NDTA Scott AFB Luncheon Barge Transportation for Military Movements - - PowerPoint PPT Presentation

NDTA Scott AFB Luncheon “Barge Transportation for Military Movements” Terrence Moore AEP River Operations October 28, 2010

SDDC in Atlanta

Today’s Presentation

 Who is AEP River Operations  State of the Inland River Barge Transportation Industry  Barge and Towboat Fundamentals  Container on Barge  Benefits and Challenges  Project Cargo and Military Movements  Next Steps

AEP River Operations Who are we?

• American Electric Power (AEP) is one of the largest electric

utilities in the United States, delivering electricity to more than 5 million customers in 11 states.

• AEP River Operations, a wholly-owned subsidiary of American

Electric Power, is a fully-integrated barge line that delivers over 69 million tons of dry cargo for our customers each year.

• AEP River Operations’ fleet of boats and barges operate from

all along the Gulf Coast to as far north as Minneapolis, MN, Chicago, IL, Milwaukee, WI and Pittsburgh, PA. We also transit rivers which reach Tulsa, OK, Nashville, TN, Brownsville, TX and Panama City, FL.

AEP River Operations

Strategically Located Full-Service Inland Waterways Carrier

• St. Louis, Missouri Headquarters
• ~1,400 employees
• Full-service Inland Waterways carrier
• 3209 hopper barges
• 62 towboats
• 25 fleet and shuttle boats
• Regional Operations
• Pittsburgh, PA – Sales & Customer Service
• New Orleans, LA – Sales & Operations
• Lakin, WV – Boat & Barge Operations
• Paducah, KY – Boat & Barge Operations
• Mobile, AL – Sales & Customer Service
• Gulf Operations
• Full Service Shipyard
• Barge cleaning and repair
• Fleeting and shifting
• Midstream transfers

Pittsbur gh Minne apolis / St. Paul Chicago Housto n Mobile Tu ls a New Orleans St. Lou is Corpus Christi Portlan d

AEP River Operations in the Gulf

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Mississippi River from Miles 228 to 57

Cleaning & Repair Facilities

• Myrtle Grove
• Algiers
• Reserve
• Convent
• Baton Rouge

• 2 Fleeting Operations: Convent and Algiers
• 5 Cleaning and Repair Facilities between Baton Rouge and Myrtle Grove
• 1 Shipyard: Belle Chase

AEP Gulf Operations

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Inland Waterway Commodities Share by Tons: 2006 volume, 627 million tons

29% Petroleum & Petroleum Products 25% Chemicals 8% Crude Materials 19% Primary Manufactured 5% Food & Farm Prod 12% Manufactured 2% All Others <1% Chemicals Chemicals 8% 19% Crude Materials 5% Manufactured Primary 12% Food & Farm Prod Manufactured 2% All Others <1% Coal 29% Petroleum & Petroleum Products

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AEP River Operations

One of America’s largest dry cargo carriers

Over 69 million tons shipped in 2009

Coal/Coke Grain Steel, Ores & Alloys Lime & Stone Fertilizer Cement Salt Other

Hopper Barge Capabilities

AEP River Operations

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Typical Barge Dimensions 200’ x 35’ x 13’ A barge is one welded steel box inside another welded steel box. The outside box is called the hull and the inside box is known as the cargo compartment or cargo box. The void spaces provide flotation and protect the cargo if the outer hull is damaged.

Barge Fundamentals & Characteristics

Deck Barge Specifications

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AEP River Operations

Matching Barges to Cargos

Fiber Lift Cover Barges Steel coils and rolls, grain, fertilizer, cement, lime, limestone, project cargo, aluminum, gypsum Steel Roll Top Barges Scheduled into terminals with limited cover handling capacity – same commodities as fiber lift covers Open Hopper Barges Coal, pet coke, ores, steel raw materials, scrap metals, sand, gravel, limestone, and project cargo

Barge Industry Snapshot

Hopper Barge Fleet Summary

14 * Includes the Bunge barges Source: Informa Economics Barge Fleet Profile

Top four carriers comprise 60% of total fleet

Open Hoppers Covered Hoppers Total % of Fleet Average Age Ingram Barge Co. 2,251 1,477 3,728 20% 15.2 AEP River Operations 1,114 2,063 3,177 17% 10.1 American Commercial Lines 381 1,873 2,254 12% 21.1 Archer Daniels Midland 2,034 2,034 11% 25.0 SCF* 1,083 1,083 6% 13.3 Crounse Corp. 948 948 5% 13.3 Cargill 829 829 4% 15.0 U.S. United 497 183 680 4% 15.0 CONSOL Energy 664 664 4% 15.7 Subtotal 5,855 9,542 15,397 83% 26 Others 1,461 1,774 3,235 17% Total Fleet 7,316 11,316 18,632 100% 15.6

