Study: Deeper Miss. River Would Add $11.5 Billion to U.S. Economy

MarineLink.com
Friday, August 23, 2013
U.S. Senator David Vitter

U.S. Senator David Vitter, the ranking member of the U.S. Senate Committee on Environment and Public Works, joined industry and Louisiana transportation officials here today for the release of a new economic impact report detailing the benefits of deepening the Mississippi River to 50 feet from its current 45-foot draft.

The Big River Coalition and the Louisiana Department of Transportation and Development commissioned the study by noted economist Tim Ryan, PhD., entitled “The Economic Impact of Deepening the Mississippi River to 50 Feet.” Ryan determined a deeper channel allowing for larger vessels to maximize cargo throughput would create $11.49 billion in increased U.S. production, generate 16,991 new permanent jobs and account for $849.5 million in increased income for American workers.

“It’s extremely important that our Nation’s ports and waterways can meet current and future transportation needs,” Sen. Vitter said. “The water resources bill that we passed through the Senate earlier this year will give us the opportunity to increase funding to dredge and improve our waterways and infrastructure – a huge benefit for Louisiana. But more needs to be done, and this report will be a big step forward.”

The Lower Mississippi River channel was originally authorized to be deepened to 55 feet in the Water Resources Development Act (WRDA) of 1986; however, the channel was never deepened below 45 feet due to the onerous requirement by the federal government that annual maintenance beyond 45 feet is the responsibility of the local sponsor, or the State of Louisiana in this case. Recent language passed by the Senate in the latest WRDA bill would shift maintenance costs up to 50-foot drafts to the federal level. Industry leaders and the Big River Coalition agreed upon a reduced draft from 55 feet to 50 feet to match the controlling draft of the new locks on the Panama Canal, expected to be completed in 2015.

The plan to deepen the Lower Mississippi River would be accomplished in two phases. Phase one would deepen Southwest Pass to Venice, La., or Mile 10 above Head of Passes – a 30-mile stretch of River. The first phase would automatically open 175 miles of River to a 50-foot channel, due to the River’s naturally deep channel. Estimates are Phase I’s construction costs would be $195 million with annual maintenance costs of $60 million. Phase II would begin at Belmont Crossing and dredge several River crossings to Mile 232 at the Baton Rouge Harbor at a cost of $105 million, with annual maintenance costs of $30 million.

The economy of the United States is dependent upon the Mississippi River for both the inbound movement of raw materials critical to manufacturing, as well as the outbound movement of goods produced in the United States bound for global markets,” said Gary LaGrange, President and CEO of the Port of New Orleans. “For domestic growers, producers and manufacturers to remain competitive, our nation’s maritime highways must be of critical importance to the federal government.”

Sean Duffy, Executive Director of the Big River Coalition, contends the deepening project makes sound economic sense and also offers a chance to immediately build thousands of acres of wetlands to aid coastal restoration efforts.

“If the Mississippi River is not deepened to match the controlling draft of the new Panama Canal locks, U.S. exporters become less competitive in the world market and consumers pay more for goods and services,” Duffy said. “The cargo carried on the River has an estimated $135 billion annual impact on the nation’s economy. We are talking about a River that connects 31 states and two Canadian Provinces through the third largest river basin in the world. It is a true maritime superhighway. The time to bring the Mississippi River channel and its infrastructure into the future is now.”

The Big River Coalition consists of more than 110 maritime businesses, trade associations and port authorities in 10 states along the Mississippi River and its tributaries.

portno.com
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

VEB Guarantees $3 Bln of Yamal LNG Debt

Russian development bank VEB said on Friday it had provided a guarantee for $3 billion of debt to the Yamal liquefied natural gas (LNG) project, led by Russian gas firm Novatek.

US Oil Drillers Cut Rigs after 3 Weeks of Additions

U.S. oil drillers cut rigs this week for a 20th week this year after three weeks of additions, according to a closely followed report on Friday, as crude prices

World Stocks Tumble as Britain Votes for EU Exit

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money

Environmental

MISC Publishes its 2015 Sustainability Report

MISC Berhad (MISC) today announces the publication of its 2015 Sustainability Report, covering the Company’s commitment, strategy and performance for the year ended

Admiral of the Ocean Sea Award Recipients Named

The United Seamen's Service (USS) 2016 Admiral of the Ocean Sea Awards (AOTOS) will be presented to Arthur E. Imperatore, Founder and President of New York Waterways; Donald Marcus,

Orca Energy ESS to Power Fish Farm Support Vessel

Grovfjord Mek. Verksted AS (GMV) has selected Corvus Energy as the supplier of the lithium ion based energy storage system (ESS) for a fish farm support vessel called GMV ZERO.

Dredging

Damen Wins Best Paper Award at WODCON

At the WODCON 2016 held last week in Miami, Damen was awarded the “Best Paper Award” for a paper on efficient dredge pump design, written and presented by Klaas Slager.

Trelleborg Debuts New Dredging Hose in China

Trelleborg’s engineered products operation is now manufacturing a pre-bend rubber dredging hose in China – the only one of its kind available in the country, according to the manufacturer.

MTG Presents Latest Dredging Solutions in Miami

MTG attended the Wodcon XXI World Dredging Congress and Exhibition from June 13-17, 2016, introducing its latest solutions for the dredging market.   The new MTG Systems DMet is a G.

News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

ABP orders Two Gottwald cranes

Terex Port Solutions (TPS) has received an order from Associated British Ports (ABP) for two electric Terex Gottwald Model 8 portal harbour cranes in the G HSK 8424 B four-rope grab variant.

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

People in the News

HCI Capital Renamed Ernst Russ AG

A vote was passed at the ordinary shareholders’ meeting of HCI Capital AG yesterday to change the company’s name to Ernst Russ AG. The Executive Board and Supervisory

Austal Delivers LCS 8 to US Navy

Austal Limited (Austal) (ASX:ASB) delivered the future USS Montgomery (LCS 8) to the U.S. Navy, during a ceremony held aboard the ship at Austal USA’s shipyard in Mobile, Alabama, USA on 23 June.

Post-Brexit: UK Chamber Calls for ‘Free Trade Commission’

UK Chamber of Shipping statement on the outcome of the EU Referendum The UK Chamber of Shipping remained neutral on the question of the UK’s membership of the

Government Update

Traffic Separation Schemes off Western Australia

On 1 December 2016 two new Traffic Separation Schemes (TSS) will come into effect off the south-west coast of Western Australia. Australia’s proposal to establish

Austal Delivers LCS 8 to US Navy

Austal Limited (Austal) (ASX:ASB) delivered the future USS Montgomery (LCS 8) to the U.S. Navy, during a ceremony held aboard the ship at Austal USA’s shipyard in Mobile, Alabama, USA on 23 June.

Berthing Policy for Dry Bulk Cargo for Indian Ports Unveiled

Ministry of Shipping has formulated a new Berthing Policy for Dry Bulk Cargo for all Major Ports which will come into effect from 20th August, 2016. The objective

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1304 sec (8 req/sec)