Board Policy
Waterways, Ports and Lock/Dam Systems
(Mississippi River, Illinois River, Ohio River, Lake Michigan, and Channels)
December 8, 2006
Preamble: Illinois is a water rich state. We enjoy direct access to three major rivers and the Great Lakes system. Shipping via the waterways, recreation and wildlife habitat are all important aspects of this important system. The upper Mississippi and Illinois Rivers alone transport more than 84 million tons of goods and commodities each year to domestic and foreign markets—more than triple the amount of 30 years ago. This ready access to cost-effective water-borne transportation helps keep Illinois agricultural, manufacturing and mining economies competitive. Government, utilities and consumers also benefit directly from these lower transportation costs.
Existing Condition and Status
Lock Improvements on the Mississippi River and Illinois Waterway
Illinois’ waterway transportation advantages are dwindling because that infrastructure needs to be improved. The early twentieth century locks on both the Illinois and Mississippi Rivers are deteriorating and outdated. Lock chamber length is limited to 600’ at 21 of the 24 locks in and bordering the state on the Illinois and Mississippi Rivers, stifling the movement of today’s modern 1100’ barge tows. Maintenance costs on the aging system continue to rise along with the probability that catastrophic failure at any single key location could bring waterway navigation to a halt.
In 2004, the Corps completed a 14-year study of navigational and environmental needs on the Upper Mississippi River and Illinois Waterway System. That culminated in a recommendation to Congress that new, larger locks be built and others refurbished along with making additional navigation improvements.
Congressional authorization and funding has yet to materialize.
Both the House and the Senate have passed Water Resources Development Act (WRDA) legislation authorizing the US Army Corps of Engineers (Corps) to construct seven new 1200’ locks, five on the Mississippi and two on the Illinois.
That WRDA package would have authorized about $2 billion in transportation infrastructure (half paid by the private sector) and over $1.5 billion in environmental projects over the first 15 years of a 50-year program horizon. However, conferees were not able to resolve differences in those two versions of the package. WRDA 2006 died in conference committee on Tuesday, December 7, 2006.
The private sector contributes to this national infrastructure. Barge carriers have been contributing $.20 per gallon of fuel used for the past 20 years into the Inland Waterway Trust Fund (IWTF), now totaling approximately $283 million. Those funds are earmarked to match federal allocations dollar-for-dollar for construction of major waterway transportation projects throughout the nation. To date, only 40% of the dollars contributed by Upper Mississippi River system users has been returned to that river system. Projects in other parts of the country have received a disproportionate share of the distributions. It is time for Upper Mississippi and Illinois users to share in those benefits.
Illinois Waterway/Lake Michigan Connection
Controversy surrounds the access of commercial cargo shipping between the Illinois Waterway and Lake Michigan. The O’Brien lock currently handles approximately 7 million tons of cargo annually and is the sole inland waterway commercial cargo access between the Great Lakes and the Gulf of Mexico.
Flood Protection
The current Corps study known as the “Comprehensive Plan” looks at flood protection opportunities along the expansive floodplains of the Upper Mississippi River and the Illinois Waterway. Not yet complete, additional study funding is pending conference committee approval at the Congressional level. The proposed $0.50- to $0.78-million appropriation is intended to complete the study effort.
If ultimately approved, flood protection improvements up to the 500-year level would boost development and industrial potential in the areas behind that protection and would serve to protect infrastructure already in place—including highways, railroads and utilities.
Immediate and Long Term Needs
Immediate
- Support passage of Congressional authorization for 1200’ lock construction on the Upper Mississippi and Illinois Rivers (without bureaucratic and redundant Corps review requirements).
- Support passage of Congressional appropriation legislation to fund engineering design work on major lock improvements and implementation of lesser remedies at other locations.
- Work to preserve the commercial navigation link (via the O’Brian lock) between the Illinois Waterway and Lake Michigan.
- Pursue completion of the Comprehensive Plan and its inclusion of flood protection improvement opportunities for all levied areas in expansive floodplains.
Long-Term
Because all lock projects would be constructed under a new “adaptive management” approach (analyze effectiveness of completed project before beginning additional projects), continuing support will be needed throughout the 50-year life of the program.
Anticipated Improvement Costs and Benefits
Lock Improvements on the Mississippi River and Illinois Waterway
The navigation improvements on the Upper Mississippi and Illinois Waterway are estimated to cost $2.8 billion over 50 years – half to be paid by the private sector through the Inland Waterway Trust Fund. An appropriation of approximately $2 billion is sought to fund the first 15 years of that effort. Corps benefit: cost estimates historically show a positive return on investment of about 6:1 for waterway commercial navigation improvements.
Illinois Waterway/Lake Michigan Connection
Significant repairs are needed to maintain the operation of the Illinois Waterway access to Lake Michigan. Without that investment, however, a unique waterway shipping link would be lost. (Costs unknown)
Flood Protection
Pending Congressional conference committee action, from $0.50 to $0.78 million will be appropriated to complete the four-year Corps study under the Comprehensive Plan. Initial estimates do not show a positive benefit: cost ratio for actual construction, though proponents argue that not all potential economic benefits have been accounted for. Any future construction would be done through federal cost-share programs for levee construction with local shares typically around 65% to 75%.
Recommendation
The Infrastructure Council recommends the Illinois Chamber Board of Directors authorize support of the Waterways, Ports and Lock/Dam Systems improvement program as outlined above. Upon approval of this recommendation the Illinois Chamber shall communicate with the members of the Illinois Congressional delegation to inform them of the Illinois Chamber’s continued interest in and support for lock modernization. Adoption of this policy statement directs the Illinois Chamber to continue to provide written and verbal support for modernization of Illinois waterways, as well as, continued participation in waterway related coalitions and activities beyond the expiration of the 109th Congress.
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