Market Analysis Of The United States Charter Boat And Marina Industries: Biodiesel Use Potential

Transcription

1 Market Analysis Of The United States Charter Boat And Marina Industries: Biodiesel Use Potential Report to the National Biodiesel Board August 31, 2006 Chad Freckmann Blue Ridge Clean Fuels 104 Northwood Circle Charlottesville, VA of 11

2 Purpose According to the most recent data published by Bureau of Transportation Statistics (BTS) there were 12.7 million registered recreational vessels i (charter boats included under definition). However, this includes every vessel (canoe, row boat, bass boat, etc.) that is required to be licensed with a number. The actual number of diesel engined vessels is much smaller; about 1.2 million. ii This report attempts to quantify the number of marine charter vessels and their location to determine the potential for biodiesel sales in the marine market. Recreational boating (mostly sailing yachts) is seasonal and relatively low volume in terms of fuel consumption. The charter boat sector consumes large quantities of fuel and if educated on the benefits of bio-diesel could potentially create a market demand that would encourage marinas to make the investment to offer bio-diesel. As a matter of record data has also been collected on the number and location of marinas and boatyards across the country. However, because it is not possible to identify which marinas carry diesel fuel in addition to gasoline, further analysis is necessary to pinpoint those locations where biodiesel might be dispensed. Number of Diesel Engined Charter Vessels NOAA Marine Recreational Fishing Statistical Survey provides survey data of all registered charter vessels. Numbers were provided by NOAA staff and culled from survey reports. Atlantic and Gulf Coast MS 54 NH 74 TX 129 ME 138 CT 146 DE 162 GA 167 AL 180 RI 197 SC 247 VA 332 LA 493 NY 626 NC 751 MA 781 MD 806 NJ 842 FL Data provided by Marine Recreational Fisheries Statistical Service. Rob.Andrews@noaa.gov iii 2 of 11

3 Pacific Coast WA 159 OR 124 CA 421 HI Data provided by Pacific States Marine Fisheries Commission. Wade Van Buskirk iv *No statistics available for Alaska Estimate of Total Charter Boat Fleet in the United States Approximately 10,000 (9,459) diesel engined charter vessels are registered in the United States. Estimate of Registered Charter Boat Numbers and Location WA-159 ME-138 OR-124 CA-421 NH-74 MA-781 RI-197 CT-146 NY-626 NJ-842 DE-162 MD-806 VA-332 NC-751 SC-247 GA-167 HI-130 TX-129 LA-493 MS-54 AL-180 FL-1,796 3 of 11

4 Diesel Consumption in the Marine Market Vessel bunkering: Includes sales for the fueling of commercial or private boats, such as pleasure craft, fishing boats, tugboats, and ocean-going vessels, including vessels operated by oil companies. Excluded are volumes sold to the U.S. Armed Forces. v Marine diesel consumption is captured under the Vessel Bunkering category in DoE statistics and was pegged at approximately 2.1 Billion gallons in In a 1998 study vi citing US Transportation Census Bureau data the recreational market (includes for hire charter vessels) consumed 136 million gallons of diesel fuel. Diesel consumption rates in the marine market have remained somewhat steady in the billion gallons per year. Therefore, it is thought that recreational consumption of diesel has remained around 136 million gallons per year. Estimates of fuel consumption are based on numerous discussions with the National Association of Charter Operators vii, charter boat captains and marina managers. A typical charter vessel is a six-pack operation, licensed to carry no more than six passengers. These types of vessels would have twin diesel engines, HP per engine. Fuel consumption is estimated to be 500 gallons per week during peak season (June, July, August) and 500 gallons per month during the rest of the year. Annual consumption per charter vessel is estimated to be approximately 10,000 gallons. Annual diesel consumption in the Marine Charter market is estimated at 100 million gallons. 4 of 11

