Presentation to 2017 Annual Alabama Water Resources Conference. By: Larry Merrihew, Presdent Warrior-Tombigbee Waterway Association

Transcription

1 Presentation to 2017 Annual Alabama Water Resources Conference By: Larry Merrihew, Presdent Warrior-Tombigbee Waterway Association

2 Alabama s Inland Navigable Waterways Alabama River Apalachicola Chattahoochee Flint Tennessee River Tennessee Tombigbee Warrior Tombigbee Alabama State Port Authority (Port of Mobile)

3 Coalition of Alabama Waterways Associations Missions of the Associations Promote Economic Development Boeing, Nucor Steel, Tenaska, International Paper, Drummond Company, Southern Company, Olin Chemical, AM/NS Calvert (formally ThyssenKrupp), Dixie Pellets, Mead Westvaco (WestRock Industries), Hunt Refining, Farley Nuclear, Weyerhaeuser, Boise Cascade, Hyundai, Georgia Pacific U S Steel, Warrior Met Coal, SSAB, Steel Dynamics All Depend on Alabama Rivers Monitor and Advocate O&M and improvements for Alabama s inland waterways and Port Work with the state on river related issues (ACT ACF, Black Belt Commission, Transportation Infrastructure, Water Resources Commission)

4 Our Message The inland waterways and the Port of Mobile are invaluable economic assets to Alabama Inland waterways are the Nation s only surface transportation system with unused capacity to handle increases in U.S. trade and transportation needs and does not need new capital to utilize. Alabama s transportation infrastructure is a vital component in the state s ability to compete in global trade Fully maintained waterways help meet that challenge The Coalition of Alabama Waterway Associations (CAWA) is critical to the continued maintenance and development of the waterways

5 Alabama s River Systems Integral part of nation's transportation system 1400 miles of navigable waterways second most in US linked to 12,000 miles of inland rivers Links to major inland river ports in 21 states serving the Upper Mississippi, Ohio, Missouri, Tennessee River Valley, and Great Lakes Access to major Gulf ports and river systems via the Intracoastal Waterway 15 federal projects with an annual budget of $140 million Multiple benefits to the State and region The river system is linked with the Port of Mobile, one of the 10 largest in the U.S. The Port has 5 class I railroads, 2 Interstate systems, a 40 deep channel, linking port operations with export/import markets worldwide

6 Alabama s River Systems Economic Impact to State of Alabama: Over 55,000 direct jobs and another 125,000 indirect jobs depend upon inland river systems Alabama river systems generate over $950 million in tax revenues for U.S. Treasury Alabama river systems generate over $500 million for Alabama treasury Tonnage Approximately 80 million tons move annually on the Alabama Rivers Coal, Iron & Steel, Forest Products, Petroleum, Sand & Gravel, Primary Manufactured Goods, Chemicals Valued at approximately $20 billion Electric Power Generation Approximately 63% of electric power is generated by systems needing the rivers in Alabama Four major power producers Alabama Power, PowerSouth, TVA, Corps of Engineers Hydro Nuclear Steam Primary Source for Municipal and Industrial water Supply (Over $14 billion) Recreation Approximately 25 million visitors visit Alabama each year, using our 291 State and Federal Parks/waterways. It is estimated that $1.4 billion is directly attributable to the waterways.

7 What the 5 river systems mean to the State of Alabama Transportation Recreation Manufacturing Power Generation Environment

8 Transportation Alabama inland waterways connect with 12,000 miles of inland river systems 21 States interconnect with Alabama inland rivers Some 60 to 80 million short tons move through the Alabama inland rivers Major products moving on Alabama waterways Coal Crude & Petroleum products Forest Products Sand, Gravel, Stone Primary Manufactured Goods Chemicals Iron & Steel

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10 Recreation It is estimated that some 25 million visitors per year utilize recreation facilities in Alabama There are 23 Corps of Engineers recreational facilities in Alabama which represents the largest number of parks located on the navigable rivers With the assumption that 70% of the visitors are day trippers and 30% are overnighters, and using U. S. Chamber estimates that day trippers spend $25 per person and overnighters spend $120 per person, then the total economic impact from Corps of Engineers sites would be approximately $900 million It is estimated that some 7,000 persons directly and indirectly are employed in recreational facilities along the waterways

11 Manufacturing Industry Processing Effluent assimilation Movement of raw/finished product Municipals Use Drinking water Effluent assimilation Navigation is directly linked to manufacturing Power Generation is directly linked to manufacturing

12 Environmental Air Quality Energy Use Safety Issues Accidental Spills

13 Air Quality Barges have the smallest carbon footprint among other transportation modes. To move an identical amount of cargo by rail generates 30% more carbon dioxide than by barge, and 10 times more emissions by trucks than by barge.

