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US Army Corps of Engineers BUILDING STRONG®
Great Lakes Navigation Update Mike O’Bryan/Marie Strum U.S. Army Corps of Engineers Great Lakes Navigation Business Line Manager
Feb 10, 2015
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Introductions Mike O’Bryan Great Lakes Navigation Program Marie Strum - Great Lakes Navigation Funding Status - FY14, FY15, FY16 Navigation Programs - Soo Locks Reliability District Operations Chiefs Josh Feldmann – Key Project Updates Shamel Abou-El-Seoud Dave Wright Great Lakes Dredging Team Update Ernie Drott
Great Lakes Navigation Session
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Ogdensburg
Lake Superior
MI
MI
NY
PA
IL
WI
IN
CANADA
OH
Morristown
Cape Vincent
Sackets Harbor
Port Ontario
Oswego
Bolles Harbor
Monroe
Rouge River Detroit River
Clinton River Belle River
Pine River
Lake St. Clair
St. Clair River
Black River
Lexington
Port Austin
Harbor Beach
Port Sanilac Saginaw
Point Lookout
Tawas Bay
Au Sable Harbor
Harrisville
Alpena
Hammond Bay
Cheboygan
Inland Route
Mackinac City Mackinac Island
St. James
Petoskey
Charlevoix
Channels in Straits of Mackinac
Grays Reef
Leland
Greilickville Frankfort
Arcadia
Portage Lake
Manistee
Ludington
Pentwater
White Lake
Muskegon
Saugatuck
Grand River
Holland
Grand Haven
South Haven
St. Joseph
St. Joseph River
New Buffalo
Michigan City
Chicago Harbor
Waukegan
Kenosha
Milwaukee
Port Washington
Sheboygan
Manitowoc
Washington Island
Green Bay
Big Suamico
Kewaunee
Algoma
Sturgeon Bay
Two Rivers
Pensaukee
Oconto
Menominee Cedar River
Little Bay de noc
Manistique Detour
Les Cheneaux Island
Soo Locks
St. Marys River
Whitefish Point Harbor Little Lake
Grand Marais Presque Isle
Marquette
Big Bay
Grand Traverse Bay
Lac La Belle Eagle Harbor
Keweenaw Waterway
Chippewa Harbor
Grand Marais
Silver Bay
Two Harbors
Knife River
Duluth-Superior Bayfield
La Pointe
Port Wing
Commercial
Recreational
Federal Projects on the Great Lakes
A non-linear navigation system with 60 federal commercial projects and 80 federal shallow draft/recreational projects
Taconite
Niagara River
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Great Lakes Navigation System
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Corps Great Lakes Navigation Funding Status
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FY 14 Great Lakes Navigation O&M
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$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
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• Congress passed the FY15 Consolidated and Furthering
Continuing Appropriations Act; enacted Dec 16, 2014.
• 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
FY15 Corps Funding Status
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$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
FY15 Projects Funded from Additional Funds for Ongoing Work
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$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
FY 15 Great Lakes Navigation Program
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Ogdensburg
Lake Superior
MI
MI
NY
PA
IL
WI
IN
CANADA
OH
Morristown
Cape Vincent
Sackets Harbor
Port Ontario
Oswego
Bolles Harbor
Monroe
Rouge River Detroit River
Clinton River Belle River
Pine River
Lake St. Clair
St. Clair River Black River
Lexington
Port Austin
Harbor Beach
Port Sanilac
Saginaw
Point Lookout
Tawas Bay
Au Sable Harbor
Harrisville
Black River Harbor
Alpena
Hammond Bay
Cheboygan
Inland Route
Mackinac City Mackinac Island
St. James
Petoskey
Charlevoix
Channels in Straits of Mackinac
Grays Reef
Leland
Greilickville Frankfort
Arcadia
Portage Lake
Manistee
Ludington
Pentwater
White Lake
Muskegon
Saugatuck
Grand River
Holland
Grand Haven
South Haven
St. Joseph St. Joseph River
New Buffalo
Michigan City Chicago River
Chicago Harbor
Waukegan
Kenosha
Milwaukee
Port Washington
Sheboygan
Manitowoc
Washington Island
Green Bay
Big Suamico
Kewaunee
Algoma
Sturgeon Bay
Two Rivers
Pensaukee
Oconto
Menominee Cedar River
Little Bay de noc
Manistique Detour
Les Cheneaux Island
Soo Locks
St. Marys River
Whitefish Point Harbor Little Lake
