6 minute read
The Mississippi River, Waterborne Commerce, and the Winds of Change
The winds of change are seemingly the only constant in the course of history. It is true of people and it is true in business. However, it is the remarkable ability of humans to change course and adapt ourselves and our businesses to personal and professional needs that has allowed us to prosper in this ever-changing world. Sometimes change is slow and methodical, giving us time to respond at our own pace. Yet other times it happens immediately, requiring us to fire all of our synapses at once, compensate on the fly, and then look for ways to tweak our decisions as we progress.
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Regardless of our desire for change, or lack thereof, it is inevitable. In business, knowing this requires that we build teams to devise new thoughts, ideas, methods— even a brand-new path altogether different to the status quo—and make it work. So while coal remains the most stable, reliable, easily transported form of energy in the United States, the inevitable winds of change have made their mark, and as a result we have gone from consuming nearly 1 billion tons per year domestically to utilizing just over one-third of that total. This huge swing has happened in just over 10 years. Of course, this radical reduction has already caused changes in
–David Ryan
the market—downsizing, consolidation, and bankruptcies—undoubtedly more of which are to come.
Make no mistake, coal use in the U.S. is not dead, nor will it die (at least not until long after everyone reading this article is no longer in the game) as it is too important for the grid as well as national security, nor is there any fuel or technology truly capable in all regards of taking its place. But, inevitably, more change is coming.
I believe, as I’m sure most now do, that the long-term answer for those who want to survive in the coal industry involves switching from the comfort of selling coal domestically to embracing the export of coal to the world, and figuring out how to do it. To many, this sounds complex. And to some degree, it is (albeit only temporarily). Yet some have already figured this out and are staking their claim on the foreign market, starting the adaptation and transformation and positioning themselves for the next wave to come.
For me—a mid-stream stevedore on the lower Mississippi River loading coal directly from river barge to oceangoing vessel—I have seen firsthand the success that those who have accepted the challenge of inevitable change can achieve through the export of coal. It is important to know what they already know—which is that they are not going it alone. There are a number of industries, advocacy groups, and vendors, such as Associated Terminals, that are dedicated to helping clear paths, remove obstacles, and acting as consultants to steer the way down America’s marine superhighway, which leads to the world and will play a key part in this needed metamorphosis of the industry.
For those who are new to the concept, as well as those who are already using America’s marine superhighway, here are some key facts about the Mississippi River, its feeder river/tributaries, and the infrastructure that makes it all work: • Within the last 48 months, 61 million tons of coal has moved out of the Lower Mississippi River (LMR). • Current draft of the river is at its normal 47’ depth, and legislation to deepen the draft to 50’(+) has been approved. That project will likely begin in late 2020 or early 2021. Funding will primarily come from the Harbor Maintenance Trust Fund within the Water Resources Development Act (referred to as “HMTF” and “WRDA,” respectively). Dredging is taking place virtually 24/7 on the LMR. There are seven dredges actively working in and around the New Orleans area as you read this.
On July 15, the U.S. House of Representatives Transportation and Infrastructure Committee (T&I) considered and easily passed the latest iteration of the bipartisan Water Resources Development Act of 2020 (WRDA 2020/H.R.7575) by voice vote. WRDA 2020 contains both study and construction authorizations for water resource projects, as well policy provisions relevant to the U.S. Army Corps of Engineers’ Civil Works program. The bill was tentatively scheduled to move to the House floor for consideration the week of July 27. 1 WRDA 2020 can be read at the following link: https:// transportation.house.gov/imo/ media/doc/WRDA20_01_xml.pdf. Herein, you will find the entire bill and the myriad projects directly designed to facilitate improvement of America’s inland and coastal waterway ports and infrastructure. Most importantly, to import and export shippers, are items directly identified and funded by the Harbor Maintenance Trust Fund. The point, related to this article, is that federal mandates require ongoing investment in the improvement to existing, and new development of, port and infrastructure projects, which will help facilitate waterborne commerce.
Olmsted Lock and Dam (the largest and most expensive inland waterway project in U.S. history, at a cost of over $3 billion) is now in full operation, removing the need for the dilapidated and problematic locks 52 and 53. Maintenance to update and improve 14 lock/dam structures is currently taking place or will soon be conducted on the Mississippi, Arkansas, Ohio, Illinois, and
Tennessee rivers. The majority of the lock/dam maintenance work does not prohibit the passage of barge tows, as auxiliary measures are in place. There are exceptions on two rivers—the Arkansas River locks at 51/108, which will be closed August 23 through September 12, and the Illinois River locks at 80/158/231/245/271, which will have full closures, depending on the area, ranging from July 1 through October 28. There are over 14,000 barges in operation on the Mississippi River and contributing rivers (each able to carry the equivalent of 18 railcars, or 90 trucks). The Mississippi River and its feeder rivers and tributaries represent 12,000 navigable miles and reach 33 U.S. states and 2 Canadian provinces. Export capacity is virtually limitless with the utilization of midstream cranes. As more cranes are needed, more cranes are added. Deep draft vessel movements: in 2019, approximately 6,400 vessels were handled on the river; in 2020 (through June), approximately 3,000 vessels were handled. 2
The annual Mississippi River export/import tonnage handled is approximately 300 million tons. As is evident from the time, effort, and funding put into America’s marine superhighway, as well as the other U.S. ports supporting waterborne commerce, the action to create change by those who came before us is in full fruition. While there will always be the need for improvement/maintenance and the like, the hard part has already been done. It is now up to us to ask ourselves, how do I use these readily available resources to adapt to the ever-blowing winds of change?
Footnotes 1 Big River Coalition. Dredging Update. 2 Louisiana Maritime Association. Vessel Movement Statistics Report.
David Ryan is Vice President of Sales and Marketing at Associated Terminals, the largest stevedoring and terminal services provider operating on the Lower Mississippi River. Previously, he served as Director of Sales at St. James Stevedoring.
