Waterways Michael J. Toohey, President/CEO, WCI Rail Supply Chain - - PowerPoint PPT Presentation

Achievement in Advocating for Higher Investment in the Inland Waterways

Michael J. Toohey, President/CEO, WCI

Rail Supply Chain Summit

June 15, 2016

WCI’s “three-legged stool” approach to advocacy to achieve

• utcomes:

DIRECT LOBBYING

GRASSROOTS MEDIA

2

WRRDA was signed into law by 
 President Obama on June 10.

OUTCOMES AND ACHIEVEMENTS

“Meanwhile, many of America’s businesses ship their goods across the country by river and by canal, so we’ve got to make sure that those waterways are in tip-top shape.” – President Obama, June 10, 2014

WRRDA incorporates elements of the Capital Development Plan:

Prioritize navigation projects Reforms to project delivery process Federalize Olmsted cost-share Define major rehabilitation from IWTF

USER FEE INCREASE =
 INCREASED INVESTMENT

WCI had long urged an increase to the Inland Waterways Fuel User Fee by 6- to 9-cents/gallon

• n diesel fuel consumed by commercial vessels

while operating on the inland waterways of the U.S. Only in Washington.... In the last act of the lame duck session of Congress (2014), 
 a 45% increase to our user fee 
 (to 29-cents-per-gallon) was passed as part of the “Tax Increase Prevention Act of 2014.”

Investing in America’s Inland Waterways Keeps the Economy – and Jobs – Afloat

In 2010, the Inland Waterways Users Board approved and adopted a report prepared by a Corps of Engineers-industry team of experts titled, “Inland Marine Transportation System (IMTS) Capital Projects Business Model Report” that proposed a series of navigation system investments

• ver a 20-year period. For the purposes of the university study, these 21

lock and dam projects were examined, but on an accelerated 10-year completion basis. Keeping our Inland Waterways Systems Thriving:

Will Protect Over 541,000 American Jobs

At a cost of only $8 billion to finish all projects in the CDP....

Stakeholder Support (NESP)

Congressional Support (NESP)

Congressional Support (Major Rehab)

• U.S. manufacturers, farmers, wholesalers, retailers, importers and exporters, ports, shipyards,

labor, national and regional organizations, State agencies, and transportation and logistics providers who say NO to tolls or lockage fees on the inland waterways transportation system...

AEP River Transportation ˃ Alabama State Port Authority ˃ Amherst Madison, Inc. ˃ American Commercial Barge Line ˃ American Iron and Steel Institute ˃ American Petroleum Institute ˃ AWO ˃ Archer Daniels Midland Company ˃ Blessey Marine Services, Inc. ˃ Brownsville Marine Products, LLC ˃ Bunge North America ˃ C&B Marine ˃ Campbell Transportation Company, Inc. ˃ Canal Barge Company ˃ Cargill ˃ Caterpillar, Inc. ˃ CF Industries ˃ CGB Enterprises, Inc. ˃ Channel Shipyard Company ˃ Chicago Regional Council of Carpenters ˃ CHS, Inc. ˃ Coalition of Alabama Waterways Association ˃ Cooper T. Smith ˃ Crounse Corporation ˃ Deloach Marine Services, LLC ˃ FirstEnergy Corp. ˃ Golding Barge Line, Inc. ˃ Gulf Intracoastal Canal Association ˃ Hunter Marine ˃ Illinois Corn Growers Association ˃ Illinois Marine Towing ˃ Indiana Corn Growers Association ˃ Indiana Soybean Alliance ˃ Ingram Barge Company ˃ Iowa Corn Growers Association ˃ JB Marine Services, Inc. ˃ Kentucky Corn Growers Association ˃ Kirby Corporation ˃ LaFargeHolcim ˃ Louisville Gas and Electric Company and Kentucky Utilities ˃ Marquette Transportation Company, LLC ˃ McNational, Inc. ˃ Michigan Corn Growers Association ˃ Minnesota Corn Growers Association ˃ Missouri Corn Growers Association ˃ Mulzer Crushed Stone, Inc. ˃ Murray American Transportation, Inc. ˃ National Association of Manufacturers ˃ National Association of State Departments of Agriculture ˃ National Corn Growers Association ˃ National Council of Farm Cooperatives ˃ National Grain and Feed Association ˃ National Oilseed Processors Association ˃ Ohio Corn & Wheat Growers Association ˃ Parker Towing Company, Inc. ˃ Pine Bluff Sand & Gravel Company ˃ Port of New Orleans ˃ Port of Pittsburgh Commission ˃ Southern Towing Company ˃ St. Louis - Kansas City Carpenters Regional Council ˃ Tennessee River Valley Association ˃ Tennessee-Cumberland Waterways Council ˃ Tennessee-Tombigbee Waterway Development Council ˃ The Fertilizer Institute ˃ Trinity Marine Products, Inc. ˃ Turn Services ˃ United Association ˃ Upper Mississippi Waterway Association ˃ Upper River Services, LLC ˃ Valero ˃ Warrior Tombigbee Waterway Association ˃ Waterways Association of Pittsburgh ˃ WCI ˃ Wepfer Marine, Inc. ˃ Wisconsin Corn Growers Association

Opposition Letter Signed by 75

Stakeholder Support (P3 toll proposal)

Funding Outcomes:
 Annual Corps Civil Works Budget...

