the american waterways operators

2012 Annual Report mission

The American Waterways Operators represents the people who own and operate the tugboats, towboats and barges serving the rivers, coasts, and harbors of the . AWO promotes the industry’s value to the nation as a driver of the U.S. economy with vision a positive impact on the American quality The American of life, moving vital commodities safely, Waterways Operators providing family-wage jobs, reducing air is the national advocate and water pollution, relieving highway for the U.S. tugboat, congestion and protecting homeland security. towboat and barge industry, which serves values the nation as the safest, AWO members: most environmentally n Operate their companies and vessels in friendly and most an ethical manner.

economical mode of n Care for their employees and the public freight transportation. by working to improve the safety of their operations and the professionalism of their people.

n Care for the environment by working to protect and improve the quality of our nation’s air and water.

n Supply creative, practical and economical solutions to their customers’ and the nation’s transportation needs.

n Provide value to the nation, moving cargoes vital to the U.S. economy as the safest, most environmentally friendly and most efficient mode of freight transportation.

n Value member diversity and engage in cooperative endeavors for the betterment of the industry.

n Work collaboratively with government and other stakeholders to find solutions to issues of safety, security, the environment and freight mobility. chairman’s message: We Are AWO

There is no question that 2012 has been our nation’s network of power plants? How an historic year for our industry, and, in do factories receive raw materials? How do retrospect, I think it is fair to say that it has petroleum products reach their destinations? been historically challenging. Mother Nature How are massive container ships and ore was not our friend. The devastation caused carriers helped into port? As we have seen on the East Coast by Hurricane Sandy and this year, the sheer volume and breadth of what throughout the nation’s heartland because moves on our nation’s waterways cannot be taken of the severe drought presented many obstacles for granted. It is time for our lawmakers and to overcome. And yet we persevered, because the rest of the nation to understand that as well. that is what we are in the business of doing in I am also often asked, who are your members? moving the nation’s commerce safely and What do your employees do? AWO members effectively, without a great deal of fanfare. are companies large and small – from the largest tugboat, towboat and barge operators to small, family-owned businesses. We are deckhands and pilots, engineers and captains, logistics specialists and safety managers. We are an industry with tens of thousands of workers who support hundreds of thousands more jobs across this great country. We are working hard to ensure the safety of our crews, our vessels and the waters upon which we operate. We do this all day, every day. It is, quite simply, who we are.

We are The American Waterways Operators, and we are very pleased to share our 2012 As is also true of our organization, because of Annual Report with you. those challenges, we’ve improved, and that is another hallmark of AWO members. We rise to meet a challenge, then we set the bar higher. linn peterson Kirby Inland Marine, LP When asked to describe who AWO represents and what it does by those who may not know 2012 Chairman of us very well, I often say that we are the industry the Board The American that gets things where they need to go. How Waterways Operators do agricultural products in the Midwest get to Louisiana for export? How does coal travel to

1 2012 Annual Report | The American Waterways Operators president’s report: A Year of Accomplishment That Tells a Larger Story

2012 was a year of extraordinary challenge of our success were slim. To the contrary, AWO for the tugboat, towboat and barge industry. members kept the pressure on, lawmakers of both It was also characterized by great ambition and parties came together to get the job done, and the accomplishment. Our ambition continues to be bill was signed into law. defined by our forward-leaning strategic plan, AWO 21, and a set of priority issues and goals As we look toward the new that are not for the faint of heart. As an advocacy Congress, we will need a organization, AWO works to represent its members similar approach to enact before federal and state legislatures and regulatory into law a uniform national agencies. In so doing, AWO has a strong history standard governing vessel of bringing government and industry together in a discharges. While the collaborative fashion to solve the array of issues that House of Representatives we face from year to year. We work across the aisle passed legislation in the with members of Congress and cooperatively with 112th Congress as part those who regulate our industry, and have forged of the Coast Guard and long-standing relationships based on mutual Maritime Transportation © JMSchneid Photography respect and Act, and a similar bill enjoyed bipartisan Senate understanding. support, we did not see a bill pass in the Senate. Such legislation is critical to enabling an industry Notably in in interstate commerce to avoid the nightmare 2012, this kind of inconsistent state regulation of ballast water of approach and other vessel discharges. Fixing this untenable and these situation is one of AWO’s top legislative priorities relationships in the 113th Congress. resulted in the passage 2012 was also a year of continued momentum on Thomas A. Allegretti of legislation AWO’s key safety priorities and the implementation President & CEO that will bring of the groundbreaking recommendations of tangible benefit the Task Force on the Future of AWO Safety to over two Leadership. We are making solid progress in million transportation workers. This year’s Coast modernizing our safety statistics reporting Guard and Maritime Transportation Act contained program. We are actively integrating the results a provision that will eliminate the second trip of the Northwestern University study on split requirement that currently bogs down the process sleep with work done by the U.S. Coast Guard of obtaining TWIC cards. The bill’s passage is also and the National Transportation Safety Board. We an example of two things – the power of grassroots continue to pave the way to improve the training involvement and the importance of not giving in to and certification of RCP auditors. We will conventional wisdom. Many looked at the partisan continue with all of these efforts on our path gridlock in Washington and thought the odds to zero accidents, zero fatalities and zero spills.

