WASHINGTON – Senator Chuck Grassley today reiterated the need to pass the Water Resources Development Act. The legislation is currently being debated in the U.S. Senate. The Water Resources Development Act (WRDA) contains provisions to modernize the lock and dam system on the Mississippi River.
"One of the main reasons U.S. agriculture is competitive is because of our low transportation costs. Last year I saw first hand the investment that Brazil is putting into its infrastructure on the Amazon River. Unless we update the infrastructure on our own rivers, we’re going to see higher and higher input costs and fewer and fewer markets for our commodities," Grassley said. "With world competition an ever-increasing part of the agriculture economy, it’s vitally important that we have the necessary infrastructure to get products to the world and compete."
Similar legislation has already passed the House of Representatives. Grassley expects the bill to pass the Senate quickly. The two versions of the legislation would then go to a joint House-Senate conference committee to work out the differences.
Here is a copy of Grassley’s prepared statement.
I am pleased that the Senate is debating this important bill, the Water Resources Development Act of 2007. Usually Congress passes a WRDA bill every two years. However, we have not passed this act since 2000.
For Iowa, the Enhanced Navigation Capacity Improvements and Ecosystem Restoration Plan for the Upper Mississippi and Illinois Waterway System, included in this Water Resources Development Act, are vital. The east side of Iowa is defined by the Mississippi River. Iowa, and the nation, rely on the river to move many of our goods both domestically and internationally.
In the United States, our inland waterway system plays a major role in our nation’s economy. More than a billion tons of commerce is moved domestically through our inland waterways with a value of $300 billion.
Of the amount stated above, the Upper Mississippi and Illinois River System contributes significantly. The value of all products moved by the river is $12 billion per year. Approximately 60 percent of bulk agricultural exports are moved to world ports via the Upper Mississippi and Illinois Rivers. Navigation on these rivers supports over 400,000 jobs, including 90,000 high-paying manufacturing jobs.
The U.S. enjoys a comparative advantage in corn production world wide, and the per-ton cost for transporting corn in the United States is lower than in other countries. But our nation must not allow its transportation infrastructure to continue to deteriorate.
Our international competitors are making major investments in their transportation systems. In Brazil, the surface transportation infrastructure is inferior to ours. Last year, I took a trip to Brazil, we ran over more potholes than I can count. But, Brazil has made significant investments in its river infrastructure. I saw facilities on the Amazon that put the Mississippi River to shame.
We saw an outloading facility in Santarem, about 400 miles from the Atlantic Ocean, which is about the same distance as Memphis is from New Orleans. There is also a new facility for barges about 600 miles from the Atlantic Ocean.
Barges traveling that far into the mainland will help Brazil become competitive with our own farmers. Once they figure out how to better get to the river, we’ll have a hard time competing.
Not only is South American improving their transportation infrastructure, they are converting 77 million acres of virgin land into agricultural production. The long-term results of these efforts on producers in the United States will be reduced farm income ($562 million), increased foreign trade imbalance ($245 million by 2020), and loss of sensitive global environmental habitat.
Therefore, we must invest in major improvements to all of our transportation infrastructure. Currently every mode of transportation is near or at maximum capacity. If we don't make these investments in our roads, rail, and water, U.S. agriculture, industry, and labor will pay the price.
According to the Congressional Research Service, in 2005, U.S. exports of goods and services totaled $1.275 trillion, compared with $1.152 trillion in 2004, and $1.023 trillion in 2003. Also, our nation relies on the many imported goods that come to the United States. Many of these goods travel by our inland waterways.
It is also forecasted that both our exports and imports will continue to grow in the coming years. We must be able to efficiently and economically move these goods.
Nearly two-thirds of all grain and soybean exports are moved through the Mississippi and Illinois Rivers. According to one study, unless the Army Corps of Engineers modernizes the lock and dam system on the Upper Mississippi and Illinois rivers, the cost of transporting corn would rise 17 cents per bushel. As a result, corn and soybean exports would decline by 68 million and 10 million bushels per year respectively. The decline in corn and soybean exports would reduce farm income by $246 million. Loss from lower prices and decreased inter-state corn demand would equal $316 million. This highlights how important barge transportation is to farmers and the economy.
In addition, there are many environmental benefits to river transportation. According to the EPA towboats emit 35-60 percent fewer pollutants than locomotives or trucks. Barges operate at ten percent of the cost of trucks and forty percent the cost of trains, while releasing twenty times less nitrous oxide, nine times less carbon monoxide, seven times less hydrocarbons, and burning ten times less fuel.
As this chart shows (CLICK HERE to see Grassley’s chart) fifteen rail cars or 58 semi trucks would be needed to replace each barge load diverted off the Upper Mississippi River System. A fifteen-barge tow equates to 870 semi trucks. EPA also estimates that the nation currently saves $100-300 million in air pollution abatements by moving bulk commodities by barge on the Upper Mississippi River System.
In these times of high fuel prices and with a need to conserve energy, one gallon of fuel in a towboat can carry one ton of freight 2.5 times farther than rail and 9 times farther than trucks. The Minnesota Department of Transportation estimates shifting from barge to rail results in fuel usage, emissions, and probable accident increases of 331 percent, 470 percent, and 290 percent respectively. Shifting traffic from barge to trucks increases fuel use 826 percent, emissions 70 percent, and probable accidents 5,967 percent. Furthermore, shifting the 245 million tons from our rivers would add an additional 9.4 million trucks each year. That would add more than 169 million tires to our landfills.
For these reasons, I have been working with several of my Senate colleagues for many years on getting the initial authorization for lock and dam modernization and enhanced environmental restoration on these rivers signed into law. I am pleased that the Environment and Public Works Committee included these important initiatives in this Water Resources Development Act and that a bipartisan groups of Senators are advocating for this important modernization.
The lock system on the Upper Mississippi River was built in the late 1930s. Many of the lock chambers are only 600 feet long and cannot accommodate 1,100 foot barge-tows. These structures require modern tow configuration to "double lock" to pass. This adds to mounting delay times, increase costs to the shippers, increased harm to our environment by higher emissions and higher sediment suspension in the river channel, loss of jobs, and lower wages.
By 2020 if we do not make the much needed improvements to these locks, $562 million will be lost in farm income per year. This amount does not even take into account the huge costs of increased delays and congestion on our rail and roads. Also, keep in mind that $1 invested in this navigation project yields $6 in national benefits.
We realize that the authorization for the lock and dam improvements is the first step in a lengthy process of improving the lock and dam system on the Upper Mississippi. But it is an important and necessary project for our nation.
I urge all of my colleagues to vote for this balanced legislation for the good of our country.