WASHINGTON – In a speech on the floor of the U.S. Senate, Senator Chuck Grassley reiterated the need to update the lock and dam system on the Mississippi River in order for America’s farmers to remain competitive with the rest of the world.
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Nearly two-thirds of all grain and soybean exports are moved through the Mississippi and Illinois Rivers.
We must be able to efficiently and economically move those goods in order to remain competitive. That means updating the lock and dam system,” Grassley said.
The Water Resources Development Act is currently being debated in the U.S. Senate. It’s expected to pass later today (Wednesday).
Here is a copy of Grassley’s prepared statement.
Prepared floor statement of Senator Chuck Grassley
Water Resources Development Act
Wednesday, July 19, 2006
Mr. President, I am pleased to be an original cosponsor of the Water Resources Development Act of 2005. I would like to thank my colleagues Senators Bond and Inhofe for their strong leadership in moving this legislation forward.
Usually the Congress passes a Water Resources Development Act every two years. However, we have not passed a WRDA bill since 2000.
This bill is very important. Not only does it include many updates to existing authorized projects, it also authorizes new projects throughout the country.
Several examples of these much needed projects include Coastal Wetland Restoration and improvements to the Upper Mississippi and Illinois Rivers. Coastal Wetland Restoration will help protect our inland waterways, protect our offshore energy supply, and provide much needed flood protection in the Gulf Coast region.
For Iowa, the Upper Mississippi and Illinois River Navigation and Ecosystem Investments 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.
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 country 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. In a recent trip I took to Brazil, we ran over more potholes than I can count. I can tell you that there are not many mayors in Brazil who will be re-elected because they are filing potholes. But, Brazil has made significant investments in its river infrastructure. I saw facilities on the Amazon that we would be very jealous of.
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.
It doesn’t stop there, though. There is also a new facility 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.
Therefore, we must invest in major improvements to all of our transportation infrastructure. If we don't make these investments in our roads, rail, and water, U.S. agriculture, industry, and labor will pay the price.
Last year, the Congress passed and the President signed into law a surface transportation bill that provides $295 billion for road, transit, and rail improvements. These funds will help facilitate the movement of our goods. The surface transportation bill will help alleviate congestion so our trucks can move more efficiently. It also provides additional loan authorization and tax credits to help railroads invest in much needed capital improvements to help meet the large demand for their services.
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. 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. As this chart shows, fifteen rail cars or 58 semi- trucks would be needed to replace each barge load diverted off the Upper Mississippi River System. The Army Corps of Engineers data suggests 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 709 percent, and probable accidents 5, 967 percent. In addition, another 1,333 heavy trucks would be added to our already congested roads.
For the above 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. Increased traffic levels without these improvements will result in gross farm revenue loss of over $105 million per year, and this does not even take into account the huge costs of increased highway and rail congestion.
We realize that the authorization for the lock and dam improvements is the first step in a lengthy process. 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.
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