Weekly News Summary For July 21-27, 2008:
“I think the Tenn-Tom is really coming into its own.”
These words happened to be spoken by Rick Worley, president of Teppco Pipeline’s new multi-modal terminal in Boligee, Ala. But their sentiments are shared by many people who have welcomed or contributed to an explosion of growth and development along the Tennessee—Tombigbee Waterway. The ripples of that growth extend all over the South—and beyond.
Fifty years after its enabling legislation was signed, 36 years after ground was broken, and 24 years after one of the largest public works projects in the world was completed at a cost of $2 billion, the Tenn-Tom is attracting industry and fulfilling a promise that was envisioned as long ago as the 1760s.
It was then that French explorer the Marquis de Montcalm recommended to Louis XV that a water route be constructed to link the rivers that are today called the Tennessee and Tombigbee rivers, according to the waterway’s Web site.
Mike Tagert, the Tennessee—Tombigbee Authority’s new administrator since January 2008, is bullish on the opportunities brought by the waterway.“The past five years have seen probably as much direct total investment along the Tenn-Tom as in all the years previously,” said Tagert. He is currently working with Troy University on a study to document the Tenn-Tom’s economic impacts….
Need a question that’s almost guaranteed to stump even the most seasoned trivia expert? Try this one on for size: What was the biggest earth-moving project in the history of mankind? After giving it some thought, the typical respondent will probably reply the Panama Canal. A reasonable answer—fully 210 million cubic feet of earth were removed to create that connection between the Atlantic and Pacific oceans—but wrong. The Suez Canal? Nope: “only” 105 million cubic yards.
The correct answer is the Tennessee-Tombigbee Waterway, the connection between Pickwick Lake on the Tennessee River and Demopolis, Ala., on the Tombigbee River. Taking 12 years and 25 million man-hours to complete, the project involved excavating 310 million cubic yards of soil—nearly as much as the Panama and Suez projects combined. The earth moved to dig the Tenn-Tom Waterway was enough to fill 100 million dump trucks.
But the benefits of the project are obvious to anyone who’s ever looked at a map of the United States. Without the waterway, to move cargo by water from eastern Tennessee to the Gulf of Mexico would entail a trip of some 1,800 miles. The Tenn-Tom cuts about 800 miles off that trip. Not to mention that it provides an alternate route to the Gulf for traffic on the Ohio River system and throughout the Midwest, and generates economic development opportunities in the waterway region….
Expensive diesel fuel is a challenge to barge and towing companies, but also impacts others, including the Coast Guard, Corps of Engineers, dredging contractors, midstream fuelers, engine manufacturers and others.
Sellers of diesel fuel are dealing with a set of issues. Whether selling dockside or midstream, they are being forced to carry higher inventory costs. Midstream vendors are also vessel operators, so they naturally have higher vessel operating costs, which come out of their spread between buying and selling. With the prospect of huge swings from day to day in the price of fuel, some midstreamers hedge to protect against a sharp decrease in price that would decrease the value of their inventory. Refiners are typically requiring cash, either prior to loading or within two or three days, so midstream fuelers are exposed to falling prices.
Some vessel operators are partially hedging their fuel costs, either by buying futures contracts on the New York Mercantile Exchange or entering into supply agreements with third-party vendors. A brief survey would indicate that operators are hedging fuel costs primarily based on their book of firm business and the percentage of volume tied to long-term contracts. Hedging has costs—both transactional and in tying up cash in margin requirements—so it’s not for everyone. Spot freight rates can, of course, be increased as fuel prices dictate….
Within a few days of each other, two towboats sank in the Lower Mississippi River under similar circumstances.
A 56-foot towing vessel, the Ruby E, sank on the evening of July 12 at Mile 101.8 of the Mississippi River near Westwego, La. The 800 hp. vessel was completely submerged in 82.6 feet of water.
On July 13, Coast Guard inspectors began assessing the site aboard the mv. General Kelly, operated by the Port of New Orleans.
The Coast Guard established a safety zone from Mile 101 to Mile 103. Only one vessel at a time will be permitted to pass until the vessel is salvaged.
Mo Chiasson, safety coordinator and port captain for the vessel’s operator, DRD Towing of Marrero, La., said a salvage plan had been worked out on July 15 with designated salvor McKinney Salvage & Heavy Lift. The plan was awaiting approval from the Coast Guard, but Chiasson was confident that lifting could begin on Wednesday….
Waterways Council Inc. announced last week that Cornel J. Martin would succeed R. Barry Palmer as president and chief executive officer when Palmer retires at the end of the year.
Martin will join WCI August 1 and will “transition alongside” Palmer for the final four months of the year, WCI said.
Palmer has served as president and chief executive officer of Waterways Council since its formation five years ago. Before that, he served for 22 years as executive director of DINAMO, the Association for the Development of Inland Navigation in America’s Ohio Valley. He announced earlier this year that he would retire in December.
Martin most recently served as chief executive officer and chairman of Direct Workforce Inc., a Houma, La.-based contract labor company serving the shipbuilding, ship repair, and oil and gas industries. Previously, he served as president and chief executive officer of the Canadian American Transportation System. He also served as vice president-corporate affairs of American Classic Voyages Company, parent of then Delta Queen Steamboat Company and other cruise line subsidiaries. In the early 1990s, Martin was vice president-southern region for the American Waterways Operators. During the 1980s, he was a member of the senior professional staff of the House of Representatives Coast Guard and Navigation Subcommittee, and legislative assistant for maritime affairs for Rep. W.J. “Billy” Tauzin of Louisiana….
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