“We pledge to continue to lead with a strong passion for enhanced public

safety and security while sustaining the free, unimpeded flow of commerce –

both of critical importance to America.”Steve T. Scalzo

Chairman of the BoardThe American Waterways Operators

Photo by Rodger Melton

2002has been a year of change for

the Americantugboat, towboat and bargeindustry. The events of the yearhave challenged AWO members to demonstrate their passion for the industry through action andadvocacy, particularly in two areas:safety and security. The tragicbarge/Interstate 40 bridge accidentin Oklahoma over Memorial Dayweekend and the resulting loss of 14 lives was a devastating blowto all AWO members, who aredeeply committed to safety. AWO members are recognized as industry safety leaders forestablishing the Coast Guard-AWO Safety Partnership anddeveloping the AWO ResponsibleCarrier Program (RCP), twoinitiatives from which many safetyenhancements have emerged. Proofof third-party audited compliancewith the RCP, an award-winningU.S. Coast Guard-recognized safety management program, is a requirement for membership.AWO members consider anyindustry accident resulting in loss of life totally unacceptable.

The I-40accidentpropelledthem intoaction,launching a CoastGuard-AWO BridgeAllisionWorkingGroup to

examine the issues surroundingsuch accidents in order to drawconclusions from the available dataand construct recommendations for possible remedial action. As theyear draws to a close, the group ispoised to make recommendationsto help avoid serious bridgeallisions and their consequences.

Another safety concern thatAWO has addressed proactively is the issue of crew alertness. Forthe past several years, the U.S.Coast Guard, in cooperation withAWO members, has conductedresearch into the safety performanceof crewmembers while coping with job-related physiological,environmental, operational andpsychological challenges. Theproduct of that research is the Crew Endurance ManagementSystem (CEMS), a program tocontrol these four major risk factorsaffecting alertness and stamina.Many AWO members are now inthe process of incorporating CEMSinto their operations in order to

achieve greater safety performanceand reduce the risk of fatigue-related accidents.

The second major area ofchallenge this year has been theissue of port and waterwayssecurity, a relatively new issue forour industry, but one which willsurely be with us for years to come.Demonstrating its reputation forleadership, AWO once again actedproactively, developing the AWOModel Vessel Security Plan longbefore the Coast Guard announcedany such requirement. Notably, the Coast Guard is poised topronounce the AWO Model Vessel Security Plan the industrystandard. AWO members willcontinue to consider themselves the“eyes and ears of the waterways” as they employ new tools forenhanced security.

Behind every one of theseinitiatives is AWO members’commitment to this great industry.We care deeply about helping toshape effective new policies thatwill improve the industry and serveour nation. We pledge to continueto lead with a strong passion forenhanced public safety and securitywhile sustaining the free, unimpededflow of commerce – both of criticalimportance to America.

Steve T. Scalzo

Chairman’s Message

AWO Annual Report • 1

Association Leadersh ip

AWO Annual Report • 2

2002 Board of Directors

PARSONAGE MARINEINVESTMENTS, LLC

Steve T. Scalzo Foss Maritime CompanySeattle, WAChairman of the Board

Craig E. Philip Ingram Barge CompanyNashville, TNVice Chairman of the Board

Christopher M. Parsonage Parsonage Marine Investments, LLCChesterfield, MOImmediate Past Chairman of the Board

