theconnecting linkA publication of the Gulf Intracoastal Canal Association • Vol. 11, Issue 2 • December 2011

Gulf Intracoastal Canal Assn. PO Box 6846

New Orleans, LA 70174P: 901-490-3312

jstark@gicaonline.comwww.gicaonline.com

in this issue 1 • 2011 Waterway Review and

Looking Forward to 2012 – From the Executive Director

• Inland Waterways Capital Development Plan Update

2 • Mark Your Calendar!

3 • GICA Board of Directors – Personnel Changes

• GICA’s 2012 Board of Directors

6 • Ingram Barge Company and “Zero Harm”

• Welcome New Members!

8 • America’s Waterways Are Marine Highways

9 • Short Blasts

• Not A Member Yet?

10 • Eighth District Commander’s Perspective

12 • 107th Annual GICA Convention – We’re Moving

2011 Waterway Review and Looking Forward to 2012 – From the Executive Director The Gulf Intracoastal Waterway and GICA had an eventful spring and summer. Record flooding last spring affected GIWW operations, the Gulf hurricane season was highlighted by some close calls – but no major impacts, and we experienced a successful, informative 106th annual GICA Convention in New Orleans. Thanks to our members for their continued support. Without your help and participation, continued safe, efficient and environmentally responsible GIWW operations would not be possible. I’d like to briefly review some of the issues that GICA addressed the past several months and preview of what we can expect throughout the next year. SPRING HIGH WATER The historic spring high water event presented significant challenges for the inland towing industry. GICA coordinated its efforts closely with sister associations throughout the

Mississippi Basin while focusing intently on the GIWW and its tributaries. Regular phone

Inland Waterways Capital Development Plan UpdateBy Matt Woodruff, Director Government Affairs, Kirby Corporation, GICA Treasurer and Chairman, Waterways Council, Inc.

The waterways industry is focused on the various government infrastructure woes we face, and properly so. As a nation, we lack a coherent, national strategy to complete capital improvements on time and on budget. Even if we had the system in place to do so, we don’t have a reliable funding stream to ensure that the system could work. We don’t know who is going to pay for what and how much they are going to pay. On the Operations and Maintenance front, budgets are falling as needs are increasing and periodic natural disasters are not helping.

On top of all that, our government is living on borrowed money and facing a crushing burden of entitlement promises. It may be hard for some to find any good news against that backdrop, yet reasons for optimism remain.

Some good news is that the industry, through the Inland Waterways Users Board, worked with a team of experts from the Corps of Engineers to develop a Capital Development Plan to address

continued – see Capital Development Plan pg. 2

continued – see 2011 Waterway Review pg. 4

LT Nick Parham, CG MSU Baton Rouge, OSCS Jim Armstrong, CG MSU Morgan City, Matt Lagarde, AEP River Operations and Vic Landry, USACE New Orleans District received letters of recognition from GICA for their hard work in coordinating operations during Spring 2011 highwater event.

Vol. 11, Issue 2 • December 2011Page 2

Mark Your Calendar!January 21-28, 2012 AWO Joint Safety Meeting and Midwest, Ohio Valley & Southern RegionWestin, New Orleans, LAwww.americanwaterways.com

February 14-16, 2012Waterways Council Inc.WCI SeminarMandarin Hotel Washington, DCwww.waterwayscouncil.org

February 15-17, 2012Mississippi Valley Trade & Transport Council,30th Annual World Trade & Transport ConferenceOmni Royal Orleans, New Orleans, LAwww.mvttc.com

February 22-24, 2012Red River Valley AssociationAnnual Convention Diamond Jacks Hotel & Convention Center,Bossier City, LAredrivera@hotmail.com

April 10-12, 2012Port of New Orleans and American Institutefor International SteelCritical Commodities ConferenceHilton Riverside, New Orleans, LAwww.criticalcommoditiesconference.com

March 6-8, 2012Inland Waterways ConferenceHyatt Regency St. Louis at The ArchSt. Louis, MOwww.inlandwaterwaysconference.com

April 17-20, 2012 American Waterways Operators 2012 Spring ConventionMandarin Oriental, Washington, DCwww.americanwaterways.com April 25-27, 2012 Greater New Orleans Barge Fleeting Association Annual River and Marine Industry SeminarHotel InterContinental, New Orleans, LAwww.gnobfa.net August 15-17, 2012Gulf Intracoastal Canal Association107th Annual ConventionJW Marriott, New Orleans, LA www.gicaonline.com

the deficiencies of the inland waterways capital investment program. You might say, “Wasn’t that plan completed last year? Why is it still pending?” Some have even gone so far as to suggest that since the plan has not been enacted it has been rejected by Congress. Nothing could be further from the truth.

