Today the Senate passed the Water Resources Development Act (WRDA) of 2013 by a vote of 83 to 14. This legislation will ensure the continued investment in our coastal and inland waterways.

It’s no secret that our nation’s aging system of inland waterways and ports are in need of modernization. The lack of investment is catching up to us. Our inland waterways system averages 52 service disruptions per day throughout the system. Manufacturers rely on these waterways to move commodities, finished products and inputs vital to their supply chains. Continued disruptions in the system drive up costs and makes manufacturers less competitive.

The WRDA bill passed by the Senate includes important reforms to improve project delivery and streamline the environmental review process for infrastructure projects sponsored by the Army Corps of Engineers. The legislation also includes a Water Infrastructure Finance and Innovation Act (WIFIA) pilot program which will help to leverage investments in critical water infrastructure projects. And importantly the bill assesses the critical issue of under-investment in our ports and harbors by increasing authorized funding from the Harbor Maintenance Trust Fund for harbor maintenance dredging.

The National Association of Manufacturers sent a Key Vote letter to Senators yesterday urging them to support this important bill. We strongly urge the House to take up and pass a WRDA bill as soon as possible. America’s infrastructure is in great need of investment and WRDA provides us an opportunity to start making investments no in our waterways and ports.

Recently the Sierra Club and other environmental groups sent several coal companies and BNSF Railway notice that they intend to file a lawsuit over coal dust from railway cars in the Pacific Northwest. The threat of this frivolous lawsuit only harms our economy and jobs in the Northwest.

Yesterday, The Seattle Times ran an op-ed from Roger McClellan, past chairman of the Environmental Protection Agency’s (EPA) Clean Air Scientific Advisory Committee and an expert on toxicology and human health-risk analysis, disputing these baseless claims. In the piece McClellan points out that the anecdotal evidence and the opinions of just a handful of people should not be used to sway the public when it comes the transportation of coal, but these decisions should be based on scientific evidence and facts.

Excerpt from the piece:

For starters, claiming that finding a piece of coal on the ground or in the water leads in a direct line to a health or environmental risk violates one of the basic tenets of toxicology and risk assessment — the mere presence of a substance does not indicate harm. There are other factors that need to be taken into account, the main one being exposure.

Just because a piece of coal is found in the water or coal dust is found near a rail track does not mean humans are exposed to it. Coal is not a substance that breaks down easily. Coal is relatively innocuous. Simply moving it by trains or trucks or barges does not equate to a risk to the environment or human health.

Coal continues to play an important role in meeting energy needs around the world, with steady improvements made in its transport and use. Coal has been transported through the Northwest by rail for decades and there has never been any evidence of harm associated with this rail transport.

As McClellan notes coal has been transported for decades through the Northwest by rail and there has never been any evidence associated moving the coal on the railways. Only when debate heated up over the coal export terminals has this become a hot topic for environmental groups. Thousands of jobs are on the line and the decision on the coal export terminals should be based on facts. We must work to reduce our export barriers for valuable exports like coal, not create new ones.

As the Senate prepares to take up the Water Resources Development Act (WRDA) of 2013 (S. 601) next week, manufacturers are preparing to articulate the importance of this critical legislation to the nation’s competitiveness and ensuring the country has a modern transportation infrastructure that is poised to meet the demands of increased trade and a growing economy. The nation’s inland waterways are a quiet mode of transportation but it is now time to turn the spotlight on to the value of this vast 12,000-mile system to manufacturing and other industries critical to the economy. The inland waterways help keep transportation costs competitive and move products and commodities valued at $78 billion.

To gear up for the anticipated Senate action on S. 601, manufacturers heard from a panel of experts at the National Association of Manufacturers (NAM) headquarters in Washington, DC.  More than half of the locks on waterways are more than 50 years old, and others date back to the turn of the last century, said Mike Toohey, president and CEO of the Waterways Council, Inc. “We’re not keeping pace,” Toohey added.

