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Annual Report2009

The American Waterways Operators

“We are part of the solution for the economy. Waterways transportation

is essential to our nation’s economic vitality and America has been blessed

with a natural resource waterways system that is the envy of the world. ”

Timothy J. CaseyChairman of the BoardThe American Waterways Operators |

2009 Annual Report | 1

AWO members:

•Operatetheircompaniesandvesselsinan

ethicalmanner.

•Carefortheiremployeesandthepublic

byworkingtoimprovethesafetyoftheir

operationsandtheprofessionalismof

theirpeople.

•Carefortheenvironmentbyworkingto

protectandimprovethequalityofour

nation’sairandwater.

•Supplycreative,practicalandeconomical

solutionstotheircustomers’andthenation’s

transportationneeds.

•Providevaluetothenation,movingcargoes

vitaltotheU.S.economyasthesafest,most

environmentallyfriendlyandmostefficient

modeoffreighttransportation.

•Valuememberdiversityandengagein

cooperativeendeavorsforthebetterment

oftheindustry.

•Workcollaborativelywithgovernment

andotherstakeholderstofindsolutionsto

issuesofsafety,security,theenvironment

andfreightmobility.

Values

MissionThe American Waterways Operators represents the people who own and operate the tugboats, towboats and barges serving

the rivers, coasts, Great Lakes and harbors of the United States. AWO promotes the industry’s value to the nation as a driver

of the U.S. economy with a positive impact on the American quality of life, moving vital commodities safely, providing

family wage jobs, reducing air and water pollution, relieving highway congestion and protecting homeland security.

Vision TheAmericanWaterways

Operatorsisthenational

advocatefortheU.S.

tugboat,towboatandbarge

industry,whichservesthe

nationasthesafest,most

environmentallyfriendly

andmosteconomicalmode

offreighttransportation.

As2010dawns,wepausetotakestockofthepastyear

anditsevents.AnewadministrationinWashington

andanewCongresspromisedchange,andattimesit

seemedwewerestrugglingtodealwithallthechange

thatwascomingatusasifshotoutofafirehose.The

economicdownturnin2009wasfeltbyourindustryas

itwasinmanyothersandwefoundourselvesforcedto

makedifficult,sometimespainful,businessdecisions.

Yet,asisoftenthecase,thechallengeswefacedand

thechangeswewitnessedin2009providedsome

uniqueopportunitiesthatcontinuetoenergizeus.For

example,thefocusbythenewadministrationandnew

Congressontheeconomyandenvironmentprovides

anopportunityforustotellourstoryofthetugboat,

towboatandbargeindustryaspartofthesolutionto

manyofthenation’smostpressingchallenges.

We are part of the solution for the economy.Waterwaystransportationisessentialtoournation’s

economicvitalityandAmericahasbeenblessedwitha

naturalresourcewaterwayssystemthatistheenvyof

theworld.Bargessafelyandeconomicallytransport

commoditiesthatarethebuildingblocksofAmerica’s

economy.Thisincludesmillionsoftonsofcoalto

utilitiesforelectricity,petroleumproductstoheatour

homesandfuelourvehiclesandairplanes,ironoreto

steelmanufacturingplants,chemicalsessentialtoour

industries,concreteforconstructionprojectsandsalt

forourwinterroads.Vitalindustriesdependonbarge

transportationtodeliverthesecommodities.Without

bargetransportation,thecostsofthesematerialswould

skyrocket.Inmanycases,thereisnoalternative

transportationmethodtodeliverthesegoods.

We are part of the solution for the environment. Bargingisthemostenvironmentallyfriendlymode

ofcargotransportation.AstudybytheTexas

TransportationInstitutefoundthatbarginggenerates

farfeweremissionsthanrailortrucking.

Bargingalsomakesasignificant

contributiontoreducingairemissions

byeasingtrafficcongestion.Thisisduetothe

enormouscapacityofabargecomparedtoother

modes.Onebargehasthecarryingcapacityequal

to16railcarsor70trucks.Withoutbarges,there

wouldbemillionsmoretrucksonthenation’salready

crowdedroads.

We are part of the solution for national security. Membersofthebargeindustryconsiderthemselves

“theeyesandears”onournation’swaterways,in

partnershipwiththeU.S.CoastGuard.Bargessafely

transporthazardousmaterialsawayfromcongested

populationareas,withvesselsecurityprogramsinplace.