2 2012 Annual Report | The American Waterways Operators It is an ambitious goal, to be sure, but attainable, U.S. Army Corps of Engineers, the Coast Guard, if we keep working on it and improving and governors and lawmakers from Mississippi our performance. River states to press for actions to keep the river open to barge traffic. While the catastrophe of a Two matters that AWO Chairman Linn Peterson navigation shutdown on the mid-Mississippi River referenced in his report deserve a supplemental was averted and a nine-foot navigation channel remark. Some of the major challenges that the was maintained, many AWO members suffered industry faced this past year were the result of real economic harm. Our challenge going forward natural occurrences — Hurricane Sandy in the is to instill in Congress and the Administration Northeast and low water on the mid-Mississippi an understanding of the criticality of managing River. In each case, our industry experienced the Mississippi River and all of its tributaries as a significant hardship, as did so many of our single system for the benefit of the entire nation. nation’s citizens. Yet, from these unfortunate circumstances came greater unity, as well as The 2012 Annual Report will give you a good lessons to guide future decisions. sense for the scope of our work over the past year. You will undoubtedly see the many ways AWO In the aftermath of Hurricane Sandy’s landfall has helped advance the industry’s advocacy and in New York and , the Administration safety objectives in the legislative and regulatory briefly waived the Jones Act as one of many arenas. I hope, however, that you will also take a few measures taken to accelerate the recovery on moments to read between the lines. With the many the ground. A limited waiver of the Jones Act milestones we have achieved this year, our work was granted given the devastating circumstances remains rooted in finding the right answers, not residents of the Northeast were facing. Looking just the easy ones. We have built and maintained back on the last Congress, however, 2011 and an organization that reflects AWO’s ethos of hard 2012 could be viewed as “the years of the waiver.” work on behalf of this great industry. We enter Moving forward, we must be increasingly vigilant 2013 shaped by the challenges of the past year and and ensure that a waiver mindset doesn’t take hold cognizant of the priorities that remain before us. in a way that undermines the domestic maritime industry and the laws that support it. With AWO’s commitment to advancing the common good of our industry, continued Inland barge operators, as well as those who active guidance and involvement of our member ship commodities on the Mississippi River, companies, and a foundation of shared trust with faced significant complications because of the our government partners, we eagerly greet 2013 severe drought that plagued the Midwest and the and the opportunity to strengthen the waterborne resulting near-historic low-water conditions on the transportation system that is so foundational to our Mississippi. AWO members worked closely with the nation’s economy, environment and quality of life.

3 awo issue priorities: 2012 and Beyond

Build support for the Jones Act. Working with the American Maritime Partnership, AWO continues to build strong bipartisan support for the Jones Act and prevent the erosion of the cabotage laws that are so critical to U.S. economic, national and homeland security. In 2012, AWO and AMP worked with congressional champions to secure enactment of bipartisan legislation to increase the transparency of the Jones Act waiver process and maximize the use of available American vessels and crews. After Hurricane Sandy, the U.S. maritime industry actively facilitated the movement of petroleum and other products to the storm-ravaged region and, when the administration’s limited blanket waiver of the Jones Act expired, demonstrated its capability to meet the Northeast’s transportation needs.

Promote publication of a final rule on towing vessel inspection and work with the Coast Guard to facilitate the transition to inspection. Moving forward from the 2011 publication of a proposed rule on towing vessel inspection – a historic milestone in AWO’s decade-long journey to raise safety standards throughout the tugboat, towboat and barge industry – AWO worked throughout 2012 to lay the groundwork for a smooth transition to inspection. These efforts included brokering an agreement between AWO and the Towing Vessel Inspection Bureau that will pave the way for TVIB to assume responsibility for the

4 2012 Annual Report | The American Waterways Operators training and certification of auditors of Promote a uniform and practical national AWO’s groundbreaking and award-winning approach to the regulation of ballast water safety management system, the Responsible and other vessel discharges. Carrier Program, beginning in 2013. Following 2011’s House passage of strong AWO continued to partner with the Coast bipartisan legislation to establish uniform, Guard through the Towing Vessel Bridging practical federal standards for the regulation Program to ensure compliance with existing of ballast water and other vessel discharges, regulatory requirements and help prepare AWO worked with other maritime trade vessel operators for the forthcoming final rule. associations, labor unions, shippers and port This program has enabled the Coast Guard to authorities to secure the introduction of a complete over 5,200 industry-initiated towing vessel discharges regulatory reform bill in the vessel examinations to date. Senate, supported by the bipartisan leadership of the Commerce Committee. AWO and its coalition partners will continue to build momentum for the enactment of a nationally consistent framework for the regulation of vessel discharges in the 113th Congress. AWO and its members also mobilized to make recommendations to improve the practicability of the Environmental Protection Agency’s draft 2013 Vessel General Permit, and initiated an intensive outreach effort to ensure state agencies did not include infeasible or Ensure that navigation and vessel operations conflicting conditions in their certifications are regulated by the federal government. of EPA’s permit. To move critical cargo in interstate and international commerce safely and efficiently, the maritime industry needs strong, consistent safety and environmental standards established by one engaged and experienced federal agency, the Coast Guard – not a patchwork of inconsistent requirements imposed by individual states. AWO continues to lead an international coalition of maritime organizations challenging the constitutionality of state legislation that would seriously undermine the Coast Guard’s authority over the regulation of vessel operations.

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Promote a practical, science-based of senators also worked together to develop a approach to crew endurance, work waterways infrastructure funding proposal that and rest issues. incorporated many of the Capital Development In 2012, AWO-supported research on the Plan’s recommendations. sleep patterns of towing vessel crewmembers conducted by the Northwestern University Eliminate the requirement for a second Center for Sleep and Circadian Biology trip to the TWIC enrollment center. marked the largest known study of its kind. A multi-year AWO effort to eliminate the The research corroborated earlier findings requirement for Transportation Worker that the two-watch system is not an obstacle Identification Credential applicants to make to towing vessel crewmembers getting the a redundant and costly second trip to an needed time in bed, but showed that more enrollment center to obtain their TWIC can be done to improve the quantity and culminated in enactment of the Coast Guard quality of sleep on board vessels. AWO and Maritime Transportation Act of 2012, initiated an outreach effort to share the which contained a provision directing the results with stakeholders, including Department of Homeland Security to reform association members, the Coast Guard, the National Transportation Safety Board and AWO’s external advisory board of fatigue experts from academia, to hear their perspectives on the data and determine the necessary next steps.

Support the adoption of the Inland Waterways Capital Development Plan. AWO continues to support the Waterways Council, Inc. in its work to promote adoption of the Inland Waterways Capital Development Plan to ensure the continued the process to require not more than one visit vitality of the critically important inland to an enrollment center. The provision’s passage waterways infrastructure system. 2012 saw is a tribute to the grassroots advocacy of AWO the introduction of legislation to enact the members and the leadership of congressional Capital Development Plan in the House of champions of both parties, and promises Representatives that garnered a large number savings of time and money for millions of of bipartisan cosponsors. A bipartisan group transportation workers across the country.

6 2012 Annual Report | The American Waterways Operators “We are an industry with tens of thousands of workers who support hundreds of thousands more jobs across this great country. We are working hard to ensure the safety of our crews, our vessels and the waters upon which we operate. We do this all day, every day. It is, quite simply, who we are.” Linn Peterson Kirby Inland Marine, LP AWO Chairman of the Board awo: Making History and Headlines

The critical role of the nation’s tugboat, towboat and barge operators took center stage in local, national, and even international news stories over the past year. The collective narrative is impressive, and showcases the industry’s importance to the entire nation. january

AWO issues statement on Mississippi River, Great Lakes Separation february AWO weighed in on the potentially damaging effects of separating the Mississippi River and the Great Lakes to address Asian Carp concerns, stating, “…the American Waterways Operators strongly believes that effecting permanent physical separation between the Great Lakes and the Mississippi River basins…is the wrong course of action for the thousands of people, from Illinois to Louisiana and beyond, who rely on the Chicago Area Waterways System for their livelihoods.”

Workboat: Coast Guard Academy and towing march industry launch new program U.S. Coast Guard Academy cadets will be riding on towing vessels this summer as part of a new partnership between the tug and barge industry and the agency. april “It is a great opportunity to help cadets learn about the largest segment of the U.S.-flag domestic fleet, something that will become even more important as Subchapter M is finalized and towing vessels come under a Coast Guard inspection regime,” said Jennifer Carpenter, AWO may senior vice president for national advocacy.