Our rivers, ports and harbors in the United States are unique natural resources that have tremendously benefitted our commercial success as an industrial nation. Maintaining these systems is a federal responsibility that is rooted in the Constitution and the founding of our nation. Awareness of the Harbor Maintenance Trust Fund and the fact that Congress has not kept pace with investments needed to keep the nation’s ports and harbors properly dredged to their authorized depths has reached a new high, said Barry Holliday, chairman of the Realizing America’s Maritime Promise Coalition.

National Waterways Conference President Amy Larson said that lawmakers in both the House and Senate are aware of the importance of WRDA. Senate Environment and Public Works Committee Chairman Barbara Boxer (D-CA) and ranking member David Vitter (R-LA) are committed to bringing the bill to the floor, while House Transportation and Infrastructure Committee Chairman Bill Shuster (R-PA) is also working to build support.

Several challenges remain unresolved at this point in time but manufacturers appreciate the bipartisan effort the Senate and Environment and Public Works Committee has undertaken to develop the legislation.  It is time to invest in the infrastructure our manufacturers depend on. This legislation is long overdue.

Robyn Boerstling is director of transportation and infrastructure policy, National Association of Manufacturers.

Today the American Society of Civil Engineers (ASCE) rolled out the results of the 2013 Report Card for America’s Infrastructure during a press conference in Washington, D.C. The report card is a comprehensive assessment of our nation’s infrastructure across 16 different sectors. ASCE releases a new report card every four years, and this year the cumulative grade rose slightly to a D+ from a D in 2009.

The press conference took place along the Anacostia River in Washington with the functionally obsolete Frederick Douglas Memorial Bridge in the background. The speakers at the event included ASCE Executive Director Pat Natale, ASCE President and CEO of Tualatin Valley Water Greg DiLoreto, former Pennsylvania Governor and Co-Chair of Building America’s Future Ed Rendell, National Association of Manufacturers (NAM) Senior Vice President of Policy and Government Relations Aric Newhouse and District of Columbia Bridge Engineer Konjit Eskender.

The NAM's Aric Newhouse speaks during the ASCE 2013 Report Card for America's Infrastructure press conference

A sound and efficient infrastructure is critical to the competitiveness of manufacturers. Rails, roads, ports, inland waterways and airways are used every day by manufacturers to receive the inputs for their supply chains and to deliver their products. While this year’s grade is slightly better than four years ago we are still falling behind and much more must be done to improve our infrastructure.

“This report really makes clear that we’re at a crossroads,” said the NAM’s Aric Newhouse. “From a manufacturing perspective we have a very clear choice a head of us.”

Newhouse cited the example of the Brent Spence Bridge which connects Ohio and Kentucky. The bridge is functionally obsolete, yet the bridge carries commerce worth 4 percent of our nation’s GDP every year. There are other examples just like the Brent Spence Bridge across the country that make clear the need for investments in our infrastructure. (continue reading…)

The Senate Committee on Environment and Public Works released its bipartisan Water Resources Development Act (WRDA) proposal ahead of a mid-week Committee mark-up.  The draft is an important marker that will get the ball rolling on this long-stalled legislation.

According to the American Society of Civil Engineers, inland waterway shippers experience –  on average — 52 service interruptions a day on the entire system, meaning locks close due to either construction activity or an outright failure, with the latter increasing in frequency.

Commodities and products critical to manufacturing like coal, steel, fertilizer, petroleum, chemicals and grain among others, move efficiently on the nation’s 12,000 miles of commercially navigable and intra-coastal waterways.  WRDA ensures sustained investment in these commercially relevant waterways so that manufacturing inputs are received and finished products delivered.

Manufacturers also appreciate the Committee’s commitment to addressing the long-standing issue of under-investment in our nation’s ports and harbors. For too long, ocean shippers from nearly every sector of economy have helped finance a robust Harbor Maintenance Trust Fund (HMTF) that has not been allowed to expend funds in a manner that is commensurate with the demands our economy places on the nation’s ports and harbors.