Infact,thebargeindustrywasthefirsttodevelopa

post-9/11securityprogramsanctionedbytheCoast

Guardlongbeforeonewasrequiredforalltransportation

modesbyCongress.

We are part of the solution for public safety.Thebargeindustryhasanenviablesafetyrecord.

Forexample,bargestransport99.998%ofoilsafely.

MembersofAWOarerequiredtocomplywiththe

2 | 2009 Annual Report

Chairman’s Message

The tugboat,

towboat and

barge industry

comprises the

largest segment

of the U.S. -

flag fleet.

— —

Part of the Solution


ResponsibleCarrierProgram,asafetyand

environmentalprotectionprogramcovering

allaspectsofvesseloperations.Independent,

third-partyauditorsmustcertifythatcomplianceor

thecompanylosesitsAWOmembership.TheU.S.

CoastGuardregulatestheindustryandforover

adecadetheCoastGuard-AWOSafetyPartnership

hasworkedcooperativelytofindsolutionstothe

mostpressingindustrysafetyissues.Weareonthe

vergeofahistoricendeavorastheCoastGuardwill

soonissuenewregulations,supportedbytheindustry,

tocreateatowingvesselinspectionprogramunique

tothetowingindustry.

Thesearejustsomeoftheadvantagestothenation

providedbyamodernandvitaltowingindustry.Our

challengeistotellourstorytopolicymakerssothey

willrecognizethevalueofinvestinginmodernizing

andmaintainingthenation’sagingwaterways

infrastructure.Modernizedlocksontheinland

waterwaysarecriticalfortheindustry’sefficiency

andforthenation’sglobalcompetitivenessintrade.

Wetakeseriouslyourresponsibilitytotransport

goodsinawaythatprotectspeople,propertyandthe

environment.Ourindustryprovidesgoodfamily

wagejobsforhard-workingAmericans.Intheseand

otherways,thetowingindustryispartofthesolution

toournation’smostcriticalchallengesandavaluable

nationalasset.

“We are part of the solution for the

environment. Barging is the most

environmentally friendly mode

of cargo transportation.”

Timothy J. Casey Chairman of the Board

K-SeaTransportationCorp.

EastBrunswick,NJ

Timothy J. Casey

Chairman of the Board

K-SeaTransportationCorp.

EastBrunswick,NJ

George Foster

Vice Chairman of the Board

JBMarineService,Inc.

St.Louis,MO

H. Merritt Lane III

Immediate Past Chairman of the Board

CanalBargeCompany,Inc.

NewOrleans,LA

Larry Daily

AlterBargeLine,Inc.

Bettendorf,IA

Robert A. Fry

KinderMorganShipChannel

Services,LLC

Pasadena,TX

Dan Jaworski

AmericanCommercialLines,Inc.

Jeffersonville,IN


Executive CommitteeGeorge G. Leavell

WepferMarine,Inc.

Memphis,TN

Jeffrey Parker

AlliedTransportationCompany

Norfolk,VA

Charles Linn Peterson

EnterpriseMarineServices,LLC

Miami,FL

John Pigott

TidewaterBargeLines,Inc.

Vancouver,WA

David G. Sehrt

IngramBargeCompany

Nashville,TN

Capt. Thomas Tray

Bay-HoustonTowingCo.

Houston,TX

|

The American

Waterways

Operators

was founded

in 1944 .

