Legislative/Regulatory

NWF Releases Waterways Benefits Study

A newly released study commissioned by the National Waterways Foundation (NWF) helps to identify the benefits of the inland waterways and its many users.

The study, “Benefits and Beneficiaries of the Nation’s Inland Waterways,” was completed by Eno Center for Transportation in Washington, D.C., and could be useful when speaking to Congressional leaders about the need for continued funding and infrastructure improvements, said Deb Calhoun, who serves as senior vice president of Waterways Council Inc. (WCI) as well as secretary for the NWF.

The foundation is the research arm of the inland waterways’ community. Much of its work focuses on the importance of the waterways to the nation.

“The whole mission of the foundation is to be able to provide peer-reviewed research that can support investment in the entire system,” said NWF Chair Cherrie Felder, vice president of Channel Shipyard. “The foundation works very hard to make sure we have accurate data.”

The NWF previously commissioned Eno Transportation to complete a study in 2022 titled “Waterborne Competitiveness: U.S. And Foreign Investments In Inland Waterways.”

The most recently completed study was an update of a 2011 study conducted by the University of Tennessee and commissioned by the Inland Waterways Users Board. Calhoun said it was important to the NWF to revisit and update the concepts explored in that 2011 study.

Felder said the study highlights the importance of investing in the system and modernizing it, and she noted the cost of such investment rises over time with inflations in materials and labor costs. Barge and towboat owners pay a 29-cent tax on every gallon of fuel purchased, with the proceeds going toward the cost of major construction and rehabilitation projects on the system.

While past efforts to revitalize and upgrade the system have largely been led by those involved in commercial shipping on the waterways, the study found there are other benefits in doing so, from providing industrial and municipal water supplies to agricultural irrigation, flood control, hydroelectric energy, tourism and recreation.

“We feel it’s important that everybody understands, not just the transportation folks, that there are other beneficiaries of the system,” Felder said.

The study identified 14 benefit areas derived from federal support for the inland waterways, grouped into the categories of economic development; energy and sustainability; and safety, security and resiliency.

Evidence of the importance of the waterways is seen in construction trends and waterfront property development as well, Calhoun said.

“Everybody wants to be by the water,” she said. “It’s such an important part of any city.”

Calhoun highlighted the recent construction boom in Nashville, Tenn., as an example. Felder added that developers in New Orleans have also considered proximity to the river in developing parks, recreation areas and entertainment spaces.

“The inland waterways system is an economic generator,” Calhoun said.

Kirbie Ferrell, policy analyst for Eno Center for Transportation, led the study. Eno is a nonprofit, nonpartisan think tank that focuses on transportation modes.

“I think people often think of the inland waterway system as something that is only beneficial for shipping,” she said, adding that she hoped the study would help clear up that misconception.

Researchers found that industries sometimes prefer to locate along waterways to have access to cost-effective transportation, Ferrell said. That was the case with U.S. Steel and its decision to locate a mill in Osceola, Ark., she said. That decision, in turn, has led to major investment in that community.

The rivers have made it more economical for farmers to get their goods to market, as well, Ferrell said, adding that the reach of the Mississippi near St. Louis is now known as the “ag coast of America.”

“We really tried to reiterate that the existence of this system is what makes our agricultural products competitive globally,” Ferrell said.

The rivers and lakes have also provided tourism opportunities, from cruise companies that specialize in scenic inland itineraries, either on day trips or overnight, to recreational boaters and kayakers and participants in fishing tournaments and the marinas, outfitters and other businesses that support them.

Ferrell mentioned development in the Quad Cities of Illinois and Iowa as an example of a region that has been able to make major use of tourism opportunities provided by their location in the Mississippi Valley. The cities now host the largest paddle event annually on the river.

Similarly, she said, building of locks and dams in western Kentucky to create Kentucky Lake, an impoundment of the Tennessee River, and Lake Barkley, an impoundment of the Cumberland River, controlled flooding in western Kentucky and northwest Tennessee and provided security in developing industrial and residential property. It also led to the development of the Land Between the Lakes National Recreation Area, which draws visitors from around the nation and stimulates local economies.

“This isn’t just critical for shipping,” Ferrell said of the investment in inland waterways infrastructure. “It’s critical for the livelihoods of so many Americans.”

The full study is available on the NWF website, www.nationalwaterwaysfoundation.org.

Featured image caption: A newly released study by Eno Center for Transportation, commissioned by the National Waterways Foundation, shows the many benefits and beneficiaries of the inland waterways system. Many businesses and industries are benefitted by locating along the waterways, and individuals enjoy living and recreating along them. This has led to construction booms in some areas, such as along the Cumberland River in Nashville, Tenn. (Photo by Shelley Byrne)