- Key U.S. policies like the FAST Act, WRDA, and IIJA fund infrastructure upgrades and promote multimodal integration.
- Programs such as the Navigation and Ecosystem Sustainability Program and Inland Waterways Trust Fund focus on modernization and financing.
- Inland waterways handle 8% of U.S. freight, transporting bulk goods, chemicals, and agricultural products.
The development and modernization of inland waterway freight transportation in the United States are supported by key policies and regulatory frameworks aimed at improving efficiency, reliability, and sustainability. These policies address infrastructure challenges while promoting economic and environmental benefits for inland water transport, according to safety4sea.
Key Policies and Funding Mechanisms
The Fixing America’s Surface Transportation (FAST) Act, enacted in December 2015, allocated $305 billion between 2016 and 2020 for various transportation projects, including those related to inland waterways and smaller coastal ports. It mandated the development of a National Freight Strategic Plan to enhance multimodal freight transportation by integrating different modes, such as inland waterways, into a seamless network.
The Water Resources Development Act (WRDA) is updated biennially and authorizes projects managed by the U.S. Army Corps of Engineers (USACE) to maintain and improve water infrastructure. First introduced in 1974, WRDA addresses a range of water resource challenges beyond navigation, including flood risk management and environmental restoration. A landmark development occurred with the 1986 WRDA, which established the Inland Waterways Trust Fund. The 2024 version of the act prioritizes funding to enhance inland waterway navigation and improve ports, harbors, and other essential water resources infrastructure.
The Infrastructure Investment and Jobs Act (IIJA), signed into law in November 2021, is a significant federal initiative that allocated $400 billion across more than 40,000 infrastructure and sustainability projects by November 2023. It includes a dedicated investment of over $16.7 billion to modernize ports, locks, and dams, strengthening the competitiveness of inland water transport. In addition to economic benefits, the IIJA’s investments in inland waterways are expected to reduce greenhouse gas emissions, ease road and rail congestion, and contribute to a more sustainable transportation system.
The Navigation and Ecosystem Sustainability Program, managed by USACE, focuses on upgrading lock and dam infrastructure within the Upper Mississippi River System. The program prioritizes infrastructure modernization while incorporating stakeholder engagement, including input from environmental groups and local communities.
The Inland Waterways Trust Fund was created to support the construction and rehabilitation of navigation projects on inland and coastal waterways. It is funded through a diesel fuel tax of 29 cents per gallon, paid by commercial vessels operating on approximately 11,000 miles of designated inland waterways. This fund covers up to 50% of the costs of infrastructure improvements, with the remaining portion financed through federal appropriations.
Role of Inland Waterways in Freight Transportation
Inland waterways form a critical component of the U.S. freight transportation network, handling approximately 8% of the nation’s total freight annually. They are particularly well-suited for transporting agricultural products, chemicals, and bulk goods. Advanced data infrastructure plays a crucial role in tracking commodity flows, fuel consumption, and emissions associated with inland freight operations, helping to improve efficiency and minimize environmental impact.
Challenges and Future Considerations
Despite the continued significance of inland waterway transportation, recent shifts in economic and supply chain dynamics have influenced the types of commodities being transported. The aging fleet and outdated infrastructure, including locks, dams, and ports, present challenges that require modernization efforts. While some initiatives focus on retiring older, inefficient vessels, current policies do not emphasize expanding capacity, restructuring operations, or enhancing intermodal connectivity. Addressing these gaps through future policy developments could maximize the potential of inland water transport as a cleaner and more sustainable freight solution.
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Source: safety4sea
