Inland Waterways: A Key Part of the U.S. Freight Transportation System Presentation for Bob Pietrowsky Third World Water Forum Kyoto, Japan March 18, 2003 Inland Waterways: A Key Part of the U.S. Freight Transportation System 5th World Water Forum Istanbul, Turkey March 17, 2009 Robert A. Pietrowsky Director, Institute for Water Resources & the International Center for Integrated Water Resources Mgt. U.S. Army Corps of Engineers

Link Between Multi-Purpose Water Use and Social Stability, Economic Security Imagine a Place Where: 30% of owners and over 40% of tenants no toilets or outhouses 65% of owners and 80% of tenants have no access to clean water 95% of property owners and 98% of tenants have no electricity Only 8% of homeowners and less than 3% tenants even own radios More than 50% of owners and > 75% of tenants don’t read newspapers More than 75% of owners and > 85% of tenants don’t own cars or trucks Over 60% of the energy is provided from animals/horses and only 6% from electric power stations More then 90% of households have no lighting More then 90% of the households have no refrigeration – and routinely lose more then 25% of their perishable food to spoilage Most people live on subsistence farming & most farming is on over-used soil Flooding is serious and repetitive to both rural and urban areas cities no access to clean water defined as having to go more than 300 yards for water

Tennessee Valley (TVA) Imagine a Place Where: THIS IS NOT A PART OF A DEVELOPING OR EMERGING NATION TODAY… .. IT IS IN THE UNITED STATES – THE TENNESSE VALLEY IN 1935 Tennessee Valley (TVA)

TVA as a Case Study: FDR …. “Best of private and public…” Regional Authority with power – authority for bonding & with independence Also a Federal Corporation Broad economic and Social Development - generate wealth, bring region out of poverty Integration, planning, development, management based on basin Three main areas of responsibility: - Energy - Environment - Economic Development

Colored area shows extent of TVA power service area. Lighter tan is the watershed of the Tennessee River, which is navigable for 1049 km from the confluence with the Ohio upstream to the city of Knoxville. Today the Tennessee River handles nearly 45 million metric tons (tonnes) of cargo annually. The Cumberland River is also in the TVA service area. More than 612 km are navigable, with much of the commerce to and from industries around the city of Nashville, the state capital. Today the Cumberland handles over 20 million metric tons (tonnes) annually. Utility plants, manufacturing facilities, and other industries have developed along both river systems (as shown). At the same time many communities benefit from the hydropower, water supply, flood protection, and extensive recreation opportunities made possible by the TVA plan.

In a Generation + Industrial production up over 500% $5.4 Billion in flood damages prevent throughout the valley Over 75% of homes with access to clean drinking water Over 75% of homes with flush toilets and 85% with plumbing Over 90% had electricity or gas energy sources Literacy increased to almost 100% Life expectancy increased to 70’s, ~ national average – Small pox, malaria, typhoid largely eradicated Median per capita incomes at national levels Industrial production up over 500% Almost 700 miles of navigable water links to sea – waterway tonnage increased from 32 million ton-miles in 1933 to 161 million ton-miles in 1942. Innovations in soil conservation, integrated watershed management, land use, non-structural flood mgt. & other areas

What TVA Does Supplies reliable, affordable power 62 power production sites including 29 hydropower dams 27,400 km (17,000 miles) of transmission lines Serves 8.6 million people and 61 large industrial facilities Supports a thriving river system 1049-km (652-mile) commercial navigation system Over 45 million metric tonnes (50 million tons) of cargo annually Some 100 public recreation areas Municipal, industrial and agricultural water supply Stimulates economic growth Provides flood protection preventing millions of dollars in annual flood damage Partner with public and private entities to promote commercial and industrial development Community investment loans Site development Research, engineering and design services

An Integrated Approach TVA operates the Tennessee River system to provide a wide range of public benefits: year-round navigation, flood damage reduction, affordable electricity, improved water quality and water supply, recreation, and economic growth. Most reservoir projects in the United States were built for a single purpose, such as irrigation, power production, or water supply. The Tennessee River system is different. Its dams, locks, and reservoirs were designed specifically to operate as one system that meets many needs. Every day, TVA balances these competing – and sometimes conflicting – needs for water in order to deliver the greatest value for the people of the Tennessee Valley. Chickamauga Lock & Hydropower Dam

