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A silent workhorse that supports our great cities, inland water- that an efficient and effective marine transportation system
ways transportation is critical to Alabamas and to the nations was critical for the nations economic success, an attribute
supply chain. It benefits farmers, shippers, manufacturers, steel that remains valid even in the contemporary context. In
producers, coal miners and producers, agribusinesses, towboat 1779, the United States created what is now the U.S. Ar-
operators and just about every American consumer. my Corps of Engineers (Corps) when engineer officers
and companies of sappers* and miners were formed into
-- Tim Parker, Jr., Chair, a corps of engineers. In 1824, the U.S. Congress assigned
Parker Towing Company, Inc., Alabama the Corps its first major public works project, the onerous
responsibility of constructing a comprehensive inland wa-
According to June 2015 statistics released by the U.S. Army terway system connecting key regions of the United States.
Corps of Engineers, 40 of the top 100 U.S. ports (coastal, Congress also appropriated funds to the Corps for the cre-
Great Lakes and inland) in terms of tonnage are located ation of this navigable inland waterway system, a funding
in states belonging to the Southern Office of The Coun- mechanismwith some variationsthat prevails to this
cil of State Governments (CSG), the Southern Legislative day. Currently, the Corps shoulders accountability for ap-
Conference (SLC).1 Impressively, seven of the top 10 ports proximately $232 billion in water resources infrastructure
were SLC state ports. The Port of South Louisiana and the assets, including a network of 11,000 miles of navigable wa-
Port of Houston rose to the top, ranking first and second, ter routes and 207 lock chambers (at 171 sites) on 27 inland
respectively. While the SLC has focused on ports, the eco- rivers and Intracoastal waterway segments.2 Work by the
nomic influence of ports and the potential impact of the Corps to ensure that the nations harbors are dredged and
expansion of the Panama Canal on ports in the South for navigable continues to this day; in March 2015, the Corps
more than 15 years, this Regional Resource reviews an im- announced that 10 harbors on the Mississippi River, all in
portant allied field: emerging trends linked to the nations, the SLC region (Arkansas, Kentucky, Missouri and Ten-
and specifically the regions, inland ports, waterways and nessee), would be dredged of silt and sediment deposits, a
related infrastructure. process that would ensure the smooth flow of barge traf-
fic and, by extension, commerce.3
A major factor in the United States global economic dom- * Sappers have multiple definitions but, in this instance, it refers
inance is the presence of a nationwide system of navigable to a soldier employed in the construction of fortifications, trench-
rivers. The founders of the United States quickly realized es and tunnels.
In 2014, President Barack Obama signed the Water Re- While many products are transported by barge, there
sources Reform and Development Act (WRRDA) with are certain products that are more suited for this type
overwhelming bipartisan support, the first water re- of transportation method. Some of the products that
sources bill to be signed by a president in 14 years.8 are optimal for barge transportation along Americas
This $12.3 billion Act includes funding for a surfeit of waterways include: coal; chemicals; petroleum; grain;
projects, including the constructions of new dams and iron and steel; aggregate resources produced from sand
locks (such as one near Olmstead, Illinois)9 and the res- and gravel deposits, crushed rock or dredged from the
toration of barrier islands and other essential projects ocean; project cargo, or oversized, heavy, high value
in Louisiana. One of the many important reforms in- pieces of equipment, also referred to as heavy lift items,
cluded in this Act was a .09 cent increase on the tax which require disassembly for shipment and reassem-
levied on commercial users of the inland waterway sys- bly after delivery; and, finally, intermodal containers,
tem from 20 cents to 29 cents per gallon of diesel fuel, usually empty, for stocking and re-shipment by another
transportation mode. Approximately 60 percent of our recent estimates, about 346 million tons of goods were
nations grain exports traverse inland waterways prior transferred from inland waterways to coastal ports, pri-
to departing for foreign destinations. In addition, more marily for export.14
than 22 percent of domestic petroleum and petroleum
products, as well as 20 percent of the coal necessary Benefits of Relying on Inland Waterways
for electricity generation, critical to our nations en- for Freight Transportation
ergy infrastructure, also rely on the inland waterway
system for transportation.13 Barge transportation has multiple advantages. A typ-
ical 15-barge tow* can transport the cargo equivalent
As evident in Figure 1, a complex network of inland of 216 rail cars, or 1,050 semi-trucks, a feature that re-
waterways and inland ports connect to the nations lieves railroad scheduling pressures and significantly
coastal ports, a network that permits the free flow reduces congestion on our crowded highways.15 Ac-
of commerce to locations both inside and outside the cording to the American Society of Civil Engineers
United States. For example, the Mississippi River links (ASCE), the nations inland waterways and rivers car-
to multiple ports on the Gulf Coast, while the Colum- ry the equivalent of about 51 million truck trips each
bia and Snake Rivers provide crucial links to coastal *
In some instances, multiple barges are connected and towed
ports on the Pacific Northwest Coast. According to by a tug or tow boat.
