Actions Taken To Ease Transportation Issues Exacerbated by Hurricane Katrina, 67410-67411 [05-22239]

Agencies

• DEPARTMENT OF AGRICULTURE
• Commodity Credit Corporation

[Federal Register Volume 70, Number 214 (Monday, November 7, 2005)]
[Notices]
[Pages 67410-67411]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22239]


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Federal Register / Vol. 70, No. 214 / Monday, November 7, 2005 / 
Notices

[[Page 67410]]



DEPARTMENT OF AGRICULTURE

Commodity Credit Corporation


Actions Taken To Ease Transportation Issues Exacerbated by 
Hurricane Katrina

AGENCY: Commodity Credit Corporation, USDA.

ACTION: Notice; Request for proposal.

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SUMMARY: The Commodity Credit Corporation (CCC) is providing 
notification to all interested parties regarding additional actions 
pursuant to the September 20, 2005 announcement to ease transportation 
issues exacerbated by Hurricane Katrina. CCC is seeking proposals from 
interested parties for unloading barges of agricultural commodities 
located in the New Orleans area to make them available to transport 
2005-crop agricultural commodities.

DATES: Proposals should be submitted November 14, 2005 to be assured 
consideration.

ADDRESSES: CCC invites interested persons to submit proposals on this 
notice. Proposals may be submitted by any of the following methods:
     E-Mail: Send proposals to: Richard.Mashek@kcc.usda.gov.
     Fax: Send proposals to (816) 823-1805.
     Mail: Send proposals to: Contract Reconciliation Division, 
ATTN: Rick Mashek, P.O. Box 419205, Stop 8758, Kansas City, MO 64133-
4676.
     Hand Delivery or Courier: Deliver proposals to 6501 Beacon 
Drive, STOP 8758, Kansas City, MO 64133.

FOR FURTHER INFORMATION CONTACT: James Goff, Warehouse and Inventory 
Division, Farm Service Agency, United States Department of Agriculture, 
1400 Independence Avenue, SW., STOP 0553, Washington, DC 20250-0553, 
telephone (202) 720-5396, fax (202) 690-3123, e-mail: 
James.Goff@wdc.usda.gov. Persons with disabilities who require 
alternative means for communication for regulatory information 
(Braille, large print, audiotape, etc.) should contact USDA's TARGET 
Center at (202) 720-2600 (voice and TDD).

SUPPLEMENTARY INFORMATION: On September 20, 2005, CCC announced 
additional steps to reduce further stress on the grain transportation 
system caused by Hurricane Katrina. The industry-focused actions 
outlined in the press release include assisting with the movement of 
barges of agricultural commodities from New Orleans, providing 
incentives for alternative storage of grain, and encouraging 
alternative shipping patterns to relieve pressure on the Mississippi 
River transportation system. The goals of these actions were to create 
velocity and capacity in the transportation system and to take 
advantage of under-utilized handling facilities. In a Federal Register 
Notice emergency-filed by the Office of the Federal Register for public 
inspection on September 30, 2005, and published October 5, 2005 (70 FR 
58179), CCC requested proposals related to these steps be submitted to 
USDA by October 5, 2005. This notice is seeking additional proposals 
from interested parties related to unloading barges of agricultural 
commodities in New Orleans to make the barges available to transport 
2005-harvested commodities.
    The CCC Charter Act (15 U.S.C. 714 et. seq.) provides the authority 
for this action. Specifically, sections 5(b) and 5(d) (15 U.S.C. 
714c(b) and 714c(d)) allow CCC to make available materials and 
facilities required in connection with the production and marketing of 
agricultural commodities, and allows CCC to remove and dispose of, or 
aid in the removal and disposition of, surplus agricultural 
commodities.
    Barges containing agricultural commodities originally loaded and 
shipped to the New Orleans area for export or further processing remain 
without an outlet because of conditions caused by Hurricane Katrina. 
Some of the agricultural commodities stored on the barges have 
deteriorated in quality, further limiting possible outlets.
    CCC will provide up to $7.6 million in funding for this initiative. 
CCC will consider all proposals on a competitive basis, but will not 
consider proposals in excess of $30 per ton. This per-ton cap reflects 
current barge freight rates as shown below:

                                                                                   Barge Transportation Rates
                                                                                     [Dollars per short ton]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 2005                                                                                             2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                     This week    Next month      2 months out         3 months out                             This week    Next month      2 months out        3 months out
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      Minneapolis-St. Paul
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8/3/2005..........................        20.49        23.58  25.56..............  22.35..............  8/4/2004.............        13.68        17.27  18.57..............  17.27
8/10/2005.........................        21.48        24.51  25.07..............  22.59..............  8/11/2004............        13.93        17.58  18.57..............  17.33
8/17/2005.........................        23.83        25.19  25.07..............  22.59..............  8/18/2004............        14.55        17.52  18.88..............  17.39
8/24/2005.........................        23.15        25.13  25.56..............  22.96..............  8/25/2004............        14.18        17.39  18.57..............  17.52
8/31/2005.........................        31.57        31.32  27.86..............  27.11..............  9/1/2004.............        14.24        18.63  16.90..............  closed
9/7/2005..........................        33.18        34.54  30.95..............  closed.............  9/8/2004.............        14.24        18.63  16.90..............  closed
9/14/2005.........................        34.05        37.26  31.26..............  closed.............  9/15/2004............        19.44        20.86  17.95..............  closed
9/21/2005.........................        30.02        33.30  28.16..............  closed.............  9/22/2004............        20.74        21.48  17.52..............  closed
9/28/2005.........................        33.92        35.90  29.90..............  closed.............  9/29/2004............        23.65        23.71  18.57..............  closed
10/5/2005.........................        36.71        32.93  closed.............  closed.............  10/6/2004............        24.76        20.80  closed.............  closed
10/12/2005........................        41.66        35.90  closed.............  closed.............  10/13/2004...........        20.74        19.37  closed.............  closed

