Showing posts with label Waterways. Show all posts
Showing posts with label Waterways. Show all posts

Sunday, July 8, 2012

Waterway Funding Bill Languishes In Committee


Now that Congress has passed a welcome though wimpy 27 month reauthorization of our nation’s Highway Trust Fund, it’s high time for that body to turn its attention to funding the red headed stepchild of America’s surface transportation system: our navigable waterways. HR 4342, dubbed the “WAVE4 Act,” is a simple 10 page legislative measure that could do just that, if it ever comes off the table of the House Ways and Means Committee and the House Transportation and Infrastructure Committee, where it has languished since March 29.

Cargo moving by water up and down and across America is the least visible and least noticed detail of the surface transportation picture, but it has a big, big central role in the landscape of cargo shipment. And, few citizens ever become aware of the utterly deplorable condition of the infrastructure of our nation’s navigable waterways. Here are some of the cogent facts about cargo moving by water in the U.S.:

There are several methods of evaluating the efficiency of differing modes of cargo movement, but even adjusting for point to point routing differences, the ton miles of bulk cargo moving by water per gallon of fuel consumed is in the same narrow range as rail and road transport. A single 15 barge tow moving up or down America’s navigable waterways can deliver 22,500 tons of bulk cargo – as much as 13,050 semitrailers, each 53 feet long, on the highways, or 3,375 traffic snarling jumbo hopper cars on the rails. In a typical year, 800 million tons of bulk cargo moves by water in the United States. If waterway traffic gets stopped up by failing lock walls or gates, or inoperable dams which don’t maintain navigating water depth, each year that would mean 464 million more trucks on the highways, or 120 million more of those jumbo hopper cars snaking past your local grade crossing at 15 miles per hour. Much of the cargo moving unseen and unheard along the nation’s waterways consists of grain for our food products and coal for our power plants. Imagine if it never gets delivered.

Most of us don’t give a thought to the precious resource we have in a network of lakes and rivers which remain navigable, unless a hurricane spawned flood breaches a levee and drowns New Orleans, or flood protection dams farther upriver fail and submerge hundreds of thousands of acres of fertile farmland in the Midwest. Nevertheless, each day of the week beleaguered tugboat captains face the nasty hazards of stretches of river where lock walls are collapsing without any hope of repair in sight, or century old locks too short for a 15 barge tow require them to break up their barges into smaller units and make multiple passes through already overburdened and equally ancient operating machinery, just to make it to their designated destination.

Oh, yes, the Army Corps of Engineers has a grand 20 year plan to repair and improve our country’s navigable waterways. It was promulgated in 2010 and it is grandly entitled the “Inland Marine Transportation System Capital Projects Business Model.” Problem is, Congress has been far less than grand in funding the model, and the Inland Waterways Trust Fund is so broke as a result, that many lock repair projects can only advance in fits and starts as cash is available, multiplying their cost many times over as contractors on these projects demobilize and remobilize again and again

The simple little bill HR 4342 would do these simple things: 1) require the Corps of Engineers to update its Capital Projects plan annually; 2) require funding of approved construction projects to come half from the Waterways Trust Fund and half from general revenues; and 3) raise the tax on tugboat diesel fuel from 20 cents per gallon to 26 cents per gallon, beginning January 1, 2013. As for that tax increase, the barge and tug operators are lobbying hard in favor of the increase, so they can keep their vessels moving. This little legislative measure also has the support of major bulk cargo shippers, including Cargill, Bunge North America, Valero Energy and Vulcan Materials. The bill, if passed, will increase annual inland waterway lock and dam funding from $160 million per year to $380 million per year – a helpful though still inadequate capital program budget. Without this funding increase, replacement of the Depression era lock and dam at Olmstead, Illinois will, all by itself, bankrupt the Waterways Trust Fund.

Opponents of the bill point out that half the funding for the increased capital budget must come from general revenues, and characterize that as a “taxpayer bailout” of the barge and tug operation industry. They are dead wrong. If the bill does not pass soon, all our air conditioners will go off, and the bread and cereal aisles in our grocery stores will be barren of product. Life is difficult enough already. If you value cool air during this heat wave, and some cereal or toast for breakfast every day, write your Congressman and demand that this little bill be taken off the committee tables, passed through the House, and forwarded to the Senate for immediate action.

Friday, March 23, 2012

What Does A Pothole In A River Look Like?


You can’t see it, but it’s REALLY big!

Most of the debate surrounding the Highway Trust Fund legislation swirling around and around the Capitol in Washington, D.C., centers on potholes in our nation’s roads and bridges, and the cost of repairing them. However, one part of the construction funded by these legislative initiatives is for other surface transportation – railroads and waterways. Waterways, in particular, continue to be the poor stepchild of surface transportation funding.

Water commerce is the quietest and most hidden aspect of the transportation of goods across our country, nearly invisible to citizens who don’t work the tugs and barges that move 550 million tons of coal, grain, refined petroleum products and other goods annually up and down the rivers of our huge nation. Navigability of the nation’s waterways is kept open by means of more than 200 locks and dams built, maintained and operated by the U. S. Army Corps of Engineers. And, while a pothole in the highway can be driven around by a lane change and travel of only several hundred feet out of a truck’s chosen route, shutting down a single river lock can put hundreds of thousands of tons of cargo on the roads or rails to travel many hundreds of miles out of the way, at a considerable additional cost in both dollars and time.

Rather than funding lock and dam construction and repairs by appropriating sufficient funds to complete approved projects once they are begun, Congress parcels out money to the Corps of Engineers a year at a time, and there is never enough to pay for the work already started, much less badly needed projects on the drawing boards. The result is that each job ends up costing a lot more than originally estimated, because work crews are repeatedly mobilized and demobilized, and materials are bought in small batches a year at a time, at annually increasing prices. Numbers tell the tale: Congress spends only about $170 million annually on lock and dam construction and repairs, against the immediate need for $8 billion of work. At that rate the required projects will be completed in 47 years if prices never go up. The designed useful life of a lock and dam project is 50 years. Do the math.

Take a single example: there are 23 locks and dams on the Ohio River between Pittsburgh and Cairo, where it flows into the Mississippi. About 90 million tons of cargo moves up and down this stretch of water each year. In order to open up a choke point near the confluence of the Ohio and Mississippi, the Corps of Engineers proposed, and in 1988 Congress approved, construction of a dam and two new locks at Olmsted, Illinois. At the time the projected cost of construction was $775 million. However, due to intermittent and piecemeal funding, the cost will probably be more like $3.1 billion when the job is finished in about 2024.

Meanwhile, every air conditioning season, electric power utilities up and down this stretch of river pray that the 13 million tons of coal delivered to them by water every year aren’t diverted by failure of one or more of the 80 year old smaller locks Olmsted is slated to replace.  Since over 76% of their coal is delivered on river barges, these power plants would have to raise rates and face brownouts if required to pay more to ship the fuel by road and rail, and suffer the attendant delivery delays.

Meanwhile, other badly needed lock and dam repair projects see their funding sucked dry by the escalating needs of the Olmsted job. Shippers and barge lines have offered to have the diesel fuel tax they pay to the federal government increased to $0.29 per gallon, to pay for more of the work sooner, but Congress continues to refuse any and all tax increases – even those taxpayers beg for – because it would have to match the increased tax revenue dollar for dollar out of general revenues under current Trust Fund formulas, and the bill would never get through the “no new taxes” House.

So, the next time you want to see what a pothole in a river looks like, take a drive down to Olmsted and sneak a peek at an unfinished lock and dam construction project.