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Traditional and Emerging Markets
Missouri River Freight Market - Commodities and Volumes• Basedonhistoricfreightmovementsinthemarketregion,thereareapproximately19milliontonsof
freightthatcouldpotentiallymoveontheMissouriRiverwithinthismarketareaeachyear.Ofthistotalpotential,over1.3milliontonsofcommoditieshavebeenidentifiedthatcouldannuallybemovedontheriveroverthenextfiveyears.
• ThekeytraditionalmarketcommoditygroupsincludeAgriculturalDryBulk(CerealGrains,Soybeans,otherOilseeds,andotherGrains),NonMetallicMineralProducts(Clay,Cement,Salt),andotherNon-AgriculturalCommodities(DryFertilizer,PetroleumProducts,Gravel&CrushedStone).
• ThekeyemergingmarketgroupsincludeWasteScrapMetal,Coal,AlfalfaPellets,DriedDistillersGrains,LiquidFertilizer,Ethanol,Over-DimensionalandOver-WeightCargo,andContainer-on-Barge.
Identifying markets and commodities that can sustain river freight growth and promote economic development opportunities
Commodity Tons Shiftable to WaterTraditional Markets: Agricultural Dry Bulk 615,000Salt, Cement, Clay, & Fertilizer Products 193,000
Emerging Markets:Waste Scrap 100,000Coal 114,000DDGS 50,000Alfalfa Pellets 50,000Liquid Fertilizer 50,000Ethanol 63,100OD/OW 20,000COB 70,000
Total Shiftable to Water 1,325,100
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Benefits of Moving Freight on the River• In2010,freightmovingontheMissouriRiverincluded334,000tonsoftraditionalcommercialcommodi-
tiesandmorethan4.5milliontonsofsandandgravel.Thecommercialtonnagealoneequatestomorethan13,000truckloadsor3,000railcarsoftonnageontheriver.
• Thetotalfreightidentifiedasshiftabletothewaterin1to5yearsincludesmorethan800,000tonsoftraditionalcommoditiesandmorethan500,000tonsofemergingmarketfreightperyear.
• Combinedwith334,000tonsfrom2010,theadditional1.3milliontonsofcommercialfreightontheriverwouldpullanadditional52,000truckloadsperyearoffofMissourihighways.
• Movingthistonnagebywaterwouldresultinanestimated42%fuelusereduction;directlyandposi-
tivelyimpactingfreightratesaswellastheconsumptionofpetroleum;nottomentionprojectedbenefitsinreductionofhighwaymaintenance,congestions,andinjuriesandfatalities.
Potential for reduced freight rates-usingtheMissouriRiverratherthantruckorrailoptions.
BenefitsofMovingMoreFreightOnTheWater-FirstFiveYearsAdditionalannualtruckloadspulledoffthehighway 52,000Reductioninharmfulemissions:
CO 33%NOx 7.5%PM 7.4%CO2 42%
Fuelusereduction 42%
$0 $10 $20 $30 $40 $50 $60
Barge
Rail
BargeTruck
Sioux City
Omaha
St. Joseph
Kansas City
Brunswick
Booneville
$0 $10 $20 $30 $40 $50 $60
Barge
Rail
BargeTruck
Sioux City
Omaha
St. Joseph
Kansas City
Brunswick
Booneville
Northbound Freight rates from NOLA Southbound Freight rates to NOLA
*Barge-6bargelowRail-PublishedTariffratesBarge/Truck-includes$4/tonhandlingcharge
*Barge-6bargelowRail-PublishedTariffratesBarge/Truck-includes$4/tonhandlingcharge
Thisinformationtakenfromwww.agriservices.com/barge.htm.Pleasecontactforcurrentrates.
Page3For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
Traditional Markets – Agricultural Dry Bulk Commodities
Missouri Market Potential for Barge Movement
Benefits of Shifting Agricultural Dry Bulk to Barge Transportation
CommodityTotalTonnageonShiftableRoutes
Tonnage Shift(est.)
PercentShift(%)
Ag.DryBulk 5,700,000 615,000 10.8ForPo
sitionOnly
ForPo
sitionOnly
ForPo
sitionOnly
FreightMode Cost*
Truck $34.6MM
Rail $19.1MM
Barge $12.1MM
SumofTruck&Rail $53.7MM
Savings by Barge $41.6 MM
Inbound:SouthwesternIL205,100Tons
Outbound:SouthwesternIL 225,600TonsMobile 148,500TonsNewOrleansArea 1,345,600TonsOtherLouisiana 55,400TonsHoustonTX 1,640,900TonsSabineTX 1,297,100TonsCorpusChristiTX 73,100Tons*PortlandOR 85,000Tons*Seattle/TacomaWA596,000Tons
Inbound and Outbound Agricultural Dry Bulk
*PortionsofthesemovementscouldshifttotheGulfCoastexportlocations.