Our founding fathers could not have dreamed of the America we take for granted today when they created Congress. They designed the system to slow things down rather than speed them up. Back then there were 13 states, now there are 50. The additional people can make an intentionally slow system downright tedious. Today we have 535 highly opinionated people, the majority (and then some) of whom have to agree on something at roughly the same time in order for anything at all to happen. As the congressional approval ratings will attest, the result is that they are not really getting a whole lot of anything accomplished. On most issues, when a bill is stalled, half the country lets out a sigh of relief and the other half hoots in indignation, depending on where they are on that particular issue.

The inland industry, through groups like GICA and the Waterways Council, continues to build support for fixing our broken business model through implementing the Capital Development

Plan. While this process seems frustratingly slow at times, a little perspective may help waterways users understand that our plight is not much different than other modes and their programs.

When you look at our issue in the context of other water programs, where our projects are traditionally authorized, we last had a Water Resources Development Act (WRDA) in 2007, and that was only after the Congress overrode a presidential veto (the 107th time that has happened in the history of our nation). Before that, the last WRDA bill was passed in 2000 even though they are “supposed” to happen every two years. So, in the context of water project authorizations, quick action is not the norm.

What about aviation? The last aviation sector authorization bill expired in 2007. Since that time, the program has been extended 22 times, yet Congress has failed to produce a bill. You may recall from news reports in July, Congress failed to enact an extension before the program expired, stopping airport projects all over the country, throwing thousands out of work and letting the airlines keep millions of dollars of fees and taxes since there was no requirement to send them to the federal government! Our aviation sector continues to wait on their version

Capital Development Plan – continued from p. 1

continued – see Capital Development pg. 3

Leaking lock structures. Photo Courtesy of WCI

Gulf Intracoastal Canal Association Page 3

GICA’s 2012 Board of Directors In addition to their important and busy primary occupations, most of our Officers support other waterways and industry organizations in similar leadership roles. Please thank these folks for all they do for GICA and our industry the next time you do business with them or see them at a social event:

• President Cherrie Felder, Channel Shipyard

• President Elect Spencer Murphy, Canal Barge

• Past President Ray Sick, Enterprise Marine

• Secretary Kelly Teichman, T&T Marine Salvage

• Treasurer Matt Woodruff, Kirby Corporation

• Vice President for Florida Linn Peterson, Kirby Corporation

• Vice President for Alabama Steve Brewster, Marquette Transportation

• Vice President for Mississippi Rob Sadler, Golding Barge Line

• Vice President for Louisiana Joe Cocchiara, Port of New Orleans

• Vice President for Texas Waymon Boyd, King Fisher Marine Service

Members at Large:• Mario Munoz,

American Commercial Lines

• Charlie Jenkins, Port of Houston Authority

of a capital development plan while awaiting the next deadline for expiration of their program on January 31, 2012.

The last surface transportation or “highway” bill that authorizes highway and transit construction was passed in 2005 and expired in 2009. The program has been limping along via a series of 8 short term extensions, the current extension running into March of 2012.

There are a host of other examples of Congressional inaction and delay, including the failure of each Congress since 1988 to enact all the individual appropriations bills they should complete before the start of the fiscal year.

The purpose of this recitation is not to discourage our industry, but provide context to calls for patience and perseverance. There are positive signs. Members on both sides of the aisle seem to be recognizing that infrastructure, and especially transportation infrastructure, means JOBS, both created and retained. House leaders have been crafting a new surface transportation reauthorization, which for the first time would contain a maritime title. Speaker Boehner recently announced this bill would be combined with other proposals to create “The American Energy and Infrastructure Jobs Act.” This bill is one of several opportunities we will have in the coming month to advocate for the needs of our system. The other modes of transportation and their advocates have not lessened their efforts because the path is slow and difficult, nor can we. We have a great story to tell and we must continue to tell it, in good times and bad.

The GICA Board is changing. Member-at-large, Paul Maurer of Trinity Marine has resigned. Paul recently moved to the rail sector of Trinity’s business. The Board was sorry to see Paul leave and I especially appreciated his sound advice on GICA membership issues and barge construction business perspectives.

Additionally, Linn Peterson, Vice President for Florida, will be soon assuming a new position as Chairman, American Waterways Operators, and will be stepping down from his GICA post.

GICA will soon form a nominating committee to fill these vacancies, and select a new President-Elect to follow Spencer Murphy as he moves to the President position in August. If you have thoughts on these important positions, please contact Jim Stark jstark@gicaonline.com or President, Cherrie Felder cdfelder@channelship.com.

Thanks to Paul and Linn for their contributions over the past several years – we’ll miss you. Best wishes for success in your new positions!

