Thriving on the back of the ever-growing trade activities coupled with numerous favorable government initiatives, North America inland waterways vessels market has gained commendable recognition as one of the most remunerative business verticals of the current era. With the presence of economically developed and leading maritime nations such as the United States and Canada, the North America inland waterways vessels industry has undergone transformative altercations in the recent times. Regardless of the fact that air and ground transportation has witnessed revolutionary technological advances, inland waterways continue to play a vital role in preserving the economic competitiveness of North America based businesses across global markets.
Being an environment-friendly, reliable, and congestion-free transportation mode, there has been a high preference toward utilizing inland waterways across North America over the past decade. With an exponential rise in environmental concerns across the globe, the North America inland waterways vessels market participants have a crucial role to play in lowering the carbon footprint by a substantial volume. It would be prudent to mention that lower emission levels assist nations in securing more carbon credits which further translates into significant budgetary savings. Enumerated below is a coherent snapshot of how U.S. and Canada have made remarkable contributions toward proliferating North America inland waterways vessels market:
U.S. | A dominant force in the trading and shipping sector, Uncle Sam now aims to preserve its stance in North America inland waterways vessels industry
- While unveiling the ambitious infrastructure initiatives that would be undertaken during this year, the 2018 budget of the U.S. has underlined the need to fundamentally alter the laws governing the Inland Waterways Trust Fund (IWTF). For the record, IWTF is one of the prominent funds across the U.S. inland waterways vessels market and was formulated to pay for 50% of construction and major rehabilitation expenses of the country’s inland waterways. Elaborating further, the 2018 budget comprises of enormous fund disbursement of nearly USD 200 billion that would be directed toward accelerating the pace of infrastructure projects in the nation. Apparently, a significant portion of this amount is likely to be utilized to overhaul the waterways network across the United States. Industry experts believe that the deployment of such massive funds to revamp and refurbish the prevailing waterways infrastructure would certainly augment the U.S. inland waterways vessels market in the ensuing years.
- The involvement of federal governments in developing navigation projects has further boosted the U.S. inland waterways vessels industry in the recent past. Citing an instance of the same, the Governor of Louisiana announced that to build the Houma Navigation Canal Lock Complex, the Gulf Coast Ecosystem Restoration Council would provide USD 18.5 million funding to the Louisiana Coastal Protection and Restoration Authority. The project has received wide scale acclaim as it would provide critical flood protection to Terrebonne Parish region and enhance navigation facilities as well. Needless to mention, such proactive development initiatives to upgrade and maintain the quality of waterways have paved the way for U.S. inland waterways vessels market players to explore new business opportunities.
Canada | A visionary national plan to revamp the transportation system likely to strengthen the position of Canada in North America inland waterways vessels industry
With an aim to transform the country’s overall transportation system, Canada unveiled a strategic roadmap, named as Transportation 2030, in 2017. Focusing on various themes including air, shipping, trucking, and rail, the plan consists of a comprehensive draft to work on inland waterways in the nation. The ‘Waterways, Coasts, and the North’ is a significant part of Transportation 2030 which intends to build an innovative, green, safe, and integrated transportation system that would consequentially boost the fortunes of Canada inland waterways vessels market.
Essentially, it is quite imperative to state that marine transportation is an essential lifeline for Canada’s Northern territories. Bearing this in mind, the Canadian Government has approved a humongous USD 1.5 billion fund, in its 2017 budget, to support the Ocean Protection Plan. Reportedly, the plan is being described as the most significant investment ever made to protect Canada’s waterways and coasts. The strategy aims to create a world-leading marine safety system that provides economic opportunities to the Canada inland waterways vessels industry players.
Canada Inland Waterways Vessels Market, By Fuel, 2016 & 2024, (Units)
Amongst its numerous initiatives, the Ocean Protection Plan aims to construct Low Impact Shipping Corridors that would provide emergency response and navigational support services for safer marine exploration. Furthermore, the plan intends to build Arctic National Aerial Surveillance Program Complex in Nunavut to monitor the growing number of ships operating in Canada’s Arctic waters. Apparently, the overall expanse of the plan would undeniably bring about an impressive and favorable change across the Canada inland waterways vessels market in the times to come.
Owing to the escalating operational costs and low marginal profits, the participation of private entities in the global inland waterways vessels industry has taken a hit in the recent times. However, considering the current state of affairs across North America inland waterways vessels market, which is replete with numerous encouraging government programs and increased budgetary allocations in the pipeline, the overall business sphere is bound to expand its commercialization portfolio in the near future. In fact, as per a research report by Global Market Insights, Inc., North America inland waterways vessels market is forecast to register a CAGR of more than 6% to 2024.