢_', I — ' ’ Y Y,’ \\ 0:1 \ II \\ N O R T H PA UCKET I \ PROVIDENCE ’“i”"’ <11 \ /-~\\ \ U u':: C K E T \ ‘ / \-\l >—- <\ A I / ‘\\ m..- 0 ‘I’ \\ // \ ” _ , _ - — -""2" /1 \\ // _ — _ _ _ _ _ _ _ —-_ J \ / NORTHRUP AVE. =-----..__ >. 0 / ‘J: 5. -- I O I // 1,731 —: * Q Q , w I / DARL/NGTON ~1 / \ // II8 ¥ 3! 0 @ I // “Q Q!’ ‘Q3 “ /' -’ Is ‘L,-1 ,/ cunnss sr é ; \ ‘( 40 —_- \ \ \,. P R O \/ I D \> J 0 H N STON ‘*3 ””°"°"”/D 2421135425. /' . f /1 V \\ / r.‘ ?\ ‘I 1" °‘”"!"“ PROVIDENCE \ VI/V RAIL YA P05 /_ ~ /Peloresenfs assembly, c/assif/ca/'/on _ "I ( Q. anaI sforaye yards, operafed by #78 New Vork, /Vewl-/aven and Harfford Pa//~ road in and abour‘ Pray/'a’enc'e Harbor. Figures of each /ocar‘/on /ndica/e yard ra// Car ca/sac/'/9. RAIL ACCE 55 TO THE PORT OF PROVIDENCE -79- system of city owned lead tracks, spurs and sidings. These extend along the length of the wharf apron, serve the two transit sheds and the warehouse at this terminal, and loop through the terminal’s open storage area. The basic track network at the Municipal Wharf appears adequate for the terminal’s present rail service require- ments and is so arranged that it can be extended readily to meet future needs as the terminal area is expanded and new facilities added. Current improvements include the re-laying of apron tracks, the elimination of a switch located at the junction of the wharf apron and the main terminal roadway (New York Avenue), and the replace- ment of some of the older type hand switches. The port’ s East Providence waterfront is served by branch lines of the New York, New Haven and Hartford Railroad. The tracks are located near and approximately parallel to the river - an advantage which should contribute considerably to the attrac- tiveness for industry of the waterfront sites which are available for development in the East Providence area. ADDITIONAL RAIL SERVICE Only one railroad, the New Haven, provides direct service to Providence and Rhode Island. This fact has given rise in the past to suggestions from various sources that an additional line, entering the region from the west or northwest, should be developed. It is clear that such a line, terminating at Providence, would benefit the Port of Providence by providing an alternative system which would afford a direct rail link to the Great Lakes. The economic feasibility of developing a new rail line at this time, is, however, subject to question. The thorough examination and resolution of this question would require a detailed study of current land transport trends, requirements, and costs, etc., beyond the scope of this report. Nevertheless, a few of the points which would be influential in determining the practicability of such an undertaking are apparent and should be noted. In 1910, the New England Southern was chartered. Its purpose was to provide direct service from Providence to Palmer, Massachusetts, and from Palmer, via the Central Vermont to the Canadian Grand Trunk Railway. If this line had been completed, -30- Providence would have been given direct service, via the Central Vermont and Grand Trunk Systems, to Chicago. Although almost all of the right-of-way had been secured and most of the grading completed, work on this line was suspended in 1914 and was never resumed. It appears that the advent of World War I and the death of one of the principal promoters forced a diversion of the capital needed to complete this line during that period. The reasons behind the failure to resume construction after the war, however, may throw considerable light on the current economic feasibility of this enterprise and should be examined in any future study of this subject. It seems likely that the improvement and expansion of the Canadian ports and the extensive development of competing truck lines during the post-World War I period influenced, at least in part, the decision of the rail interests concerned to re- frain from further investment in this line and to abandon much of the capital already invested there. It should be noted that compe- tition from these two sources for the freight revenues which the Southern New England Road might engender, has continued to in- crease since that time. Railroad interests, in appraising any opportunity for invest- ment in a new line in New England, would presumably consider these and other factors directly affecting the competitive position of such a line. It is probable that consideration would also be given to the position which New England’s existing railroads hold in the economy of the region and the related questions of operating revenues and operating costs in this area. On this general subject, the Committee of New England of the National Planning Association, in its Report No. 13 (The New England Transportation System and Its Uses, Yale