The addition of a Water Infrastructure Finance and Innovation title that plays off the success of the Transportation Infrastructure Finance and Innovation Act (TIFIA) and improving the environmental review process of Army Corps of Engineers-sponsored projects are welcome developments. The legislation must do what is necessary to move critical infrastructure projects more expeditiously and prevent Corps projects from falling victim to bureaucratic delays and poor project management, sometimes over periods of time that span decades.

The House Committee on Transportation and Infrastructure Committee has placed WRDA at the top of its agenda. For manufacturers, WRDA is critical to keeping commerce moving.

The Texas Transportation Institute’s Annual Urban Mobility Report just released a fresh set of numbers showing that traffic congestion continues to plague America’s urban roads and interstate corridors. A newly introduced index also measures urban travel-time reliability and the results show that even more time needs to be factored to ensure on-time arrivals associated with appointments, just-in-time deliveries, airplane departures, etc. 

While the new data validates what commuters and users of the freight network experience on our roads every day, it’s a reminder to policymakers that short-term transportation authorizations will not solve the drain that traffic congestion causes our economy. 

The wasted time and fuel comes at an enormous cost to the economy – $121 billion annually. For manufacturers, the unreliability and the cost of congestion add more expense to supply chains that strive to be efficient and competitive. As we seek to be the best place in the world to manufacture and export our American-made products to global customers, we need a transportation system that that is better linked to achieving these goals.

There is no one solution or quick fix to deal with America’s traffic congestion problem, but it needs to be addressed. Two-year transportation bills and long-term funding uncertainty for nearly every mode of transportation – highways, transit, ports, airports and inland waterways – are not sustainable. For a nation that continues to fall in its infrastructure competitiveness rankings each year, a better approach is needed. This report is yet another reminder that our economy is not well-served by neglecting the parts that help keep it moving. 

Robyn Boerstling is director of transportation and infrastructure policy, National Association of Manufacturers.

Contract negotiations between the U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) are scheduled to resume this week. Manufacturers urge both sides to reach a resolution to these talks ahead of the February 6 deadline.

The looming threat of a work stoppage in the beginning of February continues to cast a dark cloud over manufacturers who rely on the nation’s East and Gulf Coast ports to export products and receive goods. The economy cannot afford the consequences of any work stoppage at the ports and manufacturers will feel the full impact if both sides cannot come to an agreement.

The $1 billion per day cost of the 10-day West Coast port lockout in 2002 and the months it took to recalibrate the ports from this major disruption needs to be more than a reminder, but an incentive for both sides to soon reach an agreement. 

While manufacturers have planned for a potential disruption and continue to implement costly contingency arrangements in advance of February 6, concluding negotiations with an agreed upon contract before the deadline is the best solution.

Forward exporting, diverting cargo, increasing inventories and renting additional warehouse space do not position manufacturers for growth. Manufacturers will need greater assurances and a strong signal this week that a contract is an achievable goal in order to move beyond this palpable uncertainty.  Global customers need to know now that we will be open for business. 

Robyn Boerstling is director of transportation and infrastructure policy, National Association of Manufacturers.

Manufacturers welcomed the news this morning that the U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) have agreed to a 30-day extension to resolve their differences to avoid a dockworkers strike of the East and Gulf Coast ports.

However, it is critical that both parties use this time wisely to reach an agreement as soon as possible to avoid a strike at the end of the 30-day extension. Manufacturers implemented costly contingency plans this month, and the last thing manufacturers need is a repeat of the same scenario in January. Even with this progress outlined today, uncertainty remains until a final agreement is reached. Due to the complex nature of manufacturing supply chains, manufacturers must plan far ahead, and the continued potential for a strike in 30 days will result in additional costs to minimize the impacts of any port disruptions.

According to the Federal Mediation and Conciliation Service, both parties have agreed in principle to resolve the royalty payment issue, and the 30-day extension will give them time to work out other differences. This is a positive development to help avoid a port strike at the worst possible time for manufacturers.

With manufacturers already facing the fiscal cliff in three days, a port strike would have been another crippling blow to our economy. A strike would likely cost our economy an estimated $1 billion a day. Supply chains would be disrupted, putting manufacturing jobs at risk and halting exports. The National Association of Manufacturers has urged both sides to come to an agreement to protect jobs. We are hopeful that a final agreement will be reached as soon as possible so we can put any additional uncertainty from a port strike to rest.

