Crude Oil Spilled

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Resilience of the Inland Waterways in the 21st Century It’s all About Governance

Climate Change Adaptation for Ports and Navigation Infrastructure A North American PIANC Seminar and Workshop Professor Craig E Philip Research Professor and Vector Director, Vanderbilt University February 24, 2017

The U.S. barge industry has a LOT to be proud of:

• We face daunting challenges … •



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Inland waterways today: increasingly fragile infrastructure

• Chronic underinvestment in maintenance and renewal

• Pronounced increase in climate/extreme weather events

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Major extreme weather events since 2010

• 2010: Record setting floods – Cumberland River Basin • 2011: Record setting system-wide floods • 2012: Record setting system-wide low water • 2015: Record setting floods – Texas Gulf Coast

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Record setting floods – Cumberland River Basin – 2010

Cheatham Lock Underwater, May 3, 2010

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Record setting system-wide floods – 2011

Blowing up of Birds Point Levee

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Record setting system-wide low water – 2012

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Record setting floods – Texas Gulf Coast – 2015

Guadalupe River, Victoria, TX

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The U.S. barge industry has a LOT to be proud of:

• • Yet we are part of the SAFEST surface transport mode in the country •

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Rapid growth in U.S. shale liquid production, especially crude oil, has used both the rail and inland/coastal waterways to overcome limitations in the pipeline system Puget Sound Vancouver

Bakken

Albany

Wellsville

San Francisco Bay St. Louis

New York Utica MarcellusHarbor Delaware Bay

Weirton Kenova / Natrium

Los Angeles

Cushing

Permian

Haynesville

Houston Eagle Ford

Baton Rouge Pt. Arthur St. James New Orleans

Freeport

LOOP

New Crude Barge Originations New crude-by-rail unit train routes

Corpus Christi

Sources: American Petroleum Institute, Company announcements, Kirby Corp.

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U.S. and Canadian railroads have been the biggest beneficiaries … Carloads of Crude Oil Shipped by Rail in the United States by CY

(K) 600

Carloads Shipped

500 400 300 200

100 2005

2006

2007

2008

2009

Source: Association of American Railroads, Pipelines and Hazardous Materials Safety Administration

2010

2011

2012

2013

2014

2015

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… but rail accidents have tragically followed Crude Oil Accidents by Rail

(K)

180

1,400

160

1,200

140 120 100 80

60

Gallons Spilled

Number of Accidents

Crude Oil Spilled (gal.) by Rail

1,000 800 600 400

40 20 -

Source: Association of American Railroads, Pipelines and Hazardous Materials Safety Administration

200 -

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… but rail accidents have tragically followed

17 major derailments of crude oil trains since 2011

• Spill quantity: 4.3 million gallons

• Other Impacts: significant loss of life and property damage

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Positive barge industry safety trends were not affected by the rapid growth in crude oil (K)

Oil Spilled from Tank Barge

2500

Gallons Spilled

2000

1500

Gallons Spilled Without DBL-152

1000

500

0

Total spills of crude oil since 2010: 9,000 gallons Source: U.S. Coast Guard (CG-INV)

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Domestic marine crude oil tonnage increases have actually matched rail Crude Oil Tonnage (millions) Originating Area

2010

2011

2012

2013

2014

Gulf Coast

10.8

14.9

26.6

38.8

50.5

Miss. Valley

0.9

3.4

5.7

10.1

7.3

East Coast

1.4

0.5

2.0

5.8

6.4

13.1

18.8

34.3

54.7

64.2

2

5

21

40

49

Total Marine

Annual US Class 1 Rail Tons

Source: USACE Waterborne Commerce Statistics Center Data Processed via Channel Portfolio Tool (CPT); Association of American Railroads FCS Dashboard

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Comparative Modal Performance Year

NORTH AMERICAN CRUDE OIL RENAISSANCE 2010-2015 RAIL MARITIME Tons Carried Major Spills # Gallons Tons Carried All Spills

# Gallons

2010

2 million

-

13 million

5

129

2011

5 million

-

19 million

8

100

2012

21 million

-

34 million

11

43

2013

40 million

5

2.7 million

55 million

16

10,016

2014

49 million

5

150 thousand

64 million

10

69

2015

40 million*

6

1.3 million

50 million *

9

443

Tonnage Increase From '10-'14

47 Million

Total Gallons Spilled

51 Million

4.2 Million

11 thousand

* estimated

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The U.S. barge industry has a LOT to be proud of:

• •

• How did this operational resilience arise in such a vulnerable environment?

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How did this operational resilience arise in a vulnerable environment? Four extreme events triggered an unlikely set of changes that have resulted in a Resilient Culture and Response Framework: • Extreme weather events in Heartland 1. ‘88 Midwest Drought, lowest water ever on the Mississippi

2. ‘93 Great Flood, most widespread ever

• Maritime accidents of unimagined scale 3. ‘89 Exxon Valdez 4. ‘93 Bayou Canot Amtrak Accident 18

1988: Midwest Drought

• Record low levels along the Mississippi

• Abnormally low flow velocity • Narrowed channels and crossings Source: Waterways Action Plan, 2007

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1993: Great Flood • One of the most disastrous natural events to affect the Midwest ‒ Over 50 fatalities

‒ $14B in damaged homes and farmlands ‒ Losses for maritime industry > $200M

• Abnormally prolonged and severe wetweather ‒ Rivers remained at elevated stages ‒ Levee stress and failure

Daniel Boone Bridge, 1993 (Highway 40 over Missouri River)

‒ Fear of vessel traffic causing additional failures/flooding from wake effects Source: Waterways Action Plan, 2007

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Impacted from extreme events, aligned major stakeholders promoted a resilient response culture • Responsive Infrastructure Owner – US Corps Embraced Operating Flexibility … …Especially at the Local Level •



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A resilient governance framework has been adopted: • locally implemented

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A resilient governance framework has been adopted: • non-regulatory

• Network wide application

• Activated multiple times annually

• Stakeholder driven guidance

• Continually evolving … becoming “Antifragile”?

• Well defined trigger points and responses

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1989: Exxon Valdez Oil Spill • Exxon Valdez oil tanker grounded on Bligh Reef, Alaska ‒ 11M gallons of crude oil spilled ‒ Largest spill in U.S. waters (until 2010 Deep Water Horizon)

• Legislature response: Oil Pollution Act of 1900 (OPA-90)

Source: Ames, 2007 (The Drive to Improve Performance in the Federal Government: A Longitudinal Case Study of Managing for Results)

Prince William Sound, AK, 1989

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Impacted from extreme events, aligned major stakeholders promoted a resilient response culture •

• Progressive Regulator – US Coast Guard Empowered by OPA 90, but … …Embraced “Prevention Through People”



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1993: Bayou Canot Amtrak Accident • Amtrak Sunset Limited train wreck caused by barge strike ‒ Worst accident in history of towing industry ‒ 103 casualties, 47 fatalities

• Tug operating in fog without radar

Big Bayou Canot Bridge (Mobile, AL), 1993

Source: Ames, 2007 (The Drive to Improve Performance in the Federal Government: A Longitudinal Case Study of Managing for Results)

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Impacted from extreme events, aligned major stakeholders promoted a resilient response culture •



• Enlightened Towing Industry Adopted Responsible Carrier Program … …Ultimately embraced Full Regulation 27

Carrier governance milestones

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VANDERBILT CENTER FOR TRANSPORTATION AND OPERATIONAL RESILIENCY (VECTOR)

Department of Civil & Environmental Engineering Vanderbilt University