US inland waterways recommendations to go to Congress

- The US Inland Waterways Users Board has adopted a final report accompanied by a new package of recommendations formulated by an industry and US Army Corps of Engineers working group to improve the continued vitality of the US inland navigation system over the next 20 years.

The report and recommendations are being sent to Congress and if adopted, will better address the needs of the entire system and provide more investment for greatly needed infrastructure improvements. The Users Board is a federal advisory committee that provides advice to Congress and the Assistant Secretary of the Army (Civil Works).

The proposal is supported by industry stakeholders and the government as a way to fund the navigation system and would replace the imposition of a lockage fee that is strongly opposed by Waterways Council Inc. (WCI), the American Waterways Operators (AWO), and the National Waterways Conference (NWC), as well as many Members of Congress.

The recommendations and report prioritise navigation projects across the entire system, improve the Corps of Engineers’ project management and processes to deliver projects on time and on budget, and propose a funding mechanism that is affordable and meets the system’s needs.

In addition, the recommendations would preserve the existing 50/50 (industry/federal) cost-sharing formula for new lock construction and major rehabilitation projects costing US$100m or more, while adjusting the current model to ensure that dam construction and smaller rehabilitation projects would be 100% federally funded. Also recommended is a cost-share cap on all new lock construction projects that would preserve the Inland Waterways Trust Fund by preventing the industry from having to fund significant cost overruns.

Although the new recommendations would necessitate an increase in the 20cents/gallon fuel tax currently paid by the barge and towing industry, the general belief is that the increase is an industry investment to improve the future viability and efficiency of the country’s inland waterways system and Congress is being urged to adopt the proposal this year.

(Source: Sea Trade Asia)