customers. At the same time, higher cost resulting from inefficiency or the
imreliability of the Warrior-Tombigbee Waterway will have a direct and adverse
effect upon our customers.
81
The Honorable John Myers
February 13, 1996
Page Two
It is imperative that there be a continuous program for maintenance and upgrading of
the Warrior-Tombigbee Waterway channels and locks. We support the proposed
budget request for $16.3 million in Operations and Maintenance funds for the Black
Warrior-Tombigbee River for the fiscal year 1997. Additionally, we support the
earliest completion of the capital proejcts that have been deferred over the past two
years as well as the request for O&M amounts for Mobile Harbor.
Adequate fiinding of programs required to maintain the efficiency and reliability of
our nation's waterways is critical to its superior economic health and welfare. I
strongly urge and solicit your support.
Sincerely,
C^^^^Jr
ch
cc: Alabama Power Company
W. Kenneth Mooney
Gulf Power Company
Jerry L .Mintz
Mississippi Power Company
Craig A. Leasure
82
COUNCIL
SAMMY WATSON
ODESSA WARRICK
D,mct I
HARRISON L. TAYLOR
City of Tuscaloosa
POST OFRCE BOX 2089
TUSCALOOSA. ALABAMA 35403
:05/34')-2010
Fax: 205/349-0147
ALVIN P. DuPONT
COUNCIL
JERRY PLOTT
Diimc. 3
GARY L, PHILLIPS
D.siricr 4
JACK KUBISZYN
January 29, 1996
Honorable John Myers, Chairman
House Subcommittee on Appropriations for
Energy & Water Development
United States House of Representatives
Washington, D.C. 20515
Dear Representative Myers:
I am asking that you support the appropriation of $16.3 million for the U.S. Army Corps
of Engineer's FY '97 operation and maintenance of the Warrior-Tombigbee Waterway and
Mobile Harbor. I understand that this is the amount in the present budget, which was
reduced by 3% from last year; and therefore is at minimum level. Please do not reduce
this amount.
I also understand that the Corps has the additional capability to get underway on projects
totalling $4,650,000 which have been deferred over the past years. These projects are vital
to continuing the improvements year to year which ultimately will bring the waterway
efficiency to an expected level. I appeal to you to support these projects as well.
I am certain that the availability of water transportation is critical to our area's
manufacturing development. It is therefore important that the river system remain
navigable and that projects to upgrade the system be funded and completed.
Sincerely,
^^/^U^
Alvin P. DuPont
Mayor
APD/tb
U S^ steel Edward R. Came
lllofSl Fairfield Works General Manager
l^Or/ P Box 599
Fairfield, AL 35064
February 14, 1996
The ^onoraSCe John Myers, Chairman
9{ouse SuScommittee on Appropriations
for 'Energy and "Water 'Devetopmcnt
11. S- ^ouse of "Representatives
li'asfiington, "DC 20515
"Dear Congressman C\{yers:
11.5.x. Corporation operations (6oth steet and mining) reCy fieavity upon the
avaitabidty of S^tabama's river systems to transport iron ore, colie and finished steeC
products. The availabiCity of a commerciaCty viabU river transport system permits
11SJC. to be competitive both domesticatty and intemationaCCy.
Our pCans catt for moving up to 5.5 mittion tons per year of matetiaC over the
Warrior-Tombigbee "WatervJay System during the coming years.
It is for this reason that loe offer our support for the Corp of Engineers in their
request for operation and maintenance funds for fiscaC year 1997. We feeC the
"Warrior -Tombig bee "Waterivay System is vitaC to the continued groioth of
Atabama.
"We support the action of the Warrior-Tombigbee "Development dissociation in their
efforts to assist the Corp of Engineers.
"Uery truCy yours,
a^-"^
E. 01 Caine
Qenera[ C^anagei
U. S. Steel Group
A division of USX Corporation
-,{steelr4>
.M^ I" T DAVID
© VOLKERT
vS;^ T& ASSOCIATES. INC.
84
DAVID
& ASSOCIATES, INC.