— —


Timothy J. Casey ChairmanoftheBoardK-Sea Transportation Corp. EastBrunswick,NJ

George Foster ViceChairmanoftheBoardJB Marine Service, Inc. St.Louis,MO

H. Merritt Lane III ImmediatePastChairmanoftheBoardCanal Barge Company, Inc. NewOrleans,LA

William R. Barr Amherst Madison, Inc. Charleston,WV

Mark J. Carr AEP River Operations Chesterfield,MO

Larry Daily Alter Barge Line, Inc. Bettendorf,IA

Stephen Dann Dann Ocean Towing, Inc. Tampa,FL

Z. David DeLoach DeLoach Marine Services PortAllen,LA

Joseph A. Devall Devall Towing & Boat Service, Inc.Hackberry,LA

John Douglass Crowley Maritime CorporationJacksonville,FL

Taylor DuChaine Enterprise Marine Services/Cenac Towing, LLCHouma,LA

Tommy Echols Echo Marine, Ltd./ Echo Towing Service Inc. Baytown,TX

Thomas Erickson Marquette Transportation Co., Inc.Paducah,KY

Cherrie Felder Channel Shipyard Company, Inc.Metairie,LA

Robert A. Fry Kinder Morgan Ship Channel Services, LLCPasadena,TX

C. Barry Gipson McNational, Inc. Hartford,IL

Steve Golding Golding Barge Line, Inc. Vicksburg,MS

Cathy Hammond Inland Marine Service Hebron,KY

Roger Harris Magnolia Marine Transport CompanyVicksburg,MS

Charles Haun Parker Towing Company, Inc.Tuscaloosa,AL

Frederick Iuliucci The Vane Brothers CompanyPhiladelphia,PA

Donald Ivins Express Marine, Inc. Pennsauken,NJ

J. Paul Janoush JANTRAN, Inc. Rosedale,MS

Dan Jaworski American Commercial Lines, Inc. Jeffersonville,IN

R. Russell Johnson Dunlap Towing Everett,WA

Charles H. King, Jr. Buffalo Marine Service, Inc. Houston,TX

Richard C. Kreider Cargill Marine and Terminal, Inc.Wayzata,MN

George G. Leavell Wepfer Marine, Inc.Memphis,TN

Michael Luhr Luhr Bros., Inc. Columbia,IL

Brendan MacGillivray Seaboats, Inc. Portsmouth,RI

Brian Buckley McAllister McAllister Towing NewYork,NY

Franklin Morton Turn Services, Inc. NewOrleans,LA

Brent Nissen American River Transportation Co.St.Louis,MO

Frederik A. Nyhuis Marathon Oil Company Catlettsburg,KY

Jeffrey Parker Allied Transportation CompanyNorfolk,VA

James W. Patterson Osage Marine Services Inc. St.Louis,MO

Charles Linn Peterson Enterprise Marine Services, LLCMiami,FL

John Pigott Tidewater Barge Lines, Inc. Vancouver,WA

Dale Sause Sause Bros. CoosBay,OR

Steve Scalzo Marine Resources Group Seattle,WA

David G. Sehrt Ingram Barge Company Nashville,TN

Ric Shrewsbury Western Towboat Company Seattle,WA

Peter H. Stephaich Campbell Transportation Company, Inc.Pittsburgh,PA

Gregg Thauvette The Great Lakes Group Cleveland,OH

Clark A. Todd Blessey Marine Services, Inc. NewOrleans,LA

Capt. Thomas Tray Bay-Houston Towing Co. Houston,TX

Edward J. Tregurtha Moran Towing Corporation NewCanaan,CT

William M. Waterman Penn Maritime, Inc. Stamford,CT

Ted Waxler SCF Waxler Marine LLC Memphis,TN

Matt Woodruff Kirby Corporation Houston,TX

Board of DirectorsTank barge

spills declined

by 99.5%

between 1994

and 2009.

— —

2009wasanunusuallychallengingyearforAmerica’s

tugboat,towboatandbargeindustry.AWOfaced

significantissuechallengesonthepublicpolicy

frontasweintroducedourindustrytothemany

newplayersinthe111thCongressandtheObama

administration.AWOmembersthemselvesfacedvery

difficultmarketconditionsandwereforcedtomake

toughchoicesaboutspendingandinvestment.

2009wasnonethelessayearmarkedbyrealsuccess

fortheindustryinouradvocacywithbothfederal

andstategovernment,inourenhancementofthe

industry’spublicimageandinfurtherstrengthening

ourmarinesafetycredentials.Memberleadership

andparticipationcontinuedtobeverystrongacross

thewholerangeofourworkandproducedanewand

ambitiousstrategicplanthatguidesourdirectionand

focusasweenter2010.

AWOmembersalsocontinuedtodemonstrate

aremarkablelevelofcommitmenttotheirtrade

association.Thishasbeentrueformanyyears,but

itisespeciallynoteworthyintheharsheconomy

membersfacetoday.ThatmemberloyaltytoAWO

hasonlyheightenedourobligationtoassurethatwe

arealwaysproperlyfocused,spendingmoneywisely,

andmakingsurethatAWOgetsbetterandbetter

asanorganization,dedicatedtoachievingresultson

behalfofthestalwartmembersweserve.