Grand Marais Presque Isle
Marquette
Big Bay
Grand Traverse Bay
Lac La Belle Eagle Harbor
Keweenaw Waterway
Chippewa Harbor
Grand Marais
Two Harbors
Knife River
Duluth-Superior Bayfield
La Pointe Cornucopia
Port Wing
FY15 Dredging Funding and Dredging Requirements
Calumet
Commercial
Recreational
Silver Bay Taconite
FY15 Unbudgeted Dredging Need
FY15 Funded Dredging
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$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
FY 16 Great Lakes Navigation
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Ogdensburg
Lake Superior
MI
MI
NY
PA
IL
WI
IN
CANADA
OH
Morristown
Cape Vincent
Sackets Harbor
Port Ontario
Oswego
Bolles Harbor
Monroe
Rouge River Detroit River
Clinton River Belle River
Pine River
Lake St. Clair
St. Clair River Black River
Lexington
Port Austin
Harbor Beach
Port Sanilac
Saginaw
Point Lookout
Tawas Bay
Au Sable Harbor
Harrisville
Black River Harbor
Alpena
Hammond Bay
Cheboygan
Inland Route
Mackinac City Mackinac Island
St. James
Cross Village Petoskey
Charlevoix
Channels in Straits of Mackinac
Grays Reef
Leland
Greilickville Frankfort
Arcadia
Portage Lake
Manistee
Ludington
Pentwater
White Lake
Muskegon
Saugatuck
Grand River
Holland
Grand Haven
South Haven
St. Joseph St. Joseph River
New Buffalo
Michigan City Chicago River
Chicago Harbor
Waukegan
Kenosha
Milwaukee
Port Washington
Sheboygan
Manitowoc
Washington Island
Green Bay
Big Suamico
Kewaunee
Algoma
Sturgeon Bay
Two Rivers
Pensaukee
Oconto
Menominee Cedar River
Little Bay de noc
Gladstone
Manistique Detour
Les Cheneaux Island
Soo Locks
St. Marys River
Whitefish Point Harbor Little Lake
Grand Marais Presque Isle
Marquette
Big Bay
Grand Traverse Bay
Lac La Belle Eagle Harbor
Keweenaw Waterway
Chippewa Harbor
Grand Marais
Beaver Bay
Two Harbors
Knife River
Duluth-Superior Bayfield
La Pointe Cornucopia
Port Wing
FY16 President’s Budget Dredging Projects
Calumet
Commercial
Recreational
President’s Budget
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1.0
2.0
3.0
4.0
5.0
6.0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 Qua
ntity
Dre
dged
(mill
ions
of c
ubic
yar
ds)
Dredging Funding Trends 2007 – 2016
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
3.3M Annual Reqm’t
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Soo Locks Reliability
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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
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
•The economic impact of a 30-day unscheduled closure of the Soo Locks = $160M
The Soo Locks A Lynch Pin of the Great Lakes Navigation System
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Ranked by: mmtons tons 30-day conseq Soo Locks 71.4 5 1 Calcasieu L,GIWW 36.7 19 2 Bowman L, GIWW 36.1 20 3 Lagrange L&D 25.4 25 4 Peoria LD 22.6 31 5 Bayou Boeuf Lock 25.9 24 6 Miss River LD24 23.9 27 7 Miss River LD22 23.3 29 8 Miss River LD19 20.8 33 9 Miss River LD25 23.9 28 10
Results – Ranked by Cost 30-day MAIN CHAMBER CLOSURE
Corps Locks: Value and Economic Consequences
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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.
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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.
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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
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Communication Stakeholders Meetings
► 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: www.lre.usace.army.mil/greatlakes/navigation
► Fact Sheets, Presentations
► Requests for information, to be added to mailing list, etc.: glnavigation@usace.army.mil
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GL Navigation Business Line Manager Mike O’Bryan – (313) 226-6444 Marie Strum – (313) 226-6794
Shamel Abou-El-Seoud - Chicago Operations Chief
(312) 846-5470
Josh Feldmann - Buffalo District Operations Chief (716) 879-4393
Dave Wright - Detroit Operations Chief (313) 226-3573
www.lre.usace.army.mil/greatlakes/navigation
Key Great Lakes Contacts
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