River infrastructure critical

NWU Radio Script

5-29-01

We have discussed on this program in the past the need for upgrading the Mississippi River infrastructure to meet modern shipping needs.

In this article prepared by Rep. Kenny Hulshof (R-Mo.) for the April 30 edition of Farm Bureau News, the Congressman addresses an issue he sees as critical for the future of agriculture exports.

"After seeing market conditions deteriorate over the past three years, many farmers in my district have expressed concern about agriculture's future. Congress has worked to address this problem by providing emergency economic assistance. Unfortunately, this is not enough. There is no magic bullet that will fix what ails the farm economy. One necessary ingredient includes addressing the critical needs of our inland waterway system."

The United States is a low cost provider of safe food and fiber, writes Hulshof and he notes this is due in large part to our transportation system, which in his words is "the best in the world."

"As co-chairman of the House Mississippi River Caucus, my top priority has been to educate my colleagues and others about the importance of infrastructure improvements on the Mississippi River. Specifically I have focused on the need to improve and expand locks and dams on the Upper Mississippi."

Each year 60 percent of the grain produced in the Midwest is transported to market down the Mississippi. Hulshof notes the current system is operating far beyond capacity and the 27 locks and dams on the Upper Mississippi River are struggling to meet today's demands.

Most locks are 600 feet long. When built the system of locks and dams was designed to move 2 million tons of waterway traffic per year. It now moves 60 times that amount.

Further complicating things are lengths of shipping units. A modern tow and barge averages 1,100 feet in length. To pass through a lock, a tow must stop, the barges must be broken into two parts, pushed through the lock separately and recoupled once all its parts are through the lock.

This process increases wear and tear on the locks and dams and causes river congestion that increased overall transportation costs for producers.

It is estimated these delays can add as much as 27 cents in cost per bushel of grain transported on the river, said Hulshof.

"While we are scheduled to defer more than $100 million in maintenance this year, our foreign competitors will be investing millions to modernize their systems. The net effect of this situation is that our transportation costs are slowly trending upward, while our competitors' costs are rapidly trending downward."

For example, Brazil and Argentina have captured 50 percent of the total growth in the world soybean market over the last three years.

Hulshof notes now is the time to extend locks to 1,200 feet and modernize river transportation infrastructure on inland waterways. Doing so would alleviate delays that could cost farmers more than $360 million a year by 2020.

"American farmers and ranchers remain the finest and most efficient in the world. But Congress and the administration must continue to aggressively push for expanded markets abroad and the removal of trade barriers, while bearing in mind that farmers must have an efficient, modern transportation system to capitalize on these opportunities. The modernization and extension of the locks and dams on the Upper Mississippi River are an integral part of this strategy."

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