AWOentered2009withhighexpectationsand

ambitiousmetricsofsuccess.Weknewthata

principalstandardofsuccesswasmovingouradvocacy

programsfromplayinganeffectivegameofdefense

toanaggressivegameofoffense.Weknewthatthe

agendaofissueswefacedwasmoreconsequential

thanatanytimeinmodernmemoryandour

effectivenessasatradeassociationwouldbejudged

againstourabilitytoconfrontthemeffectively.We

knewthatthefieldonwhichAWOoperates—

legislative,regulatory,andpoliticalandpolicy—was

dramaticallyaltered.Wemustbeabletoplayand

winonthisfield,notafieldofthepastorafieldthat

wewouldprefer.Andweknewthatchangewould

aboundin2009.Anticipatingit,stayingastepahead

ofit,wouldbecriticaltoachievingrealresults.

Wealsoknewthatwewerewellequippedtoaddress

thesechallenges.Wearefortunatethatthereisareal

alignmentbetweenwhattheleadersofourcountry

seektoachieveandwhatourindustryhastooffer.

Wearefortunatethatourindustryhasacompelling

storytotell.Wearefortunatethatwehavealotof

capacity–engagedandenergeticmember-leaders,

thoughtfulandwellinformedmembers,andavery

strongstaff.

TheworkaccomplishedinAWOin2009clearly

demonstratesthatweusedthisknowledgetogood

advantage.Indeed,theBoardofDirectorsrecognized

earlyintheyearthatthisnewlandscapepresented

uswithanenormousstrategicchallengeandthatwe

neededamodernizedandcomprehensivestrategic

plantoaddressit.Thenewstrategicplanthatwas

developedandapprovediscertainlyoneofourmajor

achievementsin2009.Itprovidesuswithasharp

focusonthemostimportantgoalsthatwemust

accomplish,anditremindsusthathowindustries

positionthemselves,howtheypromotetheir

attributesandhowtheyexpresstheirconcerns,are

critical.Ifwearen’tabletodemonstratethatwehave

therightattributesandthatweholdtherightvalues,


President ’s Report

More than half

of America’s

grain exports

move by barge

along the

nation’s inland

waterways,

accounting for

$10 billion

in exports.

— —


wewillfinditdifficulttomakethecasethatweare

partofthesolutiontoAmerica’snationalproblems.

Thisisthefundamentalvaluepropositioninthe

publicpolicyarena.Ourindustrymustberecognized

aspartofthesolutionfortheeconomy,providing

goodfamily-wagejobstoAmericancitizensthat

can’tbeoutsourced.Wemustbeseenaspartofthe

solutionfortheenvironment,thetransportationmode

withthesmallestimpactonourairandourwater.

Wemustbeseenaspartofthesolutionfornational

security,astrongpartnerwiththeU.S.CoastGuard

andtheeyesandearsonournation’swaterways.

Wemustbeseenaspartofthesolutionforimproving

publicsafetyandalleviatinghighwaycongestion.

Thenewstrategicplangivesustheroadmaptoensure

thatweexplainthisvaluepropositionaspartofour

dailywork.

Thestrategicplanningexercisealsohelpedus

rememberthatweareblessedbyanorganizational

ethicthatbringsforththebestinus.The

distinguishingcharacteristicsofAWOmembers --

vision,leadership,proactivity,courage,creativity,

commitment,tenacity,partnership,focus,pride,

generosity,nimbleness,andpassion--combine

tomakethisanextraordinaryorganization.

Together,theyconvergetoincreasethe

valueofAWOtoitsmembersandthey

giveusaforwardleaningapproachthat

whileunderstandingthegravityofthe

issuesfacingus,confrontsthemwitha

confidencethattheyareallsolvable.

Becauseofallofthat,thestrategic

planningprocessgaveustheconfidence

toconcludethatAWOtodayisstrongerthan

ithaseverbeen.Wewillconductour

workin2010onthestrengthofthat

knowledge,butweshallalsomakesure

ourvaluetothenationandtoAWO

memberscontinuestoincrease.We

shallneverrestonourlaurelsorbesatisfiedwiththe

statusquo.Wewillonlycelebrateourvictoriesbriefly

beforeweturnourattentionbacktothenextgoal

thatneedstobeaccomplishedandthenextgameplan

thatneedstobeprosecuted.Wewillnotonlykeep

thestateofAWOassoundasitistoday,butwillwork

tostrengthenittomeetthechallengesahead.

We are fortunate that there is a

real alignment between what the leaders

of our country seek to achieve and what

our industry has to offer.

Thomas A. Allegretti President & CEO

TheAmericanWaterwaysOperators

(l. to r.) Matt Woodruff, Kirby Corporation; William Barr, Amherst Madison, Inc.; Thomas Allegretti, AWO; and Senator

John Rockefeller (D-WV ).

