1. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Emerging Opportunities for Our Inland Waterways Alabama Water Resources Association September 5-7, 2007

2. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Ports and Waterways represented by CAWA Members  Alabama State Port Authority  Alabama River  Apalachicola- Chattahoochee-Flint  Tennessee River  Tennessee-Tombigbee  Warrior-Tombigbee

3. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Outline Outline Global Perspectives Global Perspectives Coastal Port Perspectives Coastal Port Perspectives Inland Waterway Opportunities Inland Waterway Opportunities Alabama Freight Mobility Study Alabama Freight Mobility Study Opportunities for Alabama Opportunities for Alabama

4. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Note 40’ containers on the left and 20’ on the right

5. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Global Trade US Maritime Trade: $1 trillion of domestic and international freight Projections  international trade to double by 2020  Container traffic to triple by 2020  Latin American trade through Gulf to triple (or more) by 2020

6. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWAPanamax Post Panamax Pre-19701970-19851985-20002000-2010Post-2010 1,700 TEUs 2,300 TEUs 4,800 TEUs 8,000+ TEUs 13,000+ TEUs <10 Boxes Wide 10 Boxes Wide 13-16 Boxes Wide 17 Boxes Wide 21 Boxes Wide <30’ Draft 33’ Draft 44’ Draft 48’ Draft 44’ Draft 450’ Length 620’ Length 900’ Length 1,150’ Length 1,350’ Length

7. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA U.S. Maritime Container Trade Growth Current 4,478 1,809 1,860 1,662 1,010 1,437 13,101 2,043 1,798 1,776 NY/NJ Virginia Charleston Savannah Miami Houston LA/LB Oakland Tacoma Seattle TEUs in thousands 2004Source: USDOT (Forecast figures based on 6 year linear regression)

8. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA U.S. Maritime Container Trade Growth Current and Future 4,478 15,835 1,809 5,566 1,860 6,639 1,662 9,420 1,010 2,1521,437 6,165 13,101 59,420 2,043 3,382 1,798 4,396 1,7762,557 NY/NJ Virginia Charleston Savannah Miami Houston LA/LB Oakland Tacoma Seattle TEUs in thousands 2004 2020 Source: USDOT (Forecast figures based on 6 year linear regression)

9. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA

11. Ports of Mobile and New Orleans are rapidly expanding container capabilities

12. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA 1.Deepening/widening Atlantic entrance channel 2.New approach for Atlantic Post-Panamax locks 3.Atlantic Post-Panamax locks existing 110 x 1000 x 41.2 ft; new 180 x 1400 x 60 ft 4.Raise max Gatun Lake operating water level 5.Widening and deepening of the navigational channel of the Gatun Lake and the Culebra Cut 6.New approach channel for Post-Panamax locks 7.Pacific Post-Panamax locks with 3 water saving basins per lock chamber 8.Deepening and widening of the Pacific entrance channel The proposed Panama Canal Expansion will improve shipping opportunities between Far East & Gulf ________________________________________________________________________________________________________________________________________________

13. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Credibility for Gulf Coast Container Ports at Mobile & New Orleans Growth in global trade & congestion at ports Growth in global trade & congestion at ports Mobile & New Orleans have expansion plans Mobile & New Orleans have expansion plans Expanded Panama Canal Expanded Panama Canal

14. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA The Inland Waterway System

15. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA

16. What moves by inland river barge? Today – heavy, bulky, oversize Future – higher valued goods

17. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA

24. Alabama Freight Mobility Study Funded by US DOT Policy & Research Funded by US DOT Policy & Research Action plan for integrating inland waterways into freight transportation network Action plan for integrating inland waterways into freight transportation network Developments along I-65 corridor: autos, steel, container terminal at Mobile, others Developments along I-65 corridor: autos, steel, container terminal at Mobile, others

25. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA When the Mobile Container Terminal looks like this When the Mobile Container Terminal looks like this We could be looking at scenes on I-10 and I-65 like these We could be looking at scenes on I-10 and I-65 like these

26. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA AFMS Phase 1 Business Perspectives: Container-on-Barge Understanding global container business. Understanding global container business. Identifying decision makers and opportunities. Identifying decision makers and opportunities. Appendix A - Gen Purpose Terminal Inventory Appendix A - Gen Purpose Terminal Inventory Appendix B - Furniture Case Study Appendix B - Furniture Case Study Appendix C - Waterway/Highway O&M Cost Comparison Appendix C - Waterway/Highway O&M Cost Comparison Appendix D - Montgomery Case Study Appendix D - Montgomery Case Study

27. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA There are Two Primary Audiences or Users of the AFMS Information with Very Different Interests Public Sector (Policy Makers) Public Sector (Policy Makers) Private Sector (Shippers, Carriers, Ports) Private Sector (Shippers, Carriers, Ports)

28. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Government Policy Maker Interests relieve congestion relieve congestion conserve energy conserve energy highway capacity & maintenance highway capacity & maintenance

29. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Private Sector Interests Shipper = reduce costs, improve reliability Carrier = ROI Ports = increase business, economic development economic development

30. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA To make COB a reality, must provide real cost savings and returns to private sector To gain government support, must demonstrate benefits to society and environment

31. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA AFMS – Phase 1 To obtain a copy of the AFMS Phase 1 Report from Hanson Professional Services go to www.hanson-inc.com Click on “project reports”

32. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA AFMS – Phase 2 Strategic Market Assessment from Strategic Market Assessment from Columbus, MS to Chattanooga, TN Columbus, MS to Chattanooga, TN Understanding Mobile Container Terminal Operations from Inland River Perspective Understanding Mobile Container Terminal Operations from Inland River Perspective Barge Industry Perspectives: COB Barge Industry Perspectives: COB Understanding River Systems Using COB Understanding River Systems Using COB

33. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Looking around the world…..

34. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA

38. Currently Operating COB Services Rhone-Saone River via Marseille/Fos – Characteristics 49 hours and approximately 290 miles from end to end 49 hours and approximately 290 miles from end to end 10 to 15% cheaper than over the road, 10 to 15% cheaper than over the road, A dependable, regular and reliable service A dependable, regular and reliable service Capacity of 264 teus carried per trip and 1320 teus per week Capacity of 264 teus carried per trip and 1320 teus per week – Ports Served Marseille / Fos Marseille / Fos Lyon Lyon Macon Macon Chalon sur Saone Chalon sur Saone

39. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Opportunities for Alabama

40. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA

42. Shipper Priorities *Based on survey of 1000 multinational shippers

43. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Virginia Inland Terminal Example Front Royal, VA is the site of a rail terminal designed to expedite containers from the Virginia coastal ports to an off-site location where they can be picked up by industry. Front Royal, VA is the site of a rail terminal designed to expedite containers from the Virginia coastal ports to an off-site location where they can be picked up by industry. Has attracted warehousing and distribution centers to the Front Royal area. Has attracted warehousing and distribution centers to the Front Royal area. Importers and exporters alike benefit from this facility due to not having to travel to typically congested port facilities on the coast. Importers and exporters alike benefit from this facility due to not having to travel to typically congested port facilities on the coast. Daily rail service to and from the inland terminal and the marine port facility increases efficiency of the operation. Daily rail service to and from the inland terminal and the marine port facility increases efficiency of the operation.

44. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA Currently Operating COB Services Columbia/Snake River via Port of Portland – Characteristics 47 hours and 360 Miles end to end 47 hours and 360 Miles end to end – Ports served Boardman Boardman Umatilla Umatilla Pasco Pasco Lewiston Lewiston

45. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWA One opportunity to reduce truck traffic? Furniture Companies in Mississippi, Alabama, and Tennessee

46. Alabama Water Resources Assoc. * September 5-7, 2007 * CAWAClosing Global trade is growing Global trade is growing Traffic congestion is increasing Traffic congestion is increasing Waterways can help reduce congestion and enhance competitiveness of US economy Waterways can help reduce congestion and enhance competitiveness of US economy Waterway transportation is more energy efficient and environmentally friendly than truck or rail Waterway transportation is more energy efficient and environmentally friendly than truck or rail Making best use of use of all modes is the key Making best use of use of all modes is the key