Engineers • Architects • I'hmners ^^^^^^ ^0. 1 996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations
for Energy & Water Development
U.S. House of Representatives
Washington, DC. 20515
Dear Congressman Myers:
David Volken & Associates, Inc. (Volkert) Is an engineering/architectural/planning firm which employs
375 people and maintains Alabama offices in Mobile, Birmingham, and Gulf Shores. Volkert strongly
supports funding for the Corps of Engineers for the Warrior-Tombigbee Waterway and the Port of
Mobile for FY97.
We believe the proposed $1 6.3 million for Operations and Maintenance funds for the Black Warrior-
Tombigbee is justified since this amount is necessary to cover the known and reasonably expected
needs for FY97, support the day-to-day O&M program, and continue on-going channel improvement
projects. We also support an additional $4,650,000 needed by the Corps to continue the
improvements year to year which ultimately will bring the watenway efficiency to an expected level.
Since the City of Mobile's largest industry is her Port and the City's economy depends upon her Port,
Volkert also supports funding for O&M for Mobile Harbor.
Confidence in the Watenway and its efficiency and modernization are important in bringing much
needed new industry to Mobile and to the State of Alabama. Lower operating costs to users of the
Waterway and Port of Mobile are essential in obtaining a reasonable balance of the international
export market allowing the U.S. to reduce our trade deficit. Increases in shipping and commerce
result in opportunities for many companies, similar to Volkert, to obtain business and offer meaningful
employment to citizens of the State of Alabama and other parts of the U.S.
Volkert appreciates this opportunity to express our support of Chairman Charies A. Haun and
President Sheldon L Morgan, of the Black Warrior-Tombigbee Development Association, and the
testimony to be given by them before the Appropriations Committee of the Senate and House. We
are proud to join in the collective effort to improve the efficiency and reliability of the Black Warrior-
Tombigbee Watenway and the Port of Mobile.
Sincerely< -
T. Keith King, P.E.
President and CEO
p. O. Hox7434 • Mobile, Al. 36670 • 3809 Moffctt Road 36618 • (334)342 1070 • Fax (.134 ) 342 7'W,2
am.AL Gulf .Shores, AL Mclnipoillan Washinfilon, D C. Ft Wakon lieach. FL Miami, Fl, Tampa. Fl.
85
Warrior & Gulf Navigation Company
p. O. Box 11397
Chickasaw, Alabama 36671
February 23, 1996
The Honorable John Myers, Chairman
House Subcommittee on Appropriations for
Energy & Water Development
United States House of Representatives
Washington DC 20510
Dear Mr Chairman:
I am Adolph N. Ojard, President of Warrior & Gulf Navigation Company. Our company
is an active member of the Warrior-Tombigbee Development Association and wholly supports the
testimony to be presented by Mr Sheldon Morgan as President of the Association. I wish to take this
opportunity to highlight the impact that the Black Warrior-Tombigbee Waterway and the Port of
Mobile has to the success and development of our Company.
Warrior & Gulf is a barge line and terminal operator headquartered in Chickasaw, Alabama,
and owns 22 towboats and 240 barges, moving approximately 9 million tons of bulk materials on the
Black Warrior-Tombigbee River System, making WGN the dominant water carrier operating in the
region Additionally, we own and operate two (2) bulk and general cargo terminals at Port
Birmingham and Mobile, Alabama, providing storage, transloading and intermodal services for truck,
rail and water transportation. Our total employment is 235 people
Warrior & Gulf has provided barge transportation on the Black Warrior-Tombigbee River
Systems since 1940 for export and domestic coal, iron ore, coke, import and export steel products,
export and domestic wood chips, and several other types of bulk commodities. An efficient and
properly maintained waterway system integrated with the Port of Mobile is vital to Warrior & Gulf
and its customers This waterway system has made the entire region world competitors through the
reliable, efficient movement of raw materials and finished products both for domestic and overseas
consumption. In order to encourage continued economic development along this great waterway we
must continue in our efforts to ensure this viable low cost transportation alternative remains in place.
The continued efficiency of this waterway is extremely critical to the viability of the industries it
services and develops. This waterway system and harbor hold great opportunity for developing trade
initiatives with Mexico and South America.
