THE AMERICAN WATERWAYS2000 OPERATORS annual report

CHAIRMAN’S message

Change is a constant in our world. Change is that which makes life exciting and unpredictable; yet we instinctively resist it, though we realize that we must adapt or be left behind. The millennium symbolized change Cand many people predicted disaster, both technological and natural. But when reality dawned, the transition proved far less painful than the prognosticators feared. So it has been with our industry. With the first day of the new millennium, AWO members enacted an unprecedented change, requiring members to show evidence of having undergone a third-party audit of compliance with the Responsible Carrier Program (RCP). With this action, AWO became the first transportation trade association to require compliance with a safety program as a condition of membership. After years of planning, there were still questions and fears about whether or not AWO members had the resolve to stand by their conviction and commitment in becoming leaders in safety and environmental protection. We did it. We weathered the change, though it required the difficult decision to terminate the membership of 13 companies, and we are stronger for it. Beyond that, AWO members are now gaining recognition for our leadership. Members received praise for the RCP accomplishment at a spring Capitol Hill reception from Senate Majority Leader Trent Lott, U.S. Secretary of Transportation Rodney Slater, and Vice Commandant of the U.S. Coast Guard “I AM CONFIDENT AWO WILL VADM James C. Card. More recently, VADM (ret.) CONTINUE TO MEET THE CHANGE Card commended the Coast Guard-AWO Safety AHEAD CERTAIN AS IT IS WITH AN Partnership as “the pioneer [of Coast Guard-industry , , partnerships]…the best one, and the one that has EVER-POSITIVE STRATEGIC VISION OF been the most productive.” AN INDUSTRY FOCUSED ON SAFETY We have witnessed an unusual and historic AND ENVIRONMENTAL PROTECTION.” national election, ushering in a new President and a change in the landscape in Washington. AWO members will need to be vigilant and involved in charting the course for a positive outcome on legislative and regulatory issues of importance to the industry, as well as educating new lawmakers on the American tug and barge industry and its enormous value to the nation. I am honored to have a leadership role in AWO during a season of great change and growth A for the association, as it has demonstrated its leadership in change for the better of the industry. W We have emerged from the first year of the millennium stronger than ever. I am confident AWO O will continue to meet the change ahead, certain as it is, with an ever-positive strategic vision of an industry focused on safety and environmental protection. EPORT R NNUAL A William M. Waterman 1 AWO 2000executive committee

AWO’s Executive Committee, responsible to the Board of Directors, guides policymaking and exercises day-to-day oversight of the affairs of the association.

William M. Waterman Joseph Langjahr Chairman of the Board Chairman, Pacific Region Penn Maritime, Inc. Foss Maritime Company Stamford, CT Seattle, WA

Christopher Parsonage W. Bruce Law Vice Chairman of the Board Chairman, Atlantic Region MEMCO Barge Line Inc. Allied Transportation Company Chesterfield, MO Norfolk, VA

Fred C. Raskin Stephen D. Little Immediate Past Chairman Chairman, Ohio Valley Region of the Board Crounse Corporation Eastern Enterprises Paducah, KY Weston, MA

Larry R. Daily Richard Murray, III Chairman, Midwest Region Chairman, Harbor Services Sector Committee Alter Barge Line, Inc. Crescent Towing Company, Inc. Bettendorf, IA Mobile, AL

R.L. Doettling Emmett Neal Financial Advisor Chairman, Southern Region Midland Enterprises Inc. Magnolia Marine Transport Company Cincinnati, OH Vicksburg, MS

Jay Kitchener Harvey Walpert Chairman, Coastal Sector Chairman, Shipbuilders Council of America Committee Bender Shipbuilding and Repair Co., Inc. A Gulfcoast Transit Company Mobile, AL W Tampa, FL O

H. Merritt Lane, III W.N. Whitlock EPORT Chairman, Inland Liquid Sector Chairman, Inland Dry Sector Committee R Committee American Commercial Barge Line LLC Canal Barge Company, Inc. Jeffersonville, IN New Orleans, LA NNUAL A

21 AWO 2000board of directors

The Board of Directors is responsible for overall governance of AWO, exercising control over the affairs and business of the association and for approving association policy.