U.S. Federal Role in Waterway Transport 1824 – authority to clear snags and make improvements Canal building era to mid-1800s (states) Post Civil War – suction dredging, jetties 1885: 1st of 46 locks and dams on Ohio 1930s: Present system of locks constructed on Upper Miss, Illinois, Tennessee and other waterways 1950s: Construction starts on present-day higher lift locks on Ohio 1960s-70s: Navigation improvements to Columbia-Snake, Arkansas River 1985: Tenn-Tom Waterway completed 1994-Present: Upper Mississippi River & Illinois Waterway Navigation Study 1824 - Gibbons vs Ogden Federal right to regulate matters of interstate commerce, including navigation. 1870 - Daniel Ball case -the Federal government could regulate any river that was navigable. 1874 - the Select Committee on Transportation Routes to the Seaboard determined that Rivers and Harbor act investments contributed to the national welfare. 1882 - Federal investments totaled $111 million (water spending was being used to help the post-Civil War economy). 1902 Reclamation Act – Federal money settled the West 1917 and 1936 Flood Control Acts – Federal money to solve local flood control problems 1930s droughts and floods

U.S. Federal Role in Waterway Transport Water Resources Development Context U.S. Federal Role in Waterway Transport 1824 – authority to clear snags and make improvements Canal building era to mid-1800s (states) Post Civil War – suction dredging, jetties 1885: 1st of 46 locks and dams on Ohio 1930s: Present system of locks constructed on Upper Miss, Illinois, Tennessee and other waterways 1950s: Construction starts on present-day higher lift locks on Ohio 1960s-70s: Navigation improvements to Columbia-Snake, Arkansas River 1985: Tenn-Tom Waterway completed 1994 – Present: Upper Mississippi River & Illinois Waterway Navigation Study 1824 – 1936: Nation Building Era of primarily Single Purpose Navigation Projects 1942 – Human Adjustment to Floods 1952 – Muddy Waters 1950s - droughts 1962 – Design of Water Resources Systems 1962 – Silent Spring 1960s – Drought in Mid-Atlantic, NAR Study 1969 – NEPA 1972 – Clean Water Act 1973 – Principles and Guidelines 1974 – Safe Drinking Water Act 1986 – WRDA ’86 Cost Sharing 1936 – 1986: Era of Economic Efficiency focusing on Multi-Purpose Projects 1969 – 1986: Era of Environmental Enlightenment, focusing on Multi-Objective Planning 1986 – Present: Beneficiary Pays Era, evolving towards Integrated Water Resources Management

National Strategy for the U.S. Marine Transportation System U.S. National Strategy Goal “The United States Marine Transportation System will be a safe, secure, and globally integrated network that, in harmony with the environment, ensures a free-flowing, seamless, and reliable movement of people and commerce along its waterways, sea lanes, and intermodal connections.” The National Strategy for the MTS, July 2008 U.S. Army Corps of Engineers Waterway Transport Mission “Provide safe, reliable, efficient, effective & environmentally sustainable waterborne transportation systems for movement of commerce, national security needs, & recreation.” USACE Civil Works Strategic Plan, March 2004 The problems are integrated, solutions are not. Management responsibilities for problems that are physically integrated in a river basin are fragmented by agency missions and political boundaries. The many disciplines required to analyze drought problems and develop and institute solutions are poorly coordinated.

U.S. Army Corps of Engineers Activities Water Resources Missions Primary Navigation Flood Control & Shore Protection Ecosystem Restoration Disaster Response & Recovery Allied Purposes Hydropower Environmental Stewardship Water Supply Recreation Regulatory Programs

United States Waterway Transport System Supporting Global Competitiveness 25,000 miles (41,600 km) of navigable waterways 1,000 harbor channels 360 deepwater & shallow draft harbors Connects 152,000 miles of rail & 45,000 miles of interstate highway 2.3 billion metric tons of trade 8.4 million seaport related jobs $2 trillion to economy Foreign trade 22% of Gross Domestic Product The problems are integrated, solutions are not. Management responsibilities for problems that are physically integrated in a river basin are fragmented by agency missions and political boundaries. The many disciplines required to analyze drought problems and develop and institute solutions are poorly coordinated. Global gateways & key liquid pathways to rest of US intermodal freight transportation system & the nation’s economic hinterlands

U.S. Inland Waterway System Columbia Snake Mississippi Illinois Missouri Arkansas White Ouachita Red Lower Tenn- Tom Blk Warrior Alabama ACF Tennessee Cumberland Ohio Kanawha Allegheny Monongahela Atlantic Intracoastal Waterway Gulf Upper Kaskaskia Green Ky Willamette Atchafalaya Pearl IWW Nearly 19,300 km 2.7m & Over 198 Lock Sites / 241 Chambers Moving Over 550 Million Tonnes ~2/3 Cost of Rail &1/10 the cost of Truck Okeechobee Our 19,200 km inland and intracoastal waterway network is a vital component of our national freight transportation system. This network depends on 198 locks, with 241 chambers, that provide the stair-steps to move cargo deep into the Nation’s interior – Pittsburgh, Chicago, Minneapolis, even Tulsa, Oklahoma, and Lewiston, Idaho. We estimate the replacement value of this infrastructure – if we had to rebuild it all today – would be in the neighborhood of $125 billion. This system handles over 544 million metric tons (tonnes) of freight annually, keeping this traffic off our overcrowded highways and railroads, and barges move this cargo at about 2/3rds the cost of rail and about 1/10 the cost of truck. Replacement Value $175+ Billion