Barging is vital to the U.S. Economy

America’stugboat,towboatandbargeindustry

isavitalpartoftheU.S.marinetransportation

systemandessentialtoourcountry’seconomy.

Theindustryisthelargestsinglesegmentofthe

U.S.domesticfleet,withnearly4,000tugboats

andtowboatsandover27,000dry,liquidand

generalcargobarges.Thesevesselsoperateon

allofAmerica’scoastsandonitsnavigable

inlandwaterways,routesthatserveasournation’s

“marinehighways.”Bargestransport800million

tonsofcargoperyear,thebuildingblocksofthe

nation’seconomy,including:

• Morethan60%ofexportgrain,helping Americanfarmerscompetewithforeignproducers;

• Coaltopowerplantsforelectricityproduction;

• Petroleumproductsandchemicals foressentialindustries;

• HomeheatingoiltowarmAmericanhomes;

• Gasolinetokeepourcarsrunning;

• Saltforourwinterroads;

• Wheattomakemillionsofloavesofbread

tofeedusandtheworld.

Barging Offers Good Jobs for Americans

Theindustryoffersfamily-wagejobsthat

cannotbeoutsourced.Itemploysmorethan

30,000Americansonitsvesselsalone;thousands

ofothershoresidejobsdependonavitalwaterways

transportationindustry.AWOmembervessels

areAmerican-owned,American-built

andAmerican-crewed.

Barging Has a Smaller Carbon Footprint

Barginggeneratesfeweremissionsthantransporting

goodsbyrailortruck.Transportbyrailemits39%

moreCO2,andtransportbytruckemits371%more

CO2,thantransportbybarge.

IntermsofCO2producedpertonofcargomoved,

bargeshaveasignificantadvantageovertrainsandtrucks.


Value of Barge Transportation

The U.S.

Department of

Transportation

has projected

that the

demand for

commercial

waterways

transportation

will more

than double

by 2025.

— —

to America’s Economy and Environment

Tons of CO2 per Million Ton-miles

71.6

26.919.3

Barges produce less CO2while moving America’s cargoes.

Barging Alleviates Highway Congestion

Bargetransportationkeepsthousandsmoretrucks

offthealreadycrowdedhighways,withapositive

effectontraffic,pollutionandpublicsafety.

AstudybytheTexasTransportationInstituteat

TexasA&MUniversityfoundthatthefuelefficiency

oftugboatsandtowboatscombinedwiththesuperior

carryingcapacityofbargesmakebargingthemost

efficientandaffordabletransportationmodefor

freight,comparedtorailortrucking.

Bargestransportcargoesawayfromcongested

populationcenters.Inaddition,bargingistheonly

transportationmodethatstillhasexcesscapacity;

railandtruckingarealreadystrugglingtokeepup

withdemand.

Barging Saves Energy

Bargescanmoveonetonofcargo576milesper

gallonoffuel,ascomparedto413milesbyrailand

155milesbytruck.Thismakesbargingthemost

energy-efficientwaytomoveAmerica’sfreight.


576

413

155

Ton-miles Traveled per Gallon of Fuel

— —— —

1 Barge

16 Rail Cars

70 Trucks

Units to Carry 1,750 Short Tons of Dry Cargo

Tank barge oil

spills in 2009

reached the

lowest levels

since 1973,

when Coast

Guard record-

keeping began.

— —

Barges produce less CO2while moving America’s cargoes.

Towing Vessel Inspection: The Next Frontier of Safety, Security and Stewardship

AWO’stoppriorityfor2009wasworkingwiththe

U.S.CoastGuardtoprepareforimplementation

ofanewregulatoryframeworkdesignedtoraise

thebarofsafety,securityandenvironmental

stewardshipthroughoutthetugboat,towboatand

bargeindustry.Since2004,AWOhaspartnered

withtheCoastGuardthroughthecongressionally

authorizedTowingSafetyAdvisoryCommittee

todevelopatowingvesselinspectionregime,as

providedbythe2004CoastGuardandMaritime

TransportationAct.Byyear’send,themuch-

anticipatednoticeofproposedrulemakingwasin

thefinalstagesofadministrationclearance.Inthe

meantime,AWOworkedcloselywiththeCoast

Guardtodevelopandlaunchtheinnovative

TowingVesselBridgingProgram,designedto

pavethewayforsmoothimplementationofthe

inspectionregulations.Theprogramaimsto

increasefamiliarityofCoastGuardpersonnel

withtowingindustryoperationsandhelptowing

companiescomplywithcurrentregulationsand

anticipatedfuturerequirements.