Inland Waterways Trust Fund...

Operations & Maintenance...

• Olmsted L/D Construction (2024) NOW 2022
• Lower Mon 2,3 & 4 Replacement, phase 1 (2027) NOW

2023

• Kentucky Lock Addition (2041) NOW 2023
• Chickamauga Replacement Lock (2051) NOW 2024
• L/D 25 Upper MS 1200’ Lock Addition (2064) NOW 2032
• High Island to Brazos River, TX (2053) NOW 2018
• Lagrange 1200’ Lock Addition (2070) NOW 2028
• L/D 22 Upper MS 1200’ Lock Addition (2083) NOW 2035
• L/D 24 Upper MS 1200’ Lock Addition (2090) NOW 2038

National Outcomes: Taxpayer Savings
 Major Rehab Completion Dates 
 (Pre- & Post-WRRDA)

Key Projects:

• L/D 25 Upper MS Dam (2053) NOW 2030
• Lagrange (2064) NOW 2018
• ILL WW Thomas O’Brien L/D (2065) NOW 2023
• Greenup Dam Rehab PED & Constr. (2079) NOW

2031

CHALLENGE: Aging Infrastructure

CHALLENGE: The Trouble with Aging


 The 12,000 miles of our navigable inland waterways system touch 38 states and carry approximately 565 million tons of freight annually. The 242 locks and dams are maintained and operated by the U.S. Army Corps of Engineers. The oldest of these, the Elizabeth Lock and Dam (L/ D#3) in Pittsburgh, opened to traffic in 1906, but most were built in the 1930s and ‘40s. The aging infrastructure as a whole is in critical need of modernization, without which the inland waterways system will cease to provide reliable freight transportation capacity.

• WRRDA Directive: at least 15 P3 from Corps Civil 


Works Mission

• Focus (WRDA 2016) on Illinois Waterway: either for

major rehabilitation and/or 2 new 1200’ locks

• Toll or lockage fee $42M – $277M/year depending on
• ption selected
• Corps lacks authority to charge tolls, fees, taxes 


(WRDA 16 target provision)

• Action: Opposition to tolling/lockage fees to pay for P3

Challenge: Public Private Partnerships

Goal: Fiscal Year 2017 (FY 17) Energy and Water Appropriations of the full amount supportable by diesel fuel tax going into the Inland Waterways Trust Fund

• Objective: FY 17 funding of $225 million for Olmsted 


Lock and Dam with cost sharing of 85% General Fund / 
 15% Inland Waterways Trust Fund

• Objective: FY 17 funding of at least $167 million for 

• ther inland waterways priority capital projects including


at least $66 million for Lower Mon Locks and Dams, 
 $52 million for Kentucky Lock and Dam, and 
 $19 million for Chickamauga Lock and Dam and 
 $28 million for LaGrange Lock Rehabilitation.

2016 Goals and Objectives

2016 Goals and Objectives

Goal: Obtain Funding in FY 2017 for NESP

• Objective: PED funding of at least $10 million to continue 


pre-construction engineering and design (PED) for those 
 locks where PED has already begun

Goal: FY 17 increase in overall Corps Civil Works Program 


O&M funding (FY 16 received $3.137 billion), including increased funding for the Navigation mission (FY16 received $2.3 billion)

• Objective: FY 17 appropriations of at least $800 million for 


inland waterways O&M

• Objective: FY 17 Energy and Water appropriations of the 


full amount targeted in WRRDA 2014 from the Harbor 
 Maintenance Trust Fund

• Objective: Evaluation of Corps’ nationwide assessment of 


O&M priorities for inland waterways transportation system


Goal: Increase the threshold of when a project is considered major rehabilitation

• Objective: The Inland Waterways Trust Fund cost

shares the construction of new projects as well as major rehabilitation projects on the inland waterway

• system. WCI is advocating that the appropriate major

rehabilitation threshold should be changed from $20 million to $50 million in WRDA 2016

2016 Goals and Objectives

Goal: Authorize Calcasieu Lock, Louisiana, 
 Chief’s Report in WRDA 2016 Goal: Complete Corps project study & approval process

• n all inland waterways navigation projects without

unreasonable delays or deviations from established procedures so that all projects may be considered for authorization by Congress at earliest opportunity Goal: Support AWO’s Unlock Our Jobs coalition efforts, to control invasive species on the inland waterways system


2016 Goals and Objectives

www.waterwayscouncil.org