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EDITORIAL

Failure To Fund Lock Maintenance Spells Trouble

As a preface to this column, we highly recommend readers turn to our May 7 issue and reread details on why and how the Red River unscheduled lock closure cost millions. As the article reported, “The failure was directly related to funding cuts that didn’t allow proper maintenance, according to Barry Sullivan, a Vicksburg Engineer District ‘debris mission manager.’”

For decades the WJ has been emphasizing that many river locks are beyond their design age and that critical failures would be costly. The U.S. Army Corps of Engineers was aware of the needed preventative maintenance for the Lindy C. Boggs Lock and Dam 1 (closed April 2 through April 17), but funding for the activity was not available. It is one of the perplexities of life that congressional delegates cannot grasp the simple theorem that warns if we fail to maintain navigational structures, particularly old ones, they will eventually break down. Why is that so hard to understand? Cars break down. Roadways wear out. It has been a Corps procedure, when money was available, to schedule maintenance in a sensible manner that allowed shipping companies and customers to plan ahead.

We are talking about a national navigational system that feeds the economic well-being of the country and also plays a major role in the president’s goal of expanding exports. In a sense, railroads and waterways have something in common. If there is a major disruption in the line of advance, the entire line (or river) is shut down. You might lay an emergency track around a bad spot on a rail line, but you cannot do that to a navigational facility. Costly cargos that have already moved hundreds of miles on the river may be tied up bankside if the delay is expected to be short, or transferred to other modes if the delay is long. In any case the costs rise dramatically and fast.

The unnecessary costs resulting from an unscheduled lock closure like the one on the Red River will run into the many millions of dollars. One operator there already has run up costs topping a million. Other high costs difficult to estimate are incurred.

What is excruciating and maddening is that Congress has been warned so long about potential dangers of mismanaging river maintenance that they seem to have adopted the “sky is falling” attitude. Do they think of those of us in the maritime industry as Chicken Littles? The problem is that we are talking genuine dangers and genuine high costs to shippers and transporters when failures occur. Closures do occur unexpectedly due to accidents, to be sure, but that is typical of all transport modes. We prepare for the worst and hope for the best. But to short-circuit vital maintenance activity due to lack of funding is preposterous. Congress should eliminate some questionable earmarks and transfer the funds to river maintenance. Failure to prioritize what is important to our country is, unfortunately, a grand attribute of Congress these days.

It is unfortunate that there are far too few congressional delegates who understand what a key role water transportation plays in the nation’s well being. The administration pays lip service to that role but fails then to finance the work that needs to be done. And while the waterway system deteriorates further, nations around the world express puzzlement over how we can ignore such an important mode of transportation that not only is less costly but more environmentally friendly. Nations everywhere are promoting waterway use to reduce highway traffic, thus improving safety and reducing emissions problems. While they progress, we continue to deteriorate.

The failure of our government to support the dredging necessary on the Lower Mississippi (and elsewhere) also has cost millions. Unfortunately, though there was a taxing system set up to finance river maintenance and dredging, the administration would not allow sufficient funds to be used for sensible dredging. In other words, our problems are not due to fits of nature or worn-out facilities as much as the failure of government to adhere to a sensible maintenance program, a goal maritime leaders have sought for decades.

It is clear how bad the problem is on the Red River. Our readers are too knowledgeable to have to read repetition of those explanations here. Instead, let us emphasize again that waterways not only help us move cargo cheaper, but they offer ongoing potential for business growth. Evidence of that is apparent in the marine highway program. However, in any location on any navigable river where there arises a need for water transportation, there is a potential for companies to locate terminals and further serve business operations in the area. There are potential builders and operators on the Missouri for example. The same is true elsewhere.

Waterways, if we can be so bold, represent a natural gift to the people of our country. They were important in the westward movement and remain important today in moving vital cargoes that for various reasons cannot be moved by other modes. A total shutdown of waterways would cause a national heart attack!