William L. Arnold Garvey Marine, Inc.St. Charles, IL

Terry Becker Riverway Co.Eden Prairie, MN

Mark R. Buese Kirby Corporation Houston, TX

Jack Buono SeaRiver Maritime, Inc.Houston, TX

Timothy J. Casey K-Sea Transportation Corp. Staten Island, NY

George Clark Harley Marine ServicesSeattle, WA

Bruce Croushore Bender Shipbuilding and Repair Co., Inc.Mobile, AL

Larry R. Daily Alter Barge Line, Inc.Bettendorf, IA

John Dragone Maritrans Operating Company L.P. Philadelphia, PA

Taylor DuChaine Cenac Towing Company, Inc. Houma, LA

George Foster JB Marine Services, Inc.St. Louis, MO

Steve Frasher Tidewater Barge Lines, Inc.Vancouver, WA

Robert A. Fry, Jr. Megafleet Towing Co., Inc. Pasadena, TX

C. Barry Gipson McNational, Inc.Hartford, IL

Thomas Godfrey Colonna’s Shipyard, Inc. Norfolk, VA

Thomas A. Groves Cargo CarriersMinneapolis, MN

David Hanby McDonough Marine ServiceMetairie, LA

Roger HarrisMagnolia Marine Transport Company Vicksburg, MS

Charles Haun Parker Towing Company, Inc.Tuscaloosa, AL

Donald C. Huffman MEMCO Barge LineChesterfield, MO

Capt. David Hupp Dunlap TowingEverett, WA

Donald Ivins Express Marine, Inc. Pennsauken, NJ

2002 ExecutiveCommittee

AWO’s Executive Committee, responsible to the Board of Directors, guides policymaking

and exercises day-to-day oversightof the affairs of the association.

Steve T. Scalzo Chairman of the BoardFoss Maritime CompanySeattle, WA

Craig E. PhilipVice Chairmanof the BoardChairman, Ohio Valley RegionIngram Barge CompanyNashville, TN

Christopher M.ParsonageImmediate PastChairman of the BoardParsonage MarineInvestments, LLCChesterfield, MO

Terry BeckerChairman, InlandDry Sector CommitteeRiverway Co.Eden Prairie, MN

Mark R. BueseFinancial AdvisorKirby Corporation Houston, TX

Thomas GodfreyShipyard AffiliateColonna’s Shipyard, Inc. Norfolk, VA

2002 Board of Directors

AWO Annual Report • 3

Gordon A. Keenan Martin Midstream Partners, LPMobile, AL

Charles H. King, Jr.Buffalo Marine Service, Inc. Houston, TX

Mark Knoy MEMCO Barge LineChesterfield, MO

Walter K. KristiansenE.N. Bisso & Son, Inc.Metairie, LA

H. Merritt Lane, III Canal Barge Company, Inc.New Orleans, LA

Stephen D. Little Crounse CorporationPaducah, KY

Capt. A.J. McAllister, III McAllister Towing & TransportationNew York, NY

Charles Nalen Crowley Marine Services, Inc.Seattle, WA

Peter Nistad Moran Towing CorporationNorth Charleston, SC

Deane Orr CONSOL, Inc.Elizabeth, PA

Charles Peterson Coastal Tug & Barge, Inc. Miami, FL

Christopher W. RoehrigRoehrig Maritime, LLCGlen Cove, NY

H. Hickman Rowland, Jr. Wilmington Tug, Inc. New Castle, DE

Michael W. Rushing Rushing Marine Service, LLCJackson, MO

Dale SauseSause Bros. Coos Bay, OR

Cathy Shantz-Hammond Inland Marine Service Hebron, KY

Dixon Shaver Shaver Transportation CompanyPortland, OR

Ric Shrewsbury Western TowboatSeattle, WA

Richard SmithWestar Marine ServicesSan Francisco, CA

William D. Stegbauer Southern Towing Co. Memphis, TN

George H. ThomasHigman Marine Services, Inc.Houston, TX

Bruce D. Tilton Marathon Ashland Petroleum LLCAshland, KY

Ted WaxlerWaxler Towing Co., Inc.Memphis, TN

W.N. WhitlockAmerican Commercial Barge Line LLCJeffersonville, IN

Royce WilkenAmerican River Transportation Co.Decatur, IL

George Wittich Weeks Marine, Inc. Cranford, NJ

2002 ExecutiveCommittee

Charles HaunChairman, Southern RegionParker Towing Company, Inc. Tuscaloosa, AL

Donald IvinsChairman, Atlantic RegionExpress Marine, Inc. Pennsauken, NJ

Peter NistadChairman, Harbor ServicesSector CommitteeMoran Towing CorporationNorth Charleston, SC

Dale SauseChairman, Coastal Sector CommitteeSause Bros.Coos Bay, OR

Dixon ShaverChairman, Pacific RegionShaver TransportationCompanyPortland, OR

Bruce D. TiltonChairman, Inland LiquidSector CommitteeMarathon Ashland Petroleum LLCAshland, KY

Royce WilkenChairman, Midwest RegionAmerican RiverTransportation Co. Decatur, IL

Change and uncertainty – these were the overridingcharacteristics that defined

2002 for America’s tugboat, towboatand barge industry. AWO pridesitself on being an organization thatgives careful thought to the futureand then works to achieve the goalsof its strategic plan. In 2002, ourstrengths were tested less in thatrealm than in our ability to adaptquickly to changed circumstanceand our agility in planning andimplementing simultaneously. We were gratified and reassured by the results of that challenge.

