1.0 Introduction and Methodology

The U.S. marine transport system contributes over $500 billion to the gross domestic product (GDP) and is responsible for approximately ten million jobs, directly and indirectly, throughout the country.1 The system includes coastal, blue-water, and inland ports as well as the supporting infrastructure, including lock and dam systems, that enable commercial and recreational activities.

The inland waterway component of this system is a critical backbone of the maritime network. Domestic shippers and exporters move over 500 million tons of construction, energy, manufacturing, chemical, and agriculture products annually.2 Inland waterway transport is a fuel-efficient and cost-effective means to deliver bulk goods, particularly from agricultural and manufacturing production centers in the interior of the United States to both domestic and foreign markets. Allows for the delivery from gulf coast to the interior.

The extensive reach of its inland waterways system has helped make the United States the largest trading nation in the world measured in the value of both imports and exports for goods and services. However, the ability to maintain this position depends on a regular assessment of infrastructure needs and development strategies.

Aging lock and dam systems and closures due to unexpected maintenance and repair create bottlenecks throughout the supply chain. Many of these systems are long past their useful age, are costly to repair, and are occasionally unreliable. The system has a $6.8 billion backlog in needed construction projects to help address the 5,000 hours lost due to lock closures between 2015 and 2019.3

Trade is global in nature and because inland waterway systems add valuable capacity to the other components of the U.S. transportation network, the current state of inland waterways cannot only be measured against domestic investments in road, rail, and air systems. Comparisons must be made in the context of similar investments in other nations that compete for leadership in global trade.

The 2021 Infrastructure Investment and Jobs Act (IIJA) provides historic levels of investment in transportation infrastructure with potential short-term and long-term benefits to the waterway systems that support the U.S freight network. Understanding where and how to prioritize investments depends upon an understanding of the current state of those systems.

This report focuses on the current state of the U.S. inland waterway system in comparison with others from around the world. It uses case studies of river systems from Europe, Asia, and South America to compare investment levels, commodity flows,

governance structures, and investment priorities. In some instances, the case studies also reveal the impact that competing uses for the system, such as recreational uses or damming for hydroelectric power, have on the capacity to move goods.

The research relies on publicly available data, government reports, and independent sources from the U.S and case study countries. Comparable information on tonnage numbers, foreign direct investment, and strategies can be difficult to find, so the research team spent considerable time contacting local officials and researchers to gain insights into the operations, plans, and investment in waterways around the world.