Administration’s “hollowing out” june of Jones Act must stop, AMP testifies Testifying on behalf of the American Maritime Partnership before the House Subcommittee on Coast Guard and Maritime Transportation, AWO President & CEO Tom Allegretti challenged the Administration’s failure to comply with the Jones Act during a 2011 drawdown of the Strategic Petroleum Reserve. Mr. Allegretti told the Subcommittee that “American vessel owners and American mariners are ready, willing and able to do what they do best – move cargo safely, securely and economically for the benefit of our customers and our country. But, in order to do so, we need the administration to follow the law.”

8 2012 Annual Report | The American Waterways Operators MSNBC: Space shuttle replica comes in for docking ... in Houston lake july AWO member Kirby Corporation earned a place in history for helping with the historic move of the space shuttle replica “Explorer” from the Kennedy Space Center in to the Johnson Space Center in Houston. As MSNBC reported, “The replica left the Florida spaceport on May 24 atop an open-air, flat-bed barge and made its way around the Florida peninsula and through the Gulf of Mexico.” The trip lasted one week. The shuttle replica was welcomed in Houston on June 1 and will become part of an educational exhibition celebrating the space shuttle program.

U.S.S. Iowa on the move The U.S.S. Iowa, one of the most powerful battleships of all time, made a final journey to its permanent home as an interactive naval museum in Los Angeles. AWO member Crowley Maritime Corporation assisted with the historic move, using four of its Harbor Class tugs to tow the 887-foot-long ship. Crowley’s tugboat Warrior also assisted with its move from San Francisco to Los Angeles, passing under the Golden Gate Bridge amid a festive celebration of the bridge’s 75th birthday.

AWO statement on reality TV series august “The reality TV series that is currently airing on the History Channel, Great Lake Warriors, portrays companies involved in vessel operations on the nation’s Great Lakes, focusing on the oftentimes challenging and harsh weather conditions during the winter months. What is clearly lost in efforts to make more dramatic television, however, is the far less sensational, day-to-day vessel operations responsible for moving cargo throughout the waterway transportation system and the foundational culture of safety under which this country’s towboat, tugboat and barge industry operates. While it may not always make for exciting, dramatic TV, the industry is firmly committed to its role in supporting our national economy and enhancing our quality of life, all the while operating safely and efficiently and in cooperation with the government officials that oversee our industry. It isn’t glamorous, but it is necessary, and the hard work of the nation’s mariners and their foundational commitment to safety will continue to truly reflect our industry’s operations.”

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2012 Annual Report | The American Waterways Operators continued from page 9

Professional Mariner: Postal Service to dedicate new stamp honoring barge fleeting september The United States Postal Service dedicated a series of Forever Stamps entitled “Earthscapes,” including one which features the barge industry. In the aerial view of Kirby Corporation’s Apollo and Enterprise Marine Services october LLC’s Taurus, commercial towboats position themselves against liquid tank barges in the Old River Barge Fleeting area near the Houston Ship Channel in Texas. november

Newsday: World Trade Center spire arrives in NYC The crowning spire of the World Trade Center’s tallest building arrived in New York City december with the help of AWO member Donjon Marine Co., Inc., which brought the spire across New York Harbor from New Jersey. A tug and barge brought the nine pieces of the steel spire that will top One World Trade Center in lower Manhattan. The trade center’s director of construction, Steven Plate, was quoted as saying that the spire marks a post-9/11 milestone that signifies New York City is “better than ever” and that the building with its spire will be the tallest building in the Western Hemisphere and a symbol of America’s freedom.

Mississippi River Low Water Crisis The summer of 2012 brought near-historic 2012 drought to the nation’s midsection, and that drought in turn affected navigation on the nation’s primary water transportation artery, the Mississippi River. Throughout the summer and into the fall, AWO members worked with the U.S. Coast Guard and the U.S. Army Corps of Engineers to manage conditions on the river and move the nation’s commerce, albeit at reduced capacity. Barges that should have been loaded to a 12-foot draft were

10 2012 Annual Report | The American Waterways Operators loaded to nine feet and tow sizes were reduced. weighed in with the administration to urge However, the worst was still to come. By measures necessary to preserve navigation. November, traditional flows from the Missouri Given the tremendous risk to the Mississippi River were scaled back, and water levels dropped River Valley region and to the nation, including further. It became clear that rock pinnacles near jobs and wages in states that border the river Thebes and Grand Tower, IL, were going to pose and over $7 billion in key commodities for a significant threat to navigation. While nature both domestic consumption and export, the provided a media extensively covered the low water crisis, once-in-a- with stories appearing in local and national generation print, TV and radio outlets throughout the threat to country. Moving forward from here, there waterborne should be no question as to the inherent value commerce, of our nation’s waterborne transportation AWO pressed system and the benefits it brings the nation. for policies that would offer a solution. AWO and other stakeholder groups called upon the president to issue an emergency declaration to expedite rock removal work and keep a modest amount of water flowing from the Missouri River reservoirs to sustain the Mississippi while the rock removal took place. Lawmakers from up and down the river also