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New Hopper Barge Construction

Investing in Barge Fleet

Size: 200’ x 35’ / 13’ Hull Capacity: 1,500 – 1,700 tons

• We have built over 550 barges since 2007

500 1000 1500 2000 2500 3000 3500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2 4 6 8 10 12 Number of Barges Average Age

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New Boat Construction

Investing in Boat Fleet

Our towboat fleet is efficient and provides a safe, desirable environment for our employees. We have built 23 new boats since 2007.

8,000 HP – 12,500 HP Class

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• 25 to 45 barge tows
• Up to 70,000 net tons
• Equivalent to 3,000 trucks
• Crew of ten:
• 2 pilots
• 2 engineers
• 5 deckhands
• 1 cook

M/V Robert D. Byrd Operates on Lower Mississippi River between St. Louis and New Orleans

6,000 HP Class

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Operates on Lower Mississippi River from Cairo to New Orleans & Ohio River

• Most flexible boat in

system

• Can operate on all rivers
• Tows 15 to 30 barges
• Works in tandem with

larger HP class

• Crew of ten:
• 2 pilots
• 2 engineers
• 5 deckhands
• 1 cook

AEP Mariner

1,800 HP – 5,600 HP Class

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Operates on the Illinois, Ohio & Upper Mississippi Rivers

• 15 barge tows carry grain,

coal, steel, cement, and

• ther bulk commodities
• Capacity of 225 railroad cars
• Crews range in size from 6

to 10 members

M/V Caleb Lay

700 HP – 3,000 HP class

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Harbor Tugs and Shuttle Boats

• Harbor Tugs
• Work within a specific harbor

in the Gulf or along the river

• Service a particular fleet or

group of docks

• Crews usually live shore-side

and work designated shifts

• Shuttle Boats
• Larger than harbor tugs
• Redistributes barges between

harbors within a small area of the inland river (i.e. 100 miles)

• Crews usually live on the

boats

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Why River Shipping?

River Shipping is a Smart Shipping Solution  Greener  More Cost-Effective  Reliable  Secure – Cargo is difficult to access and under surveillance  Discreet – Quiet and out of site  Safer: Fewer Injuries and Fatalities  Efficient – Less highway and rail congestion

Barge Efficiencies Continue

Typical Transit Times

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Origin Destination Days Origin Destination Days New Orleans Paducah 10-11 Paducah Cincinnati 5-6

• St. Louis

11-12 Pittsburgh 10-11 Louisville 14-15 Chicago 8-9 Chicago 17-19 Pittsburgh 20-22 Houston Memphis 13-14 Pittsburgh Cincinnati 4-5

• St. Louis

17-18

• St. Louis

11-12 Chicago 24-25 New Orleans 13-14 Pittsburgh 27-28 Chicago 16-17 Houston 19-20

Single Locking vs. Double Locking

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p.25

Aging Infrastructure

117 out of 240 locks are over 50 years old

Challenges

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Project Cargo

Perfectly Suited for River Transportation

Project Cargo

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Project Cargo

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Project Cargo Opportunity

The Possibilities are Endless

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Container on Barge

Container Movements

Existing Military Highway Transportation

Military Cargo Movements

900 vehicles 45 barges

Vehicles on Deck Barges

Deck Barges for Military Movements

Existing Marine Highway Military Shipments

WWW.AEPRIVEROPS.COM

Customer Access:

• Track events & cargo
• Track performance
• Lower costs
• Improve service
• Customizable reports

for both shipper and destination docks

• EDI

Next Steps

 Analyze opportunities for Inland River Shipping  Identify a department who is willing to consider alternatives to truck and rail.  Develop a plan for increasing use of the Inland River System.  Create strategic alliances within Military and SDDC.

By putting our heads together…..

… w e can develop a safe and efficient inland river logistics for the U.S. Military Thank You

Contact Information

Terrence Moore Director - Business Development AEP River Operations 16150 Main Circle Drive Suite 400 Chesterfield, MO 63017 636 – 530 – 2490 tmmoore@aepriverops.com www.aepriverops.com