University Press, 1954), stated as follows: Railroads constitute a smaller segment of the New England economy than is the case for railroads in the country as a whole. Statistics reveal that while New England has 6.1 per cent of the population and contributes 8.3 per cent of the value added by manufacture of United States production, New England railroad percentages are noticeably smaller. Operating revenues of New England carriers have averaged slightly over three per cent of -31- the total railroad operating revenues in the United States. New England’s compact area, only 2.1 per cent of the United States, affects operating revenue by reducing the average length of haul and also stimulates more competition from alternate carriers. and further: It has long been maintained that the operational costs of New England railroads have been higher than average for the country. The Interstate Com- merce Commission has given recognition to that fact on several occasions, viz., in approving zone rate levels higher than the Official Territory class- rate level, and in granting a larger share in the division of joint rates._ Insofar as the New England roads are concerned, there is little doubt that New England shippers pay a higher level of charges than do shippers in most of the rest of the country. In the past, higher costs and higher charges have been attributed to unfavorable operating con- ditions. Cited as being unfavorable are the shorter average haul possible in New England, the low den- sity of traffic, the unbalance of traffic, and the cost of fuel. These conditions, of course, vary from one road to another. Unquestionably they play a signifi- cant part in the higher costs of New England roads. While it was not within the province of this report to evaluate the potentialities of a new competing rail line terminating at Provi- dence and the practicability, economic or otherwise, of Such a venture, two general conclusions can be reached on the basis of the limited examination made during this study: 1. The development of a new railroad, entering Rhode Island from the west or northwest and providing a direct connection between this area and the Great Lakes and Chicago, would undoubtedly benefit Providence and its port; however, certain -32- relatively recent changes in the national trans- portation structure (principal of which would be the St. Lawrence Seaway, the emergence and strong development of the Canadian and the Gulf ports, and the evolutionary changes taking place in interregional freight tariffs) may act to lessen considerably the direct benefits envisioned for the port in former years by proponents of the new line. 2. Considering the factors which affect the develop- ment and operation of transport facilities in New England, the trends in transport development in recent decades, and the physical problems which would be encountered today in an improvement of this type, the outlook for attracting investment capital at this time for an enterprise such as the Southern New England Road is at best poor. Recently a new approach was made to the problem of railroad competition for Providence. The Boston and Providence Railroad Company has for 58 years served as a main line in the New York, New Haven, and Hartford system. In May 1955 a group of Boston and Providence Railroad Company stockholders began action in the federal courts to obtain recognition of separate existence. At the present time it is impossible to predict the course of this litigation or to evaluate accurately the economic effects which would result from a decision favorable to the plaintiffs. TRUCK TRANSPORTATION Over 750 common or contract truckers are registered in Rhode Island. Regular scheduled service is offered to Boston, New York, Philadelphia and the South. Line haul service connecting with all points is available. The Providence metropolitan area is served by four major national highways and by a number of important local routes. The primary movement of truck traffic is between New York and Boston on U. S. Route #1 and Rhode Island Route #3. A consider- able amount of truck traffic also passes over U. S. Route #6- linking Hartford and Cape Cod. Rhode Island Route #146 is a ALBANY I \ .1 \~Lq‘. / W09 GIST! YulN""" O 3”I“H Z :< .__.