July 13 July 24 August 7 August 19 August 22 “Trade Dries “Mississippi River “Mississippi River “In Midst of a “As Barges Sit Idle Up Along With Threatened by Low Water Levels Drought, Keeping Along the Mississippi, Mississippi” Record Drought” & Navigation Traffic Moving on the Economic Impacts” the Mississippi” Costs Grow”

December 8, “When the River Runs Dry” The Mississippi River looks like the Dan Ryan Expressway at rush hour these days…Many of the goods that Americans rely on for their daily lives travel up and down the Mississippi. The summer drought December 9 has left the river at its lowest level in decades. Weather forecasts indicate that the level will fall lower “Buying Time on still…Like O’Hare International Airport, the interstate highways and the nexus of rail lines around Mississippi River Chicago, the river is a vital lifeline for commerce in the heartland. Doing nothing to address an Shipping Crisis” impending disruption in barge traffic is not an option.

11 2012 Annual Report | The American Waterways Operators © JMSchneid Photography barge transportation: Critical to the U.S. Economy

The tugboat, towboat and barge industry is The Jones Act is the foundation of the domestic critically important to America’s economy. maritime industry, which is responsible for nearly With over 4,000 tugboats and towboats and 500,000 jobs and more than $100 billion in more than 27,000 barges, the industry annual economic output. Jones Act-related U.S. comprises the largest segment of the U.S.-flag labor compensation associated with the domestic domestic fleet. Taken together, these vessels fleet exceeds $29 billion annually, with those wages move more than 800 million tons of America’s spent in virtually every corner of the United States. commerce each year on the U.S. inland and Additionally, the Jones Act generates $11 billion intracoastal waterways, the Atlantic, Pacific in revenue for state and federal treasuries. and Gulf coasts and the Great Lakes. The Jones Act ensures that the jobs of the thousands of Americans employed by the tugboat, Jobs towboat and barge industry cannot be outsourced. The tugboat, towboat and barge industry provides family-wage jobs for hardworking American men Exports and women on our inland waterways and coasts Barge transportation is the most efficient and and in ports and harbors around the country. economical form of domestic cargo transportation. The industry also supports tens of thousands of Its cost-effectiveness provides American farmers shoreside jobs that rely on safe and efficient with a reliable and affordable way to move their waterborne transportation of the building blocks agricultural products to export markets, helping of the U.S. economy, including petroleum for them stay competitive with foreign producers. oil refineries, coal for power plants and iron Almost 60 percent of U.S. grain and oilseed ore for steel mills. exports – including more than 2.5 million bushels Underpinning these jobs is a longstanding of corn and soybeans – are annually transported maritime law known as the Jones Act, which by barge along the Mississippi River. There are no requires that cargo shipped between two U.S. viable alternatives to barge transportation for these ports be transported on vessels that are American- bulk commodities, which are essential positive owned, American-built and American-crewed. contributors to the U.S. balance of trade.

13 2012 Annual Report | The American Waterways Operators awo members: Safety Leaders and Environmental Stewards

AWO Responsible Carrier Program spills since the 1990s was recognized by the In 1994, AWO became the first transportation U.S. Coast Guard in a report to Congress trade association to adopt a code of safe released in May. Noting that the tugboat, practice and environmental stewardship. towboat and barge industry moves some 69 billion gallons of oil annually, or 71 percent of all oil transported by water in the U.S. domestic trade, the report found that “Despite the massive amount of oil transported, the towing industry has dramatically reduced the amount of oil spilled” since the late 1990s. The Coast Guard attributes this decline to a combination of federal regulations and industry initiatives, including adoption of the RCP by most of the U.S. tank barge population. To build on this positive record, the report recommended that the forthcoming towing © JMSchneid Photography vessel inspection regulations emphasize safety The Responsible Carrier Program, a management system implementation “to the third-party-audited safety management fullest extent possible.” system, has been a condition of AWO membership since 2000. AWO has worked gallons of oil spilled from barges, per million transported to continually strengthen the RCP since its 30 inception. In 2012, AWO negotiated an 25 with DBL-152 agreement with the Towing Vessel Inspection 20 Bureau, which will begin training and certifying 15 AWO Responsible Carrier Program auditors in 2013 as part of an effort to enhance the 10 quality and consistency of RCP audits. AWO 5 also initiated a dialogue with the Coast Guard 0 to pave the way for agency acceptance of the 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20052006 2007 2008 2009 2010 2011 RCP as a Towing Safety Management System under forthcoming regulations on towing Coast Guard-AWO Safety Partnership vessel inspection. Established in 1995, the Coast Guard-AWO Safety Partnership is the oldest public-private Coast Guard Report to Congress Hails partnership between the U.S. Coast Guard RCP Contribution to Spill Reduction and its stakeholders. Since its establishment, The role of the Responsible Carrier Program the partnership has launched more than 40 in bringing about a dramatic decline in oil cooperative initiatives to improve safety and