14 Table shows the emission comparison between the three modes. HV/Voc CO Nox PM - 10 CO2 Inland Towing Railroad Truck

15 Energy Transporting freight by water is also the most energy-efficient choice. Barges can move one ton of cargo 647 miles per gallon of fuel. A rail car would move the same ton of cargo 477 miles, and a truck only 145 miles

16 Safety Issues Inland waterways transport has a low injury and fatality record compared to rail or truck Inland Towing Railroads Truck Freight

17 Environment Recreation Transportation Environment Power Generation Manufacturing Our environment creates the atmosphere that attracts people People need Jobs/income to support their needs Job producers need electricity to manufacture goods Manufacturers need transportation to move raw material and produced goods Employees need recreation to maintain and improve their quality of life Therefore a balanced approach to keep each of these basic needs in harmony with each other is required

18 Port of Mobile: Gateway to Trade The Port of Mobile provides regional shippers using Alabama s waterways access to: Export/Import markets worldwide One of the world s largest shipping lines World Class 500,000 TEU container terminal (Phased Expansions Deliver 1.5 Million TEU Throughput Capacity) 5 class 1 railroads 2 interstate systems (I 10 and I 65) Developing container on barge industry

19 FY 2016/2017 O&M PROGRAM Project Pres 2016 Pres 2017 Tennessee Tombigbee Waterway Wildlife Mitigation Black Warrior Tombigbee System Ala Chattahoochee Flint Alabama River Mobile Harbor Tennessee River $24,725 1,700 43,295 N/A 21,238 23,230 23,521 $29,218 1,700 24,101 N/A 14,080 25,705 23,152 Total Mobile District $214,600 $195,673 *Total dollars generated back to U.S. Treasury $ 910,477,937 *Source: Troy University 2012 study Accounting For The Economic Value of Alabama s Inland Waterways (does not include Port of Mobile economic value)

20 Other benefits of the river systems Reduce roadway and bridge maintenance/repair costs Lower freight rates for State s shippers, farmers, and producers Relieve congestion on our highways Improve public safety Ensure continued federal funding for multiple use of the waterways (recreation, hydro, etc.) Help attract manufacturing and other industry Save energy by reducing fuel consumption and reducing air emissions

21 Future Opportunity Container on Barge The CAWA group commissioned a study and the final results were made public May, 2009 Mobile Container Terminal/Alabama Port Authority are major players in future container business. Currently be expanded from 350,000 TEUs to 800,000 TEUs with plans to go to 1,200 TEUs Container on Barge means more competitive transportation costs Panama Canal has expanded which means there will be larger and more container ships coming into the Gulf of Mexico Alabama s inland river systems are able to expand commercial transportation capacity with little or no cost

22 The Negative The Office of Management and Budgeting sets the budget for the Corps of Engineers The Corps of Engineers budget has been static for some 10 years As a result the Corps has adopted an Asset Management Plan which has developed as follows: Allocate funds from low use to high use systems Allocate funds from well maintained systems to systems in need of additional maintenance Develop a level of Service criteria that reduces or closes low use waterways

23 The Result Alabama has two river systems that are termed low use. Alabama Coosa River System (ACT system) No dredging since 2010, therefore river is passable for barge traffic only under certain conditions and then, only for shallow drafts (channel is approved for 9 X 200 ) Apalachicola Chattahoochee Flint (ACF system) Currently the Walter F George lock and dam is out of commission for an undetermined time. The system was built in 1963 and has not been closed for maintenance since

24 The Waterway Associations and their role with Economic Development Assist in developing site information Serve as a consultant for inland transportation information Consultants to new and expanding industries Use of the waterway organization s web site as a conduit to information about Alabama s rivers Contacts Tri Rivers Billy Houston, Ex. Director bhoustonacf@bellsouth.net Alabama State Port Authority Jimmy Lyons, Director, CEO jlyons@asdd.com Coosa Alabama River Jerry Sailors, President cariainc@bellsouth.net Tennessee River Cline Jones, Ex. Director trvassoc@hiwaay.net Tennessee Tombigbee Waterway Mitch Mays, Administrator mays@tenntom.org Warrior Tombigbee Waterway Larry Merrihew, President larrywarriortom@aol.com

25 Coalition of Alabama Waterway Associations Telephone: