Date: 1982-08-19
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. President. I am today introducing legislation designed to address the need to develop and improve Americas commercial ports so that we can take full advantage of the opportunities in the world market for American coal. The bill I have introduced carries with it the following cosponsors: Senators RANDOLPH. FORD. HUDDLESTON. BRADLEY. and HEINZ. I anticipate that other Senators on both sides of the aisleand I invite Senators on both sides of the aislewill join my effort to improve our Nations ports. The world is looking to coal as a major alternative to OPEC oil. It is estimated that there will be an expanding longterm world demand for U.S. steam coal through the rest of this century. U.S. steam coal exports could be as high as 79 million tons by 1990. as compared to about 16 million tons in 1980. U.S. metallurgical coal exports could be as high as 55 million tons. By the year 2000. U.S. steam coal exports could improve our international balance of trade by $6 billion in 1990 and $14 billion by the year 2000. In 1980 the United States experienced a dramatic upsurge in demand from Europe and the Pacific rim nations. Overseas demand for U.S. coal was 72.8 million tons. including steam and metallurgical coal. Overseas demand for our steam coal was more than 16 million tons. a sixfold increase over 1979. The value of all U.S. coal exports was about $4.5 billion in 1980. which should be considered against that years trade deficit of $24 billion. This bright future for U.S. coal exports is not assured. Price is one of the major factors which will play an important role in determining the extent to which the full potential for U.S. coal exports can be realized. Since ocean transportation costs represent from 20 to 30 percent of the delivered cost of the coal. there is a strong economic incentive to search for ways to lower costs. The use of large "supercolliers." ships which are 150.000 deadweight tons and over. to transport coal to overseas markets is one attractive alternative. However. these ships require channel depths of 55 feet. The deepest U.S. port has a depth of 51 feet. Consequently. American ports can only accommodate ships of 80.000 to 100.000 deadweight tons. If our ports could accommodate the larger ships to transport American coal overseas. transportation costs could be lowered by as much as 40 percent. This would be a significant reduction. since U.S. steam coal exports are currently priced about $4 per ton above the world price of steam coal. The tragedy of this situation is that over the years our attention has been called to the problem of developing Americas ports by various studies. reports. and the testimony of expert witnesses at congressional hearings. It seems that anyone with any concern for the future competitiveness of American coal in overseas markets has warned us that we may allow a golden opportunity to slip through our fingers like sand. Mr. President. we seem no closer today to addressing the problem of improving Americas port system. Given the magnitude of the opportunity which lies before us. it would be a travesty of prodigious proportions if we failed to move forward to help improve the competitive position of American coal in the world market.