2002 was also characterized bythe enormous gravity of the publicpolicy challenges that confrontedthe industry. The paramount issuesof 2002 transcended economicconsiderations and centered on afundamental imperative: protectingthe lives of American citizens. Thatimperative was manifested in thematters of maritime security andmarine safety.

Our industry joined theAdministration and Congress ingrappling with new threats to themarine transportation system thatwould have seemed inconceivableprior to September 11, 2001. Thenationwide reach of our industry,and the many cargoes we carry,

long a part of our fundamentalvalue to the nation, now took on a different cast as we considered,almost unbelievably, how ourvessels might become conveyancesfor inflicting further harm on thenation. The need to examine ouroperations in this new and harshlight was a jarring experience.Nonetheless, the industry used thatrealization to engage governmentdecisionmakers in an effort toidentify the risks and minimize the possibility of exploitation by terrorists. AWO supportedcongressional passage of theMaritime Transportation SecurityAct, and worked with the U.S.Coast Guard and the U.S. ArmyCorps of Engineers to develop a Model Vessel Security Plan that helps guide companies inpreventing and responding to the new security threats.

AWO confronted challenges in the marine safety realm, as well.The nation awoke over MemorialDay weekend to television newsaccounts and disturbing footage ofthe tragic barge/bridge accident inOklahoma, which claimed the livesof 14 motorists. For an industry that sees itself as a genuine leaderin the effort to improve marinesafety, the tragic proportions of this human loss were enormouslyunsettling. AWO moved immediatelyto express the industry’s real andprofound regret. We also quicklylaunched with the Coast Guard anexamination of the industry’s recordof bridge allisions to learn from

previousaccidentsandidentifymeasuresneeded toimprove that record. AWO’smembers have made clear that they expect our industry not just to acquiesce in remedial actionsproposed by others, but to lead thedevelopment of solutions throughcandid dialogue and constructivepartnership with Congress and theCoast Guard.

Change and uncertainty. Welearned much from the experienceof 2002 – some of it sobering, someof it heartening. As an industry, andas a nation, we end the year betterthan we began it. Our level of riskin both maritime security andmarine safety is reduced. Our plans to improve protection andperformance in both areas areclearly on track. We have a newappreciation for the importance ofnot only managing change, butstaying a step ahead of it. We have a renewed understanding of ourobligation to lead the industrytoward safer performance and more secure transportation of ourcustomers’ cargoes. We know thatsucceeding in both quests is the realmeasure of our industry’s value toAmerica today.

Thomas A. Allegretti

AWO Annual Report • 4

President’sReport

“The paramount issues of 2002 transcended economic considerations and

centered on a fundamental imperative: protecting the lives of American citizens.”

AWO Annual Report • 5

Responsible Carriers:Pushing for a Safer, More Secure Industry

The tugboat, towboat and barge industry comprises the largest segment of the U.S.-flag fleet.

Coast Guard-AWO BridgeAllision Working Group

AWO and the Coast Guard movedquickly to implement a cooperativeresponse to the I-40 bridge accident.The Coast Guard-AWO SafetyPartnership, formed in 1995 topromote government-industrycooperation to improve marinesafety and environmental protection,provided the vehicle for action. Less than a month after theaccident, the partnership launchedthe Coast Guard-AWO BridgeAllision Working Group, an expertpanel including towing vesselcaptains, industry executives andCoast Guard officials with expertisein vessel safety, human factors, riskmanagement and bridge protection.As 2002 drew to a close, theworking group prepared to unveilits analysis of 10 years of casualtydata on towing vessel bridgeallisions and make recommendationsfor government-industry action to prevent barge/bridge accidentsand ensure public safety.

