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Alabama’s Inland Waterways: an Economic Engine for the State

Alabama’s Inland Waterways: an Economic Engine for the State. Study conducted for the Coalition of Alabama Waterway Associations by Troy University Center for International Business and Economic Development. Waterway Roles in the State’s Economy. Navigation Recreation

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Alabama’s Inland Waterways: an Economic Engine for the State

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  1. Alabama’s Inland Waterways:an Economic Engine for the State Study conducted for the Coalition of Alabama Waterway Associations by Troy University Center for International Business and Economic Development

  2. Waterway Roles in the State’s Economy Navigation Recreation Power Generation Water Supply Flood Control* * Not in Troy study, but a major economic factor

  3. Contribution to Alabama’s EconomySource: Troy CIBED “Accounting for Economic Value of Alabama’s Inland Waterways,” March 2012

  4. Total Economic Impact of the Five Navigable River Systems of Alabama Additional 116,000 jobs indirectly dependent • About 11% of Alabama’s total employment • Affects 40 of Alabama’s 67 counties $910 million in federal tax revenues $485 million in State tax revenue Source: Troy CIBED Study, March 2012

  5. Alabama’s Inland Waterways WISCONSIN • 1400 miles of federally funded navigable waterways – second-most in US • Integral part of nation’s transportation system providing multiple benefits to the State and region • Links to major river ports in 21 states serving the Tennessee River Valley, Ohio, Missouri, Upper Mississippi, and Great Lakes • Access to major Gulf ports and river systems via the Intracoastal Waterway • Alternative waterway for traffic on Mississippi River • Access to world trade through the Port of Mobile • Maintained primarily by US Army Corps of Engineers and US Coast Guard NEBRASKA KANSAS ARKANSAS OKLAHOMA

  6. Transportation Benefits* • Using water transportation for 80 million tons annually means • Reduced road and rail congestion • 3 million trucks are not traveling Alabama and neighboring state highways • 690,000 rail cars are not blocking intersections • Reduced road maintenance • Less energy used (ton-miles/gallon of fuel) • Barge – 616 • Rail – 478 • Truck – 150 • Less environmental impact • Up to 70% less air emission over other modes of transportation • Well-maintained waterways improve quality of life * Texas Transportation Institute Study, “A Modal Comparison of Freight Transportation Effects on the General Public, “ Feb 2012 616 478 150

  7. Recreation • Lots of water bodies for recreation • 77,000 miles of rivers and streams • Over 300,000 acres of lakes and reservoirs • Estimated economic impact? • 1 to $3 billion annually? • Probably understated • Strong potential for growth • Over one million boaters in Alabama (266,819 boats registered in 2011*) • Over 3 million visitors to federal recreation sites annually • Examples: kayaks on Weiss Lake, number of outfitters, tubes * Alabama Marine Police

  8. Power Generation • Hydropower provides • 8% of power generation in Alabama • Immediate response to expensive peak generation demands • Helps keep consumer rates low • Other sources of generation • Coal-fired plants 59% • Nuclear 25% • Natural gas 8% • Other <1% • 27 power generation facilities (63% of AL’s energy production capacity) depend on the waterways • Federal hydropower plants in Alabama alone return $30 million to the federal treasury annually

  9. Water Supply • Water use in Alabama - 10 billion gallons a day* • 95% from surface • 83% used in thermoelectric production (98% for cooling and returned) • 8% for public supply • 5% for industrial use • These users contribute over $7 billion annually to Alabama’s economy * USGS, Water Use in Alabama, 2005

  10. Flood Control An economic benefit? For every $1 spent on flood control, $6 in prevention savings are realized (US Army Corps of Engineers)

  11. In Closing • Economic benefits of Alabama’s waterways are almost incalculable • The impacts cited yield a greater total economic impact than just the sum of jobs and revenue • We do know that • Without water transportation, costs of shipping goods would be higher • Without hydropower, electrical rates would be higher • Water recreation is becoming a greater factor in the state’s economy • Water supply should be a top priority in any water management policy • Flood control is a hidden economic benefit, out-of-sight and out-of-mind • The state cannot fully realize the economic benefits of its waterways without properly integrating these roles into a sound water management policy

  12. Questions?

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