5 Estimate of Marina s and Boat Yards in the United States Data developed regarding estimates of marina s in the United States was obtained from AMI (Association of Marina Industries ). AMI is the international trade marine association for the marina industry and represents a diverse membership of over 1,500 marinas, boatyards, yacht clubs, and public/private moorage basins across the United States and around the world. The data cited below are a best estimate of state by state numbers of marinas and boat yards. ALABAMA AL ALASKA AK ARIZONA AZ ARKANSAS AR CALIFORNIA CA COLORADO CO CONNECTICUT CT DELAWARE DE DISTRICT OF COLUMBIA DC FLORIDA FL GEORGIA GA HAWAII HI IDAHO ID ILLINOIS IL INDIANA IN IOWA IA KANSAS KS KENTUCKY KY LOUISIANA LA MAINE ME MARYLAND MD MASSACHUSETTS MA MICHIGAN MI MINNESOTA MN MISSISSIPPI MS MISSOURI MO MONTANA MT NEBRASKA NE NEVADA NV NEW HAMPSHIRE NH NEW JERSEY NJ NEW MEXICO NM NEW YORK NY NORTH CAROLINA NC NORTH DAKOTA ND OHIO OH OKLAHOMA OK OREGON OR PENNSYLVANIA PA RHODE ISLAND RI 5 of 11

6 SOUTH CAROLINA SC SOUTH DAKOTA SD TENNESSEE TN TEXAS TX UTAH UT VERMONT VT VIRGINIA VA WASHINGTON WA WEST VIRGINIA WV WISCONSIN WI WYOMING WY TOTAL It is not possible to identify which marinas carry diesel fuel. Geographic Marketing Focus The potential for biodiesel compatibility/solvent property issues to arise with marine diesel propulsion systems is an issue that is of concern. Should a vessel plug a filter while out at sea the consequences are more dramatic than a land based vehicle pulling to the side of the road. In order to avoid any performance issues and for reasons of estimates a B10 scenario is used to estimate the potential marine biodiesel market. In addition, as E10 (10% ethanol) is integrated into gasoline as a fuel oxygenate under EPA mandate for reformulated gasoline markets, gasoline pumps at the fuel dock will carry stickers indicating use of this renewable fuel. B10 could be potentially be integrated at the fuel dock in the same manner and sold to marinas as the logical companion to E10. Florida has the largest population of registered charter vessels (1,796 representing 19%) and is a good candidate for a focused marketing effort. The Chesapeake Bay, due to its prominence as a marine haven on the east coast and the increased awareness of water quality issues due to pollution would suggest that Virginia (332) and Maryland (806) are other areas to focus attention. North Carolina (751) because of its proximity to the Chesapeake Bay is a good candidate as well. Together, these two areas (Florida and the Chesapeake Bay/Outer Banks of NC) represent approximately 40 percent of the target market and also have a longer boating season due when compared to fleets farther north. Potential Biodiesel Market Share in the Marine Market Market Segment Diesel Consumption B10 Share B100 Consumption Charter 100 million gal/year 40 million 4 million Other Recreational 36 million gal/year 10 million 1 million Totals 136 million gal/year 50 million 5 million potential 6 of 11

7 Marina Marketing Focus In conjunction with a regional focus on the charter boat market a similar effort at regional marinas is recommended. One possible avenue to jump start a marine biodiesel initiative is to work with targeted state s Clean Marina s Program. The Clean Marina Initiative is a voluntary, incentive-based program promoted by NOAA and others that encourages marina operators and recreational boaters to protect coastal water quality by engaging in environmentally sound operating and maintenance procedures. While Clean Marina Programs vary from state to state, all programs offer information, guidance, and technical assistance to marina operators, local governments, and recreational boaters on Best Management Practices (BMPs) that can be used to prevent or reduce pollution. Marinas that participate in the Clean Marina Program are recognized for their environmental stewardship. viii Marina s participating in this voluntary program would possibly be more willing to adopt biodiesel and could be approached via the state program coordinator. ix Another avenue would be to target State and Federal owned marinas. Since, in many cases, the State Clean Marina s Program is managed by the State Environmental Department. 7 of 11