And Waterway Characteristics Lock Sizes And Waterway Characteristics Variations in capacity by waterway... Lock sizes affect the capacities of different waterways. The Lower Mississippi is open river with no locks, and wide and deep channels, that can handle tows with 30, 40 or even 50 barges in a single unit. The 1200-foot locks on the Ohio generally handle 15-barge tows in a single lockage. 15-barge tows are common throughout the locked part of the U.S. Inland Waterway System. Common 15-barge coal tow at 366 m (1200’) lock on Ohio River Large mixed tows of over 30 barges are common on open water stretches of the Lower Mississippi River

U.S. Waterborne Commerce by Type of Traffic 2.6 Billion Tons (2006) 60% Foreign Trade / 40% Domestic Of Domestic: 61% Inland Waterway

Inland Waterway Commodities Share by Tons, 2006 Total 2006 Volume: 627 Million Tons Coal 29% Petro & Petro Prod 25% Chemicals 8% Crude Materials 19% Primary Manufactured 5% Food & Farm Prod 12% 2% All Others <1% Coal leads in tons Coal for Power Plants 209 million metric tonnes (230 million tons) annual 20 % of utility coal supplied by waterway U.S. waterways are very important to our power plants, many of which are deliberately located on the rivers in order to receive coal by water transport. Over 50% of the electricity generated in the U.S. is produced from coal. And about 20% of that coal moves along our inland waterways, on the Great Lakes, or in coastal shipments. This helps keep electricity cost down for U.S. industries and the general public.

Inland Waterway Commodities Share by Ton-Mile, 2006 Grain Exports Over 64 million metric tonnes (70 million tons) annually Over 50% of soybean and corn exports move by barge Farm leads in ton-miles Coal 22% Petroleum 15% Chemicals 10% Raw Materials 18% Primary Manufactured 9% Farm Products 26% Other <1% The waterways move freight for a reason. Someone is shipping something somewhere. And that means jobs and income. For farmers in the U.S. Midwest, it means low cost transportation for grain exports. It enables them to compete with farmers overseas for markets in Europe, Asia and around the world. U.S. Soybean exports to China depend on our inland waterways. So do U.S. Corn exports to Korea and Japan. That helps our trade balance, which needs all the help it can get. And low cost waterway transportation makes this trade possible. Total: 280 Billion Ton-Miles

Waterways Role in the Nation’s Economy Petroleum 327 million metric tonnes (360 million tons) annually between domestic points 21% of national total between reporting districts Waterways are also critical for the movement of petroleum. About 327 million metric tons (tonnes) of crude petroleum and petroleum products move on U.S. inland waterways and in domestic shipments around the coast (333 million tonnes in 2007). Many of our pipelines are at capacity and new pipelines are difficult to build in today’s environment. About 21% of domestic petroleum shipments between Department of Energy Reporting Districts move by water.

U.S. Ports & Harbors System Ports handling >10 million metric tons (2006) Anacortes Seattle Tacoma Two Harbors Portland Duluth/Superior Portland Boston Detroit Pittsburgh Chicago New York/NJ Richmond Indiana Hbr Lower Delaware River Cleveland Cincinnati Baltimore Oakland Most of this trade is handled by a few major ports in the nation. Across the country, some 57 harbors handle over 10 million tons of total traffic annually – domestic and foreign. 3 port areas handled over 100 million total tons in 2000 – South Louisiana – 218 million Houston – 191 million NY&NJ – 139 million About 90 percent of our foreign trade is handled through just 30 ports, based on cargo value. California ports handle about 13% of the nation’s waterborne foreign trade in terms of volume, but this figure jumps to about 33% based on cargo value. Newport News Huntington St. Louis Norfolk Los Angeles Long Beach Memphis Million Metric Tons Charleston Over 100 Baton Rouge Savannah Lake Charles Pascagoula Jacksonville 50 - 100 Houston Texas City Mobile Honolulu Tampa 25 - 50 Freeport Port Arthur Plaquemines Beaumont New Orleans 10 - 25 Valdez S. Louisiana Corpus Christi Port Everglades

