Great Lakes Navigation Update

Transcription

1 Great Lakes Navigation Update Marie T. Strum Great Lakes Navigation Business Line Leader May 22, 2017 The views, opinions and findings contained in this report are those of the authors(s) and should not be construed as an official Department of the Army position, policy or decision, unless so designated by other official documentation. BUILDING STRONG and Taking Care of People! ISO-9001

2 Federal Projects on the Great Lakes A non-linear navigation system with 60 federal commercial projects and 80 federal shallow draft/recreational projects Chippewa Harbor Grand Marais Lake Superior Taconite Silver Bay Eagle Harbor Two Harbors Lac La Belle Knife River Grand Traverse Bay La Pointe DuluthSuperior Keweenaw Waterway Bayfield Big Bay Little Lake Port Wing Presque Isle Marquette Whitefish Point Harbor Grand Marais Soo Locks St. Marys River MI Channels in Straits of Mackinac Detour Manistique Les Cheneaux Island Grays Reef Little Bay de noc CANADA Mackinac Island Mackinac City Cheboygan St. James Hammond Bay Inland Route Petoskey Washington Island Cedar River Charlevoix Menominee WI Oconto Pensaukee Big Suamico Green Bay Ogdensburg Alpena Leland Sturgeon Bay Morristown Greilickville Algoma Harrisville Frankfort Kewaunee Arcadia Cape Vincent Au Sable Harbor Portage Lake Tawas Bay Two Rivers Manistee Manitowoc Sackets Harbor Port Austin Point Lookout Ludington Sheboygan Port Ontario Harbor Beach Oswego Pentwater Saginaw Port Sanilac White Lake Port Washington Muskegon MI Lexington Niagara River Grand River Black River Grand Haven Milwaukee Pine River Holland Kenosha Clinton River Saugatuck St. Clair River Belle River NY Lake St. Clair IL South Haven Waukegan Rouge River St. Joseph Commercial Detroit River St. Joseph River Chicago Harbor New Buffalo Recreational Monroe Bolles Harbor Michigan City IN OH 2 PA

3 Great Lakes Navigation System Economic Data A non-linear interdependent system of 140 deep and shallow draft projects; commercial ports are dependent on each other for the efficiency and health of the system. 145M tons (5-year average) (USACE Waterborne Commerce Statistics) GLNS saves the country $3.6 billion per year compared to the next least costly mode of transportation (USACE Inland Nav Center of Expertise)

4 GREAT LAKES NAVIGATION SYSTEM Interdependent Ports Silver Bay Lake Superior Two Harbors Duluth-Superior Presque Isle Ontonagon Ashland MI Marquette Key Challenges Gladstone >10M Ton Harbor 1-10M Ton Harbor WI <1M Ton Harbor Cheboygan Menominee CANADA Charlevoix Alpena Green Bay Harbor Beach Manistee Ludington Saginaw Manitowoc Muskegon Marysville Grand Haven Milwaukee MI Buffalo Put In Bay St. Clair NY Holland Balancing System Requirements Dredging Dredged Material Management Harbor Infrastructure Soo Locks Rouge River Waukegan Detroit River Chicago Harbor St. Joseph Monroe PA Calumet IL IN 4 OH HQ metrics focus on tonnage system approach recognized but not used in metrics

5 GL NAVIGATION FUNDING HISTORY 5 $200,000 $180,000 Executable Backlog Reduction Funding Range NAV O&M and CDF Funds (in $000's) $160,000 $140,000 $120,000 $100,000 Sustainable Funding Range $80,000 $60,000 ARRA Adds and National Provisions President's Budget Fiscal Year

6 DREDGING 6

7 Grand Marais Taconite Silver Bay Chippewa Harbor Lake Superior FY17 DREDGING FUNDING AND DREDGING REQUIREMENTS Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Commercial Recreational WI La Pointe Bayfield FY17 Funded Dredging Keweenaw Waterway IL FY17 Unbudgeted Dredging Need Eagle Harbor MI Green Bay Two Rivers Manitowoc Sheboygan Port Washington Milwaukee Kenosha Waukegan Lac La Belle Grand Traverse Bay Cedar River Menominee Oconto Pensaukee Big Suamico Chicago Harbor Chicago River Calumet Big Bay Presque Isle Marquette Little Bay de noc IN Washington Island Sturgeon Bay Algoma Kewaunee Little Lake Grand Marais Manistique St. James Frankfort Arcadia Channels in Straits of Mackinac Grays Reef Portage Lake Manistee Ludington Pentwater White Lake Petoskey Leland Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Whitefish Point Harbor Soo Locks St. Marys River Charlevoix Greilickville Mackinac Island Mackinac City Cheboygan Inland Route Point Lookout MI Detour Les Cheneaux Island Au Sable Harbor Saginaw OH Hammond Bay Alpena Harrisville Tawas Bay Rouge River Detroit River Monroe Bolles Harbor Pine River Clinton River Chnls Lake St. Clair Port Austin Harbor Beach Port Sanilac Lexington Black River St. Clair River Belle River CANADA PA NY Ogdensburg Morristown Cape Vincent Sackets Harbor Port Ontario Oswego 10

