"Executive Summary From the initial settlement of North America@ through colonization and expansion@ and to the present day@ where and how we live has been determined in large part by waterborne transportation. Today@ the United States relies on its Marine Transportation System@ or MTS@ for access to global markets and global products@ and for domestic goods movement as an alternative to congested surface transportation. The MTS includes facilities on three coasts@ the Great Lakes@ and the Inland Waterways; it serves every state@ either directly by water or indirectly via highway and rail connections; and it supports trillions of dollars in U.S. economic activity annually. The MTS evolved as a decentralized system comprised of many different stakeholders and responsible entities@ with funding coming from a variety of public and private sources. By many measures@ the MTS is a great success; it has recovered from the recent recession and is handling near-record freight volumes. But looking forward@ the MTS faces critical challenges: decades of insufficient system maintenance@ which have left many parts of the MTS inoperable or on the brink of failure; excessive delays in navigation project delivery; inadequate and unpredictable funding for critically needed MTS improvements; lack of a national strategy to ensure the MTS provides the greatest benefit to the nation as a whole; and the fact that there is no locus of responsibility for the well-being of the MTS@ and its failure or success. To promote discussion and action@ the American Association of State Highway and Transportation Officials (AASHTO) commissioned this Waterborne Freight Transportation report. The report describes the nature@ extent@ and critical role of the MTS@ and offers a number of findings and conclusions for consideration@ and possibly adoption@ by AASHTO and others. The main finding is this: with respect to waterborne freight@ ""business as usual"" will lead to unacceptable further declines in MTS condition and performance@ and to significant lost opportunities for our nation's economy. A renewed national commitment to the MTS is urgently required@ along with corresponding changes in how to plan for and fund the MTS. Options for change include: 1) federal legislation to achieve full state-of-good-repair for MTS waterways@ guarantee full utilization of funds collected for MTS improvements@ and significantly improve the cost@ speed@ and reliability of MTS project delivery; 2) a new Office of Multimodal Freight@ under the Secretary of Transportation@ empowered and directed to eliminate the current balkanization of MTS planning@ funding@ and project delivery responsibilities@ and advance sound planning and project implementation; and 3) promotion of best practices in MTS planning and investment at the state@ regional@ and local levels. Water has been@ and remains@ a fundamental driving force in shaping the physical and economic development of the United States. Inland rivers and coastal routes were the continent's primary transportation corridors@ long before there were roads. Later@ improved harbors and canals were the nation's first improved freight corridors. Settlement patterns and industrial development naturally followed the coasts and waterways@ because they provided access to marine resources and offered the only economically viable means of moving goods. Our first cities were port cities."