'^•"°- ) ^Company
86
The Honorable John Myers
February 23, 1996
Page Two
Historically, our shoaling problems vary greatly from year to year dependent upon the length
of our high water season (December - April) and the amount of flooding that occurs The Operations
& Maintenance budget has been typically $18-20 million including monies to maintain ongoing
channel improvements which are important to the continued safety and efficiency of the waterway
system.
We have worked closely with the Corps of Engineers and wholeheartedly endorse their
budget request of $16.3 million in & M funds for the Black Warrior-Tombigbee system for FY '97.
However, we understand the Corps has the additional capability to get underway on those projects
which have been deferred over the past two years and hope the Corps will proceed accordingly
Additionally, our company supports the appropriation of adequate O & M funds for Mobile Harbor.
We respectfully request your continued support and assistance as your subcommittee
considers appropriation of funds for these very important issues concerning the Black
Warrior-Tombigbee System, the Port of Mobile and those they serve.
Very truly yours,
ADOLPH N. OJARD
President
87
Mr. Morgan. To explain a little for the record as to how this sys-
tem is designed, the streams north of Birmingham, Alabama, and
northwest of Birmingham, come to form what is known as the
Black Warrior River, which flows down the State to Demopolis,
Alabama, which joins the Tombigbee, and from there on to Mobile.
And it flows through the industrial areas, through agriculture and
forestry and through — of course, on the headwaters there is a lot
of mining activity, as you know — some of the major coalfields of the
Nation.
This has brought about the development and expansion of facili-
ties in the Port of Mobile of the Alabama City Docks, which will
be addressed a little later by a representative of the State docks.
The system had its beginning formally in the 1870s when 17
locks and dams were constructed between 1870 and 1915. They, of
course, became outmoded during World War I, and on through the
Depression era and then World War II. But an effort was begun
in 1950 to try to replace these 17 locks and dams, and that took
a lot of time to move goods and barges through the waterway lock-
ing 17 different times.
In the 1950s our association was formed and the leadership in
the State went to work, and through this association coming to-
gether, went to work, working with the Alabama congressional del-
egation, were able to complete five of the new locks and dams and
replace the old ones. That left one lock and dam. And from 1975
until 1992, we have tried to replace that one lock and dam, the Oli-
ver.
And through the 1986 Water Resources Act, if you will remem-
ber, the Oliver was the first project coming out of that inland wa-
terway trust fund, thanks to you, Mr. Chairman. It was the first
coming out and the first constructed. And it was completed in 1992,
and it is now working efficiently, and the system now is complete.
It is a fine example of a partnership between private industry, civic
leaders and this committee, and I think it is one of the best exam-
ples of the multipurpose water system developments in the Nation.
So thanks to you for your support and cooperation the activities
on this waterway continued to grow, the steel mill production in
Birmingham, other industrial investments in Mobile and along the
way at Jackson, Alabama, and Demopolis and others, and Tusca-
loosa. So it has continued to increase. The original projections have
been far surpassed, and today, in 1995, we should be near 25 mil-
lion tons moving on that waterway. So it is a very vital system and
is very active.
I would like to continue to say that our organization is a broad-
based system association made up of industrialists, barge opera-
tors, shippers, major corporations, electric utilities, cities and coun-
ties, along the waterway. The Northport delegation is here today
as a member of our association, and I want to go on record that
we support their request for this flood control project as much
needed. The City of Tuscaloosa is a member of our association and
the City of Mobile. So we have a broad-based membership in the
association.
We appreciate the support that this program has given to the
civil works, and this committee has given to the Civil Works pro-
gram on the Black Warrior-Tombigbee. And this year we have a lit-
88
tie different situation in that the Corps of Engineers, the adminis-
tration, has not told, has not revealed their budget. We are kind
of flying blind, and we are going to tell you what our needs are.
Our needs are a little more than what probably is going to come
to you from the Corps, not knowing what they are going to ask for,
because over the last couple of years we have had several major
O&M projects on our system deferred. The railroad bridge at Jack-
son, Alabama that was in the budget last year has been deferred;
Morgan Sales at Demopolis and Oliver Locks have been deferred,
our upland disposal sites have been deferred, and those were
projects — the upland disposal, in my opinion, is one of the most im-
portant elements of this development because it is going to get the
sand out of the river on the sites upland and reduce dredging costs
in the future. That is very important. If you want to reduce O&M,
we need to continue this program. And as we know, they are look-
ing for ways to reduce the O&M budget, and that is a real concern
of ours.