Crew Endurance Management: Using Science to Promote Safety in 24/7 Operations

Inthe24/7worldofmaritimeindustryoperations,

ensuringcrewalertnessandfitnessfordutyis

essentialforsafeperformance.In2009,AWO

continueditslongstandingpartnershipwiththe

U.S.CoastGuardtopromoteimplementationof

thescience-basedCrewEnduranceManagement

System(CEMS)throughoutthetugboat,towboat

andbargeindustry.AWOsurveyedmembersto

identifysuccessesandchallengesinimplementing

CEMSandtoassisttheCoastGuardinrefining

itsCEMStrainingprograms.AWOalsoengaged

NorthwesternUniversity’sCenterforSleepand

CircadianBiologyinagroundbreakingstudyaimed

atbuildingontheCEMSfoundationanddeveloping

strategiesforoptimizingcrewsafetywithinthe

frameworkofstandardindustrywatchschedules.

Thiscutting-edgeresearch,whichdrawsfrom

recentstudiesconductedforNASAandonboard

researchontowingvessels,willcontinuethrough

2010-2011.

Greater Transparency: Strengthening the Responsible Carrier Program

Theaward-winningAWOResponsibleCarrierProgram

(RCP)isasafetyandenvironmentalprotection

programwithwhichallAWOmembersmustbein

auditedcomplianceasaconditionofmembership.

TheRCPisadynamicprogram,evolvingover

timetomeetmembers’needsandtohelpthem

achievethehighestsafetystandards.Someofthat

evolutionoccurredduring2009astheprocessfor

trackingRCPcertificationwastightenedandnew

policieswereputinplacetofirmupcompliance


Waterways

transportation

contributes to

the American

quality of life

by helping to

reduce congestion

on roads

and rails.— —

Safety


deadlines.AWOalsoenhanceditscommunications

processtonotifymembersonaroutinizedschedule

priortotheirauditduedate.Additionally,AWO

tookactionstomakethecomplianceprocessand

RCPstatusmoretransparent,includingimmediate

postingofmembershipstatusontheAWOWeb

site,andemailingnotificationtoallmembersof

anycompany’schangeinRCPstatus.Finally,the

progressofmemberswhoseauditisimminent

isnowmonitoredtoidentifycompaniesthat

maybehavingproblemsandmightbenefitfrom

furtherAWOoutreachandassistanceinreaching

theirsafetygoals.

Safety Committees: Aligning Priorities with AWO Goals and Objectives

AWO’sSafetyCommitteesdoimportantworkon

tacklingchallengingindustry-widesafetyissues,

findingsolutionsandsharinglessonslearnedand

bestpractices.Promotingalignmentbetweenthe

workoftheSafetyCommitteesandtheoverall

prioritiesofAWOwasanimportantgoalofAWO

during2009.Thisalignmenthasfocusedon

improvingcommunicationbetweentheExecutive

Committee,BoardofDirectorsandSafetyCommittees,

andonthethreegoalsestablishedbytheExecutive

CommitteewheretheSafetyCommitteescanmost

helptheindustry:crewendurancemanagement,

gatheringindustrysafetystatisticsfromwhichto

benchmarkanddeterminetrendsandpreparing

forimplementationofthehistoricnewtowing

vesselinspectionprogram.Thisalignmenthas

alsohelpedindustrysafetyprofessionalsgainnew

perspectiveontheworkofAWO,andinturn,

involvedalargersegmentofthemembershipinthe

workoftheSafetyCommittees.Inaddition,the

Committeescontinuetofocusonthesafetyofthe

mariner,creatingasafetyculturethatisembedded

intheworkenvironment.

The RCP is a dynamic program,

evolving over time to meet members’ needs

and to help them achieve the

highest safety standards.

AWO members conduct grassroots

activities with their congressional representatives to advocate for the industry. In this

photo, Clark Todd, Blessey Marine

Services, Inc., left, talks with Senator

David Vitter (r-la).

