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Inland waterway system funding: Problems and solutions

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height: auto;" alt="How to modernize and properly fund the inland waterway system" data-lazy-src="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-systems-problems-and-solutions-650x365.jpg" /><noscript><img src="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-systems-problems-and-solutions-650x365.jpg" srcset=" https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-systems-problems-and-solutions-650x365.jpg 650w, https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-systems-problems-and-solutions-750x422.jpg 750w" sizes="100vw, (min-width: 767px) 720px" width="720" height="405" style="width: 100%; height: auto;" alt="How to modernize and properly fund the inland waterway system" /></noscript> <div class="photo-credit clearfix"> <span style="color: #999; font-size: 10px; float: right;"> Photo 2308154 © Ivan Cholakov | Dreamstime.com </span> </div> <h3 class="post-type"> <a href="https://reason.org/policy-study/"> Policy Study </a> </h3> <h1 class="entry-title">How to modernize and properly fund the inland waterway system</h1> <h3 class="entry-subtitle">There's an $800 million backlog of current inland waterway system projects and another $6 billion worth of projects planned, but not yet started.</h3> <div class="authors"> <a href="https://reason.org/author/jay-derr/"> <div class="author-image"> <img src="data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%200%200'%3E%3C/svg%3E" data-lazy-src="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/Jay.Derr_-150x150.jpeg"><noscript><img src="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/Jay.Derr_-150x150.jpeg"></noscript> </div> <div class="author-info"> <div class="author-name"><span>Jay Derr</span></div> <div class="author-title">Transportation Policy Analyst</div> </div> </a> </div> <time class="published" datetime="2024-03-26T06:00:00-04:00">March 26, 2024</time> <div class="social-sharing"> <div class="social-network"><a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Freason.org%2Fpolicy-study%2Fhow-to-modernize-properly-fund-inland-waterway-system%2F" target="_blank" class="share-button facebook"><i class="fa fa-facebook"></i></a></div> <div class="social-network"><a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Freason.org%2Fpolicy-study%2Fhow-to-modernize-properly-fund-inland-waterway-system%2F&text=How to modernize and properly fund the inland waterway system&via=ReasonFdn" target="_blank" class="share-button twitter"><i class="fa fa-twitter"></i></a></div> <div class="social-network"><a href="mailto:?subject=How to modernize and properly fund the inland waterway system&body=https%3A%2F%2Freason.org%2Fpolicy-study%2Fhow-to-modernize-properly-fund-inland-waterway-system%2F" class="share-button email"><i class="fa fa-envelope"></i></a></div> <div class="social-network"><a href="#" class="share-button print"><i class="fa fa-print"></i></a></div> </div> </header> <div class="entry-content"> <p><strong><a href="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf">Introduction</a> </strong></p> <p>The inland waterway system serves as a cost-effective, environmentally friendly method of transporting freight throughout the country. An insufficiently funded and maintained inland waterway system has led to a system plagued with breakdowns and unscheduled closures. Delays and scheduled closures for maintenance also plague lock and dam systems scattered throughout the inland waterway system, raising costs for producers, shippers, and consumers who rely on waterborne freight transportation.</p> <p>This instability has contributed to <a href="https://reason.org/commentary/users-not-taxpayers-should-pay-for-the-inland-waterways-system/">an ongoing trend</a> of decreasing waterborne commercial activity, especially on inland routes. The COVID-19 pandemic exacerbated the problem further, leading to <a href="http://www.nature.com/articles/s41598-021-97461-7">a greater decrease</a> in waterborne activity along the inland waterway system due to a sudden trough of demand. When instability (especially delays) plagues the system, shipping over the waterways becomes less cost-efficient, driving shippers to other modes as shown by lowered demand.</p> <p>Given the importance of the inland waterway system to supply chains across the country, it must be revitalized in a more cost-effective manner that doesn’t unduly burden general taxpayers. Currently, barge vessels pay a small lockage fee that covers a dwindling percentage of capital costs. However, taxpayers pay for 100% of the inland waterway system&#8217;s operations and maintenance costs, as well as an increasing share of new construction capital costs. Creating a sustainable revenue source will benefit the inland waterway system&#8217;s users and consumers as a whole. This move begins the process of shifting more of the burden to inland waterway users.</p> <p>Further, long-term infrastructure should be financed and not funded, because it stretches limited resources further. One potential financing option is public-private partnerships (P3s). In addition to stretching the funds, P3s transfer risks—specifically construction cost overruns, late completion, and operations as well as maintenance of the locks. </p> <p>By modernizing the inland waterway system through a new funding and financing mechanism, Congress could improve the efficiency and reliability of U.S. waterways.