___T_\ I ____-________-_--_ N, .. , UNTIC REGIONAL )\/ 5 1‘ mcmuv NETWORK 3 , M/‘-\j§$_:,.. | ' ' " HI, / : ~= II° I _f__r_n_unicipal planning. The basic tools for planning exist in differing measure in Providence and East Providence. Both communities have zoning ordinances covering the waterfront areas, and the Providence City Plan Commission has studied the waterfront as part of its general municipal planning. Both municipalities have interested and informed citizens ready to aid in developing and carrying out programs for their communities. It is clear, however, that Providence leads in having recognized the need for a professionally staffed municipal planning agency. It is recommended that the City of East Providence, under its new charter, establish a planning board with technical staff equipped to play its part in planning the port as an integral part of the future municipality. ~~ WNISIRATIGN properties irnown as the Ninnicipal Wharf- are owned, R£iIi1ii'i.iS-i‘Y§.i-iiid and maintained by the City of Providence through Depaitineiit of Pnbiic Works. These properties and ali re- fated matters are the direct responsibility of the City’s Port Agent, who is a member of the staff of the Director of Public Works. Offices of Port Agent and Harbor Master (held jointly by the same individual) are attached at present to the Public Service Division of this department. A.DME*iIST‘RA”i.’iON OF MUNICIPAL PORT FACILITY The Port Agent is responsible for administering and promoting the Municipal Wharf. He represents the interests of the -City of Providence in dealing with steamship, stevedore, railroad, nd other companies and individuals using the Wharf (including the tenants who lease parts of the area). He solicits business, snpervises the development, maintenance and repair of City-ow:?r'1,eti facilities and, in general, is responsible for aii nnmicipai properties, activities anti interests at the Wharf. The Port Ae;ent’s office does not engage in actual cargo handling operations, these being performed by stevedore eonnpan.ies_ (.ah.ip' loading and unloading), the New Haven Rail- road (car loading and unloading), and the private owners of or their agents (trackers and such locai tenants as oii, coal, lnnitier and warehouse companies). Accordingly, Port Agent’s staff at the Municipal Wharf is limited to ni.ne persons, including one wharf superintendent, one foreman of inaintena.nee~.>, one clerk, two watchmen and four laborers. -97- The duties of Harbor Master, which have been assigned to the Port Agent in recent years, include the reporting of ship arrivals and departures, enforcement of port regulations as enumerated in Sections 1 through 18 of Chapter 16, Revised Ordinance of the City of Providence, 1946. For these purposes and for the operation and maintenance of the Harbor Master’ s boat, the Port Agent is assigned one additional man who serves both in the capacity of marine engineer and record clerk. Several of the ordinances relating to duties of the Harbor Master are obsolete. For example, Section 9 requires vessels drawing more than 20 feet to anchor below “The Crook” if approaching at any time other than high tide. Section 12 requires the Harbor Master to provide himself, at his own expense, with a uniform including dark blue double breasted sack coat with brass buttons and shoulder straps inscribed with the words “Har— bor Master.” The entire chapter might well be reviewed for elimination of obsolete clauses. Major repairs and improvements at the Municipal Wharf are under the supervision of the Port Agent but are generally carried out by engineers and contractors retained by the Depart- ment of Public Works for these purposes. Similarly, while all legal, financial and budgetary matters relating to the Municipal Wharf come under his cognizance, the details of this work are handled by other appropriate municipal divisions and departments. Clerical work on requisitions and payrolls are handled for the Port Agent’s office by the Public Service Division, and billing and budgetary work is performed for the Port Agent’s office by the Business Management Office of the Department of Public Works. It can be seen from the foregoing that the “overhead” or fixed operating costs of the Port Agent’s office are -kept to a minimum under the present method of operation. Those specialized functions (such as purchasing, budgetary and legal work), which are necessary but incidental to the primary opera- tion of the Port Agent’s office, are handled by the several municipal agencies established and equipped to handle such work for all departments. This arrangement appears to have been -98- successful and, in view of the nature and extent of the Port Agent’s operations, relatively efficient over the past decade. FINANCIAL STATUS OF MUNICIPAL WHARF OPERATIONS During the World War II period (1941-1946), revenues from Municipal Wharf operations were generally high and covered all operating expenses and debt charges. The total revenues, operating expenses, and debt service costs during this period are summarized in the following table (all figures are given to nearest $100). It is notable that much of the wharf’s bonded indebtedness current during the 1941 -1946 period was paid at that time. Municipal Wharf Financial Summary for Period 1941 through 1946 Gross Revenues $ 903,300 Operating Expenses 110,800 Net after Operating Expenses $ 792,500 Interest and Amortization on Debt 787,700 Net after Operating Expenses and Debt Service Costs $ 4,800 During much of the war period, however, wharf revenues were dominated by defense-related expenditures of the U. S. Government, arising principally from leases on wharf proper- ties and from wharfage charges. While the revenues derived from the Federal Government (especially during the 1943-1946 period) emphasize the valuable contribution the Municipal Wharf is prepared to make during periods of national emergency, they tend to distort the more normal expense-revenue picture established in the post-war period. Accordingly, a more detailed review is given on pages 100 and 101 of the revenues, expenses, and debt service costs arising directly MUNICIPAL WHARF - PROVIDENCE Rhode Island Development Council Photograph -99- from the Municipal Wharf and its operations during the post-war years. This review establishes both the current financial status and the apparent current trends in revenues and expenses of the port’s primary public terminal facility under the present form of management and administration. As will be seen from the following, both the status and apparent trends of Municipal Wharf finances are favorable. In many port communities, facilities of this type must be subsidized directly or indirectly by the public, while the Municipal Wharf is now and has been for many years a self-sustaining facility which, during the post-war period, has not only paid its operating and debt service costs, but has returned appreciable income to the City. THE MUNICIPAL WHARF - GROSS REVENUES AND OPERATING EXPENSES Municipal Wharf revenues are derived principally from the lease of wharf properties and facilities, wharfage and dockage fees, storage charges, and charges for the use of trackage within the terminal. As shown in the attached table, gross revenues have increased progressively throughout the post-war period, from $111,600 in 1947 to $212,900 in 1953. Operating expenses consist principally of salary and payroll costs, payments for materials and supplies for operational and general maintenance purposes, and charges for services (telephone and telegraph, utilities, water, advertising). While these expenses, because of their nature, fluctuate somewhat from year to year, they have been held to a generally low level and have shown relatively little increase since the war, in comparison with the increases realized in Wharf revenues. Although revenues for 1953 were 91 per cent higher than those for 1947, operating expenses for 1953 ($37,900) were only 31 per cent higher than those of 1947 ($28,900). THE MUNICIPAL WHARF - BOND FINANCING OF TERMINAL IMPROVEMENTS The acquisition of land for the Municipal Wharf and virtually all subsequent capital improvements thereon were financed by municipal bond issues. A series of four relatively small bond -100- MUNICIPAL WHARF REVENUES AND EXPENDITURES, 1947-1953 (all figures rounded to nearest $100) REVENUES Lease of Land Wharfage and Dockage Storage Trackage Miscellaneous SUB -TOTAL OPERATING EXPENSES Salaries and Payroll Other Services Materials and Supplies SUB-TOTAL NET REVENUE, AFTER OPERATING EXPENSES DEBT SERVICE Serial Bond (1939) Payments* Interest on 1939 Serial Bonds* Sinking Fund on “Harbor” Bonds ** Interest on “Harbor” Bonds** 1947 $ 49,200 48,900 8,000 3,100 2,400 $ 111,600 $ 20,800 0,000 2,100 $ 28,900 $ 82,700 55,000 11,500 12,300 17,000 Interest on Floating “Harbor” Debt Interest on 1952 Serial Bonds*** -- SUB-TOTAL NET REVENUE, AFTER OPERATING EXPENSES AND DEBT SERVICE 400 $ 96,800 $( -14,100) 1948 $ 71,200 51,900 10,200 4,200 1,500 $139,000 $ 20,500 12,500 1,100 $ 34,100 .$104,900 $ 55,000 10,000 12,300 13,000 400 $ 91,900 $ 13,000 1949 $ 09,300 54,100 34,000 5,700 _._.1n_ $104,400 $ 24,200 3,200 1,800 ~ $ 29,200 $135,200 $ 55,000 9,000 4,800 9,000 400 $ 79,400 $ 55,800 1950 $ 52,800 57,200 47,000 0,900 700 $105,200 $ 20,800 13,500 2,100 $ 42,400 $122,800 $ 55,000 8,700 4,800 9,000 400 $ 78,500 $ 44,300 NON-RECURRENT CAPITAL OUTLAYS (FINANCED FROM CURRENT NET REVENUES) $ -- * On $1,100,000, 1 3 / 4% issue of 1939, for warehouse and bulkhead construction; final payments. 