Great Lakes Navigation Update
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1 Great Lakes Navigation Update Mike O Bryan/Marie Strum U.S. Army Corps of Engineers Great Lakes Navigation Business Line Manager Feb 10, 2015 US Army Corps of Engineers
2 Great Lakes Navigation Session Introductions Great Lakes Navigation Program - Great Lakes Navigation Funding Status - FY14, FY15, FY16 Navigation Programs - Soo Locks Reliability Mike O Bryan Marie Strum District Operations Chiefs Josh Feldmann Key Project Updates Shamel Abou-El-Seoud Dave Wright Great Lakes Dredging Team Update Ernie Drott 2
3 Federal Projects on the Great Lakes Taconite Silver Bay Grand Marais Chippewa Harbor Lake Superior A non-linear navigation system with 60 federal commercial projects and 80 federal shallow draft/recreational projects Two Harbors Eagle Harbor Lac La Belle Knife River Duluth- Superior Port Wing Bayfield La Pointe Keweenaw Waterway Grand Traverse Bay Big Bay Little Lake Whitefish Point Harbor MI Presque Isle Marquette Little Bay de noc Grand Marais Soo Locks St. Marys River Channels in Straits of Mackinac Detour Manistique Les Cheneaux Island Grays Reef Mackinac Island St. James Mackinac City Cheboygan CANADA WI Cedar River Menominee Oconto Pensaukee Washington Island Sturgeon Bay Leland Hammond Bay Inland Route Petoskey Charlevoix Alpena Ogdensburg Morristown Big Suamico Green Bay Two Rivers Algoma Kewaunee Frankfort Arcadia Portage Lake Greilickville Harrisville Au Sable Harbor Tawas Bay Cape Vincent Sackets Harbor Manitowoc Manistee Point Lookout Port Austin Commercial Recreational IL Sheboygan Port Washington Milwaukee Kenosha Waukegan Chicago Harbor IN Ludington Pentwater White Lake Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Harbor Beach Saginaw Port Sanilac MI OH Lexington Black River Pine River St. Clair River Belle River Clinton River Lake St. Clair Rouge River Detroit River Monroe Bolles Harbor Niagara River PA NY Port Ontario Oswego 3
4 Great Lakes Navigation System 4
5 Corps Great Lakes Navigation Funding Status 5
6 FY 14 Great Lakes Navigation O&M $94.9M President s Budget $23 M in Additional funds for Ongoing Work $118M Great Lakes Navigation Operations & Maintenance Key Items in FY14 Final Allocation $53.7M in Dredging (30 projects 4.1M cubic yards) $10.6M in Dredged Material Management $7.1M in Soo Asset Renewal 6
7 FY15 Corps Funding Status Congress passed the FY15 Consolidated and Furthering Continuing Appropriations Act; enacted Dec 16, The FY15 Appropriations bill included FY15 President s Budget with some adjustments, plus additional O&M funds for ongoing work to be allocated by USACE HQ Additional Funding for Ongoing Work - Navigation Maintenance $45M - Deep-draft harbor and channel $165M - Small, remote, or subsistence nav $42.5M 7
8 FY15 Projects Funded from Additional Funds for Ongoing Work $6.0M Dredging - Rouge River, MI - Burns Harbor, IN - Sturgeon Bay, WI - St. Joseph Harbor, MI - Holland Harbor, MI - Waukegan Harbor, IL $3.3M Soo Asset Renewal $0.59M Chicago Lock Electrical Repair $1.2M Calumet Harbor dredged material management and shoreline protection 8
9 FY 15 Great Lakes Navigation Program $115.7M Great Lakes Navigation Operations & Maintenance Key Items $46.2M in Dredging (21 projects 3.1M cubic yards) $10.3M in Dredged Material Management $8.65M in Soo Asset Renewal $3.1M Emergency Funding Oct 31, 2014 Storm Dredging Muskegon, MI Pier Repair Grand Haven, MI Total FY15 Program $118.8M 9
10 FY15 Dredging Funding and Dredging Requirements Chippewa Harbor Grand Marais Taconite Silver Bay Lake Superior Two Harbors Eagle Harbor Lac La Belle Knife River Cornucopia Duluth- Superior Port Wing La Pointe Bayfield Keweenaw Waterway Grand Traverse Bay Big Bay Little Lake Whitefish Point Harbor MI Presque Isle Marquette Grand Marais Manistique Channels in Straits of Mackinac Grays Reef Soo Locks St. Marys River Detour Les Cheneaux Island Mackinac Island Little Bay de noc St. James Mackinac City Cheboygan WI Cedar River Menominee Oconto Pensaukee Big Suamico Green Bay Two Rivers Washington Island Sturgeon Bay Algoma Kewaunee Hammond Bay Petoskey Inland Route Charlevoix Leland Alpena Black River Harbor Greilickville Frankfort Harrisville Arcadia Au Sable Harbor Portage Lake Tawas Bay CANADA Ogdensburg Morristown Cape Vincent Sackets Harbor Manitowoc Manistee Point Lookout Port Austin Sheboygan Ludington Pentwater Saginaw Harbor Beach Port Ontario Oswego Port Washington White Lake Muskegon Grand River MI Black River Port Sanilac Lexington Milwaukee Grand Haven St. Clair River Commercial Recreational IL Kenosha Waukegan Holland Saugatuck South Haven Pine River Clinton River Lake St. Clair Rouge River Belle River NY St. Joseph Detroit River FY15 Funded Dredging FY15 Unbudgeted Dredging Need Chicago Harbor Chicago River Calumet IN St. Joseph River New Buffalo Michigan City OH Monroe Bolles Harbor PA 10
11 FY 16 Great Lakes Navigation $111.6M Great Lakes Navigation Operations & Maintenance Key Items $49M in Dredging (25 projects 3.4M cubic yards) $8.4M in Dredged Material Management $3.7M in Soo Asset Renewal 11
