FROM THE CEO
Lock failure shows vulnerability of inland waterways system
Rich Cooper
Chief Executive Officer, Ports of Indiana
Before the gate failure, the Markland Lock and Dam moved more than 55 million tons of cargo annually.
A sonar image of the lock gate at the bottom of the Ohio River.
4 · Fall 2009 PORTSIDE MAGAZINE
On Sunday, Sept. 27, Markland Locks and Dam on the Ohio River suffered a major gate failure. This couldn’t have come at a worse time with harvest approaching. Taking the lock out of commission a few weeks before its busiest time of year during an already harsh economic environment puts shippers in a tough spot. It is also an indicator of a bigger problem. Our inland river system is in need of infrastructure maintenance and repairs before more failures like this one disrupt our H2O highway. The U.S. Army Corps of Engineers released the Ohio River Mainstem System Study in 2006, resulting in a plan to modernize and upgrade the Ohio River lock system gradually. Repairs to each lock were prioritized by need so repairs could be made proactively. One part of this massive study found that preventative maintenance is ultimately less expensive – something that shouldn’t come as a surprise to any of us.The Corps looked at the results of scheduled and unscheduled maintenance on the locks. Unscheduled maintenance and repairs, such as this emergency situation, are more costly to government, industry and even consumers. One of the situations studied was the 2004 McAlpine Lock and Dam closure. Advanced lock deterioration required a two-week repair. This was in the middle of an ongoing lock construction project, so the repairs completely closed down the Ohio River near Louisville, Ky. The costs exceeded $9 million, but didn’t stop there. The Waterways Council looked into things a bit deeper by surveying companies affected by the closure. More than 70 percent were negatively impacted. The results were lost sales, production cutbacks, delay costs and employee layoffs. And in this case, the repairs were even completed ahead of schedule. The slowed economy already creates a difficult work environment but setbacks on the river can really add to the difficulty. The Markland lock gates were already scheduled to be replaced in 2011 but the delivery date for new gates has since been moved up to March of 2010. In the meantime, the failed gates are undergoing repair and barge transportation is relegated to the auxiliary 600-foot chamber – roughly half the size of the main chamber. Delays are frequent and extra care must be taken not to damage the smaller chamber. If the auxiliary chamber experiences problems while the main chamber is under repair, the costs to shippers could be devastating. This was just one lock out of many that are at risk. According to the Corps, 25 percent of locks on the Ohio River have already been around longer than their design life. Within the next 10 years, the number of outdated locks jumps to 50 percent. More than half of the nation’s 240 locks are over 50 years old. The entire system is in dire need of additional funding. The inland waterways system moves about 600 million tons of cargo annually, nearly double the tonnage moving through the Panama Canal. About one third of the inland waterways cargo travels on the Ohio River. While highways are becoming increasingly congested, the inland waterways have plenty of remaining capacity. Consider that each 15-barge tow moves the same amount of cargo as 900 trucks. The system is one of this country’s most under-utilized assets. To remain a viable and productive asset, it requires maintenance just like our highways do. The stakeholders of the inland waterways system do have a voice and should communicate the importance of maintaining our inland waterways to our state and federal leaders. Let’s hope this incident is not the beginning of more critical infrastructure failures that might cripple our inland river system.
NeWS & NoteS
Bayer wins international propeller club award SEATTLE – In an organization made up include U.S. Maritime Administrator Sean T. mostly of deep water officials, one lifeConnaughton and Admiral James T. Loy with long river man took the highest honor the U.S. Department of Homeland Security. this year. Art “Junior” Bayer was named “When the state was looking for a location the ‘Maritime Person of the Year’ by the for Indiana’s second port, Art was right there International Propeller Club of the United campaigning for his hometown of Mount States at the organization’s 83rd annual Vernon,” said Ports of Indiana CEO Rich convention held in Seattle on Oct. 6-9. Cooper. “He was our first service tenant in “Art was chosen as the International 1976 and has always been a constant supporter Propeller Club ‘Maritime Person of the for the Port of Indiana-Mount Vernon and the Year’ recipient on the basis of his lifetime inland waterways. It is wonderful to see Art achievements working on behalf of the honored for his life-long dedication, passion inland river industry and his role in and respect for the river.” establishing and supporting the propeller For more information about the clubs of Paducah and Evansville,” said John International Propeller Club of the United Angus, executive vice president for the States, visit www.propellerclubhq.com International Propeller Club of the United States. Port of Indiana-Mount Vernon hosts government visitors Bayer, a Mount Vernon, Ind., native, founded Mount Vernon Barge Co. in Port Director Phil Wilzbacher (below, 1962. Originally starting out as a barge Art Bayer of Mount Vernon, Ind., was named left) meets with representatives from the cleaning service, his business expanded ‘Maritime Person of the Year’ by the International Indiana Department of Agriculture to discuss over the years to include tugboats, barge Propeller Club of the United States. agricultural issues at the Port of Indiana-Mount repair and switching, a dry dock, fleeting Vernon this fall. Agriculture is a large part of service, dry bulk cargo stevedoring and 24/7 emergency response the port’s business and roughly 35 percent of its annual tonnage. service. Despite selling the business to TPG Mount Vernon Marine Agricultural businesses at the port include Agrium, Consolidated in 2006, Bayer remains active in the field. Grain and Barge, Consolidated Terminals and Logistics Co. and According to Angus, eight people were nominated for the Tri-County Agronomics. award this year. Bayer was the unanimous choice of the selection committee. The other nominations came from clubs in Florida, Virginia, South Carolina, Washington, California and Maine. “Most of our ports are deep water,” said Jack Cunningham, the regional vice president of the propeller club’s Ohio Valley Region. “The inland waterways are out-numbered, so Junior winning this award is outstanding and important. He has done many things for the riverways.” The International Propeller Club works to promote and support maritime commerce. It began in 1922 in New York City with a group of men who met over lunch to discuss the maritime industry. They began to call themselves the Propeller Club of the Port of New York. The idea spread to ports in Boston and New Orleans, as well as Yale University. In 1927, the groups united to form the Propeller Club of the United States. Today, the International Propeller Club consists of 53 ports in the U.S. and 33 overseas. Reflecting the early involvement of Yale University, the club also includes student Indiana Secretary of State Todd Rokita ports – 16 in the U.S. and five overseas. Total membership exceeds visited the Port of Indiana-Mount Vernon 10,000. on Oct. 30 as part of his annual tour of The International Propeller Club began giving out awards in Indiana’s 92 counties. A native of Munster, 1984. In addition to the ‘Maritime Person of the Year,’ the club Ind., Rokita was elected as Indiana’s 59th honors the propeller club ‘Member of the Year’ and propeller Secretary of State in 2002. The Secretary club ‘Port of the Year.’ This year’s ‘Member of the Year’ was Ron of State’s office manages four divisions: Kobosky from the Port of Tampa, Fla., and ‘Port of the Year’ was elections, business services, securities and Todd Rokita the Port of Baltimore. Bayer was nominated by the Propeller Club motorized vehicle dealers. Secretary of State of Evansville, Ind. Prior ‘Maritime Person of the Year’ recipients www.portsofindiana.com · Fall 2009 5