1958. $ .... $ .... ** On $240,000, 4% issue of 1920 (matured June 1,1950), and $200,000, 4% issue of 1928 (matured January 3, 1948), for various capital improvements at Municipal Wharf . *** On $1,250,000, 2.3% issue of July 1, 1952, for new transit shed; payment of interest only, 1953-1957; bonds begin to mature in 1958; final payment of principal and interest, due 1977. MUNICIPAL WHARF REVENUES AND EXPENDITURES, 1947-1953 -101- (all figures rounded to nearest $100) Totals 1951 1952 1953 1947-1953 REVENUES Lease of Land $ 52,900 $ 54,200 $ 55,300 $ 404,900 Wharfage and Dockage 64,000 79,600 89,400 445,100 Storage 56,800 51,000 58,700 266,900 Trackage 7,300 7,600 6,100 40,900 Miscellaneous 3,000 ___2,600 3,400 14,300 SUB—TOTAL $184,000 $195,000 $212,900 $ 1,172,100 OPERATING EXPENSES Salaries and Payroll $ 26,500 $ 31,000 $ 31,000 $ 180,800 Other Services 3,200 3,700 5,900 48,000 Materials and Supplies 1,200 1,60_(_)_ 1,000 10,900 SUB-TOTAL $ 30,900 $ 36,300 $ 37,900 $ 239,700 NET REVENUE, AFTER OPERATING EXPENSES $153,100 $158,700 $175,000 $ 932,400 DEBT SERVICE Serial Bond (1939) Payments* 55,000 $ 55,000 $ 55,000 $ 385,000 Interest on 1939 Serial Bonds* 7,700 6,700 5,800 60,600 Sinking Fund on “Harbor” Bonds ** -- -- -- 34,200 Interest on “Harbor” Bonds** -- -- —- 50,400 Interest on Floating “Harbor” ‘Debt 400 -- -- 2,000 Interest on 1952 Serial Bonds*** -- ______—- _ 28,800 28,800 SUB-TOTAL $ 63,100 $ 61,700 $ 89,600 $ 561,000 NET REVENUE, AFTER OPERATING EXPENSES AND DEBT SERVICE $ 90,000 $ 97,000 $ 85,400 $ 371,400 NON-RE CURRENT CAPITAL OUTLAYS (FINANCED FROM 0 CURRENT NET REVENUES) $ 86,000 $ 15,200 $ 46,100 $ 147,300 * On $1,100,000, 1 3/4% issue of 1939, for warehouse and bulkhead construction; final payments, 1953. ** On $240,000, 4% issue of 1920 (matured June 1, 1950), and $200,000, 4% issue of 1928 (matured January 3, 1948), for various capital improvements at Municipal Wharf . *** On $1,250,000, 2.3% issue of July 1, 1952, for new transit shed; payment of interest only, 1953-1957; bonds begin to mature in 1958; final payment of principal and interest, due 1977. 102- issues were floated between 1915 and 1928 to defray the costs of land acquisition, construction of the first 3,000 feet of wharf bulk- head, construction of the wharf’ S first transit shed, paving of apron and roadway areas, laying of tracks and similar related improvements. These initial “Harbor” bond issues which have been retired, were as follows: Year of Issue Am(_i_u1_1t Rate of Interest Year of Maturity 1915 $500,000 4% 1945 1910 250,000 4% 1940 1920 240,000 4% 1950 1928 200,000 4% 1948 In 1939, the City floated an additional issue in the amount of $1,100,000 to cover the City’s share of the cost of the $2,000,000 warehouse at the wharf. (The balance of $900,000 was paid by a PWA grant.) These were serial bonds carrying a 1 3/4 per cent rate of interest. Payments of principal and interest have been made regularly and it is anticipated that these bonds will be retired, as scheduled, in 1958. The remaining bond issue which has been floated to date for Municipal Wharf purposes, was a $1,250,000 issue of 2.3 per cent serial bonds used to finance an improvement program, the major project being the terminal’s new transit shed. Interest payments began in 1953, but payments of principal were deferred until 1958. These bonds are scheduled to be completely paid off by 1977. Annual interest payments in the years 1953-1957 will amount to $28,750. The total annual payments (principal and interest) during the years 1958-1977 will range from about $77,000 to $80,000. Municipal Wharf revenues have generally been ample to meet all debt service costs. As shown in the attached table of revenues and expenditures for 1947-53, the wharf’s net revenue after payment of operating expenses exceeded annual debt service BRIGANTINE MADALAN - PROVIDENCE Providence Journal Company Photograph -103- costs by amounts varying from $13,000 to $97,000, in all post-war years except 1947, when a deficit of $14,100 was shown. Similarly, as shown earlier, the aggregate net revenues for the war years, 1941-1946, was sufficient to cover the higher annual debt charges current in that period. THE MUNICIPAL WHARF - NET REVENUES AFTER DEBT SERVICE COSTS The ratio of revenues to expenses, both war -time and post-war, indicates that the Municipal Wharf is a self-sustaining facility. It is expected that wharf operations will eventually pro- vide the port with fully paid-up terminal facilities without adding to the local tax burden. Net revenues after operating expenses and debt service costs aggregated $371,700 in the post-war period. The net revenue position of the Municipal Wharf has been so favorable in recent years that it was found feasible, during the three-year period 1951-1953,.to finance a total of $147,300 of capital improvements (pavement of storage area, waterproofing of warehouse, track construction plus office equipment and furniture) directly from current net revenues, thereby avoiding the need for additional bond or loan financing for these purposes. Even with this unusual application of direct operating income, the wharf returned approximately $225,000 to the City’ s general fund during the period 1947-1953. THE MUNICIPAL WHARF - SUMMARY OF CONCLUSIONS ON FINANCIAL STATUS