*Costofshippingtheestimatedshiftabletonage.
Page 4For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• MarketdemandforCementandClayarecloselytiedtodomesticeconomicconditions,sogrowthvolumecouldbeexpectedtoincreasewithanimprovingU.S.economy.
• Thiscommoditygroupisparticularlyattractivesincebargecarrierscanbenefitfromcomplementaryopportunities.Marketresearchindicatesfertilizermovementswillbringcoveredequipmentupstream.ThisleadstopotentialbackhaulsforallcommoditiesandincreasedutilizationofcementbargesalreadyworkingtheMissouriRiver.
• Terminallocationswithexistingandplannedcoveredstoragecanincreasefreightinsaltandfertilizer,particularlyinKansasCityandSt.Joseph.
• Oneoftheadditionalbenefitsofthismarketgroupisthatdemandcanoccurthroughoutthenormalnavigationseason.
• Theaddedmarkettonnagerepresentsover130loadedcoveredhopperbargesintothesystem;avaluableassettouseformanyoutboundcommodities.
Traditional Markets – Salt, Cement, Clay & Fertilizer Products
Missouri Market Potential for Barge Movement
Inbound Fertilizer
Commodity 2009Barge Movements(tons)
MOMarketAreaTotalTonnage
(est.)
Projected5-yrWaterborneMarket
Growth(tons)
Percent Increase(%)
Cement 57,358 120,000 50,000 41.7
Clay 16,667 20,000 4,000 20.0
Salt 2,283 160,000 50,000 31.3
Fertilizer 23,724 1,600,000 93,000 5.8
Inbound:SouthwesternIL56,700TonsChicagoIL78,100TonsMinneapolisMN97,900TonsTulsaOK215,200TonsOtherOklahoma143,400TonsOtherArkansas14,300TonsHoustonTX35,600Tons
Benefits of Shifting Fertilizer to Barge Transportation
FreightMode Cost*
Truck $4.1MM
Rail $0.6MM
Barge $1.3MM
SumofTruck&Rail $4.7MM
Savings by Barge $3.4 MM
Origins and Destinations for Cement, Clay, and SaltCement Clay Salt
Origins Destinations
Chicago JeffCity&KC
CentralMO OK
SouthernLA STL,JeffCity,KC
*Costofshippingtheestimatedshiftabletonage.
Page 5For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• Totalmarketdemandforsandandpetroleumcommoditiescanbeexpectedtoincreasewithanimprovingeconomy–perhapsbeyondwhatisindicatedaboveforprojectedgrowth.
• Iftheexistingwaterborneasphaltmovementschangedtoland,itwouldresultinalandsideincreaseofnearly5,400trucksonMissourihighways.
• Consideringthatapproximately5milliontonsofdredgedmaterialmovesannually,itisobviousthatthistonnageisanimportantcontributorwithotherfreightcargoesontheMissouriRiverwhencalculatingthecritical“tonmiles”asameasureofutilization.Theone-billionton-milethresholdiswhatdictatestheleveloffederalsupportallocatedtoNavigationontheMissouri.
Traditional Markets – Other Commodities
Missouri Market Potential for Barge Movement
Commodity2009BargeMovements
(tons)
MOMarketAreaTotal
Tonnage(est.)
Projected5-yrWaterborne
MarketGrowth(tons)
Percent Increase(%)
PetroleumProducts 119,856 138,000 18,000 13.0
Gravel&CrushedStone 116,920 * * *
NaturalSand 4,600,000 5,900,000 1,300,000 22.0*MarketandgrowthforgravelandcrushedstonearedependentontheUSACEbudgetandtheoverallfreightactivityontheMissouri–whichdictatestheleveloffederalsupport.
Movement of Petroleum Products
Imagesource:www.tidewater.com
Page 6For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• ScrapmetalrepresentsamarketofsignificantpotentialandtransportationcostsavingsfromtheKansasCityregiontomini-millsandexportdestinations.
• Mini-millsrepresent50%ofU.S.steelproductionandareestimatedtorequiremorethan14milliontonsofscrapeachyear.
• Scrapexportvolumeremainshighduetodemandindevelopingcountries.DirectscrapshipmentfromKansasCitywillpermitcontinuousshipmentfromtheorigintotheultimatedestinationwithoutintermediatere-handlingtoothertransport–resultingintransportationsavings.