8 6.0 DREDGING FUNDING TRENDS Quantity Dredged (millions of cubic yards) M Annual Reqm t FY07 FY09 FY11 FY13 FY15 FY17 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

9 HISTORICAL FUNDING GREAT LAKES LOW USE PROJECTS (<1M TONS) 9 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 President's Budget Workplan/Appropriation

10 FY 17 GREAT LAKES NAVIGATION PRESIDENT S BUDGET 10 $102.8M Great Lakes Navigation Operations & Maintenance Key Items $38.4M in Dredging (20 projects 3.2M cubic yards) $8.2M in Dredged Material Management $5.9M in Soo Asset Renewal

11 DREDGED MATERIAL MANAGEMENT 11

12 Current Dredged Material Placement Methods Lake Superior Ontonagon MI St. Marys River Percentages by volume ( ) 37% 4% 14% 45% NEAR SHORE CDF OPEN WATER UPLAND WI Near Shore CDF Open Water Upland Menominee Sturgeon Bay Kewaunee Green Bay Manitowoc Port Washington Milwaukee IL Kenosha Waukegan Calumet Indiana Harbor IN Frankfort Manistee Ludington Muskegon Grand Haven Holland St. Joseph Michigan City Cheboygan Saginaw MI Alpena Rouge River Detroit River OH Lake St. Clair Monroe Harbor Beach St. Clair River CANADA Buffalo Dunkirk Erie PA Rochester NY Oswego

13 CAT ISLAND DMDF Successes: Improved dredging & disposal efficiencies (increased dredge quantities for same budget pkg, reduction in backlog) Quick establishment of diverse habitats (exterior stone dikes, placed material, protected shallows) Attracting/supporting new species Challenges: 20 Year of disposal & maintenance activities still required Control of vegetation (none on dikes, remove if bigger than 3 in diameter) Fill management will be required almost annually to achieve ultimate contours Restrictions on periods when disposal and maintenance activities can occur

14 GREEN BAY, WI Photo 1 Vegetation quickly established within the area of initial placement Photo 2

15 9 mark Vegetation growth after two years (primarily dense cottonwood). Vegetation in cell needs to be dozed as practical and wave barrier vegetation treated with herbicide.

16 Piping Plover (endangered species) 16

17 21 ST AVENUE RESTORATION SITE

18 DETAILED DESIGN - EVALUATE SEDIMENT

19 START CONSTRUCTION

20 DETAILED ENGINEERING PLANS AND SPECIFICATIONS DEFINE WHAT SUCCESS LOOKS LIKE 21 ST AVENUE SHALLOW WATER HABITAT DEVELOPMENT

21 LOCK RELIABILITY 21

22 Today 14 It has been nearly 50 years since a new lock was built at the Soo

23 THE SOO LOCKS LYNCH PIN OF THE GREAT LAKES NAVIGATION SYSTEM 85% of the commercial commodities transiting the Soo Locks are limited by size to the Poe Lock Aging and deteriorating infrastructure; unscheduled outages increasing 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 Economic reevaluation required. 23

24 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

25 SOO LOCKS ASSET RENEWAL PLAN 25 Asset Renewal Plan will maximize reliability and reduce risk through 2035 $76.4M funded to date through FY16. New hydraulics, stop logs, utilities. (Complete) Compressed Air System. (Complete) Poe Gate Anchorage Replacement. (In progress) Mac and Poe Electrical System Replacement. (In progress) Poe Miter and Quoin Block Replacement (FY17 Award) Remaining key priorities. Poe Lock Gate 1 Replacement. Pier rehabilitation Davis Pump Well Funding, $M FY08 FY10 FY12 FY14 FY16