William M. Waterman Larry R. Daily Walter K. Kristiansen Dale Sause PennW Maritime, Inc. Alter Barge Line, Inc. E.N. Bisso & Son, Inc. Sause Bros. OStamford, CT Bettendorf, IA Metairie, LA Coos Bay, OR Chairman of the Board A Keith M. Darling H. Merritt Lane, III Cathy Shantz-Hammond Christopher Parsonage AEP River Transportation Canal Barge Company, Inc. Inland Marine Service MEMCO Barge Line Inc. Lakin, WV New Orleans, LA Hebron, KY Chesterfield, MO Vice Chairman of the Board Wm. Lamar Doyle Joseph Langjahr Dixon Shaver Intracoastal Towing & Foss Maritime Company Shaver Transportation Fred C. Raskin Transportation Corp. Seattle, WA Company Eastern Enterprises Houston, TX Portland, OR Weston, MA W. Bruce Law Immediate Past Chairman Jean Fitzgerald Allied Transportation Ric Shrewsbury of the Board Hvide Marine Incorporated Company Western Towboat Co., Inc. Fort Lauderdale, FL Norfolk, VA Seattle, WA William L. Arnold Garvey Marine, Inc. George Foster Stephen D. Little Richard Smith St. Charles, IL JB Marine Services, Inc. Crounse Corporation Westar Marine Services St. Louis, MO Paducah, KY San Francisco, CA Terry Becker Riverway Co. Terry Frickey David F. Loomis, Jr. J. Craig Stepan Eden Prairie, MN Leevac Shipyards, Inc. The Chevron Companies Warrior & Gulf Navigation Jennings, LA Houston, TX Company Walter E. Blessey, Jr. Chickasaw, AL Blessey Marine Services, Inc. William J. Gobel Jay Luhr Harahan, LA Zidell Marine Corporation Luhr Bros., Inc. Roger Van Duzer Portland, OR Columbia, IL Equiva Trading Company– Morton S. Bouchard, III Marine Department Bouchard Transportation Jerry T. Gonsoulin A.J. McAllister Houston, TX Co., Inc. LeBeouf Bros. Towing Co., Inc. McAllister Towing & Hicksville, NY Houma, LA Transportation Harvey Walpert New York, NY Bender Shipbuilding and Gerald W. Brown Charles Haun Repair Co., Inc. Cargo Carriers Parker Towing Company, Inc. Richard Murray, III Mobile, AL Minneapolis, MN Tuscaloosa, AL Crescent Towing Company Mobile, AL Ted Waxler Mark R. Buese O. Nelson Jones Waxler Towing Co., Inc. Kirby Corporation Madison Coal & Supply Charles Nalen Memphis, TN Houston, TX Company Crowley Marine Services, Inc. Charleston, WV Seattle, WA W.N. Whitlock Jack Buono American Commercial SeaRiver Maritime, Inc. Gordon A. Keenan Emmett Neal Barge Line LLC Houston, TX A Tenn-Tom Towing Co. Magnolia Marine Transport Jeffersonville, IN Mobile, AL Company W Timothy J. Casey Vicksburg, MS George Wittich O K-Sea Transportation Corp. Jay Kitchener Weeks Marine, Inc. Staten Island, NY Gulfcoast Transit Company Craig Philip Cranford, NJ Tampa, FL Ingram Barge Company George Clark EPORT Nashville, TN Rex H. Woodward R Harley Marine Services Gary W. Kovac Premier Marine, Inc. Seattle, WA Mid-South Towing William Rudolf Pittsburgh, PA Metropolis, IL Eckstein Marine Service, Inc.

