Economic Benefit of Navigation Alabama Water Resources Conference Phillip Mixon

 “Get your facts first, and then you can distort them as much as you please.”  “Climate is what we expect, weather is what we get.” Samuel Clemens (Mark Twain)

 The Inland Waterway System of the US contains over 25,000 miles of navigable waters.  12,000 miles maintained by the Army Corps of Engineers  The vast majority of the system is located in the eastern US.  The State of Alabama connects to 15,000 of these navigable miles. Introduction

 Jobs, Jobs, Jobs  Economic Output  Tax Revenues  Environmental Benefits  Reduced Shipping Costs Economic Benefits

 The vast majority of employers that utilize the waterways of Alabama and specifically the ACF employ more than 250 people.  The average compensation (salary and benefits) of these employees is significantly higher the average for the surrounding area. Jobs, Jobs, Jobs

 Navigation can be a driving force of the economy of a region and the nation.  Many products shipped on inland waterways are exported to ports aboard.  Counties with a developed inland waterway tend to higher growth figures and tend to be more resistant to negative economic situations. Economic Output

 With the current fiscal situation, navigation provides its ‘fair share’ of taxes.  Fuel surtax per gallon of diesel  Business ad valorem taxes  Employers taxes  Employees income taxes  Sales taxes Tax Revenues

 Navigation is the most fuel efficient mode of transportation  Ton-miles per gallon of diesel  Truck – 59 miles  Rail – 202 miles  Barge – 514 miles  Reduces number shipments required  One barge = 15 Railcars = 60 Trucks  Dry bulk shipments Environmental Benefits

 Several studies have shown the presence of a navigable waterway reduces the shipping rates of all other modes of transportation.  Simply, compare North-South Rates versus East-West  The nature of water board commerce the required replacement shipping cost (if water is unable) would require many shippers to cease operations. Reduced Shipping Cost

 Navigation is a driving force in the economy. It provides the local economies:  Jobs  Income  Tax revenues  Reduced cost shipping  Environmentally friend shipping option. Conclusion

 In the environment, every victory is temporary, every defeat permanent. Thomas Jefferson

Thank You Questions?