Typical deterioration of inland waterways lock structures. Photo Courtesy of WCI

Capital Development Plan – continued from p. 2

GICA Board of Directors – Personnel Changes

calls and meetings with USACE, USCG and NOAA counterparts, LOMRC and RIETF representatives, and local government officials helped to convince decision makers that our industry could continue to operate safely despite high water and fast currents. GICA’s

advocacy with CG Sector Commanders and the USACE resulted in the opportunity to help guide decision makers as waterways were restricted. Expert GICA-member Captains and Operations Managers were consulted on horsepower and tow limits, ultimately convincing decision makers that we could continue to safely navigate through the Morgan City area, and kept main stem GIWW traffic flowing throughout the event.

GICA and the Louisiana Association of Waterway Operators and Shipyards (LAWS) worked with local levee boards and the Louisiana Governor’s office to bring reason to some heavy-handed enforcement actions

when barges pushed in too close to Mississippi River levees. Resulting state legislation will dictate sensible restrictions for tow and barge operations when high water threatens the integrity of the levees.

GICA-generated daily high water situation reports kept all sectors of our members up to date on closures and conditions affecting GIWW and lower Mississippi River transit. All sectors of our GICA membership benefitted from this information and some government partners commented that these reports were often the only comprehensive source of the kind of information they needed. I’m convinced that GICA’s efforts during the event saved our industry significant time and money.

HURRICANE SEASONGICA engaged early again this year, leading a meeting of the Gulf Coast Inland Waterways

Joint Hurricane Team and a comprehensive review and update of the Team’s Response Protocol. We welcomed new team members and renewed contact with colleagues we’d need to work with throughout the 2011 storm season. GICA and the Joint Hurricane Team addressed relatively minor threats as Tropical Depressions developed into Tropical Storms Don, Lee and Nate. Thankfully none resulted in significant impacts to our waterway and only short-lived closures were necessary. As with the spring floods, GICA provided expert tow industry inputs to USCG and USACE which helped manage expectations and preparation outcomes.

106th ANNUAL GICA CONVENTIONGICA again met in New Orleans this past August. I’m very pleased to report a significant increase in attendance and sponsorship! Further, comments from our attendees were overwhelmingly positive. I think the mix of speakers addressed a wide range of issues of interest to all of our membership sectors, our exhibitors were pleased with the opportunity to share their products and information; New Orleans continues to represent a centralized and desirable location for our meeting, and last but not least, the return of golf to our program provided an additional networking opportunity.

In summary, over 230 participants heard from RADM Roy Nash, Commander, Eighth Coast Guard District briefly discuss how industry / USCG partnerships help prevent issues on the waterways and his quick take on the just released Subchapter M NPRM. We welcomed a panel of industry and government representatives to review and discuss lessons learned from the spring high water event, received brief updates on the Corps’ IHNC Surge Barrier and West Closure Complex projects and the Galveston railroad Bridge replacement – As these projects near completion, their project managers praised the cooperation of our industry as we worked around closures and restrictions.

A panel of senior USACE officials including Mark Mazzanti of Corps Headquarters, COL Edward Fleming of the New Orleans District, COL Christopher Sallese from the Galveston District, and Wynne Fuller representing the Mobile District convened to discuss and present the current status of USACE funding and impacts on operations. The message was clear – the Corps will be challenged by lower capital and O&M funding levels. They’ll rely on industry

GICA and the Louisiana

Association of Waterway

Operators and Shipyards

(LAWS) worked with

local levee boards and

the Louisiana Governor’s

office to bring reason

to some heavy-handed

enforcement actions

when barges pushed

in too close to

Mississippi River levees.

Vol. 11, Issue 2 • December 2011Page 4

continued – see 2011 Waterway Review pg. 5

2011 Waterway Review – continued from p. 1

Gulf Intracoastal Canal Association Page 5

Louisiana’s 2012 Coastal Master Plan, being developed by the Coastal Protection and Restoration Authority, will propose a series of projects that reduce flooding risks and rebuild wetlands on a large scale.

associations like GICA to help prioritize dredging and other maintenance projects along the GIWW.

An operations-focused panel of port captains, ops managers and shippers discussed general challenges and issues affecting GIWW operations. And a panel of state partners / local sponsors for the federal GIWW waterway from Texas, Florida, Louisiana and Alabama presented views and perspectives on GIWW shipping and operations. As state budgets shrink, local sponsor funding for improvements will also be affected.

During the evening awards banquet GICA recognized the efforts of USCG and USACE partners whose efforts maximized the safe flow of commerce both on the rivers and canals during the spring floods. At our luncheon, Congressman Steve Scalise (R-LA) spoke about the current issues in Washington causing funding gridlock. Meanwhile, during the afternoon, 20 GICA spouses enjoyed a delightful luncheon at Café Adelaide and a Mississippi River cruise, including a stop at the historic War of 1812 Chalmette Battlefield. Last, Val Marmillion, Managing Director of the America’s WETLAND Foundation presented a thought-provoking talk on building a resilient Gulf Coast. It is becoming more and more critical that all of us realize that coastal protection and restoration are necessary if our industry and the industries in the Mississippi Basin are to survive. As Gary LaGrange of the Port of New Orleans said, “We cannot afford to lose our waterways.”