• CoaldestinationsincludepowerplantsincentralMissouri.Transportationsavingsofmovingcoalbybargeinsteadoftruckcouldbesignificant,potentiallysupportingloweroverallenergycosts.TheseplantsmightbebestservedbyMissouriRiverterminalslocatedatChamois,JeffersonCityand/ortheBrunswick/Miamiarea.
Emerging Markets – Waste Scrap Metal & Coal
Missouri Market Potential for Barge Movement
Commodity MOMarketAreaTotalTonnage(est.)
TonnageShift(tons) PercentShift(%)
WasteScrapMetal 335,000 100,000 29.9Coal 250,000 114,000 45.6
CoalInboundfromSt.LouisMetro(IL),andothereasternminingorigins
ScrapMaterialfromKansasCity(KS&MO)toSt.LouisMetro(MO&IL)
Inbound Coal and Outbound Waste Scrap Metal
Page 7For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• DriedDistillersGrainswithSolubles(DDGS)isanemergingmarketwithgrowingdemandandsupplyincloseproximitytotheMissouriRiver.
• DDGSprimarilymovestodomesticandexportmarketsbyrailandtruck,butbargeisgaininginmarketshare.Amodestpenetrationpotentialof50,000tons(5%ofcurrentmarketsize)inbulkisprojectedforLowerMississippiRiver(LMR)export.Significantlymoreispossible.
• DDGSalsomovesinincreasingnumbersincontainerswhichcreatesatransloadpotentialfortheKansasCityregion,movingproductinhighvolumebetweenbargeandcontainers,withsubsequentContainer-on-Bargepotentialtothe(LMR)andworldmarkets.
• Alfalfapelletvolumesarepricesensitivewithothergrowingregions.Likeothersimilarcrops,largevolumeshaverespondedrapidlytothemarketplaceduringperiodsofstrongpricingadvantage.Oneofthekeycomponentsofpricingadvantageistransportation,andwatertransportationcanresultinsignificantcostsavingsoverothermodes.
Emerging Markets – Dried Distillers Grains & Alfalfa Pellets
Missouri Market Potential for Barge Movement
DDGSInboundfromethanolplantsNorthandWestofMissouriouttotheLowerMississippiRiverandtheGulfofMexico
AlfalfaPelletsInboundfromNebraskaandIowaouttotheLowerMississippiRiverandtheGulfofMexico
Inbound and Outbound DDGS and Alfalfa Pellets
CommodityMOMarketArea
TotalTonnage(est.)TonnageShift
(tons)PercentShift(%)
DDGS 790,000 50,000 6.3AlfalfaPellets 150,000 50,000 33.3
Page8For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• TheLiquidFertilizermarketcouldshiftbacktowaterwithappropriateinfrastructuredevelopmentandthroughputcapacitysimilartothewaythebusinessmodelwasstructuredinthepast.
• LiquidFertilizeroriginsfromtheLowerMississippiRiverandtheMcClellan-Kerrsystemtakeadvantageofbothforeignanddomesticproducers.
• Ethanolasanemergingmarketismainlydistributedbytruckandrailwithsometransportationopportunitywithbarge;plantsneartheMissouriRivercanchangethesupplychainandpotentiallyreducetransportationcostandincreasedestinationoptions.
• Ethanoldestinationsincludemajorrefiningcomplexesandblendedproductdemanddistributioncenters,whichfrequentlyhavewaterwayaccess.
Emerging Markets – Liquid Fertilizer & Ethanol
Missouri Market Potential for Barge Movement
EthanolInboundfromethanolplantsNorthandWestofMissouriandOutboundtotheLowerMississippiRiverregionandtheGulfofMexico
LiquidFertilizerInboundfromtheLowerMississippiRiverRegion&McClellanKerrArkansasRiverNavigationSystem
Inbound Liquid Fertilizer, Inbound and Outbound Ethanol
CommodityMOMarketArea
TotalTonnage(est.)TonnageShift
(tons)PercentShift(%)
LiquidFertilizer 150,000 50,000 33.3Ethanol 763,802 63,100 8.3
Page9For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• PotentialforimmediateContaineronBargemovementmayincludeemptycontainerrepositioning.ThesemovementscouldoriginatefromtheKansasCitymarketandshiptodestinationsthathavedemandforemptiestofillwithexports:Memphis,BatonRougeandpotentiallyMinnesota.
