Mississippi River Trade Infrastructure Discussion

1. Mississippi River Trade Infrastructure Discussion February 5, 2013 Hosted by Gov. Branstad, Lt. Gov. Reynolds & State Leaders

2. The Mighty Mississippi • The Mississippi waterway system is a vital trade corridor. Courtesy, Iowa Corn Growers Association

3. Meeting Purpose The purpose of the meeting is to: • Bring together key stakeholders to discuss and highlight the importance of the movement of goods on the Mississippi River to Iowa, the Midwest, and the national economies. • Discuss concerns about shortfalls in the current trade infrastructure (locks and dams) and draw attention to those concerns. • Begin a conversation on how we can think about the challenges anew and how we can build an effective coalition to make progress and identify a long-term economically sustainable way to manage the River system.

4. Meeting Agenda Meeting Overview& Welcoming Remarks (10 minutes) • Lt. Governor Kim Reynolds • Governor Terry E. Branstad • Mayor Bill Gluba of Davenport Mississippi River Infrastructure Status Briefing (10 minutes) • Gary Meden, Rock Island District, U.S. Army Corps of Engineers (USACE), Deputy Commander for Programs and Project Management Panel Discussion: Importance of the Mississippi River to the Iowa Economy (50 minutes) • Moderator: Lt. Governor Kim Reynolds • Panelists: Governor Terry Branstad, Tara Barney (CEO, Quad Cities Chamber), Ryan Deahr (Member, Iowa Farm Bureau); Col. Mark Deschenes (Commander, USACE, Rock Island District), Debi Durham (Director, Iowa Economic Development Authority), Chuck Gipp (Director, Iowa Department of Natural Resources), Russ Leuck (Member, Agribusiness Association of Iowa); Kevin Rempp (Chair, Iowa Corn Promotion Board), Mike Steenhoek (Executive Director, Soy Transportation Coalition), Mike Toohey (CEO & President of Waterways Council, Inc.), Paul Trombino (Director, Iowa Department of Transportation) Public Comments and Questions (45 minutes) • Moderator: Lt. Governor Kim Reynolds

5. The Mississippi River: • Forms the 3rd largest drainage basin in the world • Has critical locks and dams that stretch 669 miles from Minneapolis, MN to Granite City, IL System Overview Unless otherwise noted, photos and graphics courtesy of U.S. Army Corps of Engineers

6. Historical Perspective • During the Civil War, both the Union and the Confederacy recognized the economic importance of the Mississippi River, and the fight over its control was a major part of the war. • A decisive victory for the Union came with the fall of Vicksburg, Mississippi (1863), which gave the Union possession of the River to reopen trade on the Mississippi. Courtesy, Library of Congress Prints & Photographs Division [Mississippi River Fleet, U.S. gunboat "Brown"] “The signs look better. The father of waters again goes unvexed to the sea. Thanks to the great North-West for it. Nor yet wholly to them. . . . The job was a great national one.”-Abraham Lincoln (after the fall of Vicksburg)

7. Historical Perspective • In 1879, the U.S. Congress established the Mississippi River Commission as a means of maintaining and improving the River as a commercial waterway. • In the years that followed, the Commission deepened and widened several channels along the river, making it more navigable for larger boats and barges. • Most of the locks and dams were built in the 1930’s and were designed for a 50 year life. “The Mississippi River towns are comely, clean, well built, and pleasing to the eye, and cheering to the spirit. The Mississippi Valley is as reposeful as a dreamland. . . Nothing to hang a fret or a worry upon. “-Mark Twain

8. Courtesy, Minnesota Historical Society, [MH5.9 MP4.2 r144] The Meeker Island Lock and Dam (originally known as Lock and Dam No. 2) was the first lock and dam facility built (over an eight year period) on the Upper Mississippi River. The site was only in operation for five years from 1907 to 1912.

9. Trends in the Waterway System • Trending up • Trade growth due to the success of Iowa products competing in a global economy • Trending down • Funding • System Reliability

10. Current Condition • Since the mid-1980’s, dwindling Federal resources have limited funds available for water infrastructure operations, maintenance, and rehabilitation.

11. In 2009, the American Society of Civil Engineers’ “Report Card for America’s Infrastructure,” gave the nation’s inland waterway infrastructure a grade of D-.

12. Lock and Dam No. 18, Mississippi River concrete supporting walkway along top of dam

13. Meeting Purpose The purpose of the meeting is to: • Bring together key stakeholders to discuss and highlight the importance of the movement of goods on the Mississippi River to Iowa, the Midwest, and the national economies. • Discuss concerns about shortfalls in the current trade infrastructure (locks and dams) and draw attention to those concerns. • Begin a conversation on how we can think about the challenges anew and how we can build an effective coalition to make progress and identify a long-term economically sustainable way to manage the River system.

14. Meeting Agenda Meeting Overview& Welcoming Remarks (10 minutes) • Lt. Governor Kim Reynolds • Governor Terry E. Branstad • Mayor Bill Gluba of Davenport Mississippi River Infrastructure Status Briefing (10 minutes) • Gary Meden, Rock Island District, U.S. Army Corps of Engineers (USACE), Deputy Commander for Programs and Project Management Panel Discussion: Importance of the Mississippi River to the Iowa Economy (50 minutes) • Moderator: Lt. Governor Kim Reynolds • Panelists: Governor Terry Branstad, Tara Barney (CEO, Quad Cities Chamber), Ryan Deahr (Member, Iowa Farm Bureau); Col. Mark Deschenes (Commander, USACE, Rock Island District), Debi Durham (Director, Iowa Economic Development Authority), Chuck Gipp (Director, Iowa Department of Natural Resources), Russ Leuck (Member, Agribusiness Association of Iowa); Kevin Rempp (Chair, Iowa Corn Promotion Board), Mike Steenhoek (Executive Director, Soy Transportation Coalition), Mike Toohey (CEO & President of Waterways Council, Inc.), Paul Trombino (Director, Iowa Department of Transportation) Public Comments and Questions (45 minutes) • Moderator: Lt. Governor Kim Reynolds

15. Courtesy, Soy Transportation Coalition Seventy-eight percent of US exports of soybeans and feed grains to the world market come from the Mississippi River basin. Sixty percent of US grain exports are transported via the River and eventually to Louisiana.

16. The Case for Investment • Lock delays increase costs and reduce the competitiveness of Iowa products. • Lock delays: • Shift transportation to more expensive modes like rail and truck • Increase costs to consumers and companies • Ultimately increase the environmental impact (emissions and energy use) of transporting goods.

17. Auxiliary miter gates hold pools 11, 12 and 13. gate failure would close navigation for an extended period

18. Brandon Road Dam Piers Illinois Waterway

19. The Case for Investment Lock or dam failure would: • Reduce our economic competitiveness • Reduce sales of Iowa products and Iowa exports • Negatively impact job and income growth • Negatively impact GDP and our nation’s trade balance • Courtesy, National Mississippi River Museum & Aquarium

20. The Case for Investment Significant investments have been made on the Ohio River that have: • Upgraded infrastructure • Increased shipping efficiency • Reduced shipping costs • Increased system resiliency Example of longer footprint of a proposed 1,200 foot lock

21. If current needs and investment trends for inland waterways continue over time, the nation’s competitiveness will erode, affecting its ability to sustain well-paying jobs, especially in export sectors.

22. The Path Forward The solution set will: • Not be easy, but must be identified • Require innovative approaches • Demand operational improvements for investments • Require sustained engagement by all relevant stakeholders