kentucky - Waterways Council, Inc.

KENTUCKY
The Commonwealth of Kentucky residents
total 4.3 million, ranking 26th in terms of
population among the 50 States. Both
Frankfort (capital) and Lexington (second
largest city) both lie on the banks of the
Kentucky River with populations of 25,500
and 295,800, respectively. Lexington
Combined Statistical Area (CSA), which
includes the Frankfort
and Richmond statistical areas, has a
population of 687,173. Louisville, the
Figure 1. Waterfront view of Louisville, KY
state’s largest population, has a population
of 765,500 and sits on the banks of the Ohio River. The Louisville CSA has a population of 1,451,564;
including 1,061,031 in Kentucky, which is nearly one‐fourth of the state's population. The Northern
Kentucky area (the seven Kentucky counties in the Cincinnati MSA) had a population of 425,483 in 2010.
The metropolitan areas of Louisville, Lexington, and Northern Kentucky have a combined population of
2,173,687, which is 50.1% of the state's total population.
The vital role water plays in the Commonwealth of Kentucky can be found in its namesake; a Shawnee
word meaning “head of the river”. The Commonwealth is bordered by three important commercially
navigable rivers. The Ohio River forms the northern border with Ohio, Mississippi River forms the
western border, and the Big Sandy River contributes to a portion of Kentucky’s eastern border.
Kentucky has more miles of marine highway than any state, other than Alaska. Its major internal rivers
include the Kentucky River, Tennessee River, Cumberland River, Green River and Licking River. The two
largest man‐made lakes east of the Mississippi River are also in Kentucky: Kentucky Lake and Lake
Cumberland.
Water transportation has historically played a major role in Kentucky's economy. Louisville, on the banks
of the Ohio River, was a major port for steamships in the nineteenth century. The Kentucky River bisects
the state capital of Frankfort. Frankfort is also the resting place of Daniel Boon and home to one of the
oldest still active distilleries, Buffalo Trace Distillery, which utilizes the regions fine limestone filtered
water. Today, most barge traffic on Kentucky waterways consists of coal that is shipped from both the
Eastern and Western Coalfields, about half of which is used locally to power the approximately 20 coal
fire power plants located directly off the Ohio River, with the rest being exported to other states namely
neighboring states of Ohio and Tennessee and connects with international market through lower
Mississippi River port in Louisiana and deep draft terminals in and Mobile, Alabama.
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Kentucky’s reliance on coal for electric power generation and access to excellent rail and waterway
service has conferred a significant energy cost advantage relative to other states. Its energy costs ranked
45th highest in the Nation in July of 2013, and Kentucky’s industrial power costs were ranked 6th lowest
in the U.S. ‐ more than 22 percent less than the national average. Kentucky is third in coal production
behind Wyoming and West Virginia.
Low cost of energy and marine transportation contributed to manufacturing success in Kentucky.
Manufacturing employment in the Commonwealth of Kentucky experienced one of the highest
increases of all industries since 2009. Manufacturing remains 17.1% of gross state product (GSP) ranking
6th in the nation in terms of percent of GSP in manufacturing.
In 2013, over 102.7 million tons of cargo (mostly coal, aggregates and petroleum) moved to, from, and
within Kentucky as shown in Table 1. These commodities had a combined value of over $11.1 billion.
Coal made up 51% of this tonnage, followed by aggregates with 25% and petroleum at 8%.
Table 1
Kentucky 2013
Commodities Moved To, From and Within the State
(tons in thousands)
Shipped
Received
Within
Total
TOTAL
53,274.8
23,833.7
25,616.9
102,725.4
Source: U.S. Army Corps of Engineers Waterborne Commerce Statistics
RIVER TRAFFIC
Over 53.2 million tons of commodities were shipped on the Kentucky river systems out of the state
(Table 1). A sizeable portion of this tonnage (over 26.4 million tons) consisted of coal. Docks in the state
received over 23.8 million tons, with coal again being the largest commodity. Over 25.6 million tons
moved within the state.
