Grainnet

Jefferson City, MO—Long-overdue improvements to the nation's inland waterway transportation system were endorsed by the U.S. Soybean Federation (USSF) on Tuesday.

With Congress preparing to decide the FY 2011 budget, USSF partnered with Waterways Council, Inc. in endorsing a 20-year capital investment plan to fund and mainstream construction projects for the nation's river lock and dam system.

USSF joins a number of organizations urging Congress to adopt a new comprehensive, consensus-based package of recommendations to better address the needs of the entire waterways system and provide more dollars for long overdue infrastructure improvements.

The recommendations were developed over a year-long period by the Inland Marine Transportation System Investment Strategy Team, comprised of key U.S. Army Corps of Engineers personnel and members of the congressionally established Inland Waterways Users Board, a federal advisory committee that provides advice to Congress and the Assistant Secretary of the Army (Civil Works).

Many in Congress have been very supportive of the process to create this set of recommendations.

The proposed recommendations prioritize navigation projects across the entire system, improve the Corps of Engineers' project management and processes to deliver projects on time and on budget, and recommend a funding mechanism that is affordable and meets the system's needs.

"American soybean exports are a success story, and river transportation is a big part of that," stated Warren Stemme, USSF president and a soybean farmer from Chesterfield, MO.

"Government and river transportation have worked together to develop a plan to ensure that our nation continues to derive the full benefit from our energy-efficient, congestion-relieving waterways transportation system."

The recommendations would preserve the existing 50 percent industry/50 percent federal cost-sharing formula for construction of new locks, while providing incentives for lock construction to finish on time and on budget.

A cost-share cap on all new lock construction projects would help avoid depleting the Inland Waterways Trust Fund by preventing the industry from having to fund significant cost overruns.

These new recommendations would necessitate an increase in the current 20-cents-per-gallon fuel tax currently paid by the barge and towing industry, the only users of the system who are taxed, but is viewed as worth the investment by industry in order to ensure the future viability and efficiency of America's inland waterways system.

"As an industry, soybean farmers need to constantly be looking at ways to diversify our markets, both at home and abroad," said Stemme.

"This proposed waterways plan allows us to be even more cost competitive in our barge rates, a big plus to our export customers.

"At the same time there is an undeniable relationship between barge, rail and truck rates.

"Any time we can lower the barge rates it means real savings back to producers across not only barge shipping costs, but also rail and truck shipping costs."

For more information, call 573-635-3819.

more GRAIN NEWS...