WASHINGTON – Wawa will begin using a Jones-Act-compliant articulated tug barge (ATB) this year to transport gasoline from the U.S. Gulf coast to Florida, according to Argus Media.

Wawa is expanding its presence in Florida, a state that relies primarily on seaborne shipments of refined products due to a lack of pipeline access. Argus notes that retailers that require Jones Act vessels for transportation of oil between U.S. ports typically secure capacity via time charters with a Jones Act owner or operator. OSG, Crowley, Kirby Offshore Marine and Moran Towing are major ATB operators, according to data from the U.S. Maritime Administration (MARAD).

In a 2014 NACS Magazine article about the Jones Act, Ned Bowman, executive director of the Florida Petroleum Marketers & Convenience Store Association, explained that 97% of Florida’s fuel supply comes into the state via cargo ships that must come across the Gulf of Mexico. He also cited the disparity of the cost to operate U.S. versus foreign vessels, noting that Florida faces unexpected price challenges in obtaining crude oil. “The cost to transport cargo from Port Arthur, Texas, to Tampa is more expensive than running cargo from Port Arthur, Texas, to West Africa,” he said.

According to OPIS (January 23, 2017), Wawa is expected to use this ATB to deliver fuel from the Gulf Coast to Florida, which is not served by pipelines or fuel deliveries via rail. Also, the new ATB is to deliver fuel along the Florida coast, including Port Everglades and Tampa.

OPIS continues that the ATB is expected to optimize Wawa's fuel supply strategy for Florida, providing options for waterborne and rack supplies. Following the delivery of the new ATB, Wawa will have guaranteed, stable waterborne fuel delivery to Florida; and with increasing waterborne delivery, Wawa is expected to cut back on its fuel volumes purchased at Florida racks.