Thanks to all who attended, presented and helped conduct our 106th Convention. A special thank you to our partners at the Seamen’s Church Institute, led by Captain Stephen Polk, who voluntarily offered superb administrative support.

LOOKING FORWARD – FUNDING CHALLENGESAs we move into 2012, the GIWW, and our members who operate there, will continue to face the challenges that reduced federal operations and maintenance funding will bring. Pressure will build on dredging budgets to maintain reaches of the GIWW. GICA continues to closely monitor dredging schedules and present industry priorities when the Corps has to make hard choices. Meanwhile, GICA members should continue to be vocal with our elected

officials. Enlist their support for full O&M and infrastructure replacement funding. Please also be sure to read the opinions presented by Matt Woodruff and Michael Pearson, regarding infrastructure challenges, in this newsletter.

COASTAL PROTECTION AND RESTORATIONThe State of Louisiana is in the midst of a comprehensive master planning effort to protect and restore its coast. Louisiana’s 2012 Coastal Master Plan, being developed by the Coastal Protection and Restoration Authority, will build on the many plans and projects that have come before, looking at the big picture and taking the needs of the entire coast into account. The plan will propose a series of projects that reduce flooding risks and rebuild wetlands on a large scale.

Recognizing the importance of maintaining a working coast while evaluating protection and restoration projects, the state invited GICA and other industry representatives to participate as members of the plan’s Framework Development Team (FDT). This 32-member team represents federal, state, and local government representatives, non-governmental organizations, business and industry and coastal researchers. Over the past year, President Elect Spencer Murphy and I have been attending meetings of the FDT and helping to guide efforts to develop relevant decision criteria which will result in a plan that meets coastal protection and restoration objectives while maintaining and improving navigation routes.

continued – see 2011 Waterway Review pg. 11

2011 Waterway Review – continued from p. 4

Concrete placement setup.

Vol. 11, Issue 2 • December 2011Page 6

Ingram Barge Company and “Zero Harm”

At Ingram our goal is “Zero Harm,” when it comes to injuries, property damage, environ-mental damage, as well as customer and community impact. So it begs the question, how exactly does Ingram expect to achieve this?

Our journey started in 2000, and in 2007, we instituted our Zero Harm operating safety philosophy and program. The Zero Harm safety program is a comprehensive, behavioral-based

initiative which re-quires complete buy in from all areas of the company. When it comes to Zero Harm, we have four cultural components that we continually focus on and strive to improve every day. All our systems and tools can tie back into one of these four components in some way.

The first component is: Care and Concern for one another. This

is critical to achieving Zero Harm. We have spent a significant amount of time educating our associates on this. We do this through the use of our Safety Tools we have developed in conjunction with an outside Safety Consultant, Mr. Will Kraft. When we discuss Safety Tools, there are three critical components:

Safety contacts, Observation audits, and Near-miss investigations. These tools are used in conjunction with one another to gather and provide feedback on what is taking place on a daily basis throughout the company, not just on our vessels. We identify tasks to conduct random observation audits to ensure that our systems, policies, and procedures are being used and followed. These audits can then be used later to help with the planning of the same task the next time. We give feedback in the way of Safety Contacts, or one-on-one interactions between associates on what is taking place both reinforcing positive behavior and correcting improper behavior. Safety contacts help us

to make sure that what is happening is being addressed, allowing us to continually improve. With the improvement of our overall safety performance we have been able to shift some focus away from the accident reporting to Near miss reporting and investigating. Allowing us to stay proactive while giving our associates an-other great learning tool.

The second component is: Planning our work with risk assessment. The tasks we perform on a daily basis are risky enough without adding people to the equation. Before any task is done, it is first SLAM’ed (SLAM stands for Stop, Look, Assess, Manage), identifying what hazards will be faced while performing the task and knowing how best to manage those hazards so that our risk is reduced to ALARP (As Low As Reasonably Possible). Reducing the risk to ALARP is the expectation that is set for every task being performed.

The third component is: Felt leadership. The success of the Zero Harm program requires all associates to buy in, from our CEO all the way down to the newest deckhand hired in. Without this buy in, all the safety initiatives can do wonders, but where it really matters is not just “talking it,” but “walking it” as well.

The tone of the entire initiative is set by the leadership within the company. The CEO lays out the expectations for operating under our guidelines, and within our Safety Systems. With felt leadership as a part of our everyday ongoing safety effort, Zero Harm is attainable.