NNUAL Jeffrey N. Covinsky Harahan, LA A Hannah Marine Corporation Lemont, IL 31 PRESIDENT’S report

2000 was an extraordinary year for The American move forward Waterways Operators. Members successfully expeditiously brought to a close the five-year effort to achieve with needed 2000100 percent compliance with the safety standards modernization of of the Responsible Carrier Program. At the America’s aging same time, they opened a new chapter in the infrastructure of Association’s development as implementation of locks and dams. AWO 21 began in earnest. Together, these results More work lies of the recent past and the promise of the near ahead to ensure future made 2000 a year of both high satisfaction that the industry’s and heightened expectation. crews are rested As the year began, AWO members were and fit for duty concluding the effort to ensure that every member despite the demands of the Association was operating its vessels of a 24-hour a day in third-party audited compliance with the industry. Congress Responsible Carrier Program. This campaign and the Administration still must fix the provides the public with assurance that members inappropriate use of strict criminal liability statutes of The American Waterways Operators operate to prosecute responsible vessel operators in the their companies at standards which always meet aftermath of oil spills. and often exceed federal laws and regulations. Achieving meaningful progress on these Ultimately, it became necessary that the Board issues in 2001 must be accomplished in a changed of Directors terminate the memberships of 13 political context in Washington, D.C. A new companies that failed to undergo the third-party president, an array of new cabinet officers and audit. This is action largely unprecedented in the senior decisionmakers in the agencies, and an annals of trade association experience – turning evenly divided Congress create a different members out from the organization and forgoing framework within which these issue goals must their revenue. These 13 members provided more be advanced. Intensity and focus will be needed than $40,000 in annual contributions to AWO. like never before. AWO also concentrated its efforts during the AWO is prepared to meet those challenges. It year on an effective start to the implementation remains an organization blessed by strong member of AWO 21, assuring that the Association’s guidance and extensive member involvement. resources were targeted on the core goals of the That ensures not only sound policies and strategies, strategic plan. This entailed an increased focus but the mechanism and resources to pursue them on advocacy of the industry’s views on a small as well. The Responsible Carrier Program has handful of public policy issues, the outcome of provided a membership foundation now firmly A which are critical to the long-term health and and completely grounded in safety leadership. W stability of AWO members. This sharpened AWO 21 provides the roadmap for making those O concentration began to produce the results it safety leaders an effective fighting force for sound was designed to achieve. public policy. Together, they provide AWO with However, the sharper focus of AWO 21 remains rising expectations for future success. We look EPORT

R much needed for the future because there is still toward 2001 with a strong sense of promise. much to do. Despite progress in 2000, the industry continues to be saddled with the antiquated and NNUAL

A unnecessary “deficit reduction tax.” Significant questions exist about the nation’s resolve to Thomas A. Allegretti 41 THE AWO responsible carrier program

TRANSFORMING AN INDUSTRY auditors and modified the RCP audit certificate During the year 2000, AWO members chartered to specify that it is only valid for three years from a new era of safety leadership by achieving the audit date. The Accreditation Board also 100 percent audited compliance with the AWO performed a detailed analysis of feedback gained Responsible Carrier Program. U.S. Secretary from both AWO member companies and auditors of Transportation Rodney Slater praised this on their experiences with the RCP audit process. tremendous accomplishment as a demonstration While these surveys indicated a very high of, “Standing behind your word, and more level of satisfaction with the Responsible Carrier importantly, standing up for your commitment Program, the audit process and the auditors, to safety.” By July, all carrier members of AWO the Accreditation Board will use the information had completed an AWO-certified third-party audit gained to make future program improvements. of their Responsible Carrier Program, thereby Looking back on the year 2000, it is clear demonstrating their commitment to safe and that the essential element in the success of environmentally sound marine transportation. the Responsible Carrier Program has been the This achievement transformed the very character willingness of AWO members to constantly update of AWO and is arguably the most significant and improve the program, subjecting themselves accomplishment in AWO’s history. to ever more rigorous standards. In 2001, the The Responsible Carrier Program is an challenge will be to maintain this commitment award-winning, Coast Guard-recognized to continuous improvement and the resulting comprehensive safety and environmental national safety leadership position that AWO protection program for the tug and barge industry members now command. that establishes industry standards at or above the level required by law. The development of the program, and the decision to set a January 1, 2000 deadline for third-party audited compliance with the RCP as a condition of AWO membership, demanded a serious commitment, vision, and courage on the part of AWO members. But with management’s commitment, staff focus and slow, steady pressure, AWO members have discovered that adherence to the Responsible Carrier Program has not only improved safety at their companies, but has also actually increased efficiency and improved profitability.