• ContaineronBargeserviceissupportedbyopenhoppersandcouldprovidebackhaulprospectsshouldcoalorprojectcargoesdevelopasinboundfreighttothesystem.
• OpportunityformovingloadedcontainersontheMissouriRivercouldbesupportedoncesufficientterminalcapacityisdevelopedinKansasCityincombinationwithtransloadingofspecialtyagriculturalgrainsandDDGS.
• ContaineronBargecouldmoveinamarketwithscheduledweeklyserviceofmultiplebargesatmaximumweightsforshipperfreightcostadvantages.Theinitial5-yearestimateincludesapotential70,000tonsannually.
Emerging Markets – Marine Highway Container-on-Barge
COB Benefits Current COB Challenges COB StrategiesCan maximize weight capacity Availability of containers Develop ocean carrier supportCan maximize cubic capacity Total transit time Create scheduled service with
multi-barge towsShallow draft operations Supply chain perceptions Improve navigation reliabilityCan lower transport cost Inland terminal capabilities Appropriate terminal upgrades
Lower fuel consumption Consider start-up incentivesImproved public safety Marketing & salesEnvironmentally friendly Advocacy
Marine Highway Container on Barge (COB)
TheM-55andM-70MarineHighwayprovidesa1,400mileunencumberedtransportationcorridorbetweenoceanroutesatNewOrleans,LAtoKansasCity,MO,thusalleviatingfivedistinctstateDOTpermitjurisdictions,eliminatingbridgeclearanceconstraints,improvingpublicsafetyandresultinginnumerousenvironmentalbenefits.
Page10For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
• Thecargotypesmovingonthehighwaysthatcouldmoveonthewaterincludemetalshapes,coolers&chillers,cylindricaltanksofalltypes,militaryequipmentandwindenergycomponentstonamejustafew.
• Themarketvolumecouldbeexpectedtoincreaseasfreightcapabilitiesdevelopandnewroutesareestablished.
Emerging Markets – Marine Highway Over Dimensional Over Weight Cargos
ForPo
sitionOnly
Marine Highway Over Dimensional Over Weight Cargos (ODOW)
NumberofODOWMovesonMissouriHighways EstimatedMarketsize EstimatedMarket
Penetrationin5Years
140,000peryear 12,500peryear40%penetration=20,00tons
(potentially1,000bargemovementsperyear)
InitialmarketanalysisofODOWtruckmovementsinandthroughMissouriindicatesthat12,500movementsonI-29,I-70,andI-55maybeshiftabletotheMarineHighway.Theoriginsanddestinationsarecompatible,andthecargotypescouldmovebybarge.
Page 11For more information download full 2011 Missouri River Freight Development Report at www.modot.gov/othertransportation/freight.
Contact information for Missouri River Freight Movement
• AEP River Operations TerryMoore•636-530-2490 [email protected]
• AGRIServices of Brunswick, LLC KevinHolcer•800-279-4229 [email protected]
• American Commercial Lines JaniceLuchan•502-751-9441 [email protected]
• ARTCO Barge Line KevinVanMeter•217-424-5556 [email protected]
• Capital Sand Company RayBohlken•573-634-3020 [email protected]
• Celtic Marine Corp. TimKlein•773-774-2569 [email protected]
• Excell Marine GordonPulzke•513-792-9291 [email protected]
• Heartland Barge DougHalbert•618-281-451 [email protected]
• Hermann Sand and Gravel, Inc. SteveEngemann•573-220-4908 [email protected]
• Holiday Sand & Gravel MikeOdell•913-438-0240 [email protected]
• Ingram Barge Co. GeneShiver•618-344-2875 [email protected]
• Jantran, Inc. JohnJanoush•662-759-6841 [email protected]
• Lewis and Clark Marine, Inc. PaulWellhausen•618-876-1116 [email protected]
• Limited Leasing Co. TerryBangert•636-665-5180 [email protected]
• Magnolia Marine Transport Company LesterCruse•601-629-6652 [email protected]
• McDonough Marine Service RonWhite•281-452-5887 [email protected]
• Osprey Line, LLC CharlesDuet•504-569-2166 [email protected]
Active Missouri River Barge Carriers and Other Carriers Who Have Expressed Interest in Missouri River Freight Growth
• Howard/Cooper County Regional Port Authority RoyHumphries•660-882-5858 [email protected]
• St. Joseph Regional Port Authority BradLau•816-232-4461 [email protected]
• Port Authority of Kansas City MichaelCollins•816559-3721 [email protected]
• Missouri Port Authority Association SherrieTurley•888-667-6787 [email protected]
Missouri River Public Port Authorities