1. Dredging, Infrastructure, and Other Challenges on the Mississippi River System Presented by: Spencer Murphy Vice President – Risk Management Canal Barge Company, Inc.
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2. Agenda Industry Background Canal Barge Company Overview
Infrastructure Challenges
Dredging needs
Solutions
Questions
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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
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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
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5. Dry Cargo Capacity One 15-Barge Tow 216 Rail Cars + 6 Locomotives
1,050 Large Semi Tractor-Trailers
216 Rail Cars + 6 Locomotives
The following slides come from a study commissioned by the National Waterways Foundation and prepared by the Texas Transportation Institute that reports on the effectiveness of barging relative to other modes of transportation. This slide relates barge capacity to other modes. As you can see a common 15-barge tow of dry cargo has the equivalent capacity of 216 rail cars and six locomotives, or 1,050 tractor-trailers.
Source: Texas Transportation Institute Center for Ports and Waterways,
November 2007 5 5

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!
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7. Canal Barge Company
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8. Canal Barge Company, Inc.
Founded in 1933 – 3rd 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.
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9. Canal Barge Company Profile September 7, 2011
4/8/ :21 PM
Canal Barge Company Profile September 7, 2011
People
580 non-union
Barges
817
Tank barges
213
Deck barges
144
Hopper barges
460
Inland Towboats 32
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10. CBC Today
One of the largest & most diverse privately owned marine transportation companies in the U.S.
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

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12. CBC’s Area of Operations
River SIUT
Lower Mississippi & Illinois Rivers
4 CBC boats
Chicago
River Unit Tows
3 - 5 CBC boats
(working throughout Inland Waterways)
Ohio River Towing Alliance
3 boats
Illinois River & Chicagoland
9 IMT boats
Pittsburgh
Houston
West Canal
Gulf Unit Tows Canal SIUT
7 CBC boats 4 boats
Baton Rouge
Note: Count includes Owned, Operated, & Contracted boats.

13. Infrastructure Challenges
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14. Infrastructure Challenges
Our lock and dam system is aging
More than half the system’s 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
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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
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16. Infrastructure Challenges
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17. Infrastructure Challenges
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18. Infrastructure Challenges
Solution:
Must recapitalize our river infrastructure
Barge industry can’t 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.
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19. Dredging
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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 $ billion worth of foreign trade passes through New Orleans ports annually
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21. Dredging
Mississippi River requires between $ 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
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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 int’l 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
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23. Dredging President Obama’s 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
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24. Dredging Solution: Realizing America’s 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.
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25. Questions? Thank You! 4/8/2017 11:21 PM
* Top Left Picture – M/V MAH & CBC 1265
* Bottom Right Picture – M/V MLL
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