The fourth component is: Having our associates accept accountability. This is quite possibly the most important and hardest of the four components. As a company, we can have the best policies, have wonderful proactive follow-up, but if our associates who are performing the work on a daily basis fail to use these tools, we’re just spinning our wheels.

Here’s one company’s take on safety. This article also recently appeared in CG Sector Ohio Valley’s newsletter. Thanks to Ingram Barge for sharing.

By Jon Ray, Chris Ulmer

Classroom training and discussions in Catlettsburg, KY.

continued – see Ingram Barge Company pg. 7

Gulf Intracoastal Canal Association Page 7

It doesn’t stop with just those four components. Some other items play into this goal of Zero Harm. For instance, training is critical to an on-going safety effort. We have worked on the development and continued improvement of our new hire orientation program, and the addition of Deckhand, Leadman, and Mate courses as part of the advancement criteria. We also look to continually improve our equipment and facilities; the most recent improvement is the addition of a new state-of-the-art training barge (referred to in house as: The Decktology Laboratory) located at our landing next to our existing training center in Paducah, Kentucky.

We’ve also built partnerships within this industry and its support networks. We have a continued partnership with the Seamen’s Church Institute (SCI) where leadership aboard our vessels receive refresher training on everything from rules of the road and regulations, to Vessel General Permit implementation (VGP), and company-specific expectations. We have built strong relationships with the United States Coast Guard. We sup-port and provide vessels for trips under the Towing Vessel Bridging program (TVBP) as we are ramping up for the implementation of Subchapter M; we provide vessels for training exams and for use during

training classes; and we work to correct items identified during ongoing UTV exams. We are involved with the AWO (American Waterways Operators) and designated as a RCP (Responsible Carrier Program) company.

This proposed rule contains provisions that would reduce accidents and oil spills using a safety management system or an annual Coast Guard inspection regime, third-party audits, and vessel equipment requirements.

Through the combined efforts of our facility and vessel managers and shore-side management team, we have experienced a 75% combined reduction in recordable injuries since the inception of the Zero Harm program, continuing to move closer to our goal of Zero. As of June 30, 2011, Ingram’s recordable incident rate was 1.26, substantially lower than the 2.29 average for the industry. The same can be said for our lost time incident rate which is currently 0.46 versus an industry average of 1.02. When it comes to Man Overboards, Ingram’s rate is sitting at 0.11 while the industry average is at .18.

While we as a company have not yet achieved absolute Zero Harm, with our continued focus, and partnerships with the United States Coast Guard, and other groups like the AWO and SCI, it is a goal we will see achieved in the future.

Ingram Barge Company – continued from pg. 6

John Ray wearing a harness while working on deck.

Welcome New MembersThe GICA is pleased to welcome the following new members to the organization.

Chem Carriers Sunshine, LA

Sabine Ship Services Beaumont, TX

Savage Services Corporation Houston, TX

Current Members Please remember your dues payments. We’ve still not received a handful of 2011 payments. Invoices for 2012 dues were recently mailed.

Please send your payments to: GICA, PO Box 6846, New Orleans, LA 70174. PLEASE USE THIS ADDRESS Raymond and Nita have been graciously forwarding mail that has been sent to the old GICA address, but I imagine they’re getting tired of doing so! Thanks.

Vol. 11, Issue 2 • December 2011Page 8

America’s Waterways Are Marine Highways

Nearly half of my over 40 year career has been spent overseas developing infrastructure projects for countries we once referred to as “third world countries.” Ironically, now living and working back in the U.S., it appears our government has for years fostered policies which allowed our own infrastructure to significantly fall behind. For instance, the condition of U.S. bridges, 27% of which have been categorized as structurally obsolete or deficient, yet we have a Congress which cannot agree on a long term highway bill to rectify the problem, and continues to kick the can down the road with short term funding through the use of continuing resolutions for the past two years. Congress needs to pass a bill which resumes bridge building in earnest creating hundreds of thousands of jobs.

Likewise, maintenance of our nation’s ports and waterways is being neglected by Congress and congressional funding is an extremely important prerequisite to boosting commerce and sustaining economic growth in the future. The recent Ports, Airport and Global Infrastructure report (PAGI-Summer 2011), validates that seaports continue to lead U.S. industrial real estate activity and offer real potential for economic growth in the U.S. U.S. seaports are expecting to reach 1.55 million TEUs of containership deliveries in 2012, far exceeding previous records. With the widening of the Panama Canal to be completed in 2014, international container traffic will more than double by 2020. The shipping industry currently has on order a large number of the biggest containerships ever built, with TEU capacities exceeding 12,000 and deliveries timed to coincide with the Panama Canal widening. By comparison, ships currently transiting the Panama Canal carry about 4,800 TEU’s and this size will nearly triple in 2014. However, for U.S. ports to benefit from this increase in trade, our government must get serious about developing and maintaining our ports, shipping channels and waterways so that we will be able to accommodate these larger ships. The lack of GIWW operating draft and widths (which are not being maintained as designed) is also of grave concern. The importance of having a commercially viable “marine highway” system in place is essential to maintaining and growing

our nation’s economy.

