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America’s Inland Barge Industry A Plan for the Future

America’s Inland Barge Industry A Plan for the Future. Presented to the Coastal Issues Conference March 12, 2004 Corpus Christi, Texas Raymond Butler Executive Director Gulf Intracoastal Canal Association. GIWW… A Brief History. Born in Victoria, 1905 Congress expanded, 1925-1942

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America’s Inland Barge Industry A Plan for the Future

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  1. America’s Inland Barge IndustryA Plan for the Future Presented to the Coastal Issues ConferenceMarch 12, 2004Corpus Christi, Texas Raymond ButlerExecutive DirectorGulf Intracoastal Canal Association

  2. GIWW… A Brief History • Born in Victoria, 1905 • Congress expanded, 1925-1942 • Sabine/Corpus 100' x 9', 1941 • Completed 426 miles x 125' x 12', 1949 • St. Marks/Brownsville, 1300+ miles

  3. Truly a Silent Giant • Inland transportation in US: $3 billion/year • UPS is 7 times as large: $20 billion/year • You’re in the “towing business?” • America’s 26,000 miles of inland waterways: • move 600 million tons/year. • indirectly involve 800,000 jobs. • transport $100 billion in interstate trade.

  4. GIWW Commercial Growth

  5. GIWW Tonnage

  6. Comparing Modes • Each transportation mode satisfies specific needs in carrying American goods across the country and around the world. • Each mode has distinct advantages over others in certain areas. • Comparisons are not made as criticisms, but rather to highlight the specific advantages of waterway transportation as an alternative.

  7. Comparing Modes • Barge transportation delivers significant economic and environmental advantages when moving large quantities of bulk commodities over long distances, including: • fuel-efficiency. • environmental benefits. • safety.

  8. …with the Greatest Cargo Capacity • The cargo capacity of a standard inland barge: • = 15 railcars • = 60 trucks

  9. …with theGreatest Cargo Capacity • A 60,000 bbl. two barge tow: • = 80 railcars • = 300 trucks

  10. …with theMost Miles Per Gallon • Barge transportation is the most fuel efficient method of moving the raw materials needed by the nation.

  11. …with the Lowest Freight Costs • Barges move 16% of domestic intercity freight for 2% of the total cost. • Barges save shippers and consumers over $7 billion annually, compared to competitive modes. • Transportation costs make up as much as 25% of the cost we pay for goods.

  12. Barges areEnvironmentally Friendly • Barge transportation produces the lowest levels of emissions in three categories. Source: EPA EmissionControl Lab

  13. Barges are Safe • Barges cause the fewest injuries and deaths. Death and Injury Rates by Mode (per billion ton miles) Source: Haulk: Allegheny Institute Report # 97-04 *Truck deaths include only truck occupants

  14. Without the Waterway… • Traffic congestion will increase with more trucks on the roads and trains on the railways. • There will be an increased risk for traffic injuries and deaths. • More fuel will be consumed and more pollution produced. • Higher freight costs will be passed on to the consumer.

  15. Without the Waterway… • Visualize: • 900 tank trucks • 225 rail cars

  16. How Much More Traffic? • To move domestic waterborne commerce by truck would require 41 million more truck trips.

  17. How Much More Fuel? • To move domestic waterborne commerce by truck would require 9.9 billion more gallons of fuel.

  18. How Much More Pollution? • To move domestic waterborne commerce by truck would mean an additional 7.8 billion pounds of pollutants in the air each year.

  19. Waterways are the Solution! • Both Europe and Japan have formal programs to shift freight transportation TO waterways to improve the environment and relieve highway congestion. “Transport by inland waterway is still a greatly underused option. Nevertheless it has big advantages: it is kind to the environment, very safe, economical on non-renewable energy resources and helps relieve the pressure on the overcrowded road networks of north-west Europe. As a result it is ideally suited to further the objective of sustainable mobility, a priority of the EU’s common transport policy” Visualize 3360 trucks

  20. Waterways are the Solution!

  21. Valuing the Inland Waterway System • The value of waterway transportation is based on its low cost. • Barges move 16% of domestic intercity freight for less than 2% of freight costs • Barges save shippers over $7 billion annually on products shipped by barge. • Texas shippers, their customers and suppliers save $1.5 billion. • Missouri: $14 million • Illinois: $45 million • Ohio: $29 million

  22. St. Paul Sioux City Pittsburgh Chicago Cincinnati Charleston St. Louis Tulsa St. Marks Houston Mobile New Orleans Corpus Christi Brownsville Valuing the Inland Waterway System 12,000 miles of navigable waterways link America’s heartland to the world.

  23. St. Paul Sioux City Pittsburgh Chicago Cincinnati Charleston St. Louis Tulsa St. Marks Houston Mobile New Orleans Corpus Christi Brownsville Valuing the Inland Waterway System • Texas and Louisiana account for 80% of total US chemical and petro-chemical production.

  24. St. Paul Sioux City Pittsburgh Chicago Cincinnati Charleston St. Louis Tulsa St. Marks Houston Mobile New Orleans Corpus Christi Brownsville Valuing the Inland Waterway System • The sugar industry in the Rio Grande Valley would not exist without barge transportation.

  25. Insuring it Continues • A partnership between: • US Coast Guard • Army Corps of Engineers • Industry Associations • AWO • TWOA • LAWS • GICA

  26. Thank You

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