Finally, our association is asking that the operation and mainte-
nance funding for 1997 to the Corps of Engineers for the operation
and maintenance of the Black Warrior-Tombigbee system be
$20,965,000. Now, we estimate that to catch up is about
$4,650,000, and then put with the $16,300,000, which is pretty
much level funding from last year. So that is what we are asking
for, a total of $20,965,000.
So we appreciate your attention to this, and we respectfully ask
for your support of these needed funds to continue the efficient
maintenance and operation of a very huge investment already. Not
only by the government, but even more so by the private sector.
Thank you very much, Mr. Chairman. We are going to miss both
of you. We thank you for coming to Mobile often, and we hope to
see you again before you all leave the Congress.
[The statement of Mr. Morgan follows:]
STATEMENT FOR
SUBCOMMITTEES ON ENERGY & WATER DEVELOPMENT
UNITED STATES HOUSE OF REPRESENTATIVES
I am Sheldon L. Morgan, President of the Warrior-Tombigbee Development Association.
Our members represent a broad cross-section of shippers, carriers, and the general business
community in the Warrior-Tombigbee basin in Alabama, and nearly a dozen other states. The
Association began in 1949 to work for the redevelopment of the Warrior-Tombigbee Waterway
System. Construction of its original 17 locks and dams began in the late 1870's, and completed in
1915. The navigation system provided by these locks and dams had gradually deteriorated and,
following World War II, the annual tonnage had leveled off at 2.5 million tons, due to the condition
and limited capacity of the obsolete locks. The Association began in 1950 to work with Alabama's
Congressional Delegation and the Army Corps of Engineers to plan for modernization. Five new
locks were built between 1954 and 1975. The last remaining old structure (Oliver Lock and Dam)
was replaced in 1991 - the first under the Water Resource Development Act of 1986. The Warrior-
Tombigbee Waterway now has modem and standard sized locks throughout its length. These six
new locks replaced the 1 7 old, tum-of-the-century locks, and today, this system represents a most
noteworthy example of the positive impact of the water resource development program. The most
persuasive evidence of the validity of this project and the wisdom of those who made it possible
comes from the record compiled during and following the investment in its redevelopment. During
the economic studies which justified these investments, it was projected that by 1980, the Waterway
would carry some eight million tons annually, producing a positive benefit to cost ratio. These levels
were reached in 1966 and, by 1980, twice the projected tonnage was being moved. Traffic has since
reached 24 million tons annually, a level three times that which had been projected. Clearly this has
been a valid investment in infrastructure.
Subsequently, due in large part to the federal investment in this waterway, several billion
dollars have been invested by industry, agriculture and other non-Federal agencies, providing
thousands of jobs. For example, the Alabama State Docks, as a result of a $300 + million expansion
program, now offers the most advanced export coal handling technology available in this country,
along with similar improvements for handling grain, bulk materials, steel and forest products. It is
interesting to note that the investment by this one local agency exceeds the total Federal investment
in building all the locks and dams on the entire waterway, including the new Oliver Lock. We are
asking for the continuation of federal investments which have paid off many fold. The coal handling
facility is being fijrther expanded at this time, representing an additional $14 million investment.
This Waterway must continue to be efficient and reliable if its users are to remain
competitive in world markets. Shipments of ore, steel, and related products have increased because
of the new and modem U. S. Steel facilities, and a new mill at Tuscaloosa which is already being
expanded. The efficiency and modemization of the waterway have been important factors in U. S.
Steel's continuing investments to modernize its Fairfield mill. Fairfield is now again one of the
90
bright stars in the USX crown. Recent investments substantially exceed $1 billion. The new
Tuscaloosa steel mill surpassed $100 million in initial investment, and an additional $154 million
is now underway. This mill utilizes the river southbound for export, as well as northbound for raw
materials and domestic sales of finished product. Hence there is a favorable impact on the balance
of payments which will be further enhanced by the current expansion. Recently, British Steel
announced a $100 million project at Mobile to ship production on the Black Warrior-Tombigbee to
Tuscaloosa.
