NDTA Scott AFB Luncheon Barge Transportation for Military Movements - PowerPoint PPT Presentation

NDTA Scott AFB Luncheon “Barge Transportation for Military Movements” Terrence Moore AEP River Operations October 28, 2010

SDDC in Atlanta

Today’s Presentation  Who is AEP River Operations  State of the Inland River Barge Transportation Industry  Barge and Towboat Fundamentals  Container on Barge  Benefits and Challenges  Project Cargo and Military Movements  Next Steps

AEP River Operations Who are we? • American Electric Power (AEP) is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. • AEP River Operations, a wholly-owned subsidiary of American Electric Power, is a fully-integrated barge line that delivers over 69 million tons of dry cargo for our customers each year. • AEP River Operations’ fleet of boats and barges operate from all along the Gulf Coast to as far north as Minneapolis, MN, Chicago, IL, Milwaukee, WI and Pittsburgh, PA. We also transit rivers which reach Tulsa, OK, Nashville, TN, Brownsville, TX and Panama City, FL.

AEP River Operations Strategically Located Full-Service Inland Waterways Carrier • St. Louis, Missouri Headquarters • ~1,400 employees • Full-service Inland Waterways carrier Minne • 3209 hopper barges apolis • 62 towboats / Portlan Chicago • 25 fleet and shuttle boats St. Pittsbur d Paul gh • Regional Operations St. • Pittsburgh, PA – Sales & Customer Service Tu Lou • New Orleans, LA – Sales & Operations • Lakin, WV – Boat & Barge Operations ls is • Paducah, KY – Boat & Barge Operations a • Mobile, AL – Sales & Customer Service Housto Mobile • Gulf Operations n New • Full Service Shipyard Corpus Orleans • Barge cleaning and repair Christi • Fleeting and shifting • Midstream transfers

AEP River Operations in the Gulf Mississippi River from Miles 228 to 57 Cleaning & Repair Facilities •Myrtle Grove •Algiers •Reserve •Convent •Baton Rouge 6

AEP Gulf Operations • 2 Fleeting Operations: Convent and Algiers • 5 Cleaning and Repair Facilities between Baton Rouge and Myrtle Grove • 1 Shipyard: Belle Chase 7

Inland Waterway Commodities Share by Tons: 2006 volume, 627 million tons Manufactured Manufactured All Others All Others 2% 2% <1% <1% Food & Farm Prod Food & Farm Prod Coal 12% 12% 29% Primary Primary 29% Manufactured Manufactured 5% 5% Crude Materials Crude Materials 19% Petroleum & 19% Chemicals Petroleum & Chemicals Petroleum Products Chemicals Petroleum Products 8% 8% 25%

AEP River Operations One of America’s largest dry cargo carriers Over 69 million tons shipped in 2009 Coal/Coke Grain Steel, Ores & Alloys Lime & Stone Fertilizer Cement Salt Other 9

Hopper Barge Capabilities

AEP River Operations Barge Fundamentals & Characteristics Typical Barge Dimensions 200’ x 35’ x 13’ The outside box is called the hull and the inside box is known as the cargo compartment or cargo box. The void spaces provide flotation and protect the cargo if the outer hull is damaged. A barge is one welded steel box inside another welded steel box. 11

Deck Barge Specifications

AEP River Operations Matching Barges to Cargos Fiber Lift Cover Barges Steel coils and rolls, grain, fertilizer, cement, lime, limestone, project cargo, aluminum, gypsum Steel Roll Top Barges Scheduled into terminals with limited cover handling capacity – same commodities as fiber lift covers Open Hopper Barges Coal, pet coke, ores, steel raw materials, scrap metals, sand, gravel, limestone, and project cargo 13

Barge Industry Snapshot Hopper Barge Fleet Summary Open Covered % of Average Total Hoppers Hoppers Fleet Age Ingram Barge Co. 2,251 1,477 3,728 20% 15.2 AEP River Operations 1,114 2,063 3,177 17% 10.1 American Commercial Lines 381 1,873 2,254 12% 21.1 Archer Daniels Midland 2,034 2,034 11% 25.0 SCF* 1,083 1,083 6% 13.3 Crounse Corp. 948 948 5% 13.3 Cargill 829 829 4% 15.0 U.S. United 497 183 680 4% 15.0 CONSOL Energy 664 664 4% 15.7 Subtotal 5,855 9,542 15,397 83% 26 Others 1,461 1,774 3,235 17% Total Fleet 7,316 11,316 18,632 100% 15.6 Top four carriers comprise 60% of total fleet 14 * Includes the Bunge barges Source: Informa Economics Barge Fleet Profile

