1. Inland Waterways Challenges 1

2. Campbell Transportation Company, Inc. and C & C Marine Maintenance Company

3. Our Market PITTSBURGH CHICAGO CINCINNATI LOUISVILLE ST. PAUL KNOXVILLE NEW ORLEANS TULSA MOBILE KANSAS CITY MEMPHIS BIRMINGHAM HOUSTON CHARLESTON BALTIMORE NEW YORK BOSTON TOLEDO UPPER MISSISSIPPI SYSTEM LOWER MISSISSIPPI SYSTEM MISSOURI RIVER ILLINOIS RIVER OHIORIVER OHIO SYSTEM MON RIVER ALLEGHENY RIVER TENNESSEE RIVER TOM-BIGBEE WATERWAY BLACK WARRIOR RIVER MISSISSIPPI RIVER ARKANSAS RIVER WHITE RIVER CAIRO ST. LOUIS METROPOLIS Our Market Key CTC Coal Origins: CTC Aggregate Origins:

4. CTC’s Ability to Service our Market Private independent vertically integrated company Develop customized transportation solutions Full service – entire Ohio River About 20 million tons of coal, limestone, salt, cement, aggregates, steel and liquid products 37 boats and 500 barge well maintained fleet Multiple other services Over 400 highly trained people

5. Huntington – Ceredo – Big Sandy Kanawha Pittsburgh Upper Ohio River Strategic Locations Ohio River Mon River Allegheny River Key BDI locations: Coal areas: CTC Point Pleasant (267.0) CTC Dunlevy (MR 44.3) C&C Clairton (MR 18.5) CTC Pittsburgh (0.3) C&C Georgetown (38.5) Ohio Kanawha River CTC Huntington (309.5) Big Sandy River CTC Visco (43.0) CTC Old Lock 4 (18.4) C&C Wellsburg (74.8) C&C Dillie Bottom (104.0) CTC Neville Island (5.4) C&C Congo (47.4) Houston, PA

6. Transporting freight by water is also the most energy-efficient choice. Barges can move one ton of cargo 576 miles per gallon of fuel. A rail car would move the same ton of cargo 413 miles, and a truck only 155 miles Advantages of Inland Waterways Transport: Moving Freight Efficiently Throughout America Ton-miles Traveled per Gallon of Fuel 576 413 155

7. Advantages of Inland Waterways Transport: The Greener Way to Go Inland barges produce less carbon dioxide while moving America’s cargoes In terms of CO 2 produced per ton of cargo moved, inland barges have a significant advantage over trains and trucks. Tons of CO 2 per Million Ton-miles

8. Advantages of Inland Waterways Transport: One 15-Barge Tow Equals 216 Rail Cars or 1,050 Trucks One 15-Barge Tow 216 Rail Cars + 6 Locomotives 1,050 Large Semi Tractor-Trailers

9. We need to Invest in Inland Waterways Infrastructure Inland Waterways Transportation Fuel Efficient Environmentally Friendly Reducing Congestion Simple Message, Right?

10. Inland Waterways Trust Fund Year-End Balances 1992 - 2009

11. Capital Development Plan History “Find a Solution to IWUB Trust Fund” IWUB working closely with the USACE Two year collaborative effort Joint development with Industry 50% of cost overruns out of IWTF

12. Current Projects Over Budget Olmsted Lock & Dam $775 million Original Estimate 1988 $387.5 million Industry Share from IWTF $2 billion Current Estimate $1 billion Industry Share from IWTF

13. Lower Monongahela Locks & Dams 2, 3 & 4 Some Projects Consistently Underfunded $1.2 b needed to Complete this Project $6.2 m Appropriated in 2010 $2 m in House & Senate Bills for 2011

14. History (continued) Taking longer and costing more than past $0.20/gallon deal with Government ? We did our share Review case studies 1/3 funding; 2/3 changes, omissions and changed conditions

15. Plan Development July 2008 start new business model Meetings/calls/analysis over 18 months Multi-dimensional issue and solution Fix project delivery system, dimension and prioritize needs, develop investment program over 20 years and decide how to fund with protections and incentives