N VOLVING ROGRAM A A E P W The Responsible Carrier Program Accreditation O Board met regularly during 2000 to consistently review and update the Responsible Carrier Program to ensure that it continues to reflect the EPORT

R industry’s best practices. Among its actions in 2000, the Accreditation Board recommended several changes to improve the RCP, held an NNUAL

A auditor orientation session to certify 11 new

51 advocacy

Advocacy is AWO’s core business. Achieving advocacy excellence means being known by AWO’s key audiences as it wants to be known, making key public policy issues and positions known to those audiences, and influencing the public policy process to achieve outcomes AWO seeks in the legislative and regulatory arenas. The major issue challenges and objectives for 2000 were:

Improve the industry’s image and strengthen AWO’s relationships with Congress and Administration decisionmakers . . .

AWO recognizes the importance of a positive industry image to an effective advocacy program. To this end, AWO worked in 2000 to educate decisionmakers on the vibrance and value of the American tug and barge industry. The AWO industry image campaign’s print 1 ads highlighted the economic and environmental advantages of the industry in targeted publications. The historic achievement of 100 percent AWO member compliance with the Responsible Carrier Program was recognized with a high profile Capitol Hill reception attended by key Congressional and Administration leaders. The year offered numerous other opportunities for personal exchanges between AWO members and policymakers.

Maintain strong congressional and Administration support for the integrity of the Jones Act . . .

The tugboat, towboat and barge industry is the largest segment of the U.S. domestic fleet, and the Jones Act is the statutory foundation on which the vitality of the fleet depends. In 2000, AWO worked hand-in-hand with the Maritime Cabotage Task Force to maintain strong congressional 2 and Administration support for the integrity of the Jones Act. The coalition reached out to the presidential campaigns of Vice President Al Gore and Texas Governor George Bush and secured statements of support for the Jones Act from both candidates, ensuring that the 43rd President of the United States is on record in support of the cabotage laws. AWO and MCTF also worked with the National Industrial Transportation League to develop non-legislative forums for shipper- carrier dialogue and to explore A business solutions for shippers’ W water transportation needs. As a O result, there was no appreciable attempt to introduce or to move anti-Jones Act legislation in 2000. EPORT R NNUAL A BARGES DIRECTLY SERVE 87% OF ALL MAJOR UNITED STATES CITIES, ACCOUNTING FOR 61 73% OF ALL DOMESTIC WATERBORNE FREIGHT. Secure congressional repeal of the 4.3-cent deficit reduction tax. . .