Source: TRB Special Report 315: Funding and Managing the U.S. Inland Waterway System: What Policy Makers Need to Know. National
Academy of Sciences. http://www.nap.edu/read/21763/chapter/4#17
year.16 Another major advantage is the significant cost $9.2 billion in transportation cost savings annually by
savings related to barge transportation. It costs approx- relying on barge transportation.18
imately 2 cents per ton per mile to transport freight by
barge compared to just below 4 cents per ton per mile The competitive advantages associated with Americas
by rail and slightly less than 18 cents per ton per mile waterborne transportation network also is evident in
by truck, demonstrating that barge transportation re- the fact that transporting a metric ton of soybeans from
mains the least expensive of the major transportation Davenport, Iowa, to Shanghai, China, costs $85.19; in
strategies.17 An alternate way of reinforcing this point contrast, transporting a metric ton of soybeans from
is that by using merely a single gallon of fuel, barges North Mata Grosso, Brazil, to Shanghai, China, costs
can move one ton of cargo an impressive 576 miles; a $141.73, a clear indication of the very competitive pric-
rail car can transport the same ton of cargo 413 miles, ing offered by the United States.19 However, failure to
while a truck can move a ton of cargo 155 miles. Re- enhance the infrastructure capacities of the inland
search documents that transporting products on the waterway system in the United States will result in trans-
inland waterway system generates savings in excess portation delays and, along with the plans of nations
of $14 per ton in comparison to other overland modes. like Brazil to invest significantly in their own inland
Based on these savings, shippers realize approximately waterways, Americas competitive advantage will erode.
Aging Infrastructure and Inland Waterways inland waterways, ports, locks and dam infrastructure
The urgent need for a complete overhaul of Americas also demonstrates major deficiencies, a development
aging physical infrastructure network is well docu- borne out in this 2013 ASCE report card. Specifical-
mented. Once the envy of the world, every element in ly, the ASCE awarded the nations inland waterways a
the American infrastructure system currently requires grade of D-, the same grade that was awarded in 2009.
serious renovation and rehabilitation. From roads and
highways, to ports and airports, to bridges and tun- As is the case with many other components of the
nels, to water and sewer systems, to electrical grids nations infrastructure network, Americas inland wa-
and telecommunications, to inland waterways, there terways also are rapidly aging. In general, engineers
is a growing chorus calling for policymakers at every project that the viable, economic service life of the var-
level of government to initiate immediate remedial mea- ious elements included in the nations inland waterway
sures. The failure to grapple with these infrastructure and navigation system to be approximately 50 years,
challenges has reduced the nations economic compet- and could be expanded to 75 years with a major reha-
itiveness and created a host of economic inefficiencies: bilitation. However, scrutiny of the inland waterway
cost overruns, safety concerns, delays in goods and navigation system reveals that it is considerably older.
passenger deliveries, traffic congestion, adverse envi- Figure 2 provides details on the age of the nations lock
ronmental consequences and a diminished standard and dam infrastructure, including their distribution
of living. by age and the percentage of locks by age. For the 255
locks that are featured here, more than half are older
The highly valued quadrennial report card on the na- than 50 years, and more than one-third are older than
tions infrastructure released by the American Society 70 years, a time frame that is considerably older than
of Civil Engineers last occurred in 2013; cumulative- their expected lifespan of these infrastructure items.