Figure 2
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Of the over 102.7 million tons of cargo moving to, from or within the state, more than half (51.9 % or
over 53.2 million tons) was shipped from Kentucky to other states (Table 2). The remainder of Kentucky
traffic originated in other states and was received in Kentucky (23% or over 23.8 million tons) or was
shipped from and received by a dock in Kentucky (25% or over 25.6 million tons). Coal was the largest
contributor to the trade imbalance between shipped and received tonnages followed by aggregates. Of
the 51.9% of total commodities being shipped, almost 50% was coal. Petroleum product trade flow was
unbalanced to the inverse of coal and aggregates; for every ton of petroleum product shipped the
commonwealth received 2.4 tons.
Marathon Petroleum Corporation’s Catlettsburg, Kentucky refinery on the Big Sandy River is the largest
refinery in the state. It produces gasoline, diesel fuel, residual oils, jet fuel, asphalt, propane, propylene,
heavy fuel oil, cumene, toluene, butane and sulfur. Light products (primarily the gasoline) move by
pipeline to a nearby dock in West Virginia for shipment, while heavier products are shipped from Big
Sandy River docks on the Kentucky side of the river. Crude petroleum and the refined petroleum
products are higher value than aggregates or coal. While Petroleum ranks third in terms of tonnage,
petroleum ranked 1st in terms of value with almost 8.2 million tons valued at 7.6 billion dollars. The next
most valuable commodity traversing Kentucky’s waterway is chemicals with over 2.8 million tons valued
at over 2.1 billion dollars.
Table 2
Kentucky 2013 River Traffic
Commodities Moved To, From and Within the State
(tons in thousands; values in millions of dollars)
Commodity
Shipped
Received
Within
Total
Value
Coa l
26,405.5
7,547.1
18,461.2
52,413.8
$3,303
Petrol eum
2,219.7
5,374.6
594.7
8,189.0
$7,606
Crude Petrol eum
**
**
0.0
125.8
$76
Aggrega tes
16,560.3
3,275.5
5,837.5
25,673.3
$213
Gra i ns
4,568.8
**
**
4,897.1
$1,669
Chemi ca l s
702.2
2,065.1
49.5
2,816.8
$2,120
Ores /Mi nera l s
**
1,900.1
**
1,953.2
$657
I ron/Steel
926.6
2,112.2
457.4
3,496.2
$1,410
Others
1,834.5
1,160.0
165.7
3,160.2
$669
TOTAL
53,274.8
23,833.7
25,616.9
102,725.4
$17,722
**Insufficient barge operators to release this tonnage.
Commodity values are not calculated for foreign movements.
Source: U.S. Army Corps of Engineers Waterborne Commerce Statistics, 2012 NDSU
Commodity Valuation Analysis
STATE & OTHER TRADING PARTNERS
There were 232 manufacturing facilities, terminals, and docks in Kentucky that shipped and/or received
tonnage moving on Kentucky’s waterways in 2013 including the Ohio River portion bordering Kentucky.
Kentucky shipped goods to 15 other states and received goods from 17 states.
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Commodities such as grains, aggregates, and coal are in Kentucky’s exports. As shown in Table 3,
Louisiana, which received over 16.6 million tons of material (primarily coal), received the most tonnage
from Kentucky docks. Kentucky shippers have the option to utilize the Ohio and Mississippi River to
reach terminals on the Lower Mississippi that transfer coal to Florida utilities or to oceangoing vessels
reaching overseas coal markets. Coal‐fired power plants in Tennessee, Ohio, and Alabama were also
major waterborne recipients of Kentucky coal. Massive quarries at the mouth of both the Tennessee
and Cumberland Rivers provide product to limestone poor areas, especially along the lower Mississippi
River, and to power plants for use in flue‐gas desulfurization units (called scrubbers). Soybeans and corn
from western Kentucky fields move by both the Ohio and Mississippi Rivers to the Gulf Coast and global
markets.
Indiana, which shipped almost 5.9 million tons (63% coal), along with Ohio and Illinois were major
sources of coal for Kentucky power plants. Though West Virginia was a major shipper of petroleum
products, the source of these products was a Marathon refinery in Catlettsburg, Kentucky. Steel plants
in Kentucky received waterborne iron ore and iron and steel products from import terminals located on
the Lower Mississippi River in the state of Louisiana.