Crew Alertness

AWO took a leadership role intransportation industry efforts toaddress the challenge of alertnessmanagement in a 24-hour-a-daybusiness. AWO members partneredwith the Coast Guard to conduct

on-board research into CrewEndurance Management (CEM)techniques and introduce the CEMsystem to towing companies acrossthe country. In the Pacific Region, a Coast Guard-AWO quality actionteam released a comprehensivereport to help West Coast operatorsensure crew alertness and maintaincompliance with federal work hourlaws. AWO joined the Departmentof Transportation in a government-industry effort to develop anAlertness Management Referenceguide for the transportation industry.At year’s end, AWO and the CoastGuard began working together onnew tools to help barge and towingcompanies implement CrewEndurance Management systems.

Defending the Jones Act

The Jones Act, the statutoryfoundation of the U.S. maritimeindustry, came under heavy attackin 2002, as foreign vessel ownersused arcane legal maneuvers to circumvent longstandingrequirements for U.S. ownership of the domestic fleet. AWO and the Maritime Cabotage Task Forcemounted an all-out campaign toclose troublesome loopholes andensure strong congressional andAdministration support for the U.S-own, U.S.-crew, and U.S.-buildrequirements of the Jones Act, abattle that will continue in 2003.

AWO’s agility was tested in 2002 as it was called to action on many different fronts and initiatives. Always mindful of its foremost mission, to ensure a safer, more secure industry, AWO worked to develop strategic approaches to achieve success in the following major challenges the industry confronted during the year.

AWO Annual Report • 6

A Congressional Budget Office study found that barging is the most energy efficient mode of bulk transportation.

Towing Vessel Officer Licensing

An eight-year initiative to enhancethe qualifications and training oftowing vessel officers came to aconclusion in 2002. Working closelywith the Coast Guard, AWO led the effort to implement animproved licensing system thatincludes a hands-on demonstrationof navigational skills and standardassessment criteria to ensure that all new towing vessel captains cando their jobs safely.

Maritime Security

Using the same cooperativeapproach that has characterized its commitment to marine safetyissues, AWO worked with the CoastGuard to improve the security oftowing industry vessels, crews andcargoes in 2002. A team of industryexperts, Coast Guard officers andU.S. Army Corps of Engineersofficials developed a Model VesselSecurity Plan to help towingcompanies prevent and respond tosecurity threats. The AWO modelplan, soon to be approved by theCoast Guard as an industry standardfor barge and towing companies,applies the safety managementprinciples of the AWO ResponsibleCarrier Program to the crucial newchallenge of maritime security.

Coast Guard-OSHAJurisdiction

The Supreme Court decision in Chao v. Mallard Bay Drilling, Inc.,highlighted the role of theOccupational Safety and HealthAdministration (OSHA) in regulatinghealth and safety conditions oncertain vessels. An AWO membertask force delved into the

complicated issue of Coast Guard-OSHA jurisdiction and helped setthe stage for future industry effortsto ensure an effective combinationof government regulation andindustry initiatives to promotetowing industry safety.

InfrastructureModernization

AWO worked with other nationalorganizations such as The NationalWaterways Conference andWaterways Work!, and with manyregional organizations, to generatesupport for the waterwaysinfrastructure. As a result, theappropriations bill that passed theHouse of Representatives contained

a half billion more dollars for the Corps of Engineers than theAdministration’s budget request.The Corps of Engineers delivered its interim report on the UpperMississippi navigation study on time in July, and provisions were included in the Houseappropriations bill to ensure that the final report is completed on schedule in 2004 and that theCorps has the authority to beginpreliminary engineering and design work. AWO also workedwith these same groups to ensurethat “Corps reform” proposals did not create further delay andobstruction for needed waterwaysinfrastructure projects.

AWO Annual Report • 7

In 2000, 99.9998% of oil moved by tank barges was delivered safely.

Congressional Repeal of the 4.3-cent Fuel Tax

AWO members participatedenthusiastically in generatingcongressional support for repeal of the 4.3 cents-per-gallon fuel tax,as AWO made extensive use of itsgrassroots capabilities on this issue.As a result, a phaseout of the tax was included in the House versionof comprehensive energy legislation,and the provision enjoyed widesupport among conferees from boththe House and Senate who met in2002 to resolve differences in thebills. Unfortunately, controversiesover larger energy issues preventedthe energy bill from beingcompleted and passed beforeCongress adjourned.