The strong financial position of the Municipal Wharf gives evidence that the City of Providence has developed a sound invest- ment and an effectively operated public facility, the like of which, in terms of financial success, is found in very few public port enterprises in the country. " PORT AUTHORITY In recent years, there has been considerable public interest in the administrative aspects of port development. -104- Discussion has centered around proposals for the establishment of an independent port agency or port authority. The proposed port authority may now be judged in the light of commerce potentials as indicated by the present report, and with respect to what it might be expected to accomplish. - in the fields of port operations, port promotion and development. The first and most obvious conclusion is that the present level of port activity does not require an elaborate administration to manage port traffic or the movement of cargoes. Indeed it is one of the virtues of the present organization that day-to-day port operations are carried on simply and with low overhead expense. A second conclusion is based on one of the principal findings of this report: that the industry now located in the port hinterland (as defined by land transportation economics) does not generate sufficient cargo to sustain frequent scheduled conventional- type shipping services. It follows that neither a port authority nor any other agency could bring about a large scale shipping boom at the Port of Providence through solicitation of freight for conven- tional type vessels from existing industry. (It is obvious that sea- land service, important as it may become, would not require the services of a port authority.) It appears, then, that a port authority, if established at this time, would have to find its primary justification in the pro- motion of new port-linked industries which could help to provide the cargoes necessary to attract frequent, scheduled shipping service. The creation of a new agency primarily for this purpose, however, would result in duplication. Already active in the field of industrial promotion are the East Providence Citizens’ Economic Board, the Providence Industrial Council, the Rhode Island Develop- ment Council, the Business Development Company of Rhode Island, the Providence Chamber of Commerce, and the Providence Junior Chamber of Commerce. From these considerations, it is concluded that the creation of a port authority or other independent port agency at -105- this time would impose a new burden of overhead without promise of material benefits. REORGANIZATION OF MUNICIPAL PORT ADMINISTRATION Although no fundamental modification of the present administrative organization is recommended, it is felt that the goal of economy has been pursued too far in assigning the Port Agent and Harbor Master to section status within the Public Service Division of the Providence Department of Public Works - and in limiting the Port Agent and Harbor Master’s staff to ten persons including Municipal Wharf laborers. The nature of Municipal Wharf operations is such that a responsibile city official must be available at all times to make decisions and answer inquiries; but the duties of port promotion and freight solicitation require travel, and are time consuming. To permit a modest increase in promotional activity, and to in- sure staff continuity through training and experience, it is recommended that an appropriate City official be designated by the Director of the Department of Public Works to serve as Deputy in the absence of the Port Agent and Harbor Master. At the same time, it is recommended that the port function be given division status within the Department of Public Works and that necessary adjustments be made in the titles and functions of personnel now assigned to the Port Agent and Harbor Master. In particular, it is recommended that full time secretarial help be provided. In addition to assuming the duties of correspondence and filing, the division secretary should assist in maintaining complete formal records of Municipal Wharf activity and of port commerce, both incoming and outgoing. The latter function (compilation of outgoing port statistics) is at present not being performed by municipal authorities. PORT-LINKED INDUSTRY As indicated in an earlier section, port promotion takes two distinct forms: solicitation of freight from existing industries and the promotion of new port-linked industries. This latter function, while it is primarily the responsibility of industrial development organiza- tions, can, if successful, have important effects on port administration. -106- A promotional program planned to attract port-linked industries must take into consideration many factors: sources of raw materials, markets, labor, power, and location of competing producers, to name but a few. The requirements of port-linked industry must be care- fully checked with the advantages and limitations of the area to be promoted. A detailed analysis of this complex subject lies outside the scope of this report. However, attention is invited to a report recently completed by the Maryland State Planning Commission (“The Economic Importance of Port-Linked Manufacturing Industries in the Baltimore Area,” May, 1953). This study in- dicates that one or more of the following characteristics are typical of industries classified as “Completely Port-Dependent” in the Baltimore area: 1. Raw materials - bulky. 