THEAMERICAN Waterways Operators

the american waterways operators Vision The American Waterways Operators is the national advocate for the U.S. tugboat, towboat and barge industry, which serves the nation as the safest, most environmentally friendly and most economical mode of freight transportation. Mission The 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. Values AWO members: n Operate their companies and vessels in n Provide value to the nation, moving cargoes an ethical manner. vital to the U.S. economy as the safest, most environmentally friendly and most efficient n Care for their employees and the public mode of freight transportation. by working to improve the safety of their operations and the professionalism of n Value member diversity and engage in their people. cooperative endeavors for the betterment of the industry. n Care for the environment by working to protect and improve the quality of our n Work collaboratively with government and nation’s air and water. other stakeholders to find solutions to issues of safety, security, the environment n Supply creative, practical and economical and freight mobility. solutions to their customers’ and the nation’s transportation needs. Chairman’s Message: safe, strong and resilient When people think about the U.S. tugboat, towboat Senate passage of a long-awaited Water Resources and barge industry, several images come to mind – tugs Development Act. Additionally, our cooperation pushing ships many times their size into tight berths, with the Shipping Industry Coalition has laid the grain barges hauling the harvest on the Mississippi, groundwork for enactment of much needed legislation coal hoppers moving on the Ohio, tank barges plying to reform the regulation of vessel discharges. BUCKLEY McALLISTER the Houston Ship Channel or deck barges positioning McAllister Towing In addition to this collaborative spirit, what makes this oilfield exploration equipment in the Gulf of Mexico. industry succeed is its resilience, and this trait is woven 2013 Chairman of the Board In my role as AWO chairman, I’ve seen firsthand the through everything we do. We look to “lessons learned” The American diversity of this industry and the many roles we play in to constantly improve our safety practices. We innovate Waterways Operators meeting the nation’s transportation needs. AWO’s 2013 to better meet customer demands. We invest heavily Annual Report calls attention to the contributions of the in technologies and vessels that will meet current and nation’s water transportation sector and the many ways future transportation needs. With that same mindset, AWO works to advocate on behalf of this great industry. we are also investing in our trade association. We also hope to spread the word about our industry’s At the start of my term as chairman, AWO established deep commitment to safety. I know how hard my a member-led task force to examine the future company works to place safety first, just as AWO missions and capacity of the association. Over the members all across the country are working to ensure spring and summer, this group grappled with how the safety of their personnel, their vessels and their to assure continued excellence in AWO’s rigorous customers’ cargoes, as well as that of the public and the pursuit of advocacy and safety leadership and deepen environment. Our industry’s dedication to moving the value that AWO members derive from their the nation’s cargo safely is reflected in more than just trade association. The Task Force concluded that the our practices; it is also firmly rooted in the people who association must add capacity to meet the industry’s serve on our vessels and support us in shoreside roles. future needs sustainably and effectively. AWO’s Board Tens of thousands of individuals propel this industry of Directors overwhelmingly approved the Task Force forward – from deckhands to pilots, safety managers recommendations at the Fall Convention last to engineers – each with a key role in ensuring our October. I am confident that the result will industry’s strength. be a much more resilient and much more effective trade association which offers its We know, however, that we cannot accomplish members even greater value. our work alone. In looking back over the past year, I am proud of our industry’s collaborative efforts AWO is on the verge of great change on some of our top advocacy priorities. Working internally and the industry continues to with the American Maritime Partnership, AWO has evolve. One thing, however, remains firmly the same: led the charge to build broad support for the Jones AWO and its member companies are committed Act, which serves as the foundation for a vibrant to serving this great nation by safely, reliably and domestic maritime industry that is witnessing a surge efficiently meeting its transportation needs, and thus of investment and growth. Together with Waterways helping to ensure its future success. It is our pleasure Council, Inc., our industry secured House and to share the 2013 Annual Report with you. 2013 Annual Report | The American Waterways Operators | 1 President’s Report: the rewards of resiliency 2013 was an enormously consequential year for before, that it is serious about effective governance AWO. It was a year when AWO members and the and that it is committed to assuring the success AWO Board of Directors grappled with the most of its trade association. significant question facing any national trade The Board’s recognition took the form of establishing association – how to ensure its long-term success in the Task Force on AWO Missions and Capacity in protecting the industry it represents. We ended the April, and its overwhelming endorsement of the year, after careful analysis and extensive discussion, Task Force’s recommendations in October, along with a bold and thoughtful plan to ensure the success with approval of a 2014 budget that allowed for their of our enterprise for many years to come. implementation. It is just simply remarkable that any One of organization with a membership the scope of ours America’s could identify and analyze this kind of a problem this most famous well and this speedily, and then fund the plan that orators, William gives us the right level of new resources to assure that Jennings Bryan, we can succeed in the future. Despite the fact that not once stated every Board member was in the same robust market that “Destiny is segment, virtually all Board members voted exactly the not a matter of same way. This is a very clear testament to the fact that chance; it is a what AWO members value in their own companies – matter of choice. owners with long-term thinking and a commitment It is not a thing to build the business for the future – they bring to be waited for; to the table in their ownership of AWO. it is a thing to be achieved.” In the contemporary The Board’s action in approving the report of AWO, we often reflect this same view in saying that the Capacity Task Force is material with respect to we must act to assure that we remain masters of our the state of AWO. It has allowed us to change the own destiny. That is an extraordinarily high standard assessment of AWO from one of jeopardy to one in the advocacy of sound public policy. Yet it is the of certainty – the certainty of future success. It has standard to which we have long held ourselves. But given us the capacity to augment our staff in critical our ability to continue to meet that standard and ways. It has given us the capacity to elevate the work mitigate risk for AWO members was in jeopardy. of your senior staff in equally critical ways. It has given Fortunately, AWO has long been governed by each and every AWO member the certainty that they a discerning, engaged and committed Board of are represented by a trade association that can deliver Directors. The constancy of that characteristic has meaningful results and substantially reduce the risk been critical to ensuring that we always make smart of harmful government action. decisions about the most important questions facing In 2013, the decisions and actions of AWO members our industry. In 2013, the Board recognized that were consistent with the very best traditions of AWO we needed to align our capacity with our missions governance over our 70-year history, becoming the and our expectations. In so doing, the Board latest significant milestone in our impressive historical showed once again, as it has done so many times 2 | 2013 Annual Report | The American Waterways Operators record. They have strengthened us significantly. to be adaptable. They often speak to the We accept these new assets mindful of our obligation importance of hard work, integrity and to meet the expectation of heightened performance commitment to excellence. and meaningful results. We are humbled by the I am proud that their trade association shares the generosity and the support of AWO members. We are same values, ethics and characteristics. It can be inspired by the confidence they have placed in us. THOMAS A. ALLEGRETTI found in the long-term thinking and discipline As we celebrate our 70th anniversary in 2014, we of our forward-leaning strategic plan. It can be President & CEO should recognize the extraordinary blessings we have found in the governance of our Board.

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