Vessel Discharges: Seeking an Effective National Framework to Protect Our Waters

OneofAWO’stopprioritiesfor2009wasworking

tobuildcongressionalandadministrationsupport

forauniformnationalapproachtotheregulation

ofballastwaterandothervesseldischarges.The

twinimperativesofenvironmentalprotectionand

efficientinterstatecommercedemandachange

fromtheconfusingpatchworkoffederalandstate

standardsthatcurrentlyunderminethesenational

goals.Whileprovidingcomplianceassistancetools

tohelpmembersmeettherequirementsofthe

EnvironmentalProtectionAgency’sVesselGeneral

Permit,AWOengagedinanongoing

dialoguewithcongressionalandadministration

decisionmakerstohighlightthechallengesposed

bythecurrentstatutoryframeworkandthecritical

needforasolution.InNovember,abroad-based

coalitionof22maritimetradeassociations,labor

unionsandcommodityorganizationsjoinedAWO

inacommunicationtocongressionalleadersseeking

theirsupportforuniformnationalstandards.

Marine Engine Emissions: Promoting Industry Practices to Reduce Environmental Impact

In2009thetugboat,towboatandbargeindustry

validatedandbolstereditspositionasthemost

environmentallyfriendlyformofcommercial

transportation.WorkingwiththeLouisiana

DepartmentofEnvironmentalQuality(LDEQ),

AWOsignedaMemorandumofUnderstanding

tostudytheeffectofinadvertentemissionsfrom

tankbargesonozonelevelsintheBatonRouge,

LAarea,withtheinitialphaseofthatstudy

indicatingonlyasmallimpact.AWO

membersalsorevisedlong-standingIndustry

BestManagementPracticestocontroltank

bargeemissions,andworkedwiththeU.S.

CoastGuard,ChemicalTransportationAdvisory

Committee,TexasCommissiononEnvironmental

QualityandLDEQtovalidatethoseimprovements.

Finally,inadditiontostrengtheningexisting

partnershipswithstateagenciesinLouisiana,Texas

andTennessee,in2009AWOmembersagreed

tofundfurtherstudiestomeasuretheimpactof

inadvertenttankbargeemissionsinotherstates.


Environment

Waterways

transportation

is the most

environmentally

friendly mode

of commercial

transportation.

— —

This towboat pushing

a 24-barge tow moves

the same amount of

grain as 384 rail cars

or 1,680 highway

trucks, reducing

pollution in our air

and congestion on our

roads. We get 576 miles

to the gallon...while

pushing a ton of freight.

For the Environment.

Beautiful. . .areBarges

Beautiful. . .

www.americanwaterways.com

THE AMERICAN WATERWAYS OPERATORS

America’s Tugboat, Towboat & Barge Industry

“Our Compass Always Points to Safety”

Lock delays due to aged facilities cost hundreds of millions

of dollars a year. Consumers ultimately bear these costs. |

Enhancing Maritime Security

Operatingthroughoutournation’srivers,canals,

coastsandharbors,themenandwomenof

thetugboat,towboat,andbargeindustryare

partnerswiththeU.S.CoastGuardinensuring

thesecurityofvitalmaritimecommerce.In2009,

AWOworkedwiththeCoastGuardtomodernize

theAWOAlternativeSecurityProgramand

InternationalVesselSecurityPlanformembersand

partneredwithmaritimelaborunionstoensure

thattheTransportationWorkerIdentification

Credential(TWIC)requirementsdonotimpose

undueburdensonhard-workingAmerican

mariners.LegislationpassedbytheHouseof

Representativeswouldpavethewayforamore

modernandpracticalapproachtoTWICissuance,

eliminatingtheneedforasecondtriptoafar-off

TWICenrollmentcenter.AWOalsoengagedthe

CoastGuardregulatoryprocesstoensurethat

TWICcardreaderrequirementsaretailoredtothe

uniquerisksposedbyvesseloperationsofdifferent

typesandsizes.

The Jones Act – Building Awareness with Lawmakers and Supporting American Jobs

Thevalueoftheentirecapitalinfrastructureof

thedomesticmaritimeindustryrestsonthe

JonesAct,whichrequiresthatwaterbornecargo

movingbetweentwoportsintheU.S.beshipped

onavesselownedbyAmericancitizens,crewed

byAmericanworkersandbuiltinanAmerican

shipyard.AspartoftheMaritimeCabotageTask

Force,abroad-basedcoalitionoftheU.S.maritime

industry,AWOspent2009connectingwithanew

generationofmaritimechampionsinCongress,

furtherpositioningMCTFasaresourcefor

congressionalandadministrationstaffonmaritime

issues.Lookingtothefuture,AWOandMCTF

workedtoensurethatdevelopmentofrenewal

energyresourcesontheOuterContinentalShelf

istoallapplicableU.S.laws,subjectincluding

theJonesAct.ContinuedsupportoftheJones

ActbyboththeObamaadministrationandthe

111thCongresswillsustainAmericanjobsin

maritimetransportation.