16. Funding Mechanism  Maintains the existing 50% industry/50% federal cost sharing formula for new lock construction - $380MM/year over 20 years  Maintains the existing 50% industry/50% federal cost sharing formula for major rehabilitation projects at locks costing $100 million or more  Repairs to existing locks costing less than $100 million are 100% federally funded  Dam construction and repair projects are 100% federally funded  The industry cost share of individual projects would be capped at original cost estimate plus an inflation factor plus other agreed upon costs  The 20 cents per gallon tax on fuel currently paid by the barge and towing industry would increase between 30% and 45% (6-9 cents/gal)

17. The Result – The Plan 25 vs. 6 projects to be competed in 20 yrs 12/2009 IWBU outline review 4/13/2010 unanimous approval IWUB Delivery to ASA and every member of Congress

18. Projects Funded Under Current System New Construction –Olmsted—$136 million in FY11 ($700 million more to complete by FY19) –Kentucky Lock—$2.868 million in FY11 ($400+ million to complete by FY29) – Lower Monongahela River Locks & Dams 2, 3 & 4— $2 million in FY11 ($1.1+ billion to complete by FY23) –Chickamauga—$0 in FY11, restart in FY22 & completed in FY25 –IHNC Lock in New Orleans—$0 in FY11, restart in FY29 & completed in the 2040’s –NO OTHER NEW STARTS UNTIL AFTER FY 2040! Rehabilitation –Emsworth Dam—$11.5 million ($4.1 million more to complete by FY13) –Upper Mississippi Lock 27—$350,000 ($17+ million to complete the project)

19. Construction Projects Funded Under Inland Waterways Capital Development Plan –Chickamauga Lock complete in FY15 –Olmsted Lock complete in FY19 –Kentucky Lock complete in FY19 –Lower Mon 2, 3 & 4 complete in FY23 –Upper Mississippi River Lock 25 complete in FY19 –High Island to Brazos River, TX start FY13, complete FY15 –LaGrange Lock start FY17, complete FY24 –IHNC Lock in New Orleans start FY21, complete FY28 –Greenup Lock start FY22, complete FY27 –Upper Mississippi Lock 22 start FY22, complete 2030’s –Upper Mississippi Lock 24 start FY24, complete 2030’s

20. Rehabilitation Projects Funded Under Inland Waterways Capital Development Plan –Emsworth completed FY13 –Markland completed FY11 –Upper Mississippi Lock & Dam 25 completed FY14 –Lower Monumental Lock & Dam completed FY13 –O’Brien Lock start FY13, complete FY15 –Greenup Dam start FY13, complete FY18 –John T. Myers start FY16, complete FY16 –Meldahl Dam start FY15, complete FY19 –Montgomery Dam start FY16, complete FY23 –Mel Price Lock start FY23, complete FY23 –Arkansas River Lock 2 start FY24, complete FY25 –Joe Harden Lock start FY24, complete FY24 –Willow Island Lock & Dam start FY26, complete FY29 –Marmet Lock & Dam start FY27, complete FY29 –Upper Mississippi Lock 22 start FY30, complete FY30

21. Road Ahead Await official administration position 200+ organizations support plan US Chamber of Commerce, National Association of Manufacturers, Audubon Society, Corn Growers, American Land Conservancy, Union locals of Operating Engineers, Regional Council of Carpenters and many others

22. Road Ahead Progress has been made Eliminated lockage fee We have a comprehensive solution Testimony to House and Senate Editorial support 20 senators have signed letter to EPW Probably won’t be enacted now Politics problematic D’s and R’s

23. We in the United States Just Don’t Get It! Infrastructure is crumbling Lockage fee proposals (triple the taxes) The Sierra Club and Isaac Walton League just a couple of months ago called for deauthorization of lock improvement projects on the upper Mississippi and Illinois Rivers Great Lakes States are suing to force the permanent closure of locks in the Chicago area which would eliminate any movement of waterborne commerce between the Rivers and the Great Lakes The Harbor Maintenance Trust fund has a $5 billion surplus yet we can’t get our ports and waterways dredged to their authorized depths

24. How do We Convince Congress to Invest in Inland Waterways Infrastructure? We’ve Got a Great Story to Tell...

25. Our TV Message...

26. 26 www.waterwayscouncil.org www.barges.us