One of the impediments to having a commercially viable marine highway system is the lack of federal funding for dredging of the ports and waterways. Yet, Congress has collected ad valorem taxes for years through the Harbor Maintenance Trust Fund for the specifically designated purpose of dredging federally maintained ports and shipping channels. So why are they not being dredged to the depths required? Because nearly half of the tax money collected in the HMTF has been continually diverted for other purposes and not used for dredging, as the law intended.

In keeping with a “highway theme”, imagine discovering that the federal ¬ gas tax collected every time you filled up your car was not being used to repair or maintain highways and bridges? Now imagine that because the tax money collected was being diverted for other uses, the four (4) lane freeway you usually drive on keeps narrowing down to three (3) lanes, then two (2) lanes, and in some places only one (1) lane due to government neglect. This is exactly what is occurring on many of our nation’s shipping lanes and coastal waterways. Additionally, ample federal funding by Congress for dredging is essential to overcoming the challenge of being a global player in the new triple E Class 18,000 TEU containership market. If U.S. ports and shipping channels are unable to accommodate these ships (when fully loaded), our country will become non-competitive in global trade.

At Orion Marine Group, we are aware of the importance of future needs for dredging in our nation’s port facilities and waterways. That is why we have doubled the size of our dredging fleet and are modernizing our equipment to incorporate state-of-the-art technology to improve efficiency, lower fuel consumption, and lower NOX emissions.

We all must support GICA in its efforts to enhance congressional awareness of the importance of our waterways, and I hope this article will encourage all of us to do even more to help.

By J. Michael Pearson, President & CEO, Orion Marine Group, Inc.

Note: GICA Resolution VIII, for 2011-2012, reaffirms support of the “Realizing America’s Maritime Promise” (RAMP) coalition, and others who seek to apply Harbor Maintenance Trust Fund collections toward the dredging of our ports and harbors as originally intended. This is Mr. Pearson’s perspective on this critical issue.

… nearly half of

the tax money

collected in the

HMTF has been

continually

diverted for

other purposes

and not used for

dredging, as the

law intended.

Not a Member Yet? – Please Join UsThe GIWW plays an important role in the economy of the Gulf Coast. It takes all beneficiaries of the waterway working together to keep this valuable transportation resource fully operational.

Please review some of GICA’s recent efforts and accomplishments:

• Joint Hurricane Team leadership with Corps, Coast Guard, and NOAA.

• Protecting waterway interests on specific projects such as the hurricane protection floodgates, Galveston Railroad Bridge, IHNC lock, Brazos Floodgates, and others.

• GICA is widely known and respected as the “Voice of Industry” within the Corps and Coast Guard and for providing members with key information regarding real-time conditions on the waterway during emergency and normal conditions alike.

• Maintaining key relationships in Congress and seeking to further the waterways funding issues on Capitol Hill.

• Successful, yearly GICA Conventions provide great networking opportunities and address critical issues that affect the waterway and our members.

Please visit our website www.gicaonline.com or call me at 901-490 3312 if you should have questions about membership. I will be happy to visit with you at any time and look forward to hearing from you.

– Jim Stark Executive Director, GICA

Blessey’s M/V Martha Oliver Rescues Three Capsized BoatersA Thanksgiving prayer was answered by the crew of the M/V Martha Oliver on the morning of November 5th. While transiting the Houston Ship Channel inbound, Captain Billy Verdin spotted a capsized boat with what turned out to be a child with two adults clinging to the bottom of their overturned small fishing vessel. The crew quickly launched its skiff and brought the family aboard the M/V Martha Oliver.

Keeping an excellent lookout and maintaining situational awareness meant the lives of three recreational fishermen were kept out of harm’s way on one of the busiest shipping lanes in the country. Capt. Verdin said, “…that is just what you do as a professional mariner.” Fortunately crews don’t have to put their safety training into real life practice all too often, but thanks to this particular crew’s quick response, a potential tragedy was avoided. Congratulations and thanks to Captain Verdin and the crew of the Martha Oliver!

Matt Woodruff Named Chairman, Waterways Council, Inc.Congratulations to Matt Woodruff of Kirby Corporation, and our current GICA Treasurer, for his recent election to the Chairmanship of the WCI. Matt has long been a staunch supporter of the GIWW and GICA having served as President and Treasurer in past years. He takes the reins at WCI during an especially challenging time for the inland waterways (see Matt’s article on the status of the Capital Development Plan in this issue). However, with his commitment and experience, our industry and our GIWW will be well represented.