Major facilities for mining interests, forest products and marine equipment account for well
over another $1 .5 billion in recent investment. A new underground coal mine alongside the Warrior
River has begun operation with a planned annual production rate of some four million tons. This
will be among the largest underground mines in the United States. It is a world class facility and its
low sulphur coal will move through an adjoining barge loading facility. There are new facilities at
the Port of Mobile, which handle more forest products than the total handled by all other Gulf Coast
ports. The efficiency and reliability of the waterway are key factors in the development and
competitiveness of these facilities, upon which thousands of jobs depend.
These are but examples of how this waterway is so central to the economy of this entire area,
impacting both domestic and international markets. Attached with this statement are letters further
highlighting this importance. These represent a broad cross-section of the economic heartbeat of an
entire region. Throughout these statements you will find repeated references to the importance of
confidence in the waterway to the willingness of business and industry to continue to invest in our
area and of their customers to depend on its reliability for the movement of their products. Please
note the wide range of interests represented by these statements: financial institutions; public
utilities; port facilities; coal mining, both deep and surface; manufacturers; suppliers; marine
interests; and general business.
We are hopeful the President's recommendation for O&M funds plus some add-ons for
additional capability be provided for the Warrior-Tombigbee Waterway. This would be realistic
funding which we will support as absolutely essential to day to day activities of the O&M program,
and with good management it will allow for the continuation of several on-going projects which are
near the point of culmination, following several years of investigation, design and now beginning
the actual work. These projects address long-standing problems and have required extensive
research and coordination and reflect excellent teamwork by the Corps and the industry. But for
the support of this committee, they would not be nearing reality. I wish to emphasize that this level
of funding is the minimum essential level.
Mr. Chairman, realizing you and our dear friend, Mr. Bevill, have stated this is your last
hearing for us, we must say it has been a labor of love. Industry and the Corps of Engineers in the
Mobile District have developed a true partnership and enjoy the finest of professional and mutually
supportive relationships. From this have come both short and long range programs which have
provided a basis for orderly progress toward keeping the Waterway efficient and reliable. The
funding requirements to which I have referred stem from work we need to continue now under these
programs. I respectfully repeat that the performance of this waterway in successfully handling a
level of tonnage some three times the projections made during its design, attest to your foresight and
support. None of our projects could have come to fruition without the staunch support of this
committee and its leadership.
91
To summarize and close our testimony, the Warrior-Tombigbee Waterway is a classic
example of the positive aspects of the Civil Works Program. The Congress has seen its potential and
has supported its development. And now the project continues to demonstrate its worth. Investment
and expansion continue locally.
During the severe drought in 1988, this waterway operated normally and with the Tennessee-
Tombigbee connection provided an alternate route for cargo unable to move otherwise. There are
large, national carriers now operating regularly on the Warrior-Tombigbee and Tennessee-
Tombigbee as a result of their 1988 experience.
This appeal by the Warrior-Tombigbee Development Association for ftinding Operations and
Maintenance of the Black Warrior-Tombigbee Waterway System by the Congress for FY97 is being
made without knowledge of the President's budget recommendations. Normally, the
Administration's budget will have been presented by the time the Subcommittee holds its hearings
for public testimony. Since this is not the case, it is necessary to consider the historical records of
the Corps of Engineers in maintaining navigation in past years as well as the important infrastnictiire
projects which have been deferred for one reason or another. Those projects deferred are elements
of a long range strategic plan by this Association and the Corps developed over time to improve the
efficiency and safety of the Waterway.
The Warrior-Tombigbee Development Association request for Operations &
Maintenance funding in FY97 for the Black Warrior-Tombigbee Waterway in the amount of
S16.3 million. This is 3% under level funding (an administration goal) for the normal O & M
work, this should keep navigation capability at a minimum level. However, additional
capability of the Corps is important to the continuing improvements that have been deferred.
Unfortunately, we did not request additional capability last year. Those include upland
disposal sites, mooring cells, certain equipment at locks and other vital improvements totaling
S4.6 million. Therefore, our request is for a total of $20,965,000 for FY97.