Current Challenges for Inland Terminal Operators

2015 IRPT Annual Conference-Shreveport, La.

What kind of challenges are terminal operators faced with today?

Just to name a few…….

• Environmental and other Governmental Regulations

• Security• Aging infrastructure of our inland water

navigation system• General cost of doing business• Some honorable mentions

Environmental Regulations

• Vessel General Permit (VGP)– EPA regulates discharges– First VGP issued in 2008, effective to 12/19/2013– Re-issued 3/28/2013 for another five years taking

effect as of 12/19/2013– Applies to 26 types of discharges incidental to the

normal operation of vessels to minimize their impact on surrounding waters.

Environmental Regulations (continued…)

• Focus on bulk products stored on un-roofed pads. (concrete or asphalt)

• Water permit discharge limitations getting stricter and tighter.

• Heightened awareness of agencies and salt contamination of groundwater resources.

• Agencies need educated about how we do business and how the pile tarping process works.

• Proposed air emission regulations may put a number of our terminals inside designated non-attainment areas…what will this mean for our industry?

• Proposed expansion of the definition of Waters of the US (WOUS) could impact our terminals.

Suggestions on How to Deal with Environmental Regulations

• Through the anonymity and leadership of Industry and Trade Organizations, hold government agencies accountable.

• Join multi-Industry Coalitions to provide comments and feedback on proposed regulations during open public reviews.

• Continue to educate regulatory agencies about our business and what we want regulations to look like.

• Continue to become more Proactive than Reactive.

Governmental Regulations• Energy Policy• Corps. of Engineers• The unknown destiny of regulations

surrounding certain products, i.e. Ammonium Nitrate fertilizer, Petroleum Coke, Salt, etc.

Security• Unmanned aircraft systems (UAS)– Facility Rights?– Risks?– Exposure?

Aging Locks and Dams

• On June 10, 2014 the President signed the 2014 Water Resources Reform and Development Act (WRRDA, PL 113-121) into law.

• The Consolidated and Further Continuing Appropriations Act of 2015 (H.R. 83)

• Increase in the inland waterways diesel user fee of 9-cents, effective April 1.

• Inland Waterways User Board – Advocate on how the money gets spent.

How much!!!!• Recruit, hire and train quality

employees• Replace aging assets• Engineering costs• Environmental/Governmental

compliance. (administration & documentation)

• Legal and insurance costs

Honorable Mentions (just a few)

Truck Driver Shortage

Rail Car Shortage

Fill in the blank – “________”

………To Be Continued

Anthony J. GexDivisional Manager of Inland TerminalsConsolidated Terminals & Logistics Co. (CTLC)Office #: 812-218-6763Anthony.gex@cgb.com