Minutes

MTSNAC Inland Waterways Subcommittee Meeting

MARAD Headquarters, Washington, DC

Thursday, Sept. 30, 2004, 2:00-4:00 p.m. in Room 6200

Welcome and Introductions

Members present included:

Ms. Worth Hager, Chair, National Waterways Conference, Inc.

Mr. John Ficker, National Industrial Transportation League

Mr. Richard Gabrielson, Target Corporation

Mr. Looman Stingo, Holcim (U.S.), Inc.

Mr. Doug Scheffler, American Waterways Operators

Mr. Jim McCarville, Port of Pittsburgh Commission

Mr. Chris Holdgrave, National Grain and Feed Association

Government Observers:

Mr. Michael Hokana, MARAD, Office of Ports and Domestic Shipping

Mr. Gordon Angell, MARAD, Office of Intermodal

LCDR Lloyd Banks, USCG, Office of Waterways Management

After a round of introductions, the following were the highlights of the meeting:

MARAD projects regarding the Inland Waterways

Inland Port and Terminal Grants: Mr. Angell provided a summary of MARAD’s recently announced set of grants to Inland River Ports and Terminals, Inc (IRPT), an industry association. Specifically, MARAD will be providing approximately $21,000 in funding for: 1) a marketing study for the benefit of the inland terminal operators and 2) funding to assist state DOTs in order to increase their participation in MARAD's Heartland Intermodal Partnership (HIP).

National Security Importance of Inland Waterways study: Mr. Hokana provided a briefing on the ongoing subject study, also sponsored by MARAD. Specifically, the study is looking at the national security importance of the waterways from the general security perspective, e.g., a significant amount of coal and petroleum product moves on the inland waterway system. The report will also document the national defense contributions provided by the waterways in terms of wartime shipbuilding contributions and as a mobilization asset. The report is expected to be delivered on November 10, 2004.

Comments by the Chair

At this point the Chair, Ms. Worth Hager, reported that the MTSNAC Committee Chairs had discussed future activities of MTSNAC. One goal is to promote a United States National Transportation Policy that emphasizes the need for true intermodal transportation and cooperation to improve current and future transportation requirements.

The Future of Transportation in America

After Ms. Hager’s remarks regarding MTSNAC’s next steps, there was a general discussion as to the future of transportation in America. Mr. Gabrielson commented that we need to look at how to develop future transportation. We need to talk to shippers more and recognize the realities of the market. For example, dredging expansion will likely not happen on the Columbia River as the local population would like to tear down the dams. However, additional use of the Mississippi River may happen. We need to be discussing all of the transportation issues on an intermodal basis. Why is there no double track service in the busy LA to Chicago market? There needs to be better ties within the intermodal system. Some of the thinking needs to be original and outside the “box.” New land for port expansions is not likely to take place. Other outside the box issues include improved port infrastructure. We need better utilization of our assets and a longer range strategy for interactive transportation. MTSNAC and DOT can deliver a long term strategy for a common policy. Short sea shipping may become a solution in the new policy as long as there are products and people to move them.

Mr. Stingo mentioned that MARAD should look to making the Ready Reserve Fleet available for charter as one method of starting short sea shipping.

Mr. Ficker then commented that freight looks for the “path of least resistance” and that the policy developed should not just be a national transportation policy, but more specifically, a national freight transportation policy, one where we “leave the egos behind.”

Mr. Gabrielson then remarked that there should be a better way of developing maritime policy than with “so many splinter groups spinning their wheels on waterway policy.”

Mr. McCarville seconded Mr. Fickers proposal on a national freight policy and asked “how can we help move this along?” He then discussed the Port of Pittsburgh’s position in the intermodal world as an alternative to rail in some regards.

The possibility of a new intermodal questionnaire or survey of shippers and their needs was discussed. Mr. Ficker cautioned that shippers are busy, and that unless they are involved in the development of the questions, they will likely not answer the questions.

Mr. Hokana remarked that shippers are in some cases reluctant to share data because of competition. Mr. Gabrielson remarked that he and others were already uncomfortable sharing information with the PIERS organization.

Update on Waterway Legislation

Ms. Worth Hager provided the group a brief update on pending inland waterway legislation. She mentioned that Senator Conrad Burns (ND) had introduced an amendment changing the preclude level on reservoirs in the Pick-Sloan River Basin project which would reduce flow on the Missouri River (and affect traffic on the Mississippi). Senator Bond (MO) is expected to oppose this. Also, Ms. Hager briefed the group on the progress of the Water Resources Development Act. The Senate version is unsupportable by waterways interests, although there is a new Cochran-Landrieu-Cornyn amendment that would be supportable as a vehicle to get a WRDA to conference. Ms. Hager encouraged all present to get involved in moving the bill along.

Future Activities

Mr. McCarville offered a motion, seconded by Ms. Hager to move forward on a recommendation to the larger MTSNAC on the following MTSNAC objectives:

1. The Inland Waterway Transportation System should be maintained.
2. All locks over 80 years old should be rebuilt as soon as possible
3. There should be a program developed to introduce new technology to the inland system and the transportation system at large.

Mr. Ficker commented that we should rise above just the needs of the inland waterways alone. He sees a need for a national freight policy at the Secretary of Transportation level. Water transportation needs to be looked at as a piece of a bigger pie.

Ms. Hager concluded with the remark that the next step is to get the Marine Transportation System into the National Transportation System.

Upcoming Meetings

The National Industrial Transportation League (NITL) will meet in San Antonio, Texas on November 13-17. Booth space is still available and can be obtained by calling

703-524-5011.

The MTSNAC will meet in Washington, DC on November 17-18, 2004.