Bulk Transport Leadership: Merritt Lane

By Susan Buchanan
Thursday, February 14, 2013
File H. Merritt Lane, III, President and CEO of Canal Barge Company, Inc. in New Orleans, has served in that capacity since early 1994 and is a member of the Board of Directors.
H. Merritt Lane, III, President and CEO of Canal Barge Company, Inc. in New Orleans, has served in that capacity since early 1994 and is a member of the Board of Directors.

Drought and ensuing low river levels continue to affect the inland industry. Low water between St. Louis and Cairo, Illinois has threatened traffic on the Mississippi River since December.

For months, dredging operations have slowed vessels at points along the river's course. Since December, a stretch at Thebes, Illinois, has been shut for much of each day as the U.S. Army Corps of Engineers removes rock pinnacles. A panel of five executives weighed in on a host of topics regarding inland transportation as part of a round table discussion published in the February print edition of Marine News. Shown here are the comments of Merritt Lane, President & CEO of Canal Barge Company, Inc. in New Orleans:

How have reduced Mississippi River drafts have affected your operations, safety, and your bottom line?

Merritt Lane, Canal Barge: Low water in the Mississippi River basin started in mid-2012 on the stretch of the Lower Mississippi below Memphis, Tenn. That affected much of our liquid and dry cargo operations and impacted any operator transiting the river above Vicksburg, Miss. For us, the biggest impact from recent, low-water conditions on the Upper Mississippi is on our tank barge operations between the Gulf Coast and the Chicago area. For more than a month, we loaded tank barges transiting the middle Mississippi River lighter than normal, and our tow sizes were smaller. Low water caused delays, meaning it took longer for these lighter-loaded barges to reach their destination. Those factors together have impacted our bottom line. Prolonged, low water has posed operational challenges for our mariners. However, our deep safety culture and the professionalism of our mariners have helped us safely navigate this extended, low-water event. The event has highlighted how we as a country need to have a much stronger, more serious focus on water management and river infrastructure issues.

Is the Army Corps doing enough to facilitate Mississippi River transport?
Lane: Since low water began last summer, the Corps deserves huge praise for consistent dredging operations to keep the river navigable and also for coordinating with the Coast Guard to ensure safe operations. Compared to the low-water event in 1988, the response to drought to ensure a navigable channel has vastly improved. However, the overall issue of management of the entire, inland waterways system needs improvement. While the needs of many users of the inland system must be balanced, having a plan that's flexible to changing conditions and requirements is necessary to ensure that the Corps isn't restricted in making waterways management decisions that are best for all users and the nation. The economic repercussions of a possible shutdown of a portion of the Mississippi River would be far-reaching and so catastrophic that the Corps should have the ability to take whatever steps are needed to avoid it.

Are inland freight rates adequate to cover operators' costs now?
Lane: Low water is making it extremely tough for operators to run profitable operations, given the adjusted drafts and fewer number of barges allowed in each tow because of low-water conditions.
As an industry, we haven't done a sufficient job of educating the public, lawmakers and other stakeholders about the industry's critical role in supporting our nation's economic infrastructure. Low water in two key points in the Inland Waterways System over the past eight months has brought to light the barge industry's importance in efficient, economical transport of commodities critical to the nation's economy.

How will reduced barge traffic impact the national economy this winter? To what extent will rail and trucks be used instead of barges?

Lane: Lighter-loaded barges and reduced tow sizes are already impacting the national economy. For example, Canal Barge Co. has been required to load its tank barges with less petroleum products and reduce tow sizes, which interrupts the supply chain, affects prices and is then felt by the consumer. While in theory these products can adjust their destinations or modes of transportation, at the end of the day there aren't enough rail cars and trucks to carry all the cargo moved on the waterways in the event of a shutdown. And even if there were, it would mean more air pollution and reduced road safety. Barges are the cleanest, most efficient and safest mode of freight transportation.

How difficult will it be to comply with the impending Subchapter M rule? Will we see more consolidation within the industry because of it?
Lane: The Coast Guard has released its proposal for Subchapter M, and Canal Barge Co. has submitted extensive comments on it. But the final version has not been published. Our company's use of a Towing Safety Management System or TSMS over the past 15 years through the AWO Responsible Carrier Program has positioned us extremely well to transition to towing vessel inspection. We believe that all towing companies should be required to implement a TSMS. It has proven the most effective way to prevent the main reason for marine incidents--human error--and raises the standard that all towing vessel companies must meet. It's unclear whether or not Subchapter M will result in more consolidation but in reality, the additional cost of compliance may cause some operators to consider selling out. Subchapter M will have the positive result of heightened safety for our industry.

