1. The Value of IWW Tributaries Jim Kruse Center for Ports and Waterways September 25, 2003

2. Tributary (non-Main Stem) Waterways

3. Multi-tasking on Steroids! Navigation Recreation Economic Development HydropowerIrrigation Water Supply Flood Protection

4. Don’t be Hasty! ONCE YOU CLOSE IT,YOU’LL NEVER REOPEN IT!!!

5. How would you respond? “…18 of the Inland Waterways System’s 29 segments move less than three percent of the nation’s barge traffic while consuming more than 30 percent of the system’s Operations and Maintenance costs” Scott Faber, American Rivers, in testimony before the Senate Committee on Transportation and Infrastructure, May 16, 2000

6. “Value” l Question: Is this a good public investment decision? A higher O&M ratio  a bad investment decision l How, then, should we value the waterways?

7. The Ton-Mile Flaw l 10 highest waterways are 97% of system ton-miles, next 18 are 3% l If you close these 18 down, it only affects 3% of the system traffic, right?.....

8. More Than You Think Wrong!?%! l These “non- mainstem” waterways generate 15% of the system total. l 99% of the t-m and 73% of the tons by waterway are for trips with O/D’s not on that waterway

9. Effect on the System

10. One GOOD Assumption Whatever is moving on the waterway now will still have to go from Point A to Point B somehow…

11. Nothing’s Cheaper! We save close to $1.5 billion annually in transportation costs because of “non-mainstem” waterways!

12. A million here, a million there…. l Per TVA, savings range from $6.92/ton to $29.65 per ton (1999) TonsSavingsRatio of (mill)($ mill)Savings/O&M Green6.448.1026.86 Missouri7.97.807.19 TennTom8.286.106.35 Red2.310.502.79 Kaskaskia0.86.603.45 Allegheny3.733.103.33 Ouchita/Black1.518.102.80 White0.54.902.58 Alabama0.77.601.33 ACF0.57.100.92 Kentucky0.31.900.58 Total231.80 Average5.29 (1995-1999 Averages)

13. No Gas Guzzlers Here! Tributaries save > 12 mill bbl per year vs. trucks 34 bill system t-m 1,575 4,008 13,721 = 000’s of bbls consumed

14. You Just Think Life’s Expensive! l Nationwide, shifting all waterway ton-miles to RAILROADS would cause the nation’s freight bill to rise $5 billion (Trucks???) l Federal spending on the inland navigation system = $732 million From: Paper by Jake Haulk, National Waterways Conference, Houston, TX 1997

15. Non-monetary “Value” l Regional development opportunities l Multipurpose uses l Reduced noise pollution l What pollution there is, it’s primarily in remote areas l Human Exposure Index

16. Death and Injury l Death rates: Barges - 0.01 deaths per billion t-m Trucks - 0.84 Railroads – 1.15 l Using 34 bill t- m: 0.34 will die on barges each year 28-29 will die on highways 39 will die on railroads l Accident rates: Barges – 1 per 600 mill t-m (0.09 injuries/btm) Railroads – 1 per 257 mill t-m (21.77 injuries) Trucks – 1 per 16 mill t-m (?? Injuries/btm)

17. How Long is Long? l 15 barge tow = ¼ mile l 15 barge tow = 2¼ unit trains = 2.75 miles l 15 barge tow = 870 trucks = 34½ miles (assuming 150 ft between trucks) Using 93 million tons of cargo: l Approx. 3,099 miles of barges (assuming ½ mile separation) l Approx. 11,367 miles of trains l Approx. 142,600 miles of trucks

18. Other Savings/Ton Pounds of Emissions Per Thousand Ton-Miles Mode HydrocarbonCarb Mon.Nitrogen Oxide Barge 0.09 0.20 0.53 Rail 0.46 (5x) 0.64 (3x) 01.83 (3x) Truck 0.63 (7x) 01.90 (9x) 10.17 (19x)

19. Nation’s Defense l Active duty Army units moved equipment down Ohio and Mississippi Rivers to Alexandria, LA (Red River) for exercises at Ft. Polk l Units in Ft. Campbell, KY moved heavy equipment to Belize via Tennessee River and Tenn-Tom WW to Mobile and then across Gulf to Belize Easier to load/unload than rail (Drive on/drive off & don’t have to drain fuel or partially disassemble equipment) Barge system can adapt to specialized movements easier than rail

20. Why do People Know so Little About the Barge Industry? BECAUSE IT INTERFERES SO LITTLE WITH THEIR LIVES!!!!

21. Assumptions for Closing a Waterway 1. This cargo will continue to move, just by other means (increase in cost won’t terminate business) 2. Other avenues for cost-effective shipments exist 3. Rates for other modes won’t change 4. There is a better way of developing long-term economic advantage

22. Don’t Ignore the Cost l Effect on fish and wildlife populations l Water quality l Shoreline erosion l Recreational value/scenic beauty l Habitat degradation l Water turbidity l Flooding issues

23. Pay Attention! Let’s not lose all the benefits of the inland waterways because we did not deal with its disadvantages responsibly….

24. Balance! Recognize the Value Deal with the Impacts

25. It’s Been a Pleasure!