14 2012 Annual Report | The American Waterways Operators environmental protection. Partnership accomplishments in 2012 include a comprehensive analysis and recommendations on measures to reduce towing vessel crew fatalities, the establishment of a fatalities in freight transportation first-of-its-kind industry training program for cadets at the 1 U.S. Coast Guard Academy and 18.1 leadership of the Towing Vessel 132 Bridging Program, under which more 2001 - 2009 Safety Statistic Comparison than 5,200 towing Study shows 1 fatality in the inland marine vessel examinations sector for every 18.1 in the rail sector and 132 in the highway sector. have been conducted to facilitate the Source: Texas Transportation Institute, A Modal Comparison of Domestic Freight Transportation Effects on the transition to towing General Public 2001-2009, February, 2012 vessel inspection.

A Science-Based Approach to Fatigue Prevention gallons of oil spilled from barges, per million transported Seeking to prevent fatigue and ensure safe operation in the 24/7

30 world of tugboat, towboat and barge operations, AWO sponsored a multi-year research effort to study the sleep patterns of towing 25 with DBL-152 vessel crewmembers. The research, conducted by the Center 20 for Sleep and Circadian Biology at Northwestern University, 15 involved more than 160 wheelhouse personnel from 27 AWO 10 member companies, the largest known study of its kind. AWO 5 has shared the research findings with an External Advisory Board 0 of internationally recognized fatigue experts from academia, 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20052006 2007 2008 2009 2010 2011 the Coast Guard and the National Transportation Safety Board and sought their feedback on its implications for joint industry-government fatigue prevention programs. AWO’s goal is to build on more than a decade of productive Coast Guard-AWO partnership on fatigue prevention and apply the Northwestern research findings in a science-based approach to ensuring safe operations around the clock.

2012 Annual Report | The American Waterways Operators awo members: Working from Coast to Coast

The nation’s water transportation system runs throughout the American heartland and along the coasts, to the benefit of the entire country. From the far reaches of Alaska to the bustling ports of the East Coast, AWO’s members in the Pacific, Midwest, Valley, Southern and Atlantic Regions are providing jobs in local communities, ensuring the safety of crews and vessels, preserving the waters upon which they operate and moving the commerce of the nation.

pacific region from the North Pacific fishing fleet to the Pacific Arctic Navigation Work Group Created icebreakers is centered here. AWO’s Pacific Region members put together The maritime industry and a work group to offer feedback on issues its employees are the key related to Arctic navigation. to Seattle being one of the This group was particularly biggest industry clusters on helpful as AWO worked with the West Coast.” Crowley Maritime Corporation to provide testimony at an midwest region August field hearing in Kodiak, AK, on needs for Mississippi River-Missouri River Connection continued safe Arctic The intense drought in the nation’s midsection navigation as operations in had significant ramifications for barge operators the region expand. as well as those that rely on water transportation to move commodities throughout the river Leveraging Maritime Partnerships system. However, conditions on the Mississippi AWO worked in conjunction with maritime River would have deteriorated faster if it had not industry coalitions in the Pacific Region to been for the influx of flows from the Missouri enact positive measures for the industry, River which, in early October, was higher than such as California’s bunker tax exemption. 75 percent, reinforcing that the Western Rivers With its maritime coalition partners, AWO need to be managed as a system. AWO’s advocacy also fought for regulations that preserve the work will continue to promote the tremendous operational integrity of the industry while regional and national benefits of waterborne protecting its strong environmental record. commerce and seek holistic approaches to manage the complete waterways system to the benefit of the Seattle’s Maritime Economy entire nation. “Without our maritime economy, Seattle wouldn’t be the city it is today,” said Rep. Successful Industry Coalitions Jim McDermott (D-WA) on a tugboat ride AWO and a coalition of industry stakeholders along Seattle’s Lake Washington Ship Canal, continue to help the Army Corps of Engineers hosted by AWO members Western Towboat, fight a lawsuit filed by Great Lakes states in an Kirby Offshore Marine, LLC, Saltchuk effort to force the closure of the Chicago Area Resources, Inc., and Westar Marine Services. Waterways System to prevent the migration of “We are a trade-dependent city, and everything Asian carp into Lake . In February