Galveston Railroad Bridge UpdateOver the past few months, construction of the Galveston Railroad Bridge has proceeded. However, the 72-hour closure for the span float-in, planned for December, has been delayed until late January or mid-February. Following this float-in, additional short closures will be necessary to make adjustments operating equipment. GICA remains in close contact with USCG Bridge Division personnel and the bridge contractor, Brasfield-Gorrie, and will publicize closure schedules as soon as they are finalized. Further GICA has been working with USACE and TxDOT on the sequencing for dolphin removal and maintenance dredging of the channel between the highway and railroad bridges. Keep an eye on our NAV INFO emails and the GICA.PortVision site for updates.

GICA Again to Support Waterways Council Inc. Hill Visits GICA members will again travel to Washington DC in February 14-16, 2012 to attend the WCI Seminar, visit members of Congress and advocate for programs to fund GIWW and inland waterways projects. Although specific visit schedules are not yet finalized, we can expect GICA members to participate on regional teams making visits to House and Senate offices to remind members of the importance of the inland waterways and press for support of continued work on Capital projects and resolving O&M shortfalls.

GICA – PortVision Initiative Underway As announced and previewed at our recent 106th Convention, the GICA – PortVision initiative to provide geographic chart representation of GICA Nav Alerts and Info messages is well underway. All GICA email messages related to current navigation situations on the GIWW are now represented on the www.GICA.PortVision.com site. Mariners and planners can quickly check the chart and review details on closures, and areas of caution that may affect tow transits. Please review this site and provide any feedback. Next steps include additional information enhancements and member only access.

Short Blasts

Matt Woodruff

Gulf Intracoastal Canal Association Page 9

Page 10

I am honored and humbled to serve as the Coast Guard Eighth District Commander and look forward to continue the great collaboration between GICA and the Coast Guard. I had the privilege of addressing the GICA Annual Convention in August and shared some of the highlights of that collaboration over the past year, including a shared response to the spring high water and flooding on the inland river system, hurricane preparedness, and Phase 1 towing vessel examinations. Looking ahead, we must continue to work

together to best ensure the safety, security and stewardship of our waterways.

District Eight encompasses a diverse marine transportation system including the Ohio, Tennessee, Missouri, and Mississippi River watershed, the Gulf of Mexico and the Gulf Intracoastal Waterway (GIWW). Together, these waterways form a complex system to facilitate the safe and efficient flow of commerce upon which our nation relies so heavily. One of the challenges we face is balancing the unique needs of commercial and recreational users. This balance is achieved by working with industry and recreational stakeholders on aids to navigation system maintenance and

enhancements, rulemaking efforts, bridge replacement projects, marine information

services, and through vessel traffic centers in critical areas. District

Eight has an active waterways management team and a strong

industry partnership.

I would like to highlight a few updates to some key projects we are working on. First, the replacement of the Galveston Railroad Bridge is well underway. Construction on the new vertical lift towers

is ongoing and you will see the improvements every time

you transit the current 108-foot opening. Since the late 1990’s when

GICA brought this navigation challenge to our attention, we have worked to get this bridge replaced. Without your continued vigilance and persistence, this project would not be underway. Thanks to your efforts and funding by the American Recovery and Reinvestment Act of 2009, you will be able to more safely navigate through the industry-friendly 300-foot bridge opening when the project is completed; estimated timeframe is in the Spring of 2012.

Second, under GICA leadership, a revised Joint Hurricane Response protocol has been published. This effort provides the Government-Industry framework for maximizing safety during a hurricane and efficiently restoring a waterway and resuming maritime traffic after a storm passes. Fortunately, this year’s hurricane season has been manageable so far, with the Joint Hurricane Team remaining vigilant and ready to respond should a storm threaten the Eighth District. When a crisis strikes, the Coast Guard will work quickly to restore critical infrastructure and maritime mobility. What I expect from you in return is your commitment to operating in a safe and secure manner and as environmental stewards of these waterways. I count on all of you to set the best example along the entire GIWW, because though I travel throughout the District regularly, you all travel the GIWW every day.

Lastly, towing vessels are the largest users of the GIWW. Therefore, the Notice of Proposed Rulemaking (NPRM) for towing vessels, Subchapter M, which was recently published, is of great importance to you. This NPRM, including comments already submitted and instructions for submitting comments, may be accessed at http://www.regulations.gov, by inserting USCG-2006-24412 in the Keyword field. The Eighth District is responsible for a fleet of nearly 4,000 towing vessels, with over 2,000 operating on the Gulf Coast. Since Phase I of the Towing Vessel Bridging Program began in June of 2009, there have been 2,520 industry initiated exams completed in the Eighth District, equaling just over 64% of our entire fleet. The

Eighth District Commander’s Perspective

Rear Admiral Roy A. Nash

continued – see Commander’s Perspective pg. 11

Vol. 11, Issue 2 • December 2011

Gulf Intracoastal Canal Association Page 11

Coast Guard has issued 2,089 vessel (safety) decals as of September 25th with 106 companies receiving special recognition for having 100% of their fleet earning a decal. The success of this program is due to companies volunteering for vessel examinations like many of the members of GICA. I appreciate your leadership as we continue to facilitate this program of assistance, and to keep up the momentum that Phase I of the Towing Vessel Bridging Program has gained over the last two years.