Table 3
Kentucky 2013 Commodities
Shipped to and from Other States & Trading Partners
Shipments
Tons
Top Commodity
Shipments
To
(in thousands)
(% of Total)
From
Loui s i a na
16,670.2
Coa l (40%)
Indi a na
Tennes s ee
10,589.8
Coa l (67%)
Loui s i a na
Ohi o
9,616.4
Coa l (66%)
Wes t Vi rgi ni a
Wes t Vi rgi ni a
5,158.4
Aggrega tes (51%)
Ohi o
Al abama
3,208.6
Coa l (74%)
Ill inoi s
"Foreign" includes all overseas foregin countries, excluding Canada
Source: U.S. Army Corps of Engineers Waterborne Commerce Statistics
Tons
(in thousands)
5,871.6
4,800.0
4,032.7
3,236.2
1,765.0
Top Commodity
(% of Total)
Coa l (63%)
Ores /Mi nera l s (39%)
Petrol eum (70%)
Coa l (48%)
Coa l (45%)
MAJOR PORTS
The major ports shown below are not necessarily point specific port locations, but are generally an
agglomeration of docks within a single municipality or collection of municipalities recognized by a state
or states for the purpose of being designated as a port.
Huntington – Tristate ‐ The Port of Huntington‐Tristate was still the largest port on the inland waterway
system in 2013. The port encompasses terminals located between miles 256.8 through 356.8 on the
Ohio River and also the Kanawha and Big Sandy Rivers. The entire port contains 72 docks, 10 fleeting
areas, and two locks and dams. Huntington‐Tristate tonnage with a Kentucky destination/origin ranked
highest of all port activity in Kentucky with over 7.8 million tons.
Port of Louisville, Kentucky – Port of Louisville is located at mile 618 situated on over 300 acres. Port of
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Louisville shipped and received the 2nd most cargo in the state of Kentucky with almost 6.3 million tons
of the ports total of over 6.4 million tons.
Elvis Stahr Harbor, Kentucky – Located in Hickman, KY situated on the Mississippi, Elvis Stahr Harbor
remained 3rd of the Kentucky ports with approximately 932,600 tons.
Cincinnati, Ohio – For calendar year 2013, this port included both banks of the Ohio River, extending 27
miles from mile points 465 to 491, where it meets the west/south corner of the state. A depth of nine
feet is maintained throughout this section. The port authority has recently undergone a review of its
port designation, and its boundaries will be extended to include at total of 15 counties on the states of
Ohio and Kentucky.
Mount Vernon, Indiana – Mount Vernon’s terminals are primarily located on the Indiana side of the
Ohio River.
Table 4*
Kentucky 2013 ‐ Top 3 Ports
(tons in thousands)
Type
Port Tons
Total Port
Rank
Within State
Tons
Port
Port Type
Hunti ngton ‐ Tri s ta te
Ri ver
1
7,802.8
46,831.1
Loui s vill e, KY
Ri ver
6
6,294.8
6,402.8
El vi s Sta hr Ha rbor, KY
Ri ver
24
932.6
932.6
Tonnages represent only tons shipped or received in the state and port, and not necessarily the total
port tonnage.
Source: USACE Waterborne Commerce Statistics
* The new statistical port of “Ports of Cincinnati‐Northern KY” is not reported in calendar year 2013.
Statistics for this port code will be available for calendar year 2014 data.
LOCKS AND DAMS
Of the 14 navigation locks and dams in Kentucky, ten are active projects on the Ohio River: Lock and Dam
53, Lock and Dam 52, Smithland, John T. Myers, Newburgh, Cannelton, McAlpine, Markland, Meldahl,
and Greenup (Table 5). Kentucky waterways also include Kentucky Lock and Dam on the Tennessee
River, Barkley Lock and Dam on the Cumberland River, and Locks and Dams #1 and #2 on the Green
River. Lock and Dam #3 on the Green River near Rochester, KY is now inactive. Fifteen Kentucky River
locks were once operated by the Corps of Engineers, but are now owned and operated by a Kentucky
River authority and primarily used by tour boats and recreational vessels.