16 2012 Annual Report | The American Waterways Operators 2012, the states saw their request for the atlantic region immediate construction of physical barriers Effects of Hurricane Sandy denied by the Supreme Court, and in December On October 29, Hurricane Sandy came ashore the Corps’ motion to dismiss the case, joined near Atlantic City, New Jersey, leaving tremendous by the industry coalition, was granted by a damage and significant loss of district judge. life in her wake. Atlantic Region members not only struggled to ohio valley region rebuild damaged facilities, but Importance of Infrastructure worked to assist their employees During a summer grassroots visit, Rep. affected by the hurricane as well Bill Shuster (R-PA) spent time learning as lend their services to helping about the the region recover. industry’s operations in Industry Remembers 9/11 the Pittsburgh The summer Atlantic Region meeting included area, the value of a tour of the National September 11 Memorial, the intermodal located on the site of the former World Trade transportation Center. The tour highlighted the fountains network and engraved with the names of the 9/11 victims, needed waterways the new World Trade Center tower construction infrastructure and the site of the future museum. The tour investments. The tour was hosted by Campbell had special meaning to AWO Atlantic Region Transportation Company, Inc. and the Port of members, many of whom were instrumental in Pittsburgh Commission. the evacuation of Manhattan after the terrorist attacks. On that day, the maritime industry, southern region Coast Guard and individual boat owners evacuated more than 500,000 people in Louisiana, Heart of the Water the largest maritime evacuation in history. Transportation Industry AWO member Turn Services, LLC hosted Focus on Safety Rep. Cedric Richmond (D-LA) on a On November 8, several AWO member grassroots tour companies, including Allied Transportation which included Company, Kirby Offshore Marine LLC, a ride along McAllister Towing, Moran Towing Corporation, its fleeting area Norfolk Tug Company and The Vane Brothers in Meraux, LA, Company, participated in the fourteenth annual on the Mississippi Towing Vessel Safety Seminar and Tugboat River. Olympics at the Coast Guard base in Portsmouth, VA. With over 140 professional mariners participating, the event is one of the largest

gatherings of its kind on the East Coast.

17 2012 Annual Report | The American Waterways Operators executive committee

charles linn peterson susan hayman Chairman of the Board Foss Maritime Company Kirby Inland Marine, LP Seattle, WA Houston, TX

buckley mcallister dick lauer Vice Chairman of the Board Sause Bros. McAllister Towing Portland, OR New York, NY

peter stephaich frank morton Immediate Past Chairman of the Board Turn Services, LLC Campbell Transportation Company, Inc. New Orleans, LA Pittsburgh, PA

george foster gregg thauvette Treasurer The Great Lakes Group JB Marine Service, Inc. , OH Saint Louis, MO

jim farley paul tobin Kirby Offshore Marine, LLC American Commercial Lines, Inc. Houston, TX Jeffersonville, IN

stephen dann ted tregurtha Dann Ocean Towing, Inc. Moran Towing Corporation Tampa, FL New Canaan, CT

cathy hammond Inland Marine Service Hebron, KY

Inland Marine Service

18 2012 Annual Report | The American Waterways Operators board of directors

Mr. Linn Peterson Mr. Jim Farley Mr. Art Mead Mr. Rich Smith Chairman of the Board Kirby Offshore Marine, LLC Crowley Maritime Corporation Westar Marine Services Kirby Inland Marine, LP Houston, TX Jacksonville, FL San Francisco, CA Houston, TX Mr. Mark Flynn Mr. Darren Melvin Mr. Mike Somales Mr. Buckley McAllister Higman Marine Services, Inc. Hanson Material Service CONSOL Energy Sales Company Vice Chairman of the Board Houston, TX Romeoville, IL Monessen, PA McAllister Towing New York, NY Ms. Deborah Franco Mr. Don Miller Mr. Gregg Thauvette Harley Marine Services Mt. Vernon Barge Service The Great Lakes Group Mr. Peter Stephaich Seattle, WA Mount Vernon, IN Cleveland, OH Immediate Past Chairman Campbell Transportation Co., Inc. Mr. Austin Golding Mr. Frank Morton Mr. Paul Tobin Pittsburgh, PA Golding Barge Line Turn Services, LLC American Commercial Lines, Inc. Vicksburg, MS New Orleans, LA Jeffersonville, IN Mr. George Foster Treasurer Ms. Cathy Hammond Mr. Emmett Neal Mr. Clark Todd JB Marine Service, Inc. Inland Marine Service Crounse Corporation Blessey Marine Services, Inc. St. Louis, MO Hebron, KY Paducah, KY Harahan, LA

Mr. Bill Barr Ms. Susan Hayman Mr. Brent Nissen Mr. Ted Tregurtha Amherst Madison, Inc. Foss Maritime Company American River Transportation Co. Moran Towing Corporation Charleston, WV Seattle, WA St. Louis, MO New Canaan, CT

