The Importance of Our Nation’s Waterways Presented to Congressional Waterways Caucus Jim Walker HQUSACE 22 July 2009

Corps Navigation Mission Provide safe, reliable, efficient, effective and environmentally sustainable waterborne transportation systems for movement of commerce, national security needs, and recreation.

Marine Transportation System USACE maintains 25,000 miles of waterways –Over 900 projects and 13,000 miles of channels –12,000 miles inland/intracoastal and 241 nav locks Coastal ports serve 28 states and inland waterways serve 38 states Inland and Intracoastal waterways connect our ports to interior markets

Marine Transportation System More than 95% of overseas trade moves through our ports Over 25% of Nation’s economic activity depends on foreign trade U.S. maritime industry supports nearly $1 Trillion in commerce, creates more than 13 million jobs, and handles more than 2.3 billion tons of commerce Most US jobs depend in one form or another on the flow of goods through our ports and harbors

Ports: Vital to Trade and US Economy Million Tons Over Houston Corpus Christi S. Louisiana New Orleans Baton Rouge Texas City Lake Charles Plaquemines Tampa New York/NJ Valdez Long Beach Beaumont Norfolk Lower Delaware River (9 harbors) Duluth/Superior Los Angeles Port Arthur St. Louis Portland Seattle Freeport Huntington Richmond Oakland Tacoma Boston Newport News Port Everglades Jacksonville Memphis Detroit Cleveland Savannah Charleston Indiana Hbr Cincinnati Portland Two Harbors Anacortes Honolulu Chicago Pittsburgh Baltimore Pascagoula 53 harbors – coastal, inland, Great Lakes - handled over 10 million tons each in 2007… Toledo Mobile New Haven Matagorda Presque Isle Kalama Barbers Pt San Juan

Goods to Market or ‘Ships to Shelves’ ExportImport 18%47%36%

Cargo Value and Cost CoastalInland Tons 1.7B622M Cargo Value$340B$98B USACE funding$1.01B$866M

Inland Nav Commodities

Coastal Nav Commodities

Economic Benefits Navigation Benefits are Transportation cost savings and fall under 2 categories: National Economic Development benefits Regional or local benefits Transportation cost savings Economies of scale (coastal) Transportation rate savings (inland) Benefit/Cost Ratio Oakland Harbor 8.5 Greenup Lock 4.6 NY/NJ Deepening 2.7

Inland Nav Summary BargeRailTruck Fuel Efficient –Miles per Gallon to move one ton Cleaner BestBetterGood –Particulate Matter, Hydrocarbons, CO2, NOx Safety –Spills BestBetter Good –Fatalities

Performance Inland: Unscheduled Lock Closures –Greater than 24 hours due to mechanical breakdowns –Trend: Unscheduled closures increasing –Impact: Threatens reliable delivery of product Coastal: Channel Availability –Half channel width on High Use projects –Trend: Channel availability decreasing –Impact: Efficiency loss, cost per ton increase

Navigation Trust Funds Coastal: Harbor Maintenance Trust Fund –Ad valorem tax, 0.125% of cargo value –Reimburse 100% of Operation and Maintenance –Revenue: $1.6B, Appropriated: $700M –Projected FY09 ending balance: $5.4B

Navigation Trust Funds Inland: Inland Waterways Trust Fund –Fuel tax, $0.20 per gallon –50% of Construction and Major Rehab –Revenue: $85M, Appropriate: $85M

Marine Transportation Keeping America’s goods globally competitive Cost Effective Fuel Efficient Environmentally Friendly Capable of increased use Osprey Line Baton Rouge, LA