The level of upbound to downbound traffic on the Ohio River is relatively balanced except at John T
Myer, Newburgh, Cannelton, McAlpine and Markland where upbound traffic was significantly greater
than downbound traffic. Ten coal‐fired power plants are located in the stretch of the river between the
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Green River confluence and Markland Lock and Dam, most of which use the Ohio River as their main
source to deliver coal to the power plants. Many coal‐fired plants in this region have been updated with
scrubbers to handle western Kentucky’s high sulfur coal produced along the Green River traveling
upbound on the Ohio River. Directional traffic at these locks is also influenced by the location of
terminals near Metropolis, Illinois and on the Upper Mississippi that transfer Wyoming coal from rail to
barge for shipment up the Ohio River to coal‐fired power plants.
Table 5
Kentucky 2013 Lock Tonnage
(tonnage in thousands)
Lock
Waterway
Upbound Downbound
Ohi o Ri ver L&D 52
Ohi o
40,524.8
43,410.3
Newburgh L&D
Ohi o
54,923.2
19,523.9
Ohi o Ri ver L&D 53
Ohi o
29,312.4
44,555.1
McAl pi ne L&D
Ohi o
49,307.6
18,268.3
Smi thl a nd L&D
Ohi o
31,776.0
35,213.9
Ca nnel ton L&D
Ohi o
46,107.3
19,993.0
John T Myers L&D
Ohi o
34,770.5
25,894.0
Ma rkl a nd L&D
Ohi o
35,297.8
17,350.0
Mel da hl L&D
Ohi o
25,254.2
23,017.6
Greenup L&D
Ohi o
19,776.7
23,745.0
Kentucky L&D
Tennes s ee
16,506.9
6,795.1
Green Ri ver L&D 1
Green
3,574.8
7,209.2
Green Ri ver L&D 2
Green
2,401.5
5,550.6
Ba rkl ey L&D
Cumberl a nd
5,119.4
1,814.0
Source: Lock Performance Monitoring System
Total
83,935.1
74,447.1
73,867.6
67,575.9
66,989.9
66,100.2
60,664.5
52,647.8
48,271.8
43,521.7
23,317.8
10,784.1
7,952.0
6,933.4
RIVER SYSTEMS
The State of Kentucky borders 664 miles of the Ohio River, from mile 318 through mile 981 where the
Ohio flows into the Mississippi River. The state also contains 64 miles of the Tennessee River, 102 miles
of the Cumberland River, the entire 103 navigable miles of the Green River, and four navigable miles of
the Licking River. The 10 navigable miles of the Big Sandy River borders eastern Kentucky.
Kentucky terminals on the Ohio River shipped or received over 64.3 million tons at a value of over $10.5
billion, while Kentucky terminals on the Tennessee River shipper or received over 15.2 million tons at a
value of over $2.3 billion (Table 6). While considerably lower tonnage volumes moved to and from
Kentucky terminals on the Big Sandy relative to the Tennessee, Big Sandy cargo was of similar value.
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Table 6
Kentucky 2013 Top 5 Waterways
(tons in thousands; values in millions of dollars)
Waterway
Tons
Ohi o Ri ver
64,330.5
Tenness ee Ri ver, TN, AL and KY
15,275.0
Green and Ba rren Ri vers , KY
14,644.7
Bi g Sa ndy Ri ver, Tug and Levi s a Forks , KY and WV
6,551.7
Cumberl a nd Ri ver
6,473.5
Commodity Values not calculated for foreign/coastal movements.
Sources: USACE Waterborne Commerce Statistics, 2012 NDSU Commodity
$
$
$
$
$
Value
10,543
2,345
1,415
2,450
247
Valuation Analysis
SOURCES
‐
‐
‐
‐
‐
‐
‐
Tennessee Valley Authority; http://www.tva.gov/river/navigation/howorks.htm
U.S. Census; http://quickfacts.census.gov/qfd/states/42000.html
U.S. Census; http://www.census.gov/compendia/statab/2012/tables/12s0014.pdf
Port of Louisville; http://portoflouisville.com/
Port of Cincinnati; http://www.cincinnatiport.org/
Kentucky State Data Center http://ksdc.louisville.edu/
Kentucky Cabinet for Economic Development; http://www.thinkkentucky.com/
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