Warning Tale for Boosting Infrastructure Investment

An Urgent Call to Modernize Inland Waterways Infrastructure

The recent catastrophic failure of Demopolis Lock in Alabama underscores the urgent need for Congress and the White House to invest in the nation’s inland waterways system. Despite efforts, lock failures continue across the system mostly constructed in the 1930s, posing significant risks.

Facilitating transport of a third of the U.S. GDP, the inland waterways network heavily relies on early 20th-century lock and dam infrastructure. Ageing infrastructure has exceeded its original 50-year design life, leading to unexpected closures and increased transport costs.

In January, the Demopolis Lock suffered a serious failure, disrupting the transport of critical cargos like feedstock, steel, coal, and crude oil. Despite the ongoing repair work, shippers are forced to use an alternate, longer route, leading to increased costs for consumers and potential workforce layoffs.

The Demopolis Lock is inoperable and awaits repair work to start in Demopolis, Ala., February 1, 2024. A breach occurred on January 16, and the U.S. Army Corps of Engineers Mobile District and partners are working 24/7 to make the lock fully operable for an estimated timeframe of May. (Photo: Chuck Walker / U.S. Army)

The Infrastructure Investment and Jobs Act (IIJA) passed in 2021 marked a significant commitment to foundational infrastructure, allocating $2.5 billion for inland waterways. Yet, due to inflation, supply chain delays, and workforce challenges, these projects now need additional funds to complete construction and become operational.

So far, only $361 billion of the total $1.1 trillion IIJA law's spending has been awarded to specific projects. However, the Biden Administration aims to boost the pace of infrastructure projects in 2024, a hopeful sign for the lock and dam system.

Calling for Policy Changes: WRDA 2024

The upcoming Water Resources Development Act (WRDA) 2024 offers an opportunity to make crucial policy changes for waterways infrastructure. For WRDA 2024, it’s essential that all inland waterways construction and major rehabilitation projects funded by IIJA remain at federal cost to achieve rapid return on investment.

Capital improvements to the inland waterways system are currently cost-shared through a 29-cent-per-gallon fuel tax on commercial users, deposited into the Inland Waterways Trust Fund (IWTF). Congress waived this cost-share requirement for projects funded by IIJA, recognizing the need for accelerated project completion to strengthen the U.S. supply chain and maintain global competitiveness.

It's hoped that the cost-share for inland projects funded by IIJA will be modified in WRDA 2024. Otherwise, much-needed capital improvements across the inland waterways transportation system may be delayed, impacting their economic and environmental benefits.

The final WRDA 2024 bill will likely be considered by the House and Senate this spring, with hopes to enact a final law by September.

As published in the March 2024 edition of Marine News