Congressional delegates should consider seriously what havoc would be reaped upon our nation if our waterways were allowed to fail, thus causing serious damage to our import/export programs. If we were in their shoes, we would find that possibility scary. We are not finished with the Lindy C. Boggs Lock and Dam problem. Upon attempts to reinstall the repaired gate that had failed, additional problems occurred. A final solution to the new problems was (at last word) still being considered. But the lock was put back into operation long enough to pass traffic.

Weekly News Summary For May 14–20, 2012:

Exports Leading Way For Grain, Coal

Despite the continuing economic slump at home and in Europe, rising prosperity and demand in overseas markets, especially Asia, are fueling an export boom in the U.S. that is reshaping our economy and movements on our transportation network—including the waterways. That makes funding improvements to them more critical than ever, said speakers at the Inland Rivers Ports & Terminals conference in St. Louis, Mo., on May 1-4.

Bill Paape, director of the Inland Waterways Gateway Office of the Maritime Administration, a department of the U.S. Department of Transportation, opened the May 3 session with a description of President Obama’s budget request for MarAd of $344 million—an amount that includes increases of $4.5 million for ship disposal (for a $10 million total) and for running King’s Point, the federally chartered national Merchant Marine Academy, as well as $186 million to buy usable ships for the ready reserve fleet. MarAd contributes about $10 billion a year to the national economy, according to Paape. MarAd’s current loan portfolio stands at $2.3 billion, covering 263 vessels, said Paape.

In addition, MarAd is spending $276 million on port projects, 13 of which are underway, he said. The fourth TIGER grant program is also underway.

Paape praised the Small Shipyard Grants program, which has distributed $153 million to shipyards in its four-year history. It has sometimes been left out of administration budget requests, but has always, so far, been restored by Congress.

Paape said that environmental challenges “go to the heart of [MarAd’s] long-term sustainability,” and mentioned studies it is conducting on the feasibility of liquid natural gas (LNG) fuels for Great Lakes vessels and towboats.

Ed Ide, general manager of Consolidated Grain & Barge (standing in for scheduled speaker Greg Beck, CGB vice president), gave an overview of the U.S. grain market, where growing exports make up much of the story. China has gone from importing no soybeans in 1999 to importing 60 million tons last year, much of it from the U.S….
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GNOBFA Celebrates 30th Anniversary Of Growth, Service

The annual seminar of the Greater New Orleans Barge Fleeting Association (GNOBFA) drew a record crowd of more than 450 people, who consumed more than 100 New Orleans “king” cakes on the first morning alone. So many attended that for the first day’s events, screens had to be set up in a “satellite room” for the overflow crowd. It was a satisfying tribute for the event’s 30th anniversary, held as usual at the InterContinental Hotel in New Orleans on April 25-27.

Karl Gonzales, executive vice president of Gulf South Marine Transportation Inc. and the longest-serving president of GNOBFA (1997–2012), opened the first day’s events by surveying the many changes to the inland marine industry, and to GNOBFA, over the past 30 years. Top among those changes have been the new inspection regime of the Subchapter M revision; Gonzales noted proudly that between 68 and 75 percent of the New Orleans towing fleet has inspection stickers today.

Gonzales noted that GNOBFA was founded with only 50 member companies; the first GNOBFA seminar (held several years after the organization’s founding) registered 186 people representing 68 member companies—of which 42 have since gone out of business. This year, more than 600 registrants took part. Attendance has doubled in the past five years alone.

The growth has led to changes in the organization’s governing committee, with a new executive committee formed three years ago. Last year, the positions of co-seminar director and co-moderator were added, in recognition that managing the complex event had outgrown its staff. Maurice and Marc Hebert, of Jones, Walker, Warchter, Poitevent, Carrère & Denegre LLP, were appointed seminar co-moderators. Thomas Grantham and Alan Savoie were appointed seminar co-directors. The seminar will continue offering continuing education credits for attorneys.