Robyn Boerstling is director of transportation and infrastructure policy, National Association of Manufacturers.

Recent News Coverage:

-“Ports on East Coast threatened by strike“ (USA Today)
- “Obama pressed to act as dockworker unions threan massive port strike” (The Hill)
- “Looming port strike could cost economy billions” (CNN Money)

It is good news for manufacturers that the Office Clerical Unit Local 63 (OCU) and the marine terminal employers at the ports of Los Angeles and Long Beach reached an agreement this week that ended an eight-day work stoppage.

However, more trouble looms on the other side of the country at the East and Gulf Coast Ports as the International Longshoremen’s Association (ILA) continues its contentious negotiations with the United States Maritime Alliance (USMX). While these talks are being held under the auspices of the Federal Mediation and Conciliation Service, the outlook does not appear to be positive.

The longshore labor unions, especially on the West Coast, have used work stoppage and slowdown tactics successfully during contract talks to make gains in their contracts, ranging from as far back as the 1971 International Longhshore Warehouse Union (ILWU) strike that Nixon ended after 134 days, to this week’s events with the OCU.  In 2002, the ILWU lockout came at a cost of $1 billion a day to the U.S. economy and eventually delivered to the union what one leader described as “the richest contract we’ve ever negotiated.”   

The maritime industry has often noted the difference of style and culture between ILA and the ILWU, but Mr. Daggett, the current President of the ILA, has made strong statements and new commitments to maritime labor solidarity that show a willingness to be more pugnacious. The success of the ILA in negotiating its contracts with management going back to 1977 without any interruption is likely to be challenged in the next few weeks.

Just as with the West Coast ports, manufacturers need the East Coast ports to be open for business.  With a weak economy and a fiscal cliff on the horizon, manufacturers need the ports to ship and receive critical commodities and finished products in order to keep businesses running and people employed.

The ripple effect of a strike or slow-down would lead to curtailed economic growth, lost jobs and higher prices on goods for all Americans. Manufacturers have faith in the federal mediation process and hope when the parties sit down at the table next week, they keep this in the forefront of their minds. Also, today a group of industry groups, including the NAM, sent a letter to both the ILA and USMA to continue negotiating with the goal of finalizing an agreement without disrubtions to the supply chain.

Robyn Boerstling is director of transportation and infrastructure policy, National Association of Manufacturers.

The situation of low water levels on the middle Mississippi River continues to cause great uncertainty for the nation’s industrial shippers.  If channel depths go below nine feet as is expected sometime later this month, barge traffic carrying $7 billion worth of cargo would be significantly impaired.

Any potential closure due to low water depths or other navigational hazards that prevent towboats and barges carrying agriculture products, fertilizer, steel, coal, petroleum products and other commodities will lead to lost economic opportunities and damage the competitiveness of manufacturers. Hundreds of manufacturing facilities, terminals and docks are located in the Upper Mississippi River basin which spans 858 miles from Minnesota to the Ohio River.

The impending crisis on the Mississippi has grabbed the attention of lawmakers on the Hill and forced federal bureaucrats to move faster on a rock removal project that should have been accomplished years ago. The expedited removal of these rock formations near Thebes and Grand Tower, IL is welcome news but manufacturers need a greater level of certainty from the Administration that water levels will not be allowed to reach a point that cripples waterborne commerce. Time is of the essence for the Administration to develop a comprehensive plan that will ensure the entire Mississippi River remains fully open to navigation.   

The looming emergency on the middle Mississippi River is a reminder that Congress must soon pass a long-overdue Water Resources Development Act (WRDA ). In the meantime, the Administration must take additional action beyond removal of the rock formations, including releasing appropriate levels of water, to avoid a breakdown on the river. Taking this step will promote commerce, economic growth and jobs.

Robyn Boerstling is director of transportation and infrastructure policy, national associaton of manufacturers.