Louisiana Sales Tax Repeal

As the year 2002 began, theindustry faced a challenge in thestate of Louisiana, where a stateSupreme Court ruling removed a more than 40-year-old sales taxexemption on fuel, vessel repairsand supplies for certain shallowdraft vessels. The exemption hadapplied to vessels engaged ininterstate commerce, but the courtfound that harbor tugs, fleet boatsand other vessels that never leavestate waters were not eligible for the exemption. The change wouldhave cost AWO members severalmillion dollars. Another courtruling would have dramaticallyincreased the cost of new vesselsbuilt in Louisiana.

AWO members and staff,working with local maritime groups,spearheaded a coalition effort tochange the law in the Louisianalegislature. Following an intensesix-month campaign, the coalitionsucceeded in restoring the sales taxexemptions. As a result of the effort,legislation passed both chambers ofthe state legislature without a singleopposing vote. While the effort wasan overwhelming success, it alsoserved as a reminder to AWOmembers that states have enormouspower to adversely affect interstatecommerce, and as states grapplewith budget problems, the maritimeindustry can be a tempting targetfor new taxes.

AWO Annual Report • 8

The inland towboat and barge industry pays over $100 million a year in fuel tax that supports waterways modernization.

Missouri River Master Manual

The politicization of Missouri Rivermanagement intensified this pastyear with state lawsuits, publictestimony on the Revised DraftEnvironmental Impact Statementand a halt of the release of a revised Army Corps of Engineers’Preferred Alternative for river flow management. In 2002, theEndangered Species Act was givenprecedence over congressionallyauthorized navigation on theMissouri River, as the U.S. Fish &Wildlife Service enforced protectionof the habitat of certain birds on theendangered list by restricting riverflow. It is estimated that the U.S.Fish & Wildlife Service decision cost the navigation community over $7 million dollars.

Through the Coalition to Protect the Missouri River (CPR),AWO has joined with otherstakeholders to continue the battleto strongly oppose any change inMissouri River reservoir operationsthat will jeopardize Missouri River or mid-Mississippi Rivernavigation. As a member of CPR,AWO is also committed to workingwith other Lower Missouri RiverBasin stakeholders to further theirgoals, including assurance of rivermanagement to include floodcontrol and reliable flows forelectric power generation. CPR is working to gain the release of the Preferred Alternative into the public arena and to preservecongressionally authorized

purposes of the river, especiallynavigation, energy production and flood control.

The Fight for Rational Regulation

AWO is committed to ensuring that government regulation addsvalue and solves real safety andenvironmental challenges in apractical, cost-effective way. In 2002,AWO led the tank vessel industry in seeking withdrawal of proposedregulations that would impose more than a half-billion dollars ofnew costs on industry, with little or no environmental benefit.Efforts to fix flawed regulationson tank level/pressure monitoringdevices and address similarlyflawed proposals on salvage andfirefighting requirements willcontinue in 2003.

Member Involvement in AWO Advocacy

AWO members bring constituentrelationships, community roots and real-world expertise to AWO’sadvocacy efforts with Congress, theAdministration and the media. In2002, more than 75 percent of AWO’sBoard of Directors visited membersof Congress in Washington, D.C., ortheir districts; sent letters to decision-makers on regulatory and legislativeissues; supported the AWO PAC andpolitical fundraising events; or metwith newspaper editorial boardsand penned op-eds or letters to theeditor. AWO members will be theheart of AWO’s advocacy team in2003 as the 108th Congress takesoffice and the Department ofHomeland Security assumes amajor role in the regulation oftowing industry operations.

AWO Annual Report • 9

Responsible Carrier Program:Evolving and Maturing

Waterways transportation is the most environmentally-friendly mode of commercial transportation.

2002marked amilestone in theevolution of the

AWO Responsible Carrier Program(RCP), the industry’s foremostsafety and environmental protectionprogram. The successful completionby the majority of AWO membersof the first RCP recertification auditis testament to members’ continueddeep commitment to safety, andsignifies the program’s maturationas an integral part of AWO memberoperations.