[[Page 67411]]

 
10/19/2005........................        38.69        35.16  closed.............  closed.............  10/20/2004...........        19.93        19.93  closed.............  closed
10/26/2005........................        44.26        39.93  closed.............  closed.............  10/27/2004...........        23.65        22.22  closed.............  closed
-----------------------------------
                                                                                            St. Louis
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
8/3/2005..........................         9.46        12.37  13.29..............  10.93..............  8/4/2004.............         7.18        10.29  10.69..............  7.46
8/10/2005.........................        10.93        13.21  13.77..............  11.25..............  8/11/2004............         7.14        10.45  10.77..............  7.46
8/17/2005.........................        13.09        14.48  14.36..............  11.21..............  8/18/2004............         8.70        10.57  10.89..............  7.42
8/24/2005.........................        14.08        14.88  15.36..............  11.33..............  8/25/2004............         8.30        10.81  10.89..............  7.42
8/31/2005.........................        23.94        21.95  18.95..............  13.69..............  9/1/2004.............         8.46        10.77  7.70...............  6.30
9/7/2005..........................        27.33        22.62  19.95..............  12.97..............  9/8/2004.............        10.33        10.97  7.70...............  6.42
9/14/2005.........................        28.05        24.34  18.47..............  13.49..............  9/15/2004............        14.88        12.77  8.10...............  6.58
9/21/2005.........................        20.31        22.46  16.48..............  13.17..............  9/22/2004............        15.56        13.09  10.61..............  6.62
9/28/2005.........................        28.53        23.94  17.48..............  13.33..............  9/29/2004............        16.52        13.73  9.54...............  7.02
10/5/2005.........................        30.76        18.83  14.28..............  13.69..............  10/6/2004............        16.08         9.30  7.38...............  7.22
10/12/2005........................        36.75        19.15  15.08..............  14.12..............  10/13/2004...........        12.25         9.30  7.02...............  6.98
10/19/2005........................        25.62        18.87  14.88..............  14.32..............  10/20/2004...........        11.05         9.62  7.26...............  7.26
10/26/2005........................        21.35        17.44  14.36..............  14.12..............  10/27/2004...........        14.68        10.93  7.78...............  7.90
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I. Unloading Barges of Agricultural Commodities

    CCC will consider proposals and enter into agreements with 
operators to unload barges of agricultural commodities located in the 
New Orleans area for the purpose of making the barges available to move 
2005-crop commodities. CCC has not and will not take title to the 
agricultural commodity. The barges must have been loaded and shipped to 
the New Orleans area before August 29, 2005, when Hurricane Katrina 
made landfall. The barges must be unloaded by December 1, 2005, unless 
extended in writing by CCC, to accelerate barge availability to 
geographical areas under harvest pressure. There are no restrictions on 
the actual unload location, final destination or disposition of the 
agricultural commodities; however there must not be a negative market 
impact. This offer of economic assistance is only available to unload 
barges of agricultural commodities and facilitate barge availability.

II. Proposal Requirements

    Proposals must include the following information:
    (1) Number of barges that contain agricultural commodities;
    (2) Type of agricultural commodity;
    (3) Quantity of agricultural commodities;
    (4) Market value of the agricultural commodity as of date proposal 
is submitted:
    (5) Current location;
    (6) Date the barges arrived in the New Orleans area;
    (7) Location where barge will be discharged, if different from item 
4 above;
    (8) Proposed disposition and compensation received for the sale of 
the agricultural commodity;
    (9) Dollar amount per ton of assistance requested, not to exceed 
$30 per ton;
    (10) Whether the loss or damage to the agricultural commodity was 
covered by an insurance policy and, if so, the amount of indemnity 
received; and
    (11) A point of contact with applicable phone number, facsimile 
number, e-mail address and mailing address.
    Operators entering into agreements with CCC will be required to 
meet certain documentation and certification requirements. These 
requirements will allow CCC to verify the unloading of the barges, the 
quantity and value of the agricultural commodity, and any compensation 
received for the final disposition of the agricultural commodity.

III. Proposal Evaluation Criteria and Award

    Proposals must be evaluated objectively in accordance with the 
regulations on ``Competition in the awarding of discretionary grants 
and cooperative agreements'' found at 7 CFR part 3015.158. The 
following criteria must be used equally in the evaluation:
    (1) Proposal's cost in relation to the agricultural commodity's 
current market value;
    (2) Net positive impact on barge availability; and
    (3) Overall cost-effectiveness of proposal.
    CCC will notify interested parties of approval of their proposal.

    Signed at Washington, DC November 1, 2005.
Teresa C. Lasseter,
Executive Vice-President, Commodity Credit Corporation.
[FR Doc. 05-22239 Filed 11-3-05; 1:51 pm]
BILLING CODE 3410-05-P