12 FY16 President s Budget Dredging Projects Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Eagle Harbor Lac La Belle Knife River Cornucopia Duluth- Superior Port Wing La Pointe Bayfield Keweenaw Waterway Grand Traverse Bay Big Bay Little Lake Whitefish Point Harbor MI Presque Isle Marquette Gladstone Grand Marais Manistique Channels in Straits of Mackinac Grays Reef Soo Locks St. Marys River Detour Les Cheneaux Island Mackinac Island WI Little Bay de noc Washington Cedar River Island Menominee Oconto Pensaukee Sturgeon Bay Big Suamico Algoma Green Bay Kewaunee Two Rivers St. James Mackinac City Cheboygan Cross Village Hammond Bay Petoskey Inland Route Charlevoix Leland Alpena Black River Harbor Greilickville Frankfort Harrisville Arcadia Au Sable Harbor Portage Lake Tawas Bay CANADA Ogdensburg Morristown Cape Vincent Sackets Harbor Manitowoc Manistee Point Lookout Port Austin Sheboygan Ludington Pentwater Saginaw Harbor Beach Port Ontario Oswego Commercial Recreational Port Washington Milwaukee Kenosha White Lake Muskegon Grand River Grand Haven Holland Saugatuck MI Black River Pine River Clinton River Lake St. Clair Port Sanilac Lexington St. Clair River Belle River NY President s Budget IL Waukegan Chicago Harbor Chicago River Calumet IN South Haven St. Joseph St. Joseph River New Buffalo Michigan City OH Rouge River Detroit River Monroe Bolles Harbor PA 12
13 Dredging Funding Trends Quantity Dredged (millions of cubic yards) M Annual Reqm t FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Appropriation - Add'l Funds for Ongoing Work ARRA (Stimulus) L. Superior Regional Provisions Michigan Regional Provisions Commercial Regional Provisions Energy & Water Adds President's Budget
14 14
15 Soo Locks Reliability 15
16 The Soo Locks A Lynch Pin of the Great Lakes Navigation System 70% of the commercial commodities transiting the Soo Locks are limited by size to the Poe Lock Security concerns - vessels are capable of seriously damaging or destroying locks through acts of terrorism There is currently no redundancy for the Poe Lock The economic impact of a 30-day unscheduled closure of the Soo Locks = $160M Two major efforts are underway to improve reliability of the Soo Locks 1. Maintain existing infrastructure through Asset Renewal Plan 2. New lock with the same dimensions as the Poe Lock- BCR sensitivity analysis underway 16
17 Corps Locks: Value and Economic Consequences Results Ranked by Cost 30-day MAIN CHAMBER CLOSURE Ranked by: mmtons tons 30-day conseq Soo Locks Calcasieu L,GIWW Bowman L, GIWW Lagrange L&D Peoria LD Bayou Boeuf Lock Miss River LD Miss River LD Miss River LD Miss River LD
18 New Poe-Size Lock WRDA 2007: Construction at 100% federal expense Inconsistent with Administration policy due to BCR of 0.73 Currently conducting a partial benefits reanalysis to determine if some benefit categories were not captured or if insufficient information was used. If there is a large enough increase in benefits, a BCR revisit may be in order. 18
19 Benefits Analysis Status Evaluate potential benefits which might impact the BCR Review completed by end of FY14 by contract Involvement included District staff, Inland Navigation Planning Center of Expertise, Lake Carriers Association, shippers, system users Survey of top shippers/operators that move coal and iron ore through the locks. The objective was to determine how a closure would affect businesses, what their response would be, and what costs would be associated with that response. Incorporated updated probabilities of failure and combined with costs to the users to determine possible impacts on project benefits.
20 Partial Benefits Sensitivity Analysis Expert elicitation held with two dozen stakeholders reliant on Soo Locks to determine how lock closures affect business and what their response would be to a significant lock outage. It is not possible to move 100% of the commodities in the event of a Poe Lock closure with current infrastructure without additional major capital outlays; only 35% of iron ore and coal could be moved by alternate modes Lightering is limited due to few available smaller vessels Increased shipments through Escanaba are extremely limited due to rail limitations, storage, and loading capacity Foreign ore is not readily available and requires plant retooling Rail can t handle the cargo and would not consider it without a 20-year contract Trucking would be very expensive and not realistically feasible due to quantity of trucks needed
21 Stakeholders Meetings Communication Shallow Draft/Recreational Harbor March 11, 2015 Detroit, MI and all District and Area Offices Annual Stakeholder Meeting April 14, 2015 Chicago, IL Web Site: Fact Sheets, Presentations Requests for information, to be added to mailing list, etc.: 21
22 Key Great Lakes Contacts GL Navigation Business Line Manager Mike O Bryan (313) Marie Strum (313) Shamel Abou-El-Seoud - Chicago Operations Chief (312) Josh Feldmann - Buffalo District Operations Chief (716) Dave Wright - Detroit Operations Chief (313)
23 Questions? 23
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