Weekly News Summary

Weekly News Summary For October 3-9, 2005:

Hurricane Rita Brings More Destruction To Gulf Coast

As if Hurricane Katrina hadn’t done enough to wreak havoc along the Gulf Coast, Hurricane Rita came along behind to add what it could, making landfall as a Category 3 storm early September 24. Forecast to hit Galveston, it veered to the east in the vicinity of Cameron, La., south of Lake Charles, near the Texas-Louisiana border.

Early reports indicate its impact on a number of petrochemical and refinery facilities is yet to be determined, while many maritime facilities escaped major damage, all things considered. Immediately following the hurricane, the U. S. Coast Guard continued to work with the maritime industry to assess damage to the waterways and safely restore commerce. In Texas, the Coast Guard had closed the ports and waterways of Houston, Galveston, Freeport, Texas City, Port Arthur, Beaumont, Victoria Barge Canal and Port of Orange. Brownsville, Corpus Christi and Port Lavaca remained open.

In Louisiana, the Coast Guard had closed the ports and waterways of Sabine Pass, Lake Charles, Baton Rouge, Morgan City, Fourchon, Houma, New Orleans, Venice, Plaquemines, St. Bernard Parish, Grand Isle and Shreveport. The Lower Mississippi River was open; however deep draft vessels were limited to daytime operations only below Head of Passes. The Red and Atchafalaya rivers were open.

The Calcasieu, Bowman and Bayou Boeuf locks were underwater and not operable….

LaGrange: ‘Months If Not Years’ Required For Gulf Coast Ports’ Recovery

Editor’s note: Gary P. LaGrange, president and chief executive officer of the Port of New Orleans and chairman of the American Association of Port Authorities (AAPA), testified before the U.S. Senate Committee on Finance September 28 about port and community needs in the wake of Hurricanes Katrina and Rita. Following are excerpts from his testimony.

…Within a one-month span, Hurricanes Katrina and Rita have impacted over 20 ports in the Gulf of Mexico that are members of AAPA, and many additional private and public ports in the region. The impact of these hurricanes has varied, with the largest impact on the ports of Louisiana, Texas, Alabama and Mississippi. For several ports, including New Orleans, the impact has been considerable; some of the facilities may need to be relocated, and it will take months if not years to fully recover. In New Orleans, for example, we are only 20 percent operational.

This nation is heavily dependent on maritime trade. America’s ports are our gateways to the world and a critical component in the nation’s economic health and national defense. When ports are impacted, there is a quick and sizable ripple effect throughout the economy. U.S. ports and waterways handle over 2 billion tons of cargo annually. Much of that commerce flows through the impacted ports in Louisiana, Texas, Alabama and Mississippi. These ports are heavily linked to this nation’s petroleum, grain and farm products, fruit, poultry, coffee, chemical and steel trades. The Port of New Orleans serves as the focal point for waterborne transportation of cargo to 28 states. That cargo activity supported $37 billion in economic benefits to the country and generated $2.8 billion in federal tax revenue.

…For Katrina and Rita, the impact on New Orleans has been considerable. There are several key things that are important to the port’s recovery: quickly reopening the channel; restoring communications; getting a power source (electrical or fuel-generated); manpower; and repairing facilities and intermodal connections (reliable truck and train traffic)….

Equipment Brokers Looking For Sellers In A Tight Market

Have an extra towboat tied up at the dock that you’re not planning to use? A few barges more than you think you’ll need? If so, there are some folks in the industry who would love to get to know you.

Marine equipment brokers throughout the inland waterway system report that the market for used equipment—barges and towboats—is tighter than at any time in recent memory. As a result, sellers of the equipment are receiving a premium over what they would have just a year ago.

This was the situation a month ago, they said. Now, after two massive hurricanes have slammed the Gulf Coast and damaged an untold amount of equipment, the market is even tighter, they say.

“We’re extremely tight,” said G.H. White, who operates a brokerage of the same name from Houston, Texas. “It’s very difficult to find anything for sale right now.”

It has been a seller’s market for more than a year, White said. “In general people are not choosing to sell equipment these days. If you look at the amount of equipment that’s for sale, everybody’s working their equipment, particularly their newer equipment.”

Blessey Marine Services, for example, put two towboats on the market recently; both of them were snapped up within a couple of weeks, he said.

White blames the lack of construction in the 1980s as one major factor in the shortage now….

Marine Day Draws Large Crowd To Paducah Festival

Throngs of area residents passed through Paducah’s floodwall gates to take advantage of an opportunity to tour a line-haul towboat, watch a line-throwing contest and view informational displays from various area marine enterprises at the Marine Day exhibit conducted during the city’s 11th annual Barbecue on the River celebration September 24.

The barbecue competition and related activities drew more than 40,000 people to the city’s Water Street area for the three-day affair, which included multiple entertainment and live music programs throughout each day and evening.

Area towing companies have routinely provided a line-haul towboat for public tours and the event is always well received, according to event chairperson Gail O’Connell, president of Paducah’s Waterways Industries Association, which coordinated the Marine Day activities. On display and open for public inspection this year was the triple-screw mv. Lillie Gail, provided by Tennessee Valley Towing Inc. Last year the company offered its W.W. Dyer for public tours.

This was also a special event for 25 fourth-grade students from Heath Elementary School who recently joined the Propeller Club’s “Adopt A Towboat” program. The students and many family members were treated to a special group tour prior to the public open house as they learned firsthand what it is like aboard a commercial towing vessel….

WJ Editorial: WJ Editorial: Hurricane Hyperbole Gives Way To Facts


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