The Importance of Our Nation’s Waterways

Presented to Congressional Waterways Caucus

Jim Walker HQUSACE22 July 2009

Corps Navigation Mission Provide safe, reliable, efficient, effective and

environmentally sustainable waterborne transportation systems for movement of commerce, national security needs, and

recreation.

Marine Transportation System

• USACE maintains 25,000 miles of waterways– Over 900 projects and 13,000 miles of channels– 12,000 miles inland/intracoastal and 241 nav locks

• Coastal ports serve 28 states and inland waterways serve 38 states

• Inland and Intracoastal waterways connect our ports to interior markets

Marine Transportation System• More than 95% of overseas trade moves through

our ports• Over 25% of Nation’s economic activity depends

on foreign trade• U.S. maritime industry supports nearly $1 Trillion

in commerce, creates more than 13 million jobs, and handles more than 2.3 billion tons of commerce

• Most US jobs depend in one form or another on the flow of goods through our ports and harbors

Ports: Vital to Trade and US Economy

MillionTons

Over 100

50 - 100

25 - 50

10 - 25

Houston

Corpus ChristiS. Louisiana

New Orleans

Baton Rouge

Texas City

Lake Charles

PlaqueminesTampa

New York/NJ

Valdez

Long Beach

Beaumont

Norfolk

Lower DelawareRiver (9 harbors)

Duluth/Superior

Los Angeles

Port Arthur

St. Louis

Portland

Seattle

Freeport

Huntington

Richmond

Oakland

Tacoma

Boston

Newport News

Port Everglades

Jacksonville

Memphis

Detroit

Cleveland

SavannahCharleston

Indiana Hbr

Cincinnati

Portland

Two Harbors

Anacortes

Honolulu

Chicago Pittsburgh

Baltimore

Pascagoula

53 harbors – coastal, inland, Great Lakes - handled over 10 million tons each in 2007…

Toledo

Mobile

New Haven

Matagorda

Presque Isle

Kalama

Barbers Pt

San Juan

Goods to Market or ‘Ships to Shelves’ Export Import

18% 47% 36%

Cargo Value and Cost

Coastal Inland

• Tons 1.7B 622M

• Cargo Value $340B $98B

• USACE funding $1.01B $866M

Inland Nav Commodities

Total 2007 Volume: 622 Million Tons

Coal29%

Petro & Petro Prod27%

Chemicals8%

Crude Materials18%

Primary Manufactured

4%

Food & Farm Prod13%

Manufactured1%

All Others<1%

Total 2007 Volume: 622 Million Tons

Coal29%

Petro & Petro Prod27%

Chemicals8%

Crude Materials18%

Primary Manufactured

4%

Food & Farm Prod13%

Manufactured1%

All Others<1%

Coastal Nav CommoditiesPetro

Coal

All Others

Food & Farm

Primary ManuGoods

CrudeMaterials

Chem & RelProd

Economic Benefits Navigation Benefits are Transportation cost

savings and fall under 2 categories:National Economic Development benefitsRegional or local benefits

Transportation cost savingsEconomies of scale (coastal)Transportation rate savings (inland)

Benefit/Cost Ratio• Oakland Harbor 8.5• Greenup Lock 4.6• NY/NJ Deepening 2.7

Performance• Inland: Unscheduled Lock Closures

– Greater than 24 hours due to mechanical breakdowns

– Trend: Unscheduled closures increasing– Impact: Threatens reliable delivery of product

• Coastal: Channel Availability– Half channel width on High Use projects– Trend: Channel availability decreasing– Impact: Efficiency loss, cost per ton increase

Navigation Trust Funds• Coastal: Harbor Maintenance Trust Fund

– Ad valorem tax, 0.125% of cargo value– Reimburse 100% of Operation and

Maintenance – Revenue: $1.6B, Appropriated: $700M– Projected FY09 ending balance: $5.4B

Navigation Trust Funds• Inland: Inland Waterways Trust Fund

– Fuel tax, $0.20 per gallon– 50% of Construction and Major Rehab– Revenue: $85M, Appropriate: $85M

Marine Transportation

• Keeping America’s goods globally competitive

• Cost Effective

• Fuel Efficient

• Environmentally Friendly

• Capable of increased use Osprey Line Baton Rouge, LA