Continued support of the Jones Act by

both the Obama administration and the

111 th Congress will sustain American

jobs in maritime transportation.

Security

A Congressional

Budget Office

study found

that barging

is the most

energy efficient

mode of bulk

transportation.

— —


The capacity

of one inland

barge is equal

to that of

16 rail cars or

70 semi-trailer

trucks.— —

A New Path Toward Modernization

TheU.S.portsandwaterwaysinfrastructureis

acriticalcomponentofournation’sintermodal

transportationnetworkandvitaltoAmerica’s

economy,environmentandqualityoflife.Modern

lockanddaminfrastructureisessentialtoU.S.

competitivenessintheworldmarket,energy

efficiency,congestionrelief,environmentalprotection

andthesustainmentofAmericanjobs.Agingand

failinglocksontheinlandwaterwaysthreatenthese

benefits.Acomprehensivesolutionisneededto

developalong-termcapitalplantofundneeded

modernizationandtoprovideafairandaffordable

fundingmechanism.

InDecember,theInlandWaterwaysUsers

Board(IWUB),acongressionallyestablishedfederal

advisorycommitteeofwaterwaysusers,unanimously

approvedrecommendationsdesignedtoachieve

acomprehensivesolutiontoinlandwaterways

infrastructuremaintenance,constructionand

financing.Therecommendationsaretheproduct

oftheInlandMarineTransportationSystem

CapitalInvestmentStrategyWorkingGroup,a

government-industryworkinggroupthatdeveloped

astrategytoprioritizelockprojectdevelopment,

improvetheU.S.ArmyCorpsofEngineers’

processestodeliverprojectsontimeandon

budgetandrecommendafundingmechanism

thatisaffordableandmeetsthesystem’sneeds.

AWOsupportsthestrategydevelopedbythe

InlandWaterwaysUsersBoardandwillworkwith

otherwaterwaysstakeholderstourgecongressional

andadministrationadoptionoftheIWUB

recommendationsin2010.

Waterways Infrastructure


America’s tugboat, towboat and barge industry: ■ Carries 60% of U.S. grain exports, helping American farmers compete overseas■ Carries 22% of the petroleum products that run our vehicles and warm our homes■ Carries 20% of America’s coal– enough to meet 10% of U.S. electricity needs ■ Provides good paying, family-wage jobs and career opportunities for Americans

For the Economy.

Beautiful. . .are

BargesBeautiful. . .


THE AMERICAN WATERWAYS OPERATORSAmerica’s Tugboat, Towboat & Barge Industry“Our Compass Always Points to Safety”

AWO members meet with Rep. Jason Altmire (D-PA) during the annual “Barge-In” on Capitol Hill. (l. to r.)

David Parker, American Commercial Lines; Peter Stephaich, Campbell Transportation; Rep. Jason Altmire; Mike Ryan,

American Commercial Lines; Norb Whitlock, American Commercial Lines; Ted Waxler, SCF Waxler Marine;

and David Fennelley, Turn Services.

Currently, 85% of tank barges carrying oil have full double hulls;

by 2015, all tank barges carrying oil in U.S. waters will have double hulls. |


ThomasA.AllegrettiPresident & CEO

JenniferA.CarpenterSenior Vice President – National Advocacy

LynnM.MuenchSenior Vice President – Regional Advocacy

AnneDavisBurnsVice President – Public Affairs & Communications

RobertL.ClintonVice President – Safety

ChristopherA.CoakleyVice President – Legislative Affairs

LynnM.CraigVice President – Finance & Administration

NicoleE.deSibourVice President – Atlantic Region

JasonA.LewisVice President – Pacific Region

MarkA.WrightVice President – Southern Region

KellyL.FitzpatrickManager – Finance & Administration

MaryV.McCarthyManager – Government Affairs

MaryC.MillsOffice Manager & Receptionist

VickieM.HammondAssistant to the President

JaysonC.LarnerCoordinator – Information Technology & Training

AshleyM.SmithCoordinator – Meetings & Membership

RobertA.McCawGovernment Affairs Associate

BenjaminW.RogersGovernment Affairs Associate

BrianW.VaheyGovernment Affairs Associate

AW O Staff

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801NorthQuincyStreet,Suite200

Arlington,Virginia22203

(703)841-9300


The American Waterways OperatorsThe National Trade Association of the Inland and Coastal

Tugboat, Towboat and Barge Industry |

Annual Report2009

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