Dredging, Infrastructure, and Other Challenges on the
Mississippi River System Presented by: Spencer Murphy Vice
President Risk Management Canal Barge Company, Inc. Slide 2 Agenda
Industry Background Canal Barge Company Overview Infrastructure
Challenges Dredging needs Solutions Questions 2 Slide 3 Inland
Marine Highway Pittsburgh Minneapolis St. Paul Chicago Houston
Mobile Tulsa New Orleans St. Louis Corpus Christi Portland Over
12,000 miles connecting 38 States 624 million tons of cargo transit
the inland waterways 14% of all intercity freight, valued at nearly
$70 billion, for only 3% of the total freight bill 3 Slide 4 Value
of Barging Critical to national economic infrastructure although
largely out of public view Offers compelling economic value Boasts
excellent safety & environmental record Affords tremendous fuel
efficiency Provides positive impact on American quality of life 4
Slide 5 Dry Cargo Capacity One 15-Barge Tow 216 Rail Cars + 6
Locomotives 1,050 Large Semi Tractor-Trailers Source: Texas
Transportation Institute Center for Ports and Waterways, November
2007 Slide 6 Industry Characteristics 24/7/365 operation Service
intensive the customer is with you every step of the way Outdoor
sport Competitive Workforce dependent Fascinating and challenging.
Very management intensive! 6 Slide 7 Canal Barge Company 7 Slide 8
Canal Barge Company, Inc. Founded in 1933 3 rd generation family-
owned business Canal because of original service area We
concentrate on areas where specialized knowledge, equipment, focus,
and people make a difference. We have built our business by seeking
long- term, successful relationships with our customers, suppliers
and employees. 8 Slide 9 Canal Barge Company Profile September 7,
2011 People580 non-union Barges817 Tank barges 213 Deck barges 144
Hopper barges 460 Inland Towboats32 9 Slide 10 CBC Today
Third-largest inland liquid carrier for hire World-class manager of
third-party marine assets Mid-sized dry cargo logistics manager
Dominant liquid carrier into the Midwest markets Only independent
towing & fleeting service on the Upper Illinois River Asphalt
and chemical terminal operator in Chicagoland Second-largest deck
barge fleet for hire Inland, offshore and international project
carrier One of the largest & most diverse privately owned
marine transportation companies in the U.S. 10 Slide 11 Slide 12
West Canal Gulf Unit Tows Canal SIUT 7 CBC boats4 boats River Unit
Tows 3 - 5 CBC boats (working throughout Inland Waterways) Ohio
River Towing Alliance 3 boats River SIUT Lower Mississippi &
Illinois Rivers 4 CBC boats CBCs Area of Operations Chicago
Pittsburgh Baton Rouge Houston Illinois River & Chicagoland 9
IMT boats Note: Count includes Owned, Operated, & Contracted
boats. 12 Slide 13 Infrastructure Challenges 13 Slide 14
Infrastructure Challenges Our lock and dam system is aging More
than half the systems locks are over 50 years old Outdated locks
cause inefficiency Modern 1200ft tows must transit 600ft locks As
locks age, maintenance costs and downtime for repairs increase
Cargo moving through an increasingly expensive system decreases
competitiveness for U.S. shippers 14 Slide 15 Infrastructure
Challenges Our project delivery system for new construction and/or
major rehab of locks and dams is broken Operations and Maintenance
(O+M) funding for existing projects has remained flat while costs
have increased Major new projects have far exceeded their
authorized costs, and failed to meet timelines Inland Waterways
Trust Fund (IMTF) has been depleted without corresponding
completion of projects 15 Slide 16 Infrastructure Challenges 16
Slide 17 Infrastructure Challenges 17 Slide 18 Infrastructure
Challenges Solution: Must recapitalize our river infrastructure
Barge industry cant do it alone Capital Development Plan Developed
by Corps and Industry Improve project delivery system; prioritize
projects Increase in fuel tax on barge industry Adjust cost-share
to reflect public benefits of locks and dams Supported by broad
coalition of shippers, carriers, ports, labor and agriculture.
WWW.WATERWAYSCOUNCIL.ORG 18 Slide 19 Dredging 19 Slide 20 Dredging
Why is dredging the Mississippi River important? MS River connects
over 12,000 miles of inland waterway to the Gulf of Mexico 60% of
all U.S. grain exports move on the MS River Between $80-100 billion
worth of foreign trade passes through New Orleans ports annually 20
Slide 21 Dredging Mississippi River requires between $75-110
million annually to maintain 45ft authorized depth Like locks and
dams, dredging needs have increased while funding has remained
flat. 2011 funds for dredging: $53 million 2011 minimum dredging
needs: $85 million 21 Slide 22 Dredging What happens without
adequate dredging? Draft restrictions below 45 ft 40ft restriction
reduces capacity by 12-15% Reduces amount of cargo carried by each
vessel call Increases cost of bringing US goods to/from intl
markets Makes US farmers and manufacturers less competitive Drives
commerce away from the River U.S. loses its key advantage: low cost
transportation of goods to market 22 Slide 23 Dredging President
Obamas Goal: Double exports over the next 5 years To achieve this,
the Mississippi River must receive adequate investment Key
roadblock: Harbor Maintenance Trust Fund carries a surplus of over
$5 billion. Money collected specifically for dredging is being put
into general treasury of US 23 Slide 24 Dredging Solution:
Realizing Americas Promise Act (RAMP Act) Would directly tie HMTF
appropriations to HMTF revenue. Would address prospective funds
only; surplus left in place Supported by broad coalition of
shippers, carriers, ports, labor, and industry groups. 24 Slide 25
Questions? Thank You!
