Perhaps more than any other country in the world, the United States is defined by water. With over 3.5 million miles of rivers and streams (equivalent to 14 round trips to the Moon) and nearly 40 million acres of lakes and reservoirs (about the size of Florida), we are certainly a water-rich nation. Our national borders are shaped by oceans, lakes, and rivers, our cities have grown around bays and rivers, and our economy has long relied on the movement of goods across water. Yet, in stark contrast to this natural wealth, the country’s investment in waterway infrastructure is alarmingly insufficient.
Each year, 41 states ship 2.3 billion tons of cargo, including 397 million tons on inland waterways alone. These routes drive economic growth, contribute almost $500 billion to GDP yearly, and support millions of jobs. In Florida, for instance, waterborne commerce supports 1.2 million jobs and generates $40 billion in personal income. What is more, barges have proven to be the most ecologically friendly mode of transportation by a mile than alternative modes.
In terms of fuel consumption relative to cargo moved, barges achieve 675 miles per gallon per ton of cargo. This contrasts sharply with rail transport (appx. 500 miles per gallon for the same load) and especially with trucking, which only covers around 150 miles per gallon per ton. Yet ports, locks, dams, and levees, all interconnected, are frequently overlooked in infrastructure planning.
Though not politically glamorous, this infrastructure is vital to the efficient, cost-effective movement of goods. For illustration-sake, let’s follow the journey of the (imaginary) cargo ship, the “M/V Riverbend Express,” as it makes its way to a bustling port on the Mississippi River.
As the ship heads upstream, it depends on dams to create navigable pools along the Mississippi River, ensuring sufficient water depth for its journey, especially during dry seasons. As it proceeds, it encounters and is guided by a lock, which fills with water to raise the ship, allowing it to ascend to the next navigable pool. This process is repeated at multiple critical gateways.
About 80 percent of the U.S. lock and dams have surpassed their 50-year design life. Some, like the LaGrange Lock on the Illinois River, finally in the process of being modernized, date back to the 1930s. Delays due to lock failures cost shippers over $1 billion annually. Upgrades would boost capacity, reduce shutdowns, and enhance resilience to extreme weather.
Along its journey, the “M/V Riverbend Express” passes countless miles of levees that silently protect surrounding lands from floodwaters, ensuring goods can be safely transported upon arrival. With varied and increasing flood risks, the 100,000 miles of levees protecting American communities are more important than ever. Yet they earn an average grade of “D+” by the American Society of Civil Engineers and often lack proper inspection or maintenance.
During Hurricane Katrina, levee failures in New Orleans led to $161 billion in damages and over 1,800 deaths, an enduring example of what happens when infrastructure is neglected. Two decades after Katrina, many communities remain similarly vulnerable, making investment in levee resilience and repair an urgent priority. Recent federal infrastructure initiatives such as the Southeast Louisiana Urban Flood Control Project (SELA), dedicated to funding levee repair and resilience projects, address such vulnerabilities to safeguard our critical infrastructure.
After navigating river currents, crucial locks, and protective levees, the “M/V Riverbend Express” finally arrives at its destination, where port infrastructure efficiently handles and distributes its cargo inland. Our nation’s ports also suffer from aging and inadequate infrastructure, specifically outdated terminals, limited intermodal access, and silted harbors. Many facilities date back to the early 20th century, struggling to accommodate the larger vessels and increased cargo volumes seen today, with maximum vessel capacity doubling in the last 15 years. These issues have become even more prevalent in recent years; during the COVID-19 pandemic, the Port of New Orleans lost market share due to depth restrictions that barred larger ships.
Strategic dredging (deepening shipping channels and removing sediment buildup) can restore access for these larger vessels, significantly cutting delays and congestion. Meanwhile, increased federal investment in port electrification and automation, alongside upgrades to intermodal road and rail connections, has the potential to streamline operations, cut turnaround times, and lower greenhouse gas emissions. The efficiency and safety of our nation’s waterborne commerce relies on our ports, locks, dams, and levees working in harmony. Our innovation and infrastructure must rise to this occasion.
As prevalent as U.S. waterborne commerce already is, there is room to grow. Despite its extensive inland waterways (16,000 more navigable miles than the European Union) the U.S. moved only 217 million metric tons in intrastate commerce in 2023, compared to the EU’s 452 million metric tons. This underutilization squanders a chance to reduce emissions, infrastructure strain, and shipping costs. Closing this gap requires a policy shift: one that recognizes waterborne commerce not as background noise, but as a foundational pillar of national strength.
Our nation’s vital water systems represent a significant portion of its overall infrastructure. Yet, federal funding continues to fall disproportionately short. Policymakers should take a cue from leaders like Senator Chuck Grassley, who has repeatedly championed the modernization of inland waterways (and other water-related infrastructure) as a national imperative. While a full transformation requires a cultural and political shift, recent progress offers hope.
The 2024 Water Resources Development Act (WRDA) raised the federal cost share for inland waterway projects from 65 percent to 75 percent, accelerating upgrades and easing local financial burdens. The EPA’s Clean Ports Program committed nearly $3 billion from the Inflation Reduction Act to fund zero-emission equipment at 55 ports. Additionally, the Corps Water Infrastructure Financing Program (CWIFP) now offers long-term loans for dam safety upgrades. These initiatives mark a tangible step toward a resilient, sustainable water infrastructure future.
The U.S. has long benefited from its waterborne wealth. Now it must invest in maintaining and modernizing the systems that sustain it.
Written by Jackson Murray, Public Policy Intern
The Alliance for Innovation and Infrastructure (Aii) is an independent, national research and educational organization working to advance innovation across industry and public policy. The only nationwide public policy think tank dedicated to infrastructure, Aii explores the intersection of economics, law, and public policy in the areas of climate, damage prevention, eminent domain, energy, infrastructure, innovation, technology, and transportation.