The Value of IWW Tributaries Jim Kruse Center for Ports and Waterways September 25, 2003
Jan 06, 2016
The Value of IWW Tributaries
Jim KruseCenter for Ports and Waterways
September 25, 2003
Tributary (non-Main Stem) Waterways
Multi-tasking on Steroids!
Navigation
Recreation
Economic
Development
HydropowerIrrigation
Water Supply
Flood Protection
Don’t be Hasty!
ONCE YOU CLOSE
IT,YOU’LL NEVER
REOPEN IT!!!
How would you respond?
“…18 of the Inland Waterways System’s 29 segments move less than three percent of the nation’s barge traffic while consuming more than 30 percent of the system’s Operations and Maintenance costs”
Scott Faber, American Rivers, in testimony before the Senate Committee on Transportation and Infrastructure,
May 16, 2000
“Value”
Question: Is this a good public investment decision?
• A higher O&M ratio a bad investment decision
How, then, should we value the waterways?
The Ton-Mile Flaw
10 highest waterways are 97% of system ton-miles, next 18 are 3%
If you close these 18 down, it only affects 3% of the system traffic, right?.....
More Than You Think
Wrong!?%! These “non-mainstem”
waterways generate 15% of the system total.
99% of the t-m and 73% of the tons by waterway are for trips with O/D’s not on that waterway
Effect on the System
Effect on System Ton-Miles(95-99 Average)
0
1000
2000
3000
4000
5000
6000
Waterway
T-M
(m
illi
on
s)
WW T-M
System T-M
One GOOD Assumption
Whatever is moving on the waterway now will still have to go from Point A to Point B somehow…
Nothing’s Cheaper!
Cost By Mode
0.97
2.53
5.35
0
1
2
3
4
5
6
1 2 3
Co
st P
er T
-M (
cen
ts)
We save close to $1.5 billion annually in
transportation costs because of “non-mainstem”
waterways!
A million here, a million there….
Per TVA, savings range from $6.92/ton to $29.65 per ton (1999)
Tons Savings Ratio of
(mill) ($ mill) Savings/O&M
Green 6.4 48.10 26.86
Missouri 7.9 7.80 7.19
TennTom 8.2 86.10 6.35
Red 2.3 10.50 2.79
Kaskaskia 0.8 6.60 3.45
Allegheny 3.7 33.10 3.33
Ouchita/Black 1.5 18.10 2.80
White 0.5 4.90 2.58
Alabama 0.7 7.60 1.33
ACF 0.5 7.10 0.92
Kentucky 0.3 1.90 0.58
Total 231.80
Average 5.29
(1995-1999 Averages)
No Gas Guzzlers Here!
Fuel Conservation
514
202
59
0
100
200
300
400
500
600
1 2 3
T-M
per
gal
lon
Tributaries save > 12 mill bbl per year vs. trucks
34 bill system t-m
1,575 4,008 13,721
= 000’s of bbls consumed
You Just Think Life’s Expensive!
Nationwide, shifting all waterway ton-miles to RAILROADS would cause the nation’s freight bill to rise $5 billion (Trucks???)
Federal spending on the inland navigation system = $732 million
From: Paper by Jake Haulk, National Waterways Conference, Houston, TX 1997
Non-monetary “Value”
Regional development opportunities Multipurpose uses Reduced noise pollution What pollution there is, it’s primarily in
remote areas Human Exposure Index
Death and Injury
Death rates:• Barges - 0.01 deaths per billion t-m• Trucks - 0.84• Railroads – 1.15
Using 34 bill t- m:• 0.34 will die on barges each year• 28-29 will die on highways• 39 will die on railroads
Accident rates:• Barges – 1 per 600 mill t-m (0.09 injuries/btm)• Railroads – 1 per 257 mill t-m (21.77 injuries)• Trucks – 1 per 16 mill t-m (?? Injuries/btm)
How Long is Long?
15 barge tow = ¼ mile 15 barge tow = 2¼ unit trains = 2.75 miles 15 barge tow = 870 trucks = 34½ miles
(assuming 150 ft between trucks)
Using 93 million tons of cargo: Approx. 3,099 miles of barges
(assuming ½ mile separation) Approx. 11,367 miles of trains Approx. 142,600 miles of trucks
Other Savings/Ton
Pounds of Emissions Per Thousand Ton-Miles
Mode Hydrocarbon Carb Mon. Nitrogen Oxide
Barge 0.09 0.20 0.53
Rail 0.46 (5x) 0.64 (3x) 01.83 (3x)
Truck 0.63 (7x) 01.90 (9x) 10.17 (19x)
Nation’s Defense
Active duty Army units moved equipment down Ohio and Mississippi Rivers to Alexandria, LA (Red River) for exercises at Ft. Polk
Units in Ft. Campbell, KY moved heavy equipment to Belize via Tennessee River and Tenn-Tom WW to Mobile and then across Gulf to Belize
• Easier to load/unload than rail (Drive on/drive off & don’t have to drain fuel or partially disassemble equipment)
• Barge system can adapt to specialized movements easier than rail
Why do People Know so Little About the Barge Industry?
BECAUSEIT INTERFERES SO LITTLE WITH
THEIR LIVES!!!!
Assumptions for Closing a Waterway
1. This cargo will continue to move, just by other means (increase in cost won’t terminate business)
2. Other avenues for cost-effective shipments exist
3. Rates for other modes won’t change4. There is a better way of developing
long-term economic advantage
Don’t Ignore the Cost
Effect on fish and wildlife populations Water quality Shoreline erosion Recreational value/scenic beauty Habitat degradation Water turbidity Flooding issues
Pay Attention!
Let’s not lose all the benefits of the inland waterways because we did not deal with its disadvantages responsibly….
Balance!
Recognize the Value
Deal with the Impacts
It’s Been a Pleasure!