</p> <p><a href="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf">This study</a> examines the various challenges affecting the inland waterway system, <a href="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf">including</a>:</p> <ul class="wp-block-list"> <li>Operations expenditures,</li> <li>Maintenance expenditures,</li> <li>Shipping delays,</li> <li>Current inland waterway system funding methods,</li> <li>Innovative funding for new construction, operations, and maintenance, including lock usage fees, and,</li> <li>New financing mechanisms, specifically public-private partnerships (P3s).</li> </ul> <p><strong>Full Study—<a class="pdf-icon" href="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf">Inland Waterway System Funding: Problems and Solutions</a></strong></p> <div data-wp-interactive="core/file" class="wp-block-file"><object data-wp-bind--hidden="!state.hasPdfPreview" hidden class="wp-block-file__embed" data="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf" type="application/pdf" style="width:100%;height:600px" aria-label="Embed of &lt;strong&gt;Inland Waterway System Funding: Problems and Solutions&lt;/strong&gt;."></object><a id="wp-block-file--media-a01ae9f1-9c8e-4632-a0fa-ce32510cc2f8" href="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf"><strong>Inland Waterway System Funding: Problems and Solutions</strong></a><a href="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/inland-waterway-system-funding-problems-and-solutions.pdf" class="wp-block-file__button wp-element-button" download aria-describedby="wp-block-file--media-a01ae9f1-9c8e-4632-a0fa-ce32510cc2f8">Download</a></div> </div> <footer class="article-footer"> <div class="author-footer"><div class="article-author"><p><span class="author-footer--author-name"><a href="https://reason.org/author/jay-derr/">Jay Derr</a></span> is a Transportation Policy Analyst at the Reason Foundation.</p> </div></div> <div class="social-sharing"> <div class="social-network"><a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Freason.org%2Fpolicy-study%2Fhow-to-modernize-properly-fund-inland-waterway-system%2F" target="_blank" class="share-button facebook"><i class="fa fa-facebook"></i></a></div> <div class="social-network"><a href="https://twitter.com/intent/tweet?url=https%3A%2F%2Freason.org%2Fpolicy-study%2Fhow-to-modernize-properly-fund-inland-waterway-system%2F&text=How to modernize and properly fund the inland waterway system&via=ReasonFdn" target="_blank" class="share-button twitter"><i class="fa fa-twitter"></i></a></div> <div class="social-network"><a href="mailto:?subject=How to modernize and properly fund the inland waterway system&body=https%3A%2F%2Freason.org%2Fpolicy-study%2Fhow-to-modernize-properly-fund-inland-waterway-system%2F" class="share-button email"><i class="fa fa-envelope"></i></a></div> <div class="social-network"><a href="#" class="share-button print"><i class="fa fa-print"></i></a></div> </div> <div class="related-posts"> <h4 class="moreheader">More from <a href="https://reason.org/topics/transportation/">Transportation</a></h4> <ul class="listingcontent row"> <li class="listingcontent listingcontent-narrow col-12"> <div class="listingcontent-image"> <a 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</a> </h5> <p class="entry-subhead"> Plus: voters approved transportation funding across the country, asset concessions, mileage-based user fees, and more. </p> <p class="entry-meta"> By <a href="https://reason.org/author/robert-poole/" title="Posts by Robert Poole" class="author url fn" rel="author">Robert Poole</a><br/> <time class="published" datetime="2024-11-14T09:59:11-05:00">November 14, 2024</time> </p> </div> </li> <li class="listingcontent listingcontent-narrow col-12"> <div class="listingcontent-image"> <a href="/commentary/nasa-should-consider-switching-to-spacex-starship-for-future-missions/"> <img src="data:image/svg+xml,%3Csvg%20xmlns='http://www.w3.org/2000/svg'%20viewBox='0%200%20351%20195'%3E%3C/svg%3E" data-lazy-srcset="https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/dreamstime_xxl_262419347-380x211.jpg 360w, https://a8d50b36.delivery.rocketcdn.me/wp-content/uploads/dreamstime_xxl_262419347-750x422.jpg 750w" data-lazy-sizes="(max-width: 767px) 100vw, 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<h5 class="entry-title"> <a href="/commentary/nasa-should-consider-switching-to-spacex-starship-for-future-missions/" class="listingcontent-title"> NASA should consider switching to SpaceX Starship for future missions </a> </h5> <p class="entry-subhead"> The reusability of Starship would be a key factor in reducing launch costs, making space more accessible and allowing for more frequent missions. </p> <p class="entry-meta"> By <a href="https://reason.org/author/jay-derr/" title="Posts by Jay Derr" class="author url fn" rel="author">Jay Derr</a><br/> <time class="published" datetime="2024-11-12T00:01:00-05:00">November 12, 2024</time> </p> </div> </li> </ul> </div> </footer> </article> </main> <!-- /.main --> </div> <!-- /.content --> </div> <!-- /.wrap --> <footer data-rocket-location-hash="32663b7250d2417c56c01b2c0a02304b" class="content-info" role="contentinfo"> <div class="container"> <div class="row"> <div class="col-sm-4"> <h4 class="bold-header">Follow</h4> <ul 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