2. Raw materials - obtained exclusively or substantially from foreign or distant sources. 3. Finished products - bulky. 4. Markets - accessible by water transport. 5. Transportation costs - important in the industries cost structure. 6. Water requirements - large. 7. Tidewater location required by nature of manufacturing process - shipbuilding and repairing. Baltimore industries having one or more of these character- istics are: primary metals, chemicals and allied products, products of petroleum and coal, transportation equipment, sugar refining, and gypsum products. While allowance must be made for some differences between the Ports of Providence and Baltimore, the Maryland State Planning Commission study, taken in conjunction with the present report and with recent New England and Rhode Island industrial location studies PETROLEUM LINES - EAST PROVIDENCE Providence Journal Company Photograph -107- can provide the factual basis for a program to promote port-linked industry at the Port of Providence - and throughout its hinterland. The following publications, in addition to the Maryland study cited, are recommended: Arthur D. Little, Inc., Report on a Survey of Industrial Opportunities in New England, Cambridge, 1952° Arthur D. Little, Inc., “lndustrial Opportunities in Rhode Island.” Cambridge, 1953. FREIGHT SOLICITATION Freight solicitation, in contrast to industrial promotion, should be considered primarily the responsibility of the Port Agent. (Of course, every opportunity for cooperation between the Port Agent and the industrial develop- ment agencies should be seized.) The analysis of potential commerce presented in this report indicates no basis for immediate increase in frequently scheduled service by conventional type vessel. It was concluded, however, that the tonnage of inter-coastal traffic as now carried by the Luckenbach Steamship Company might be substantially increased and that other infrequent or unscheduled service might be secured through solicitation. ~ The budget allowed to the Port Agent for promotional pur- poses has gradually been increased in recent years, and in 1954 amounted to approximately $3,000. About two-thirds of this amount was used for advertising and the remainder for other forms of solicitation and promotion. This distribution of expenses has, perhaps, represented the only possible approach to port promotion in the past. It is believed, however, that if a Deputy Port Agent and Harbor Master is appointed as recommended in this report, better results could be obtained by greater emphasis on systematic, continuing personal solicitation of shippers and receivers in the Providence port hinter- land including parts of Massachusetts and Connecticut. As an aid in personal solicitation, the Port Agent should be provided with a -108- brochure aimed primarily at shippers. (For the design of such a brochure, the services of the Rhode Island Development Council are freely available if desired.) Magazine advertising, which tends to reach shipping companies and brokers in distant cities should be de-emphasized without being discontinued. These are some of the advantages which might be stressed in an intensified program of port promotion: savings in coastwise shipping time - in the order of $800 to $1,600 per round trip as compared with Boston for modern American ships; clear approaches to the port, principally by natural deep water; mean tidal range limited to 4.6 feet; ample berthing space; modern transit shed, free of columns; relative freedom from traffic for truckers using the port; convenience and savings in the cost of land transport for shippers and receivers of goods in the Providence port hinter- land; space for expansion. While it would not be realistic to anticipate a spectacular increase in shipping in the near future, there is sound basis for a program of freight solicitation and for the continuing effort to promote port-linked industries - industries of the type which will generate cargoes and bring in ships. \\\\\\l\ljljj\Mjj)\jj)ljll\\\\\ PHOTOGRAPH - BACK COVER PORT OF PROVIDENCE - AERIAL VIEW LOOKING SOUTH