ly, the nations vast infrastructure network received
a grade of D+, a miniscule improvement from the D There is a direct correlation between the age and con-
received in the 2009 report. A review of the nations dition of the locks, dams and attendant navigational
The Corps scheduled a number of planned lock closures In October 2015, a report issued by Americas Water-
during 2015; a total of 40 lock closures amounting to shed Initiative further confirmed the research regarding
1,433 days, or almost 31,000 hours of lost access to the dilapidated inland waterways in America. According
commercial barges. These closures reinforce the dete- to this report, the Mississippi River Basin deserved
riorating condition of many of the locks and dams in a grade of D+, with its aging infrastructure topping
the inland waterway system. Tennessee U.S. Senator the list of major concerns.35 Over a two-year period,
Lamar Alexander has bemoaned the glacial speed as- the Initiative measured six broad goals ecosystems;
sociated with completing the new Chickamauga Lock flood control and risk reduction; transportation; water
and Dam near Chattanooga. The original lock, built in
Americas Watershed Initiative is a collaboration working with
1940, is disintegrating, resulting in significant reductions hundreds of business, government, academic, and civic orga-
in barge traffic. A new and bigger lock at Chickamau- nizations to find solutions for the challenges of managing the
ga is about 20 percent complete after a decade of design Mississippi River and the more than 250 rivers that flow into it.
The classification of large freight railroad companies in the er lifts, lying strategically on the transcontinental
United States, Mexico, and Canada is based onoperating revenue. rail line between Chicago and the Port of Los Ange-
Railroads are classified as Class I, Class II, or Class III. The ex- les and Port of Long Beach.
act revenues required to be in each class have varied over time
Port of Oakland Logistics Hub in Oakland, California,
and are continuously adjusted for inflation. In the United States,
the Surface Transportation Board defines a Class I railroad as a $1 billion, 360-acre logistics hub under construction
"having annual carrier operating revenues of $250 million or at a former U.S. Army base. One of the major advan-
more" after adjusting for inflation. tages of this inland port is that it is located on prime
Transloading refers to the process of transferring a cargo ship- moving; for instance, downbound usually refers to movement
ment from one mode of transportation to another. South and upbound usually refers to movement north.
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www.tenntom.org
and Florida borders; Augusta; and Macon. walls of the Kentucky lock.
go volumes that transit through the states ports each on inland waterways that are considered shallow.
Inland port facility at Greer. Photo Courtesy of South Carolina Ports Authority
T
his report was prepared by Sujit CanagaRetna, meetings and fly-ins, staff support state policymakers and
Fiscal Policy Manager for the Economic De- legislative staff in their work to build a stronger region.
velopment, Transportation & Cultural Af-
fairs Committee of the Southern Legislative Founded in 1947, the SLC is a member-driven organization
Conference (SLC) of The Council of State and the largest of four regional legislative groups oper-
Governments (CSG), under the chairmanship of Senator ating under CSG and comprises the states of Alabama,
Jeff Mullis of Georgia. This report reflects the body of Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississip-
policy research made available to appointed and elected pi, Missouri, North Carolina, Oklahoma, South Carolina,
officials by the Southern Office. Tennessee, Texas, Virginia and West Virginia.
The Southern Office of The Council of State Governments, The SLCs six standing committees provide a forum which
located in Atlanta, Georgia, fosters and encourages intergov- allows policymakers to share knowledge in their area of ex-
ernmental cooperation among its 15 member states. In large pertise with colleagues from across the South. By working
measure, this is achieved through the ongoing work of the together within the SLC and participating on its commit-
standing committees of its Southern Legislative Conference. tees, Southern state legislative leaders are able to speak in
Through member outreach in state capitols, policy research, a distinctive, unified voice while addressing issues that af-
international member delegations, staff exchange programs, fect their states and the entire region.