ROLLING ON THE RIVER; BARGE SHIPMENTS ON MISSISSIPPI, OHIO RIVERS AT RECORD LEVELS

The Southeast Missouri Regional Port Authority is a link to the world. The local port handled more than 362 tons of freight durihjng the past year.

The barge industry is riding the waves of success.

The barge industry and cargo shipments on two of the nation's largest inland rivers -- the Mississippi and Ohio -- hit record levels last year.

This is the word from The Army Corps of Engineers offices at St. Louis and Cincinnati.

"We had record barge traffic on the upper Mississippi River last year," said Ken Kruchowski of the Corps' public-affairs office in St. Louis. "More than 83 million tons of freight went through Locks 27 near Granite City, Ill."

A total of 83,638,103 tons passed the locks, up from the previous 1983 record of 80.8 million tons.

Traffic on the Ohio was even busier.

A total of 237 million tons went through locks on the Ohio, said Donna Strachn of the Cincinnati Corps office.

Coal as the top product hauled on the Ohio River, accounting for more than 40 percent of the shipments. Grain accounted for about 12 percent.

During a normal year as many as 40,000 barges move down the Mississippi past Cape Girardeau, many containing agricultural products headed to New Orleans for transfer to ocean-going vessels.

"Southeast Missouri stands to gain a great deal from the resurgence of the barge industry," said Tom Schulte, Cape Girardeau district office director for U.S. Sens. Christopher Bond and John Ashcroft. "We have a number of ports in the area, and one of the major manufacturers of barges."

Trinity Co. Caruthersville is one of six shipyards owned by the Trinity Marine Group headquartered at Gulfport, Miss.

"Interest has increased in the barge-building industry," said Paul Mauer, yard manager at Trinity Caruthersville, which employs more than 200 people. "We're working steady here."

Port authorities in the Southeast Missouri area include Southeast Missouri Regional Port Authority near Scott City, Mississippi County Port Authority near Wyatt, New Madrid Port Authority at New Madrid, Pemiscot County Port Authority at Caruthersville, and the New Bourbon Regional Port Authority under construction at Ste. Genevieve.

Tonnage figures at the Southeast Missouri Regional Port Authority along the Mississippi River near Scott City have increased annually since 1990, and especially over the past two years.

"We had a major increase in river traffic in 1994," said Dan Overby, executive director of the port. The port handled more than 340,000 tons in 1994, surpassing the 300,000-ton mark for the first time.

Tonnage increased 6.5 percent in 1995, said Overby, to 362,574 tons. Coal makes up a large part of the port's tonnage, which also includes fertilizers, road salts, grain and other commodities.

During the course of a normal year, 70 million to 80 million tons of products move up or down the upper Mississippi, said Corp officials. During the flood year of 1993, that total dwindled to the 60-million-ton range."

The 1993 flood had some devastating effects on river traffic. Not only were sections of the Mississippi closed, idling more than 2,000 barges and costing the industry millions of dollars, but floods ravaged corn, soybean and wheat crops that would usually be shipped downstream for export.

Grain volume recovered from the flood of 1993, with record-breaking corn and soybean crops in 1994, along with strong international demand. Heavy grain shipments were reported on the river in 1995.

Additionally, the U.S. iron and steel industry emerged strong last year, resulting in increased river shipments.

The major dry cargo commodity that moves by barge is coal. Historically, barge movements of coal have been relatively stable and predictable, showing modest growth during the past five years, especially in 1995, with an increased foreign demand for U.S. coal.

Another plus for the barge industry is the upswing in import traffic, said Peter E. Hubbard, senior vice president of sales and marketing for Midland Enterprises, one of the largest U.S. barge transporters.

Hubbard, during a recent address to the National Mining Association's annual meeting, said that historically, barges moving to the Gulf ports with grain were likely to make the return trip empty, due to the lack of demand for northbound traffic.

This situation has changed, said Hubbard. As a result of increased imports, traffic patterns have improved and many northbound barges are now full.

The barge and towing industry is big both on the Mississippi and Ohio rivers. The industry employs as many as 200,000 workers and moves about 15 percent of the nation's freight, including 65 percent of its grain.

Petroleum, grain, steel, petrol and wood products are among notable loads of products that move down river. Barges headed upstream typically carry coal for northern steel-plant operations, fertilizer for farms and raw materials for industries along the rivers.

Motorists who cross the Ohio River bridge at Cairo, Ill., for the first time are usually amazed at the number of barges moored on either side of the Ohio. Because Cairo is at the confluence of the Mississippi and Ohio rivers, waterfront activity provides jobs for many of that city's residents.

As many as 200 barges are usually tied up along the Ohio River there. A lot of freight passes through Cairo, a community of about 5,000 people. In 1985, more than 149 million metric tons of freight passed through Cairo, more than passed through the Panama Canal. The tonnage has increased since 1985 to more than 280 million tons, with more than 200 million tons on the Ohio River.

Ohio River tonnage is expected to double over the next 50 years. Construction already is under way on a $1.2 billion dam at Olmsted, Ill., north of Cairo. The Olmsted dam will replace two outdated locks and dams near Brookport, Ill., upstream from the Olmsted dam site. The first barges are expected through the new dam in 2006.

With the improved barge industry is increased activity at barge manufacturing facilities. With the stagnation of the industry throughout the 1980s and into the early 1990s, for-hire carriers have remained cautious about adding to their fleets.

Between 1995 and 1999, carriers are expected to replace their aging fleets, with total barge retirements projected at more than 3,200 barges.

Currently only about 500 barges are being built, not enough to replace the barges that will have to be retired.

Beyond 2000, large numbers of barges will reach retirement, and the need for new equipment may become even more crucial.

Without replacements, the industry fleet could shrink by 5,000 barges between now and 2000. Even with a program to replace 800 barges a year between 1996 and 2000, the existing fleets would remain inadequate to meet the projected demand after 1997.

But, while barge construction has shrunk in recent years, it is expanding in attempts to provide the equipment necessary of meeting shippers' needs.