emerges it can cause a great prob-
lem for both the Coast Guard and
the industry. For the past 20 years,
the industry has operated un-
manned river hopper barges for a
short distance on Lake Michigan
from Calumet Harbor, Illinois, to
Burns Harbor, Indiana. Techni-
cally, these river barges are re-
quired to have limited Great Lake
load lines. However, in practice,
virtually no barge in that trade
has such a load line. The issue
emerged in 1975, and the industry
and the Coast Guard began work-
ing on a solution.
As time passed, and personnel
changed, the effort faded away
and the issue was dormant until
last year. In the winter of 1984, a
severe storm hit Lake Michigan
and three barges in safe harbors of
refuge sank. None of the barges
which sank had load lines, and
even if they did it would not have
averted the sinkings. This inci-
dent again brought the issue to a
head. AWO formed a subcomittee
and it has pursued all administra-
tive remedies with the Coast
Guard. The Coast Guard formally
holds that the only solution to this
problem is a legislative one and
therefore, they cannot grant regu-
latory exemptions to the vessels in
question. AWO is now in the pro-
cess of taking this issue to
Congress.
Actions by local governments
also create problems which could
spread across the nation and cause
serious harm to the industry. Santa
Barbara County, California, for
instance, has proposed a ban on
water transport of crude oil. After
January 1, 1990, all crude oil
would have to be moved by rail
and pipeline and all existing ma-
rine terminals would have to be
dismantled. AWO and its mem-
bers have testified at the hearings
and they have sent letters for the
record objecting to the proposal.
The AWO also provides a much
needed advisory service through
its Navigation and Structure Sub-
committee. This group, composed
of river pilots, makes itself avail-
able to advise builders of marine
facilities and fleeting areas, and
the Corps of Engineers, on whether
the proposed facility is safe for
river navigation from the pilot's
view point. In many instances
where the proposal was deemed
unsafe, the committee members
have worked with the facility in-
terest to work out an acceptable
solution.
AWO covers the regulatory
waterfront through a system of
committees and subcommittes. The
Corps of Engineers Liaison Com-
mittee and the Navigation and
Structures Subcommittee deal with
the operations of the waterways
themselves. Vessel operations are
handled by the Coast Guard Liai-
son Committee, Coastal Operators
Committee, IMO Committee and
Communications Committee. The
following subcommittes have been
established under the Coast Guard
Liaison Committee: Tank Vessel
Operations, Personnel and Man-
ning, Port and Terminal Security,
Navigation, and Technical and
Engineering.
AWO's regulatory goals are (1)
review existing regulations to de-
termine whether they are still ap-
propriate (2) react in a timely
fashion to a legislative, regulatory
and administrative actions, and
(3) to anticipate future legislative
regulatory and administrative ac-
tions when possible, by taking pre-
liminary action to avert or modify
expected government actions so
that an acceptable result is pro-
duced. AWO provides the neces-
sary structure to focus the expert
knowledge of the barge and tow-
ing industry on the regulatory
problems which it faces through-
out the nation.
AWSC: Legislation And Regulation
In The Shipyard Industry
Herman J.
Vice President
The American Waterways Ship-
yard Conference (AWSC) is the
national trade association for the
small and medium-sized commer-
cial shipbuilding industry. These
yards build and repair the barges,
tugboats, and towboats for the
fuel-efficient domestic water
transportation industry, as well as
the supply boats, crewboats and
other specialized vessels for the
offshore service industry and a
wide variety of fishing vessels.
The AWSC has just completed
its annual shipyard survey which
is designed to develop an accurate
profile of the industry which then
can be used to identify industry
trends for use in the legislative
and regulatory areas and which
are also useful to the industry.
The 1983 survey indicates that
Molzahn
, Operations
the number of second-tier ship-
yards has dropped from slightly
over 300 to about 250 establish-
ments. This is not surprising when
construction statistics are exam-
ined (see Table I).
Of major importance to the ship-
yard industry is the Jones Act—
the singular law responsible for
the creation of the inland and
coastal barge and towing industry
and the offshore service industry.
This nation has long benefitted
from these industries which pro-
vide low cost water transportation
and an offshore service industry
which assures our energy inde-
pendence.
The Jones Act gave rise to a
shipbuilding industry which, in
our free enterprise system, is effi-
cient, cost-effective, and techno-
logically advanced. In the peak
years it has given direct employ-
ment to 50,000 people and because
(continued on page 30)
TABLE I
New Construction Activity
Number of companies reporting—31
Number of companies reporting specific item
1978 1979 1980 1981 1982 1983
TOWBOATS 32
(6)
46
(8)
59
(11)
44
(14)
69
(14)
15
(14)
TUGBOATS 46
(4)
49
(4)
57
(5)
73
(8)
47
(10)
9
(9)
OFFSHORE SUPPLY and
CREWBOATS
82
(3)
83
(3)
81
(6)
109
(7)
195
(9)
16
(9)
RIVER HOPPER BARGES 1037
(11)
1577
(12)
1933
(12)
2788
(13)
767
(14)
128
(14)
RIVER TANK BARGES 131
(8)
105
(8)
205
(10)
136
(11)
26
(13)
25
(13)
OFFSHORE HOPPER and DECK
BARGES
45
(3)
54
(3)
50
(7)
46
(10)
74
(10)
12
(12)
TANK BARGES 3
(1)
5
(3)
10
(6)
10
(7)
14
(9)
2
(9)
ITT CAN OFFER ALL THREE.
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