Coal and the Waterways: The View from Washington Debra Calhoun, Senior Vice President/CEO, WCI September 19, 2017 National Coal Transportation Association 1
Waterways Council, Inc. s sole mission is to advocate for and communicate about a modern, efficient, reliable inland waterways transportation system. WCI is the only national organization exclusively focused upon issues related to navigation infrastructure improvements on the inland waterways.
WCI is made up of nearly 175 Tug and barge companies Companies that ship goods on our inland waterways Companies that use goods shipped on our inland waterways Ports Economic Development organizations Chambers of Commerce Agricultural groups Environmental, Conservation groups Labor organizations, and Those who recognize waterways transportation as the most fuel efficient, environmentally sound and economical way to ship America s bulk commodities
GRASSROOTS WCI s Three-Legged Stool of Advocacy
566.7 Million Tons, $216 Billion Value Coal is the largest freight commodity moved by barges on the nation's inland waterways
Shippers (and ultimately consumers) save $20.37 per ton of cargo compared to other modes, or $12.3 billion annually ($13.7 billion annually including the Great Lakes)
During the past decade, unscheduled work stoppages for repairs has increased by 700%
LOSS OF WATERWAYS EQUALS ECONOMIC DAMAGE Whether measured in output, employment or income, putting an end to commercial navigation on our inland waterways would have an immediate and crippling impact. In the event of a waterways system shut down, the devastating economic consequences would be a total 10-year loss of $1.063 trillion, when discounted to reflect that some of the loss is still several years away. The country would lose about 541,000 jobs worth $29 billion, nearly one-third of which would not be located near rivers. Additionally, the industry would be faced with increased annual shipping costs of about $12.5 billion, which would be passed onto American consumers in the form of higher costs for goods.
REAL WORLD PROBLEMS: L/D 52 Just last week, the Ohio River was closed at Locks and Dam, 52 (near Illinois) after problems with the wooden wickets that are raised or lowered to maintain the pool level up-river was found to be in disrepair. Built in 1928, L/D 52 is the last of the old wicket dams. It will be replaced by Olmsted, which was authorized in 1988 but will not open until late next year. 1928 wickets It looked like navigation could be stopped through the end of September but the Corps found a way to slow the velocity of water flow from other dams and were able to maintain the stable pool and restart navigation late last Thursday afternoon. Implications for coal are great at this project: 71 million total tons, with nearly 14 million of which are Coal, Lignite, and Coal Coke.
The Lumps on Coal The Past... 17% decline in export coal EPA s War on Coal Domestic U.S. coal declining in 2015-16 (984MMst to 984-977MMst) Low price of natural gas and increasing renewable energy 10
( The Present... Surge in U.S. Coal Mining after 2016 Record Global Decline (June 2017): World s Largest Coal Users -- U.S., China and India -- have increased coal mining in 2017 by 6%, with production up by at least 121 million tons compared to the same period last year. China s re-emergence as a coal importer has, in part, allowed a 19% revenue gain by publicly trade U.S. coal companies in the first half of this year vs. last year U.S. Exports 2016: 0 U.S. Exports 2017: 4.5 million tons 11
( The Future... The U.S. Energy Information Administration projects that even as coal's share of U.S. electricity generating capacity declines, its world use will rise from about 30 percent today to 50 percent by 2035. In the next 10-20 years, coal's value is likely to grow, as advanced coal plants, including some retrofitted with carbon capture, meet the world's growing need for energy while helping reduce greenhouse emissions. 12
Coal: Power AND Economic Generator National Mining Assn. 13
Highlighted West Virginia coal June 7, 2017 President s visit to Cincinnati emphasized the importance of investment in inland waterways transportation system. Key messages drawn from waterways stakeholders advocacy. 14
Army Corps Civil Works Total Annual Funding
Annual Funding: Inland Waterways Trust Fund Projects
Annual Funding for Operations and Maintenance
Infrastructure: Awaiting Administration proposal $200 billion public funds + $800 billion in private investment Emphasis on Public Private Partnerships (P3s) 18
We re all in agreement on modernization. But privatization? I m afraid, Mr. Speaker, that a lot of us are like a pack of dogs lapping up antifreeze. It smells good. It might even taste good. But it s not without drastic consequences. Cong. Steve Russell (R-OK) Discussing FAA privatization
NO! to P3 Tolls & Lockage Fees Commercial operators: only captive payer Disadvantages areas/consumers where locks are more concentrated Toll-based P3s don t work in every sector Tax monies collected are not being spent as it is Congress has long opposed lockage fees
Stakeholder United Against Tolls 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
Keeping our Inland Waterways Systems Thriving: Will Protect Over 541,000 American Jobs 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 over a 20-year period. For the purposes of the university study, these 25 lock and dam projects were examined, but on an accelerated 10-year completion basis.
Why are the Inland Waterways So Important? Inland Waterways Transportation is Fuel-Efficient Environmentally Friendly Reduces Traffic Congestion Cheapest Mode Facilitates U.S. Competitiveness Capacity... for present & future coal!
www.waterwayscouncil.org dcalhoun@waterwayscouncil.org 202-765-2153