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Economic Benefit of Navigation. Alabama Water Resources Conference Phillip Mixon. “Get your facts first, and then you can distort them as much as you please .” “Climate is what we expect, weather is what we get .” Samuel Clemens (Mark Twain). Introduction.

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Economic benefit of navigation

Economic Benefit of Navigation

Alabama Water Resources Conference

Phillip Mixon

Economic benefit of navigation

“Get your facts first, and then you can distort them as much as you please.”

“Climate is what we expect, weather is what we get.”

Samuel Clemens (Mark Twain)


  • The Inland Waterway System of the US contains over 25,000 miles of navigable waters.

    • 12,000 miles maintained by the Army Corps of Engineers

    • The vast majority of the system is located in the eastern US.

    • The State of Alabama connects to 15,000 of these navigable miles.

Economic benefits
Economic Benefits

Jobs, Jobs, Jobs

Economic Output

Tax Revenues

Environmental Benefits

Reduced Shipping Costs

Jobs jobs jobs
Jobs, Jobs, Jobs

The vast majority of employers that utilize the waterways of Alabama and specifically the ACF employ more than 250 people.

The average compensation (salary and benefits) of these employees is significantly higher the average for the surrounding area.

Economic output
Economic Output

Navigation can be a driving force of the economy of a region and the nation.

Many products shipped on inland waterways are exported to ports aboard.

Counties with a developed inland waterway tend to higher growth figures and tend to be more resistant to negative economic situations.

Tax revenues
Tax Revenues

  • With the current fiscal situation, navigation provides its ‘fair share’ of taxes.

    • Fuel surtax per gallon of diesel

    • Business ad valorem taxes

    • Employers taxes

    • Employees income taxes

    • Sales taxes

Environmental benefits
Environmental Benefits

  • Navigation is the most fuel efficient mode of transportation

    • Ton-miles per gallon of diesel

      • Truck – 59 miles

      • Rail – 202 miles

      • Barge – 514 miles

  • Reduces number shipments required

    • One barge = 15 Railcars = 60 Trucks

      • Dry bulk shipments

Reduced shipping cost
Reduced Shipping Cost

  • Several studies have shown the presence of a navigable waterway reduces the shipping rates of all other modes of transportation.

    • Simply, compare North-South Rates versus East-West

  • The nature of water board commerce the required replacement shipping cost (if water is unable) would require many shippers to cease operations.


  • Navigation is a driving force in the economy. It provides the local economies:

    • Jobs

    • Income

    • Tax revenues

    • Reduced cost shipping

    • Environmentally friend shipping option.

Thank you

Thank You permanent