Presiding spirit Maurice Hebert Jr., who also happened to be celebrating his own 75th birthday, remembered in his opening remarks first being approached by Greg Derbes, one of the early presidents of GNOBFA (1982). Derbes (who has since retired from the marine industry and today operates a computer services shop called Geezer Geeks in Baton Rouge) came forward for special recognition. He said the organization’s growth and needs, even then, resulted in a “perfect storm” that caused him to approach Hebert with an idea for a seminar on industry concerns….
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Corps Speeds Up Carp Plan Release

The U.S. Army Corps of Engineers announced May 8 that it would speed up the release of its report on ways of protecting the Great Lakes against Asian carp and other invasive species to 2013, two years earlier than previously announced. The report, called the Great Lakes Mississippi River Interbasin Study (GLMRIS), will include preliminary estimated costs and mitigation requirements for each protective option.

Many environmental groups and some members of Congress had complained that 2015 was too long to wait for the report, and the Corps acted ahead of bills now in Congress that would have forced a sped-up release. Five states also have a pending lawsuit to force the Corps to speed up the release of GLMRIS.

In the Water Resources Development Act of 2007, Congress directed the Corps to evaluate the options and technologies available to prevent aquatic nuisance species such as Asian carp from transferring between the Great Lakes and Mississippi River basins.

“The Army Corps of Engineers understands and appreciates the importance of continuing with GLMRIS, and preventing aquatic invasive species from reaching the Great Lakes,” said Jo-Ellen Darcy, assistant secretary of the Army for civil works. “This optimized schedule will allow for public engagement earlier and collaboration with Congress to determine viable alternatives.”

Thom Cmar, an attorney with the Natural Resources Defense Council, told the Chicago Tribune, “All the Corps is saying here is that instead of continuing to slowly study everything, including things it should know already won’t work, it’s only going to slowly study a shorter list of options that might work.”…
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Phase 2 Of Bridging Program Begins July 1

The Coast Guard announced May 8 that it will begin Phase 2 of the Towing Vessel Bridging Program July 1. Phase 2 consists of conducting prioritized examinations aboard towing vessels that have not undergone voluntary examination during Phase 1.

To date, 2,887 towing vessels, or about 75 percent of the total that operate in the Eighth Coast Guard District, have participated in the program, the agency said. Coast Guard examiners have issued more than 2,400 safety decals, conducted more than 3,000 examinations and verified corrective action on more than 1,600 deficiencies.

“Our goal is 100 percent participation,” said Michael White, towing vessel specialist for the Eighth Coast Guard District, who oversees all the Coast Guard’s towing vessel activities for 26 states, including, 1,200 miles of coastline and 10,300 miles of inland navigable waterways. “We will be aggressively seeking out vessels that have not received an examination during Phase 2 of this program.”

There are more than 900 vessels operating in the district’s area of responsibility that have not yet participated in the program.

On June 12, 2009, the Coast Guard partnered with the towing vessel industry and American Waterways Operators to develop and initiate the Towing Vessel Bridging Program. Its primary purpose is to better prepare both the Coast Guard and the towing vessel industry for a new inspections regime under pending Subchapter M regulations….
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Corps Cuts Ouachita-Black Lock Services

Is the federal government preparing to decommission the navigation system on the Ouachita and Black rivers?

That’s the fear of local leaders, after the Corps of Engineers announced that beginning July 29, it will reduce hours of operation on the Ouachita-Black river system locks about a third from the traditional 24-7-365 timescale, due to funding cuts.

That decision came despite the strong opposition of the Ouachita River Valley Association, the Arkansas Waterways Commission, and local businesses dependent on the river in one way or another, some of which would have to relocate or close.

The announcement was posted at ORVA’s Web site at www.orva.org. ORVA’s position, stated during February and March informational meetings with the Corps, is that any reduction in service is “unacceptable.” The latest Obama administration budget has cut operational funding for the Ouachita system by about 30 percent, to $7.5 million. Bill Hobgood, executive director of ORVA, told the Star City, Ark. News Star on April 8, “We think it will be the beginning of the end of navigation on the Ouachita. It’s unimaginable.”

The locks and dams affected are the Jonesville (No. 22), the Columbia (No. 43) and the Felsenthal (No. 55), all on the Ouachita River. The Corps’ current guidelines require locks to move 5 million tons of cargo or more a year to maintain 24-hour service. Jonesville, the busiest lock on the system, moves just under 1 million tons a year….
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