Now that the NPRM has been published, I strongly encourage you to provide your comments. The proposed regulatory regime was developed in cooperation with our industry partners and stakeholders, and specifically for inspected towing vessels. Once completed

and published, this rulemaking will establish a baseline of standards for lifesaving, fire protection, machinery, and other critical elements that will help ensure the safety of this diverse fleet of workhorse vessels.

Finally, throughout the Eighth District and the entire Coast Guard, we are fully committed to the marine safety mission, and value each sector of the marine industry. The partnership between the Coast Guard and GICA has been very successful, having served to improve safety and security along the Gulf Intracoastal Waterway. Only by working together with those who operate on our Gulf Coast inland waterways every day will we be fully cognizant of the challenges before you. The Eighth District looks forward to working with you on current initiatives, and any new issues that may come up along the way.

Commander’s Perspective – continued from p. 10

This effort has been extremely rewarding and new alliances are emerging as industry partners with coastal restoration advocates to arrive a solution that maintains and protects the coast. Clearly without a coast, there will be no intracoastal waterway. Inputs from GICA members, as we continue to assist the State in refining its evaluation models and decision criteria, will be important and Spencer and I will be asking for your thoughts.

The next steps for this process will be release of a draft plan in January 2012 followed by a series of public meetings and presentation to the Louisiana legislature for approval. Please review and monitor the Plan’s progress at www.coastalmasterplan.la.gov.

The importance of maintaining the Louisiana coast and Mississippi River delta cannot be overstated. Experts are concerned that hydrologic changes to the Gulf region will most certainly affect shipping and barge traffic on the Mississippi River. Examining this issue in the context of a larger Mississippi Watershed Initiative will be absolutely necessary to assure our inland ports and remain viable. Further, as we look ahead, I expect other Gulf states will initiate similar efforts to maintain their coasts. GICA will remain engaged with these future plans and work to provide our perspective and concerns as they progress.

GICA SERVICESGICA remains committed to providing services and advocacy to meet our mission objectives - maintaining, operating and improving the GIWW so it provides a safe, economic, efficient and environmentally-sound water transportation route. Feedback on our recent partnership with PortVision has been positive and, I believe, the new graphics improve safe operation on the waterway. Email GICA alerts will continue and I expect implement enhancements to the GICA /PortVision display within the next months.

GICA will continue to participate with its sister associations in waterways advocacy efforts throughout the Gulf coast and in Washington, DC. Upcoming efforts will focus on inputs to sensibly shape Louisiana regulation of barge operations during high water, February’s WCI Congressional visits and continued work with TXDoT to ensure GIWW capacity is maximized in Texas.

Last, I hope to develop GICA membership and support in our eastern GIWW area. I feel that area may be underrepresented and look forward to additional outreach efforts in Mississippi, Alabama and Florida.

Thanks for your support this year and please continue to reach out with issues, suggestions and concerns.

Jim Stark Executive Director, GICA

2011 Waterway Review – continued from p. 5

Gulf Intracoastal Canal Assn. PO Box 6846

New Orleans, LA 70174

Vol. 11, Issue 2 • December 2011Page 12

Please let us know if you would like to receive future editions of this newsletter via email.Contact Jim Stark: jstark@gicaonline.com

Thanks to all who helped make last August’s convention a success. I’m very pleased to report that we increased attendance by nearly 30 percent and experienced significantly increased sponsor and exhibitor support and participation. Feedback on the program was positive and members were pleased that golf was back on the schedule.

For our 107th meeting GICA has booked the JW Marriott (614 Canal Street) in New Orleans August 15-17, 2012. Room rates will remain priced at $109 and the JW Marriott staff has assured me we’ll have a great convention experience. For our government partners, the JW Marriott will honor the government room rates per the current Joint Federal Travel Regulations.

In addition to our annual meeting, attendees can again expect an excellent networking opportunity, elegant reception and dinner, presentations by our State and Federal partners, a relevant guest speaker or two and informative panel discussions covering operational and policy issues affecting the industry sectors our membership represents.

I’ll again be soliciting for attendees, sponsors and exhibitors to help make our convention successful. Meanwhile, please let me know of specific topics, speakers or issues you’d like to see addressed. Inputs are always welcome and certainly appreciated. I look forward to seeing you again in New Orleans!

107th Annual GICA Convention – We’re Moving