Weekly News Summary For January 19-25, 2009:
Last year brought floods and hurricanes, the closure of the Mississippi River Gulf Outlet, a historic election, and the challenge of new water discharge regulations for the barge industry.
The Mississippi River flooded cornfields and broke through levees, causing uncertainty in grain markets as the U.S. Department of Agriculture made several embarrassing adjustments in grain forecasts. The prices of steel and scrap skyrocketed to historic highs, then crashed. Oil sank below $40 a barrel, freezing many drilling projects. Hurricane Gustav battered Baton Rouge, and Hurricane Ike pummeled Galveston.
An oil spill in the Lower Mississippi River shut down shipping, caused billions in losses, provided some wince-worthy moments in a Coast Guard hearing, and triggered a new regime of Coast Guard barge inspections.
On the upside, the first two quarters of the year brought record tonnages and, for some, record profits—as well as high costs for steel and fuel. Many companies continued to renew their barge and towboat fleets. Partnerships between industry and federal agencies were strengthened.
But the bursting of the credit bubble this fall brought the biggest economic meltdown in years—by some measures since 1984’s recession, by others since World War II. Like a towboat whose engines have been cut off, the inland waterways economy continued to cruise for awhile, before the larger economy caught up with it.
To round out the year, a 10-year-old court case brought tough new water discharge regulations and increased risk for river companies.Only two things can be predicted with any confidence for the coming year. It will take some time for the economy to recover. And the federal infrastructure program will provide stimulus and jobs—how many, no one can yet say….
The 150-foot width of the sector gate across the Gulf Intracoastal Waterway (GIWW) in Eastern New Orleans is all but a certainty, despite industry efforts to have it designed wider and computer simulation runs that resulted in much higher allision rates than those actually experienced at the Galveston Railroad Bridge.
Results of the Corps simulation study “indicate that the two 150-foot gates are safe for the vast majority of the traffic on the GIWW,” according to a Memorandum for Record on the Corps Inner Harbor Navigation Canal (IHNC) Lake Borgne Barrier (surge barrier) project.
The memorandum was written by Maj. Jeremy Chapman, senior project manager, following a simulation tour at the Corps’ Engineer Research and Development Center (ERDC) in Vicksburg on January and obtained by The Waterways Journal.
“There are rare occasions when large empty tows under extreme wind conditions (22 knots) will require pilots to wait for better conditions or trip their tows through the gates,” the memorandum continued. “Tow pilots participating in the study confirmed that they would not normally operate in the area with such extreme wind conditions driving large empty tows.”
Part of the largest design-build project in Corps of Engineer history, the sector gate is a feature of the $700 million surge barrier, which is the key element of the 100-year hurricane protection plan for the New Orleans area.
On February 6, new vessel discharge regulations will create “enormous new risks” for towing companies and barge operators.
That message was hammered home in a January 12 “webinar,” or online seminar, on the new regulations given by law firm K & L Gates, a firm of about 1,700 lawyers with worldwide offices and a large maritime law practice. The firm has been “actively involved” in every significant piece of maritime legislation for 35 years on behalf of clients, according to its web site.
Susan Geiger, a partner at K & L Gates, said 14 people attended in person and 240 logged on to hear the presentation, which was prepared by three of the firm’s partners—Geiger, Barry Hartman, and Christopher Nestor.
The new regulations, announced December 18, were developed in a compressed time-frame by the Environmental Protection Agency under pressure from a court order resulting from a suit filed by environmentalists 10 years ago. Environmental groups argued that the agency was wrong to exempt vessels from requirements of the Clean Water Act in the early 1970s. Under the exemption, the Coast Guard instead regulated some vessel discharges under other laws.
An appeals courts judge ultimately agreed, and ordered the EPA to create new regulations to comply with the CWA. The new rules are sometimes collectively known as “the permit,” even though an actual permit is not usually required…
Mammoth Marine Inc.’s port development project in Owensboro, Ky., is on hold due to temporary difficulties securing credit due to the credit slowdown—but is definitely still alive.
That’s according to Nick Brake, president of the Greater Owensboro Economic Development Corporation, who has been nurturing the deal.
The Louisville-based Mammoth Marine announced the project in January 2008. The company said it wanted to buy a 94-acre riverfront property from Owensboro Riverport Properties LLC to construct an advanced barge-building facility. The property had once housed a mill belonging to Green River Steel.
The new facility would employ up to 130 people to fabricate, assemble and paint barges under one roof—the only such site in the country, according to Mammoth’s press releases…
Heads still turn and passing pilots still ask about the unconventional-looking series of towboats when they meet one of Southern Towing Company’s new Z-drive vessels along the inland waterways. The mv. David Stegbauer brought similar questions and comments when it ventured up the Ohio River on its inaugural trip January 13.
The 120- by 34-foot twin-screw David Stegbauer’s unorthodox superstructure, with the pilothouse overhanging the forward deck and its large exhaust stacks riding far aft, almost on the stern, brought many second looks. Most questions, though, center around the vessel’s unique Z-drive propulsion system.
Capt. Kenny Williams, pilot when the vessel passed Paducah, Ky., said the vessel is extremely maneuverable, as is the mv. Frank T. Stegbauer, STC’s original Z-drive boat on which he also served. Williams came to Southern Towing Company following 10 years service on the Z-drive-powered Miss Nari, which until recently pushed the tandem barges utilized in the RiverBarge Explorer excursion venture. RiverBarge ceased operations this month because of the downturn in the economy.
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