The Value of IWW Tributaries

Jim KruseCenter for Ports and Waterways

September 25, 2003

Tributary (non-Main Stem) Waterways

Multi-tasking on Steroids!

Navigation

Recreation

Economic

Development

HydropowerIrrigation

Water Supply

Flood Protection

Don’t be Hasty!

ONCE YOU CLOSE

IT,YOU’LL NEVER

REOPEN IT!!!

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

“Value”

Question: Is this a good public investment decision?

• A higher O&M ratio a bad investment decision

How, then, should we value the waterways?

The Ton-Mile Flaw

10 highest waterways are 97% of system ton-miles, next 18 are 3%

If you close these 18 down, it only affects 3% of the system traffic, right?.....

More Than You Think

Wrong!?%! These “non-mainstem”

waterways generate 15% of the system total.

99% of the t-m and 73% of the tons by waterway are for trips with O/D’s not on that waterway

Effect on the System

Effect on System Ton-Miles(95-99 Average)

0

1000

2000

3000

4000

5000

6000

Waterway

T-M

(m

illi

on

s)

WW T-M

System T-M

One GOOD Assumption

Whatever is moving on the waterway now will still have to go from Point A to Point B somehow…

Nothing’s Cheaper!

Cost By Mode

0.97

2.53

5.35

0

1

2

3

4

5

6

1 2 3

Co

st P

er T

-M (

cen

ts)

We save close to $1.5 billion annually in

transportation costs because of “non-mainstem”

waterways!

A million here, a million there….

Per TVA, savings range from $6.92/ton to $29.65 per ton (1999)

Tons Savings Ratio of

(mill) ($ mill) Savings/O&M

Green 6.4 48.10 26.86

Missouri 7.9 7.80 7.19

TennTom 8.2 86.10 6.35

Red 2.3 10.50 2.79

Kaskaskia 0.8 6.60 3.45

Allegheny 3.7 33.10 3.33

Ouchita/Black 1.5 18.10 2.80

White 0.5 4.90 2.58

Alabama 0.7 7.60 1.33

ACF 0.5 7.10 0.92

Kentucky 0.3 1.90 0.58

Total 231.80

Average 5.29

(1995-1999 Averages)

No Gas Guzzlers Here!

Fuel Conservation

514

202

59

0

100

200

300

400

500

600

1 2 3

T-M

per

gal

lon

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

You Just Think Life’s Expensive!

Nationwide, shifting all waterway ton-miles to RAILROADS would cause the nation’s freight bill to rise $5 billion (Trucks???)

Federal spending on the inland navigation system = $732 million

From: Paper by Jake Haulk, National Waterways Conference, Houston, TX 1997

Non-monetary “Value”

Regional development opportunities Multipurpose uses Reduced noise pollution What pollution there is, it’s primarily in

remote areas Human Exposure Index

Death and Injury

Death rates:• Barges - 0.01 deaths per billion t-m• Trucks - 0.84• Railroads – 1.15

Using 34 bill t- m:• 0.34 will die on barges each year• 28-29 will die on highways• 39 will die on railroads

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)

How Long is Long?

15 barge tow = ¼ mile 15 barge tow = 2¼ unit trains = 2.75 miles 15 barge tow = 870 trucks = 34½ miles

(assuming 150 ft between trucks)

Using 93 million tons of cargo: Approx. 3,099 miles of barges

(assuming ½ mile separation) Approx. 11,367 miles of trains Approx. 142,600 miles of trucks

Other Savings/Ton

Pounds of Emissions Per Thousand Ton-Miles

Mode Hydrocarbon Carb 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)

Nation’s Defense

Active duty Army units moved equipment down Ohio and Mississippi Rivers to Alexandria, LA (Red River) for exercises at Ft. Polk

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

Why do People Know so Little About the Barge Industry?

BECAUSEIT INTERFERES SO LITTLE WITH

THEIR LIVES!!!!

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 change4. There is a better way of developing

long-term economic advantage

Don’t Ignore the Cost

Effect on fish and wildlife populations Water quality Shoreline erosion Recreational value/scenic beauty Habitat degradation Water turbidity Flooding issues

Pay Attention!

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

Balance!

Recognize the Value

Deal with the Impacts

It’s Been a Pleasure!