WASHINGTON, D.C. — Transportation, including the nation’s inland waterways system, “is not just a contributing factor to the economic competitiveness of agriculture, in general; and (for) the soybean industry, in particular, it is a predominant one,” according to Mike Steenhoek, executive director of the Soy Transportation Coalition (STC).

The STC counts 11 state soybean associations as members, along with the American Soybean Assoc. and the United Soybean Board. Steenhoek made his comments at the invitation of U.S. Rep. Bob Gibbs (R-Ohio), chair of the House Transportation and Infrastructure Subcommittee on Water Resources and Environment, during an April 18 hearing.

The hearing was on the importance of preserving the reliability of the nation’s inland waterways system. “Our overall dilapidated lock and dam system – exhibited by unscheduled maintenance, mechanical breakdowns and a threat of failure – sends a terrible signal to those who utilize the system,” Steenhoek told the subcommittee.

“How can we expect grain handlers and other freight interests to invest millions of dollars on new or upgraded facilities, when we cannot provide certainty that their shipments will be delivered to customers in an efficient manner?”

Gibbs acknowledged the inland waterways system provides a cost-effective and energy-efficient alternative to truck and rail transportation, a key factor in economic growth.

“As fuel prices continue to escalate, waterway transportation becomes an even more viable alternative for shippers. But, an unreliable transportation system will inject uncertainty into decisions made by U.S. farmers and manufacturers, making U.S. products uncompetitive in world markets,” Gibbs stated.

“Letting the inland waterways system decline further would be an economic disaster to add to the nation’s already significant fiscal problems. Having an inland waterways system that is a viable alternative will keep costs down among all modes of transport.”

Steenhoek informed the subcommittee that as Brazil continues to invest in its transportation infrastructure while the United States remains “anemic” in developing its system, our competitive advantage over Brazil continues to erode.

“It can be accurately stated that the U.S. is more a spending nation, not an investing nation,” he testified. “A high percentage of taxpayer dollars are used to meet immediate wants and needs, rather than providing dividends to future generations.”

He was alluding, in part, to the current expansion of the Panama Canal and how it will represent a “missed opportunity” for U.S. expansion of maritime commerce if we do not make the necessary investments into inland waterways. Steenhoek urged legislators to more carefully allocate funds for lock and dam improvements, adding, “A predictably good inland waterway system is better than a hypothetically great one.

“It is discouraging to observe how many other countries are able to construct their major infrastructure projects much more efficiently than we can,” said Steenhoek. “The Panama Canal expansion project is a great example. This $5.25 billion project commenced in 2007 and is scheduled to be completed in late 2014 or early 2015.

“The expansion project is more imposing and complex than any project we have under way or planned in our inland waterway system, though all indications are that the project will be completed within budget and only a handful of months behind schedule.

“Compare this to our Olmsted Lock and Dam project that had an original cost estimate of $775 million, and has recently been updated to over $3 billion with a significant time horizon remaining before it will be completed,” he said. “When examining the various reasons for our repeated cost overruns and project delays, it quickly becomes evident that a major contributing factor is the piecemeal and unpredictable manner in which we finance these projects.”

Also testifying at the hearing was Major Gen. John Peabody of the U.S. Army Corps of Engineers’ Mississippi River Valley Division, who issued a dire warning to lawmakers about the possible consequences of delaying crucial infrastructure work on the Mississippi, Ohio and Illinois rivers, among other waterways.

“Catastrophic failure of a lock or dam at a high-volume point along one of the major waterways would have significant economic consequences, because other transportation modes generally lack the capacity to either quickly or fully accommodate the large volume of cargo moved on the inland waterways,” Peabody said.

“Therefore, cost and congestion of other modes – mostly rail – could be greatly affected and some cargoes may be delayed for extended periods. For example, the Corps extended a planned 18-day closure at Greenup locks in 2006 when extensive deterioration of the miter gates was discovered. This lengthy, unplanned delay cost shippers over $40 million and several utilities came within days of having to shut down due to exhausted supplies of coal.”

Gibbs agreed, noting that one 15-barge tow on a river can carry as much cargo as 216 railcars or 1,050 large trucks. He also stated concern about employment.

“If you take inland waterways out of the mix in terms of transportation options, costs go up and American products become less competitive in the global marketplace,” he said. “And that means lost jobs.”