This year, the ResponsibleCarrier Program AccreditationBoard, working with the AWOExecutive Committee and Board of Directors, took steps to ensurethat the Responsible CarrierProgram is constantly improvedand continues to be recognized asthe premier safety managementprogram for the tugboat, towboatand barge industry, reflecting thehighest standards of safety andtraining. One concrete example ofthis evolution is the addition ofmore robust requirements forinternal audits. This change willensure that all nonconformities,including violations of law, areidentified by the company and thencorrected in a realistic timeframe,with responsibility for correctiveactions clearly established. Another example of the RCP’sprogress relates to the training andqualifications of AWO-certifiedauditors. Recognizing that thequality of the audit is dependent, toa large degree, on the training and

professional knowledge of eachauditor, new requirements forauditors were adopted, includingmeeting the qualifications for bothvessel and management audits, and the completion of a recognizedauditing class. Training for existingauditors has also become far morechallenging. In fact, during 2002several auditors had their

certification withdrawn by AWO when they failed to attaina qualifying score in theirrecertification training.

Looking forward to 2003, the Responsible Carrier Programwill continue to meet the challengesof improving industry safety,leading by example and setting the standard for safety excellence.

AWO Annual Report • 10

Tank Barge Oil Spills Drop Sharply

Spills from tank barges have dropped dramatically in the decade sinceenactment of the Oil Pollution Act of 1990. The volume of tank barge spillsdeclined by 86 percent between 1994 and 2000. In other words, in 2000,99.9998 percent of oil moved by tank barges was delivered safely.

Vessel Casualties on the Decline

Since 1996, there has been a clear downward trend invessel casualties involvingtugboats, towboats and barges.Collisions, allisions (collisionswith fixed objects such asbridges, locks or docks)and groundings – the threecasualty types that account forthe greatest share of towingvessel casualties – are all on the decline. In 2002, the Coast Guard-AWO SafetyPartnership launched a Bridge

AllisionWorkingGroupaimed at improving public safety by developingrecommendations to prevent bridge allisions andmitigate the consequences of bridge strikes.

Towing Industry Spills Down Compared to Other Sources

The percentage of oil spilled from towing industrysources continues to drop in comparison to othermarine spill sources, such as tank ships, cargo shipsand facilities. In 2000, spills from towing industrysources accounted for only 13 percent of marine oilspills – down from 19.5 percent in 1999 and 30.8 percentin 1998.

40

45

50

55

60

65

70

75

1994 1995 1996 1997 1998 1999 2000

Vessel Casualties per One Million Miles Traveled

1994 1995 1996 1997 1998 1999 20000

5

10

15

20

Tank Barge Spill RatesGallons Spilled per One Million Gallons Transported

13.9

16.9

2.32.3 1.9

16.3

3.5

3,000,000

3,500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

0

5

10

15

20

25

30

35

40

45

50

41.0%

46.4%

39.9%

1994 1995 1996 1997 1998 1999 2000

Gallo

ns S

pille

d

Perc

en

t o

f S

pill V

olu

me

Fro

m T

ow

ing

In

du

str

y

Towing Industry Oil Spills v. All SourcesTowing Industry All Sources Percent of Total

20.6%

30.8%

19.5%

13.0%

Members of the American Waterways Operators are committed to being leaders in marine safety and environmental protection. Through the Coast Guard-AWO Safety Partnership and the Responsible

Carrier Program, AWO members continue to strive to improve the industry’ssafety performance and safeguard the public trust. Using government data from the Coast Guard and the Army Corps of Engineers, the SafetyPartnership tracks trends in towing industry safety performance. Thefollowing are a few examples of recent safety achievements in the industry.

Safety:A Continuing

Journey

Calendar Year

Calendar Year

Calendar Year

AWO Annual Report • 11

Public Affairs Outreach

AWO’s public affairs initiatives in2002 were aimed at educatingpolicymakers as well as other

stakeholders on the value of theindustry to America’s economy,environment and quality of life.Events during the year also focusedpublic attention on the industry’ssafety record. In the wake of thebarge/I-40 bridge accident, AWOconducted extensive outreach tomajor media outlets, includingNBC-TV, ABC-TV, CNN, MSNBCand major newspapers, in order to inform the public of AWOmembers’ strong commitment tosafety, the positive industry safetyrecord and industry operations.

A large part of AWO’s publicaffairs message this year was aimedat publicizing the positive safetyrecord of the industry. AWOreleased new industry safetystatistics that illustrate the dramatic improvement in the industry’s safetyperformance over the pastdecade. For example, since1996, there has been a cleardownward trend in vesselcasualties, includingallisions (collisions withfixed objects such asbridges, locks or docks),collisions and groundings.Oil spills have droppeddramatically in the decadesince enactment of OPA 90,and crew fatalities have hita record low.