In 2000, AWO worked hard to gain bipartisan support for repeal of this unnecessary tax that the 3 inland waterways transportation industry pays into the general treasury, and to have the repeal included in any appropriate tax legislation that Congress considered. AWO launched a grassroots campaign by AWO members and repeal of the 4.3-cent “deficit reduction” fuel tax, effective on January 1, 2001, was included in a final tax relief package drafted by the leadership in the closing days of the 106th Congress. The House of Representatives passed the bill but the tax package was never considered in the Senate, and grain processors, port authorities, terminal the Congress adjourned without any further action operators, oil and chemical companies, and river on the bill. Repeal of this unnecessary tax remains an valley associations across the country to lead the AWO priority in 2001. development of a coordinated campaign to ensure strong federal support for the nation’s ports and Repel efforts to impose or increase user taxes waterways infrastructure. The campaign, dubbed Waterways Work!, will seek the support of the or fees on inland, coastal or harbor operations 107th Congress and the new Administration for a of tugboats, towboats and barges. . . national policy that recognizes the criticality of our nation’s waterways system and provides needed AWO strongly opposes any new or increased user funding for important infrastructure development taxes or fees on tugboats, towboats and barges, and and maintenance. was fortunate that there were no calls for additional 4 infrastructure fees this year. However, the Administration’s FY 2001 budget request included Secure legislation clarifying that the Oil a proposal for harbor services user fees and Coast Pollution Act of 1990 (OPA 90) is the Guard user fees. Through the efforts of AWO and exclusive federal statute governing other marine groups, those proposals were yet criminal penalties for oil pollution. . . again turned back by Congress.

Antiquated and unrelated “strict liability” statutes Lead the development of a comprehensive, that do not require any showing of “knowledge” national gameplan to assure the modern- or “intent” are increasingly utilized as a basis of 6 criminal investigations and prosecution for oil ization and maintenance of America’s ports and waterways infrastructure . . . spills. The availability and use of such statutes continues to undermine cooperative and effective Our nation’s network of ports and water highways oil spill prevention and response efforts. In 2000, is a critical component of the U.S. intermodal AWO worked actively with allies to build support 5 transportation system and vital to Americans’ for comprehensive criminal liability reform. economy, environment, and quality of life. Yet the Legislation was introduced in the Senate by waterways infrastructure on which American Senator John Breaux (D-LA) and in the House by shippers and consumers rely for safe, efficient, Representative David Vitter (R-LA) that would environmentally friendly barge transportation is make OPA 90 the exclusive statute governing threatened as never before by aging locks and criminal penalties arising from oil spills. Efforts dams and well-organized opponents who dismiss to have Congress address this issue in 2000 were the value that working rivers provide to our nation. unsuccessful. AWO intends to redouble its efforts In 2000, AWO joined forces with farmers, miners, in the next Congress. Effectively manage the public discourse on crew alertness. . .

Ensuring crew alertness in a 24-hour operating environment is a safety issue, a public policy issue, and a top priority for AWO. The Coast Guard-AWO Safety Partnership, with its focus on government- 7 industry cooperation and non-regulatory improvements, is the principal forum for AWO’s work to promote crew alertness. As the year 2000 drew to a close, the partnership unveiled the “Stay Alert for Safety!” brochure, a joint Coast Guard-AWO publication aimed at individuals on the front lines of marine safety – tugboat and towboat crewmembers. Some 40,000 copies of the brochure will be distributed as the first phase of an ongoing Coast Guard-AWO campaign to increase company and crewmember awareness of the role of alertness in safe operations.

Contain state efforts to extend over vessel operations laws and regulations that duplicate or conflict with federal requirements. . .

In the U.S. Supreme Court Intertanko v. Locke decision, the Court affirmed the preemptive authority of federal statutes and regulations over state authority governing vessel operations. This important ruling prevents states from enacting regulations that overlap and/or contradict existing federal 8 regulations. In 2000, AWO carefully evaluated state laws to determine where revisions were needed, and mounted efforts to secure revisions in the states of Washington and Rhode Island.

Enhance AWO’s recognized leadership in marine safety and environmental protection. . .

