Critical Issues > Great Lakes Dredging Crisis
GREAT LAKES DREDGING CRISIS
The nation’s Great Lakes region is a prominent element of the U.S. industrial base with 70% of national steelmaking capacity, 70% of U.S auto production and more than 50% of heavy industrial manufacturing facilities located in Great Lakes states. This industrial might has been well served by the waterborne transport system supporting the American and Canadian ports and numerous private terminals located throughout the Lakes. Some Canadian-flag vessels and other foreign-flag, ocean-going ships call at various points throughout the Lakes. However, the marine system is comprised mainly of a highly efficient fleet of U.S.-vessels which carry the iron ore, coal, limestone, cement, etc. needed to operate this massive industrial capacity critical to both U.S. economic and military security.
Currently, however, the efficiency of the U.S.-flag fleet has been diminished by a lack of adequate channel and harbor depth all around the Lakes. In the last decade of the 20th century unusually high water levels masked the severity of the crisis because ships could carry maximum cargo loads. The 21st century began with a rapidly diminishing level of vital industrial cargoes which could be delivered to end users.
The relevant statistics are startling. Just one inch of lost capacity results in a loss of 50 to 270 tons of capacity for lake bound ships and 115 tons of lost capacity for the average ocean going vessel serving Great Lakes ports. The situation has gotten so desperate that the 1,000 ft. self-unloading bulk carriers, the largest and most efficient vessels in the fleet, capable of lifting nearly 70,000 tons, have been forced to sail 8,000 tons light every voyage. In real terms, the loss of economic benefit associated with such light loads is staggering. Steel made from 8,000 tons of iron ore makes 6,000 cars. Power generation resulting from 8,000 tons of coal would provide three hours of peak demand for a city the size of Detroit, MI. With the housing industry nationwide in distress the loss of 8,000 tons of limestone per voyage means that 24 average American homes cannot be built, further exacerbating the situation. The core of the problem results from the lack of proper funding and an official perception of the region as a series of unrelated ports rather than of a cohesive system.
The responsibility for “Operation and Maintenance” dredging, repair or replacement of breakwaters, etc. rests with the U.S. Army Corps of Engineers (USACE). The attention recently focused on the problem by U.S. maritime interests serving Great Lakes vessel operators has led to an evolution in thinking on the part of the USACE. More effort is being made to provide systematic analysis on a regional basis than viewing it as a series of unrelated problems. While this progress is encouraging lack of funding remains the most serious and ironically, unnecessary obstacle. The resources which could solve the crisis are available in the “Harbor Maintenance Trust Fund” (HMTF) resulting from a tax on certain cargo movements. The HMTF has a surplus of approximately $3.3 billion. The surplus is allowed to accrue in order to mask the actual size of the federal budget deficit.
Consequently, the $200 million needed to restore proper harbor and channel dimensions in the Great Lakes system is held hostage to bureaucratic smoke and mirrors.
In a time of national economic distress it is ludicrous to forgo the direct and indirect jobs and manufacturing efficiencies which would result from releasing the $200 million from the HMTF to address this critical and growing crisis.
The Institute continues to work with other Great Lakes maritime interests towards the goal of educating responsible policy makers and the general public about this serious problem and achieving a comprehensive solution as soon as possible. To that end, the House Transportation and Infrastructure Committee recently marked up and approved the Water Resources Development Act of 2010 (WRDA 2010) which will now go to the House floor for a vote. Section 2007 of WRDA 2010 requires that all revenue deposited in the Harbor Maintenance Trust Fund (HMTF) be spent dredging the Nation’s deep draft ports and channels. In the past, monies deposited in the HMTF were not spent in their entirety on dredging projects resulting in a $5 billion surplus. The Institute will vigorously advocate for final passage and enactment of WRDA 2010 to end the practice of huge unused surpluses.