The AWO industryimage campaign continued

this year in multi-mediaform, with a new electronicad promoting the value ofwaterways transportation run on a key congressionalpublication’s Web site; printads depicting the industry runin targeted congressional andAdministration publications; a radio ad featuring theResponsible Carrier Programplayed on Washington, D.C. area radio stations;and personal contactmade through AWOCongressional EducationProgram briefings for key policymakers on the industry’s benefits to America.

Other tools producedthis year to communicateAWO’s public affairs messagesincluded an updated “Lifelines”

brochure to educaterecreationalboaters aboutsafety issuesto consideraroundcommercialvessels on thewaterways,and thefirst full-color AWOSafetyCalendar, focused on Crew Alertness, created toprovide safety messagessurrounding this theme to vessel crewmembers.

Barges carry 20% of the nation’s coal . . . enough to produce 10% of all U.S. electricity used annually.

0

5

10

15

20

25

30

1994 1995 1996 1997 1998 1999 2000Calendar Year

Crew Fatalities Hit Record Low

21

13

24

29

19 19

11

Towing vessel crewmember fatalities hit a recordlow in 2000, the latest year for which Coast Guarddata is available. In 2000, there were 11 fatalities, a 15% decrease from the previous low of 13 fatalitiesin 1995 and a 62% decrease from the peak of 29fatalities in 1997.

Calendar Year

AWO Annual Report • 12

Waterways transportation contributes to the American quality of life by helping reduce congestion on roads and rails.

Strategic Plan

AWO Mission

The American WaterwaysOperators is the national tradeassociation representing the owners and operators of tugboats,towboats and barges serving thewaterborne commerce of theUnited States. Its mission is topromote the long-term economicsoundness of the industry and to enhance the industry’s ability to provide safe, efficient andenvironmentally responsibletransportation, through advocacy,public information and theestablishment of safety standards.

AWO 21, the association’s strategic plan, ensures a focus on member priorities and commits resources toward AWO’s core business lines – advocacy, industry image and improved safety. AWO 21 provides a framework for staff work priorities and a roadmap for progress.

AWO Values

AWO Members:

1. Operate their companies in anethical manner that benefitsthe public, their employees andthe environment;

2. Recognize that the waterways of the U.S. are a shared resourceand a national asset for all;

3. Foster the development ofresponsible legislation,regulations and safety proceduresthat safeguard the community,the workplaceand the environment;

4. Practice and promote theprecepts of the ResponsibleCarrier Program; and

5. Preserve the industry heritage ofcooperative endeavors, and thepresentation of a unified voice.

AWO Goals

1. Be an effective and proactiveadvocate with the U.S. Congress.

2. Be an effective and proactiveadvocate with federal agencies.

3. Promote industry safety andenvironmental stewardship.

4. Improve and promote theindustry’s image.

5. Influence state initiatives toprotect industry interests.

6. Inform the membership onpublic policy issues.

7. Assure effective and efficientmanagement and governance of the association.

Thomas A. AllegrettiPresident & CEO

Lee H. HillChief Financial Officer &Senior Vice President

Jennifer Kelly CarpenterSenior Vice President –Government Affairs & Policy Analysis

Anne Davis BurnsVice President – Public Affairs

Robert L. ClintonVice President – Safety

E. Boyd Hollingsworth, Jr.Vice President – Legislative Affairs

Gerald P. McMahonVice President – Pacific Region

Lynn M. MuenchVice President – Midcontinent

Linda E. O’LearyVice President – Atlantic Region

Kenneth R. WellsVice President – Southern Region

Amy K. BrandtManager – Government Affairs

Marilyn D. ClarkManager – Membership & Meetings

Douglas W. SchefflerManager – Research & Data Analysis

Leslie A. KagariseFinance & Administration Coordinator

Katherine M. RehakSafety Coordinator

Traci L. FischerPublic Affairs Specialist

Megan E. TuckerLegislative Affairs Assistant

Vickie M. HammondAssistant to the President

Mary C. MillsReceptionist

2002AWO Staff

Graphic Design: Howell Design, Inc.

The National Trade Association of the Inland and Coastal Tugboat, Towboat and Barge Industry

801 North Quincy Street, Suite 200Arlington, Virginia 22203

(703) 841-9300www.americanwaterways.com

The American Waterways Operators