Demonstrating outstanding leadership in marine safety and environmental protection, AWO members held firm to a January 1, 2000 deadline for all members to achieve third-party audited 9 compliance with the Responsible Carrier Program or forfeit their membership. This historic accomplishment was recognized and applauded by key Administration and Congressional leaders at a spring Capitol Hill reception. The Responsible Carrier Program was also featured in a public A television program series, “American Environmental Review,” as an example of what the industry W O is doing to positively impact the environment. Years of work by the Coast Guard-AWO Safety Partnership resulted in the release of a new sample Fall Overboard Prevention Policy aimed toward inland river operators. Finally, AWO’s leadership in marine safety was recognized by Professional

EPORT Mariner, with the first Samuel Plimsoll Award. R NNUAL A THE INLAND TOWBOAT AND BARGE INDUSTRY PAYS OVER $100 MILLION EACH YEAR IN 81 FEDERAL FUEL TAX THAT SUPPORTS WATERWAYS MODERNIZATION. SAFETY AND environmental protection

COAST GUARD-AWO The partnership also took on safety SAFETY PARTNERSHIP challenges at the regional level. Coast Guard- industry teams worked to strengthen planning and Launched in 1995, the Coast Guard-AWO Safety communication procedures for use in hurricanes Partnership was the first-of-its-kind government- and severe storms; instituted training programs to industry partnership. Aimed at improving marine introduce new Coast Guard personnel to tugboat, safety and environmental protection through towboat and barge industry operations; and cooperative, non-regulatory initiatives, the developed an alternate inspection program to partnership advanced its record of progress and improve tank barge safety. achievement in 2000. At the national level, the partnership continued its work to enhance marine safety by promoting crew alertness, unveiling AWO’S SAFETY COMMITTEES the “Stay Alert for Safety!” brochure for tugboat AWO’s two safety committees, the Interregion and towboat crewmembers. At year-end, the Safety Committee and the Coastal Safety Committee, in concert with the Coast Guard- AWO Safety Partnership and the Responsible Carrier Program, form the triumvirate of AWO’s interconnected programs in marine safety and environmental protection. In 2000, both committees focused on fall overboard prevention in an effort to reduce crew injuries and fatalities. The Coastal Safety Committee developed a sample fall overboard prevention policy targeted at coastal operations. In addition, safety committee members helped distribute the 2001 AWO Safety Calendar to vessel crews, which has fall overboard prevention as its theme. The highlight of the year was the first-ever joint meeting of the safety committees. This combined meeting was a unique opportunity for towing vessel safety officers to share information and reaffirm safety committee goals with their partnership received the results of a long-awaited colleagues. RADM Robert C. North, Assistant Quality Action Team (QAT) analysis of major and Commandant for Marine Safety and medium tank barge spills, and began work on a Environmental Protection, U.S. Coast Guard, gave the keynote address to the committees. The A plan to implement the QAT’s recommendations W to build on the industry’s record of improved committees also collaborated to develop safety O performance and declining spills. To track future priorities for 2001, including examining ways they progress and pinpoint areas where further can complement the Safety Partnership’s initiatives improvement is needed, the partnership instituted to enhance crew alertness during watchstanding. EPORT

R a process of collaborative data sharing and Both committees look to 2001 with a renewed analysis, using statistics from the Coast Guard sense of mission and dedication to reducing and U.S. Army Corps of Engineers to measure injuries and fatalities, and promoting NNUAL

A industry progress in eliminating accidents, spills, environmental stewardship in the tugboat, and crew fatalities. towboat and barge industry. 91 PUBLIC affairs

AWO shared the positive story of the American tugboat, towboat and barge industry through multiple initiatives in 2000. A big part of that story this year was the historic achievement of 100 percent compliance by AWO members with the Responsible Carrier Program. A Capitol Hill celebratory reception provided an opportunity for key congressional and Administration leaders to offer congratulations to AWO members for this tremendous triumph in the name of safety and environmental protection. The AWO image campaign continued in 2000, promulgated through four print advertisements highlighting the Coast Guard-AWO Safety Partnership, the Responsible Carrier Program, the industry’s environmental benefits, and its high-tech elements. The ads were placed in two prominent