8 INDEX OF MARINE RELATED CONTACTS: National Marine Associations National Association of Charterboat Operators P.O. Box 2990 Orange Beach, AL Tel: Fax: Executive Director - Bobbi Walker bobbi.walker@nacocharters.org Association of Marina Industries 444 North Capitol St. NW, Suite 645 Washington, DC Tel: Fax: AMI Operations Manager- Brooke Fishel bfishel@marinaassociation.org Clean Marina Program Florida Clean Marina Program Tel: Program Manager-Brenda Leonard Brenda.Leonard@dep.state.fl.us Virginia Clean Marina Program (VIMS Sea Grant Marine Advisory Program) (804) Contact: Pete Hall petehall@vims.edu Maryland Clean Marina Program (410) Contact: Diane Morrow dmorrow@dnr.state.md.us Delaware Clean Marina Program (University of Delaware Sea Grant Marine Advisory Service) (302) Contact: Dave Chapman dchapman@udel.edu p/ipcleanmarina.htm Charter Boat Associations Maryland Charter Boat Association President: Capt. Buddy Harrison, Jr. Virginia Charter Boat Association P.O. Box 1217 Gloucester Point, VA President: Capt. Bob Hewlett bob@capt-hewlett.com Florida Charter Boat Associations 1) Destin Charterboat Association 2) Florida Guides Association P.O. Box Merritt Island, FL ) Key West Charter Boat Association 4) Marathon Guides Association 5) Marco Island Charter Captains Association 6) Panama City Boatmen Association 7) Pensacola Charterboat Association 8) Steinhatchee Charter Boat Association Marina Associations (Chesapeake Bay and Florida) Tidewater Marine Trade Association P.O. Box 566 Urbanna, VA info@tmtav.com Marine Trades Association of Maryland Port Annapolis Marina Annapolis, Maryland director@mtam.org Maryland Watermen's Association 1805A Virginia St. Annapolis, Md info@marylandwatermen.com 8 of 11

9 Marine Industries Association of Florida Major marina and charter boat events International Marina & Boatyard Conference Yearly-end of January Association of Marina Industries 444 North Capitol St. NW, Suite 645 Washington, DC Tel: National Association of Charterboat Operators Annual Meeting Yearly-January National Association of Charterboat Operators P.O. Box 2990 Orange Beach, AL Tel: Executive Director - Bobbi Walker bobbi.walker@nacocharters.org Chesapeake Bay Bay Bridge Boat Show Yearly-end of April Bay Bridge Marina Kent Island, Maryland Virginia In-Water Boat Expo Yearly-beginning of September Waterside Park Marina Norfolk, VA Florida Miami International Boat Show Yearly-mid February Miami Beach Convention Center Miami Beach, FL St. Petersburg Boat Show Yearly-mid-November Marina Publications Marina Dock Age Preston Publications 6600 W. Touhy Avenue P.O. Box Niles, IL U.S.A Marina World Magazine Tel: Boating Industry Magazine Soundings Trade Only Soundings Publications, LLC 10 Bokum Road Essex, CT Boating Publications Waterman s Gazette Maryland Watermen's Association 1805A Virginia St.Annapolis, Md Saltwater Sportsman editor@saltwatersportsman.com 9 of 11

10 End notes i Section B - Vehicle, Aircraft, and Vessel Inventory Table 1-11 ii Biodiesel Marine Market Pre-Evaluation. Final Report Arthur D. Little, Inc. Report to the National Biodiesel Board 7/09/95. iii -----Original Message----- From: Rob Andrews [mailto:rob.andrews@noaa.gov] Sent: Tuesday, August 01, :06 To: Blue Ridge Clean Fuels Subject: Re: Marine Fisheries Statistics for Charter Boat and Marina Below are the number of charter and headboats by state for the Atlantic and Gulf Coasts. I don't have numbers for the west coast, but you may be able to get them from the Pacific States Marine Fisheries Commission. You can contact Wade Van Buskirk (wade@psmfc.org). Please feel free to contact me with any other questions. CT: 146 DE: 162 GA: 167 ME: 138 MD: 806 MA: 781 NH: 74 NJ: 842 NY: 626 NC: 751 RI: 197 SC: 247 VA: 332 FL: 1796 AL: 180 LA: 493 MS: 54! "##$ #%&& ' ( ) * + ),-. ( '.- Chad, There are approximately 130 for-hire vessels in HI. I do not have a contact in AK. iv -----Original Message----- From: Wade Van Buskirk [mailto:wade@psmfc.org] Sent: Monday, August 07, :34 To: Blue Ridge Clean Fuels Cc: Rob Andrews Subject: Re: FW: Marine Fisheries Statistics for Charter Boat and Marina identification Chad, Here are the numbers for the West Coast. For OR and WA the numbers are about 5 years old. The California number is current. 10 of 11

11 WA: 159 OR: 124 CA: 421 v vi Market Potential of Biodiesel in Regulated Fleets, Marine Vessels and Underground Mining Equipment. Booz-Allen & Hamilton. November 11, 1998 for the United Soybean Board. vii Then National Association of Charter Boat Operators represents owners and operators that offer marine charter and carry passengers for hire. viii ix Links to all Clean Marina Programs 11 of 11