New Hopper Barge Construction Investing in Barge Fleet • We have built over 550 barges since 2007 3500 12 3000 10 2500 8 2000 6 1500 4 1000 2 500 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Size: 200’ x 35’ / 13’ Hull Number of Barges Average Age Capacity: 1,500 – 1,700 tons 15

New Boat Construction Investing in Boat Fleet Our towboat fleet is efficient and provides a safe, desirable environment for our employees. We have built 23 new boats since 2007. 16

8,000 HP – 12,500 HP Class Operates on Lower Mississippi River between St. Louis and New Orleans M/V Robert D. Byrd • 25 to 45 barge tows • Up to 70,000 net tons • Equivalent to 3,000 trucks • Crew of ten: • 2 pilots • 2 engineers • 5 deckhands • 1 cook 17

6,000 HP Class Operates on Lower Mississippi River from Cairo to New Orleans & Ohio River • Most flexible boat in system • Can operate on all rivers • Tows 15 to 30 barges • Works in tandem with larger HP class • Crew of ten: • 2 pilots • 2 engineers • 5 deckhands AEP Mariner • 1 cook 18

1,800 HP – 5,600 HP Class Operates on the Illinois, Ohio & Upper Mississippi Rivers M/V Caleb Lay • 15 barge tows carry grain, coal, steel, cement, and other bulk commodities • Capacity of 225 railroad cars • Crews range in size from 6 to 10 members 19

700 HP – 3,000 HP class Harbor Tugs and Shuttle Boats • Harbor Tugs • Work within a specific harbor in the Gulf or along the river • Service a particular fleet or group of docks • Crews usually live shore-side and work designated shifts • Shuttle Boats • Larger than harbor tugs • Redistributes barges between harbors within a small area of the inland river (i.e. 100 miles) • Crews usually live on the boats 20

Why River Shipping? River Shipping is a S mart S hipping Solution  Greener  More Cost-Effective  Reliable  Secure – Cargo is difficult to access and under surveillance  Discreet – Quiet and out of site  Safer: Fewer Injuries and Fatalities  Efficient – Less highway and rail congestion 21

Barge Efficiencies Continue

Typical Transit Times Origin Destination Days Origin Destination Days New Orleans Paducah 10-11 Paducah Cincinnati 5-6 St. Louis 11-12 Pittsburgh 10-11 Louisville 14-15 Chicago 8-9 Chicago 17-19 Pittsburgh 20-22 Houston Memphis 13-14 Pittsburgh Cincinnati 4-5 St. Louis 17-18 St. Louis 11-12 Chicago 24-25 New Orleans 13-14 Pittsburgh 27-28 Chicago 16-17 Houston 19-20 23

Single Locking vs. Double Locking 24

Challenges Aging Infrastructure 117 out of 240 locks are over 50 years old p.25

Project Cargo Perfectly Suited for River Transportation 27

Project Cargo 28

Project Cargo 29

Opportunity Project Cargo 30

The Possibilities are Endless

Container on Barge 32

Container Movements

Existing Military Highway Transportation

900 vehicles 45 barges Military Cargo Movements

Vehicles on Deck Barges

Deck Barges for Military Movements

Existing Marine Highway Military Shipments

WWW.AEPRIVEROPS.COM Customer Access: • Track events & cargo • Track performance • Lower costs • Improve service • Customizable reports for both shipper and destination docks • EDI

Next Steps  Analyze opportunities for Inland River Shipping  Identify a department who is willing to consider alternatives to truck and rail.  Develop a plan for increasing use of the Inland River System.  Create strategic alliances within Military and SDDC.

By putting our heads together….. … w e can develop a safe and efficient inland river logistics for the U.S. Military Thank You

Contact Information Terrence Moore Director - Business Development AEP River Operations 16150 Main Circle Drive Suite 400 Chesterfield, MO 63017 636 – 530 – 2490 tmmoore@aepriverops.com www.aepriverops.com