with “Theodore Tugboat,” a life-size replica of the award-winning PBS children’s show character. AWO invited important congressional and Administration decisionmakers and their families as AWO’s guests to tour “Theodore Too” and learn about the industry. Significantly, AWO was invited by the “American Environmental Review” AWO Chairman Bill Waterman, Penn Maritime, Inc.; public television program Immediate Past Chairman Fred Raskin, Eastern Enterprises; Senate Majority Leader Trent Lott (R-MS); Department of to be featured in a segment Transportation Secretary Rodney Slater; and Deputy Secretary focusing on the AWO of Transportation Mort Downey at the AWO Responsible Carrier Program Capitol Hill reception. Responsible Carrier Program. The series, publications targeted at the key audience of narrated by Emmy Award- congressional and Administration decisionmakers, A winning TV journalist W Roll Call newspaper and Congressional Quarterly Morley Safer, features O Weekly magazine. AWO has engaged Wirthlin industries that positively Worldwide to conduct follow-up research to impact the environment, and is broadcast determine the advertisements’ impact and the to millions of viewers around the world on public EPORT

R future course of the campaign in 2001. television stations, the American Independent Safety was the theme for an official National Network and WorldNet, a news and information Transportation Week event AWO conducted jointly service operated by the U.S. government. NNUAL A THE TUGBOAT, TOWBOAT AND BARGE INDUSTRY COMPRISES THE LARGEST SEGMENT OF THE 101 U.S.-FLAG FLEET. REGIONAL action

AWO maintains field offices in New York, New Orleans, St. Louis and Seattle. These offices act to effectively project AWO’s advocacy agenda throughout the country. The action in 2000 in the regional offices spanned the breadth of issue challenges and objectives for the year: W O• The Pacific Region office confronted the looming • The Atlantic Region office was successful in threat to end navigation on the Snake River, securing the repeal of state of Rhode Island A which was forestalled. The Clinton administration regulations that conflicted with federal standards, announced that the four dams on the Snake would and through the efforts of the Regional Quality not be breached to assist salmon recovery pending Steering Committee, secured an Atlantic Area Port the results of a 5-10 year comprehensive program to Operations Severe Weather Policy for the U.S. Coast address other key elements of the salmon life cycle, Guard Atlantic Area Command. The Atlantic Region such as habitat restoration, reforms in hatchery also challenged Maine’s proposed regulations for production and improved harvest management. vessels operating on state waterways; the Common- V Successes were also achieved in the state legislative wealth of Virginia’s proposed regulations for the arena. In Alaska, a costly and onerous requirement transportation of solid waste; and the proposed for oil spill vessel response plans and certificates “No Discharge Area”designations for Buzzards Bay, of financial responsibility for non-tank barges was Massachusetts and the Hudson River, New York. avoided when the law was changed to apply to only Although the problems presented by these proposals self-propelled commercial vessels. In Washington, are not fully resolved, AWO’s cooperationV with a new law requiring ballast water exchange was federal and state representatives has yielded a better changed to exclude barges. Finally, following the appreciation of how to collectively maintain the Supreme Court Intertanko v. Locke decision, AWO vitality of the waterway transportation system and was successful in securing repeal of Washington Venhance the protection of natural resources. The state requirements that conflicted with or Atlantic region was also active in challenging duplicated federal standards. proposals by state boards to license federal pilots in the states of Maryland, New York and New Jersey.

• AWO’s Midcontinent office spearheaded a joint Coast Guard–industry effort to improve the • The Southern Region office worked on the state consistency, accuracy and timeliness of incident- government front to organize opposition to a Texas reporting data. Adopted changes will significantlyV state plan to board and inspect towboats and barges. improve the usefulness of personal injury and AWO members and staff were able to convince state vessel grounding data by screening out superfluous officials that the plan would be unconstitutional incidents. In another AWO/Coast Guard effort, in light of the Supreme Court’s Intertanko v. Locke the Midcontinent office played a significant role in ruling. In line with federal efforts to develop the minimizing the impact of a critical Coast Guard fuel Maritime Transportation System (MTS), the region shortage. Sharp increases in Coast Guard fuel cost helped spur a cooperative government effort had mandated operational cutbacks. AWO worked to develop accurate electronic charts for inland A with the Coast Guard to prioritize buoy tender waterways. At year’s end, a pilot project was W routes and reallocate fuel from low traffic to high initiated to re-survey and chart the first 300 miles of O traffic rivers. On a different front, AWO continued the Mississippi River. AWO members worked with to work with allied groups in an effort to maintain the Eighth Coast Guard District to create a new adequate Missouri River water releases in support alternate inspection protocol for barges. The pilot EPORT