26 POE LOCK EMBEDDED ANCHORAGES 26 Typical Poe Lock Embedded Anchorages Poe Primary Embedded Anchorage Poe Primary Embedded Anchorage Poe Secondary Embedded Anchorage Poe Secondary Embedded Anchorage

27 POE EMBEDDED GATE ANCHORAGE REPLACEMENT Top: Anchor rod template for grouting Bottom: Pin plate connection for secondary anchorage frame Steel fabrication: Nov/Dec 2016 January 15 th : end of shipping season Gate 3: Old anchorage demolition Install of new anchorage components Operational testing of gate Gate 1: Old anchorage demolition Install of new anchorage components Operational testing of gate Lock ready for opening on March 25th. Top: Gate 3 secondary gate anchorage frame set down over anchor rods Left: Anchorage frames being inspected and lifted into place 1

28 MAC LOCK EMBEDDED GATE ANCHORAGES BACKGROUND / ISSUE Mac embedded anchorages evaluated as part of the ongoing MRR. Finite element analysis (FEA) of primary embedded anchorage performed by LRH Results show that fatigue life has been exceeded at three design details Gates 2 and 5 are not being used because they have the greatest number of cycles and thus the greatest risk Repair not yet funded 28

29 2 ND POE-SIZED LOCK 29 Authorized for construction of a redundant Poe-size lock in WRDA 1986; WRDA 2007: Construction at 100% federal expense Inconsistent with Administration policy due to BCR of 0.73 computed in 2005 Limited Reevaluation Report (LRR) Currently working on Economic Reevaluation Report to recalculate BCR Team includes all three GL Districts, Planning Center of Expertise for Inland Navigation (Huntington) and the Civil Works Cost Engineering MCX (Walla Walla)

30 2005 LRR - ISSUES Unmet Demand Changes Assumed 100% of commodities could be delivered in the event of a lock outage, using existing infrastructure; not possible for this facility Rail capacity was assumed sufficient to handle traffic during an extended outage, without additional capital expense; not possible as noted by the rail industry Reliability Changes Assumed major overhaul to the Poe Lock complete in 2017; will not occur under current fiscal constraints Probabilities of component failures are outdated: 2014 SQRA found 4 additional failure modes that would have significant economic impacts and one with loss of life Gate failure outage was not included Assumed new vessels would be built to Mac Lock dimensions; not accurate as new Canadian fleet is Poe restricted

31 Integrated Steel Mills-Reliant on Waterborne Transportation 13 of 14 North American Mills are dependent on the Soo Locks for iron ore transported from MN and MI. 9 of the 14 mills are on the shores of the Great Lakes The likelihood of a primary steel mill being shut down has been proportional to its distance from the Great Lakes. Typical Great Lakes mill layout receives taconite by ship; most mills do not have infrastructure to receive taconite by rail. This steel is specifically required for production of auto, appliance, construction, farm, and mining equipment, rail car and locomotive industries.

32 Importance to U.S. Economy U.S. Auto Industry The auto industry is one of the most important industries in the U.S. economy: 32 Over 7 million private sector jobs supported by auto manufacturers, suppliers and dealers in the United States Every vehicle manufacturer job creates almost 7 other jobs in industries across the economy A typical automobile made in North America contains steel from the 9 Integrated Steel Mills that produce automotive quality steel. Competition and efficiency have spurred just-in-time delivery (minimized inventories) at every stage in the supply chain. Interruptions to any part of the supply chain quickly ripple down to the final product. Today the North American Manufacturing Industries remain reliant on the Soo Locks Source: Center for Automotive Research, Jan 2015

33 NORTH AMERICAN AUTOMAKER AND SUPPLIER LOCATIONS 33

34 ECONOMIC REEVALUATION REPORT 34 Reliability: Information will be leveraged from recent detailed inspections to update reliability and projected outage model Forecast: Commodity forecasts are being updated Alternate Modes of Transportation: Alternate modes are being developed for various outage lengths Updated Cost: The risk-based cost estimate for construction of the new lock will be updated Agency Technical Review and Independent External Peer Reviews will be conducted The entire ERR process is expected to take 24 months

35 ECONOMIC REEVALUATION PATH FORWARD Complete economic report and submit for HQ review Dec 2017 New authorization increase for higher construction cost submitted concurrently PACR requires ASA (CW) and OMB review before submittal to Congress Can continue design efforts in FY18, if funded, while awaiting reauthorization Pending a budgetable BCR, could include construction request for FY20 PBUD

36 Questions? 36