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30MNOctober 2011OP/EDAs this column is written, President Obama was set to announce the details of a new initiative to expand jobs. With unemployment hovering at around 9%, and twice that level in the construction industry, this is welcome news for the entire nation. Those of us in the waterways industry, led by Congressional champions such as Congressman Nick Rahall, have urged the President to include critical water- ways infrastructure in his plan to grow American jobs in the middle part of the country. Just like in the early 1800s when Lewis and Clark set out on their expedition to discover new routes for expanded trade and commerce, our nation?s inland rivers are an eco- nomic engine that keeps our coal, agricultural, petro- chemical, construction materials and other products mov- ing to the world marketplace. This translates to expand- ed exports, a prosperous economy and also to family-wage American JOBS! While often overlooked, the nation?s waterways trans- port more than 60% of U.S. grain exports, 22% of domestic petroleum and 20% of the coal used in electric- ity generation. More than 30,000 Americans are employed on towing vessels, with 800,000 American jobs dependent on the waterways. And as we continue to see expansion of container-on-barge shipping from Panama Canal improvements for example, that number will increase. But while the opportunities for increasing exports and jobs remain strong on the waterways, there is also the risk that we could lose jobs and workers if we fail to modern- ize the lock and dam infrastructure that facilitates the very commerce that annually accounts for around 624 million tons of cargo, equal to around $70 billion to the U.S. economy. The same is true if we fail to properly dredge the navigable channels that lead to our export ports, as wit- nessed this spring and summer on the Lower Mississippi River. Our nation?s inland waterways system includes 12,000 miles of commercially navigable channels and 240 lock sites that allow commerce to move to and from 38 states, from industrial and agricultural centers in the heartland to the Pacific Northwest to the Gulf Coast. Moving this freight on the waterways to the ports for export also relieves traffic congestion on our roadways, and helps our air quality since towboats emit fewer carbons than truck and rail.Our vast and reliable inland waterways system is, how- ever, aging, with more than half of our locks and dams deteriorated but still in service more than 20 years beyond their design life. Failing electrical systems, cracking con- crete structures, and gate failures and other unscheduled emergency shutdowns that occur as frequently as sched- uled closures are commonplace. This aging transportation infrastructure system needs recapitalization and modern- ization so that the National economy can expand and we are assured that taxpayer dollars are not wasted over decades to complete navigation projects, and real cost-sav- ings are not ?washed down the river of complacency.? As rational individuals, we all recognize that the current project funding and delivery system is inefficient and wasteful. While the navigation industry has significantly invested in the system?s reliability through a diesel fuel tax paid into the Inland Waterways Trust Fund, far too few projects are being undertaken and completed on time and within budget. In fact, project construction now stretches out over decades and the cost is sometimes five times more than the original price-tag, an unacceptable situation. As a solution to this broken funding system, a joint effort by government and industry has developed a plan known as the Inland Marine Transportation System (IMTS) Capital Projects Business Model. We believe that this capital development plan is a path forward to effi- Modern Waterways Infrastructure = Jobs Michael J. Toohey, Preident & CEO, Waterways Council, Inc. Our vast and reliable inland waterways system is, however, aging, with more than half of our locks and dams deteriorated but still in service more than 20 years beyond their design life. MN#10 (18-31):MN 2011 Layouts 10/5/2011 1:53 PM Page 30