R of Missouri and Mississippi River navigation. This project relies on company inspection programs battle is ongoing and will continue into 2001. and Coast Guard audits to ensure that barges are maintained at or above regulatory standards. NNUAL A

111 THE AMERICAN WATERWAYS OPERATORS WAS FOUNDED IN 1944. STRATEGIC plan

2000 marked the start of implementation of the association’s new three-year strategic plan, AWO 21, aimed at facilitating a sharpened focus on priorities and applying resources toward AWO’s core business – advocacy – thereby enhancing AWO’s ability to deliver results on issues of importance to its membership.

AWO VISION AWO VALUES The American Waterways Operators is the leading AWO Members: national advocate for the tugboat, towboat and 1. Operate their companies in an ethical manner barge industry. that benefits the public, their employees and the environment; 2. Recognize that the waterways of the U.S. are a shared resource and a national asset for all; 3. Foster the development of responsible legislation, regulations and safety procedures that safeguard the community, the workplace, and the environment; 4. Practice and promote the precepts of the Responsible Carrier Program; and 5. Preserve the industry heritage of cooperative endeavors, and the presentation of a unified voice.

AWO GOALS 1. Be an effective and proactive advocate with the U.S. Congress. 2. Be an effective and proactive advocate with federal agencies. AWO MISSION 3. Promote industry safety and environmental The American Waterways Operators is the national stewardship. trade association representing the owners and 4. Improve and promote the industry’s image. operators of tugboats, towboats and barges serving the waterborne commerce of the United States. 5. Influence state initiatives to protect industry Its mission is to promote the long-term economic interests. A W soundness of the industry, and to enhance the 6. Inform the membership on public policy issues. O industry’s ability to provide safe, efficient and 7. Assure effective and efficient management and environmentally responsible transportation, governance of the association. through advocacy, public information, and the

EPORT establishment of safety standards. R NNUAL A

121 THE STAFF HAS 115 YEARS OF COMBINED EXPERIENCE WORKING FOR THE AWO MEMBERSHIP. AWO 2000staff

Thomas A. Allegretti Anne Davis Burns President Director – Public Affairs

Lee H. Hill Marilyn D. Clark Chief Financial Officer and Membership and Meetings Senior Vice President Coordinator

Jennifer A. Kelly Leslie A. Kagarise Senior Vice President – Finance and Administration Government Affairs & Coordinator Policy Analysis Katherine M. Rehak Robert L. Clinton Safety Coordinator Vice President – Safety Amy K. Brandt E. Boyd Hollingsworth, Jr. Government Affairs Assistant Vice President – Legislative Affairs Vickie M. Hammond Assistant to the President Gerald P. McMahon Vice President – Pacific Region Traci L. King Public Affairs Assistant Linda E. O’Leary Vice President – Atlantic Region Megan E. Potter Legislative Affairs Assistant Kenneth R. Wells Vice President – Southern Region Mary C. Mills AWO appreciates the talent provided Receptionist by the following photographers: Paul J. Werner Brian A. Gauvin and Alan Haig-Brown Vice President – Midcontinent Graphic Design: Howell Design, Inc. THE AMERICAN WATERWAYS OPERATORS

The National Trade Association of the Inland and Coastal Tugboat, Towboat and Barge Industry 1600 Wilson Boulevard, Suite 1000 Arlington, Virginia 22209 www.americanwaterways.com