Is the inland industry prepared for increased traffic from the Panama Canal?
Lane: While we're waiting to see the actual impact that Panama Canal traffic will have on the Inland Waterways System, we believe that our industry has the capacity, the ability and desire to move increased volumes on the river. The main unknown is whether we'll continue to invest in the lock, dam and levee infrastructure required to support the range of uses of the river system--whether they're commercial, municipal, environmental or recreational.

Email AddThis Feed Button
Maritime Reporter May 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

EFC Group Launches Next Phase of NE Scotland Expansion

EFC Group, a designer and manufacturer of instrumentation, monitoring, handling and control systems for the global oil and gas industry, announced the launch of a new manufacturing plant in Moray.

WSS’s Liferaft Rental Program "Convenient and Cost Efficient"

Iino Marine Service, a ship management company in Japan, has been a customer of the Liferaft Rental and Exchange program (LRE) since 2010. Mr. Araki, Director of Iino Marine Service said,

SOR Founder Roy R. Dunlap Passed Away Aged 90

Roy Dunlap invented a mechanical  pressure switch that prevented oil tanks from overflowing and founded SOR Inc. SOR® founder Roy Dunlap leveraged the static-o-ring

Bulk Carrier Trends

China Shipyard Delivers Handymax & Capesize Bulk Carrier

COSCO Corporation (Singapore) subsidiariary shipbuilder in China has delivered two bulk carriers. COSCO (Zhoushan) Shipyard has delivered the 189.99 meters LOA and 32.

Bulk Cargo Loading Instant Prompt Published

UK P&I Club, Lloyd's Register and Intercargo have produced a pocket guide & checklist for ship's officer and agents who arrange cargoes for loading. The P&I Club

U.S. Steel Imports Up from March, Down for 2013

The U.S. Census Bureau announced that preliminary April steel imports were $2.5 billion (2.4 million metric tons) compared to the preliminary March totals of $2.

Workboats

AWO Urges Industry Awareness on National Maritime Day

The American Waterways Operators, the national trade association of the tugboat, towboat and barge industry, is using National Maritime Day to remind Americans

Dutch Shipbuilders Held Fast in Difficult 2012

The Holland Shipbuilding Association say that the various shipbuilding sectors presented a mixed picture in the past year, ship repair & supereyact construction did well, not so large new-buildings.

Maine Port Authority Selects McAllister for ATB

Buckley McAllister, President of McAllister Towing & Transportation, announced the Maine Port Authority has selected McAllister as its partner for the design of

Dredging

IHC Merwede Delivers New Backhoe Dredger

IHC Merwede delivered the Alberto Alemán Zubieta to Autoridad del Canal de Panama (ACP) in Panama City. The formalities were handled by ACP’s Contracting Officer, Mrs.

MTR100: Subsea Industry Awards Deadline Approaching

The July / August 2013 edition of Marine Technology Reporter will once again feature the MTR100, profiles of 100 leading companies in the global subsea sector. This editorial feature is free,

Orion Announces $9 Million Contract

Orion Marine Group, Inc., a heavy civil marine contractor serving the infrastructure sector, announced a contract award of approximately $9 million. Orion Marine

Barges

Bisso Marine Acquires Three New Barges

Bisso Marine Llc., a provider of energy and maritime support services, announced the acquisition of three offshore construction assets: the 800-ton capacity derrick barge,

AWO Urges Industry Awareness on National Maritime Day

The American Waterways Operators, the national trade association of the tugboat, towboat and barge industry, is using National Maritime Day to remind Americans

TY Offshore Launches Eighth of Eighteen FMT Industries Barges

TY Offshore, LLC launched the FMT 3256, the eighth of eighteen 297’6” x 54’ x 12’, 30,000 barrel tank barges for FMT Industries, LLC, one of the several companies within the Florida Marine Group.

Logistics

ICS Presents Shipping Economic Challenges to World Ministers

At the OECD International Transport Forum in Leipzig, Germany, the annual gathering of the world's transport ministers from more than 50 countries (May 22-24),

WSS Reports Steady SARD Increase

Wilhelmsen Ships Services (WSS) General Manager for Japan Yoshihiro Iizuka said that he expects more customers to sign up for its Ships Agency Re-Defined (SARD)

Logistics Revenues Surpass Pre-recession Levels

The latest report from Ti, Global Transport and Logistics Financial Analysis 2013, reveals the winners and losers in the global logistics industry over what has been a tempestuous six year period.

 
 
mobi | rss feeds | archive | history | articles | privacy | contributors | top news | about us | copyright