Emerging U.S. Water Transport Challenges Aging Infrastructure Increasing Domestic & International Trade System Capacity Problems Constrained Funding Need for Integrated Solutions to Water Resources Challenges Navigation Systems Environmental Restoration Flood Management Water Quantity & Quality

Growing Freight Demand in U.S. Freight traffic expected to increase by 93% (2002-35) from 19 billion to 37 billion tons Intermodal increases by 101% Highway traffic grows 98% from 11.5 billion to 23 billion tons Rail grows 88% from 1.8 to 3.5 billion tons How will this cargo be moved? Roads: Little room left to expand, especially in urban areas Rail: mileage has been decreasing; much former right-of-way has been developed Rail capacity constraints in urban areas, tunnel clearances, single-track bridges

U.S. Inland Waterway Alternative More freight could shift to barge, if reliable EU promotes waterways as environmentally-friendly alternative to highways and rail Container-on-barge highly developed in Europe Examples in US: Columbia-Snake; Gulf Coast service; Coastal movements along Atlantic More in the future? Inland Container Barge Osprey Line 750 TEU Tow on Mississippi River

Modal Efficiency of Waterway Transport One 15-Barge Tow 1,050 Large Semi Tractor-Trailers 216 Rail Cars + 6 Locomotives A clear advantage of barge transportation is its capacity. A 15-barge tow is a common size on major waterways with locks (Ohio, Upper Miss, Illinois, Tennessee). Older barges drafting 2.7 meters can handle 1360 metric tons. Newer deeper barges that can handle loads of up to 1633 metric tons are being used increasingly across the system where depths permit. Today a fully loaded 15-barge tow can handle the equivalent of some 216 rail hopper cars – or 1,050 large semi tractor-trailer trucks. So every tow moving on the rivers is helping reduce the congestion, noise, safety hazards, and pollution from truck and rail. Source: Texas Transp Inst., 2007

Inland Waterway Transport Conserves Fuel Barge transportation is the most fuel efficient method of moving the raw materials needed by the nation. How far one gallon of fuel moves one ton of freight, average by mode… Truck: 155 Rail: 413 As well as being high capacity and low cost, barge transportation is also the most fuel efficient method of moving bulk cargo. It takes one gallon of fuel to move a ton of cargo 155 miles by truck, 413 miles by rail, and a very efficient 576 miles by barge. The metric equivalent of this is: It takes one liter of fuel to move a tonne of cargo 66 km by truck, 176 km by rail, and a very efficient 245 km by barge. Source: Texas Transportation Institute, 2007. Barge: 576 100 200 300 400 500 600 Miles Source: Texas Transp Inst., 2007

Integrated Water Resources Management Past development allows Inland Waterway projects to serve a variety of purposes Hydropower Flood Protection Environmental Restoration Water Supply Recreation There are other challenges – and opportunities -- we face in managing the inland waterways. Many of our projects are authorized for multiple purposes. So managing the needs for navigation must be balanced against the needs of other purposes including: Hydropower Flood Damage Reduction Environmental Stewardship and Restoration Water Supply And Recreation We work hard to manage projects so that these purposes compliment each other. But that isn’t always possible, and we increasingly find a need to seek compromises among the many stakeholders of these different waterway uses.

Contribution to Worldwide Initiatives IWRM approaches, including Inland Waterway Transport, can help developing nations to achieve MDG’s MDG 7 Ensure environmental sustainability Inter-linkage with other MDG ‘s MDG 1: Eradicate extreme poverty and hunger MDG 6: Combat malaria and other water borne diseases MDG 8: Develop a global partnership for development Phase VII will become operational from 2008 to 2013. It thus fits within the time frame of several worldwide initiatives, such as Millennium Development Goals (to be achieved by 2015). This situation creates an unparalleled opportunity for IHP to contribute to this worldwide effort by providing the services of the science of hydrology integrated with other fields of science to the requirements of the planet’s needs. Clearly there is a significant role for IHP to play in contributing to the achievement of the MDG. Ensure Environmental Sustainability is the primary one that IHP could contribute to, but in the proposed shape, IHP-VII would also contribute to others, such as....(1, 6, 8).

U.S. Waterway Transport - Summary Provides safe, reliable, efficient, effective and environmentally sustainable waterborne transportation systems for movement of commerce, national security needs, and recreation Inland navigation handles over 600 million tons per year and is vital to the Nation’s economy Many inland waterways in U.S. such as the Tennessee River, have been managed for multiple purposes including flood damage reduction, hydropower, water supply, environmental stewardship and recreation Multi-purpose management requires an integrated approach to balance competing uses and to ensure environmental sustainability Managed properly, inland waterways can contribute to Millennium Development Goals, including Eradicate Extreme Poverty and Hunger Ensure Environmental Sustainability Develop a Global Partnership for Development