Mr. Mark Bourgeois Mr. Matt Holzhalb Mr. Dan Nutt Mr. William Waterman LeBeouf Bros. Towing, LLC E.N. Bisso & Son, Inc. Kirby Offshore Marine, LLC Penn Maritime, Inc. Houma, LA Metairie, LA Seattle, WA Stamford, CT

Mr. Larry Daily Mr. Rick Iuliucci Mr. Jeff Parker Mr. Delbert Wilkins Alter Logistics Company The Vane Brothers Company Kirby Offshore Marine, LLC Illinois Marine Towing, Inc. Bettendorf, IA Philadelphia, PA Norfolk, VA Channahon, IL

Mr. J.C. Dann Mr. Paul Janoush Mr. Kent Pehler Mr. Matt Woodruff Dann Marine Towing, LC JANTRAN, Inc. Brennan Marine, Inc. Kirby Corporation Chesapeake City, MD Rosedale, MS La Crosse, WI Houston, TX

Mr. Stephen Dann Mr. Jeff Keifer Mr. Bruce Reed Mr. Alan Zurawski Dann Ocean Towing, Inc. AEP River Operations Tidewater Barge Lines, Inc. Naknek Barge Lines, LLC Tampa, FL Chesterfield, MO Vancouver, WA Seattle, WA

Mr. Z. David DeLoach Mr. Richard Lauer Mr. Croft Register DeLoach Marine Services Sause Bros. Express Marine, Inc. Port Allen, LA Portland, OR Pennsauken, NJ

Mr. Joe Devall Mr. Mike Luhr Ms. Jo Ann Salyers Devall Towing & Boat Service, Inc. Luhr Bros., Inc. Salyers Solutions, LLC Hackberry, LA Columbia, IL London, OH

Mr. Tommy Echols Mr. Tom Marian Mr. David Sehrt Echo Marine, Ltd./ Buffalo Marine Service, Inc. Ingram Barge Company Echo Towing Service Inc. Houston, TX Nashville, TN Baytown, TX Mr. Mark Mayfield Mr. Ray Sick Mr. Michael Ellis James Transportation, LLC Enterprise Marine Services, LLC Settoon Towing, LLC d/b/a James Marine, Inc. Houma, LA Pierre Part, LA Paducah, KY

19 awo staff

thomas a. allegretti carmina m. smith President & CEO Manager – Organizational Integrity & Improvement jennifer a. carpenter sarah e. young Senior Vice President – National Advocacy Manager – Meetings & Membership lynn m. muench mary c. mills Senior Vice President – Regional Advocacy Office Manager & Receptionist charlie p. costanzo caitlyn e. stewart Vice President – Pacific Region Government Affairs Manager lynn m. craig brian w. vahey Vice President – Finance & Administration Government Affairs Manager mark a. wright brian j. bennett Vice President – Southern Region Government Affairs Associate

ann m. mcculloch kevin j. dowling Director – Public Affairs & Communications Government Affairs Associate craig f. montesano frank j. leach Director – Legislative Affairs Government Affairs Assistant vickie m. hammond mary j. anastacio Assistant to the President Senior Staff Accountant

john a. harms ranaye cameron Manager – Atlantic Region Coordinator – Finance & Administration jayson c. larner Manager – Information Technology & Training

© JMSchneid Photography

20 2012 Annual Report | The American Waterways Operators industry snapshots

units to carry 1,750 short tons of dry cargo One loaded one common barge tow covered hopper carries the load of hundreds 1 Barge barge carries of rail cars or trucks 58,333 bushels of wheat, enough 16 Rail Cars to make almost One 15-Barge Tow 2.5 million loaves of bread. 70 Trucks

216 Rail Cars + 6 Locomotives units to carry 27,500 barrels of liquid cargo A loaded tank barge carries 27,500 barrels 1 Barge of gasoline, enough to keep about 2,500 46 Rail Cars automobiles running for an entire year. 144 Trucks

1,050 Large Semi Tractor-Trailers ton-miles traveled per gallon of fuel

616 Miles

478 Miles

150 Miles

tons of co2 per million ton-miles 171.83

Source for statistics: Texas 21.35 Transportation Institute, A Modal 16.41 Comparison of Domestic Freight Transportation Effects on the General Public 2001-2009, February, 2012 the american waterways operators

The National Trade Association of the Inland and Coastal Tugboat, Towboat and Barge Industry

801 North Quincy Street, Suite 200 Arlington, Virginia 22203 703.841.9300 | www.americanwaterways.com

@2013 The American Waterways Operators Creative: Howell Creative Group | Photography: AWO Members and Joe Schneid Photography