Corps of engineers funding for navigation infrastructure
This presentation is the property of its rightful owner.
Sponsored Links
1 / 31

Corps of Engineers Funding for Navigation Infrastructure PowerPoint PPT Presentation


  • 88 Views
  • Uploaded on
  • Presentation posted in: General

US Army Corps of Engineers. U.S. Army Corps of Engineers. Corps of Engineers Funding for Navigation Infrastructure. David V. Grier Institute for Water Resources Presented at Financing Freight Transportation Improvements U.S. Dept. of Transportation Seminar

Download Presentation

Corps of Engineers Funding for Navigation Infrastructure

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Corps of engineers funding for navigation infrastructure

US Army Corps

of Engineers

U.S. Army Corps of Engineers

Corps of Engineers Funding for Navigation Infrastructure

David V. Grier

Institute for Water Resources

Presented at

Financing Freight Transportation Improvements

U.S. Dept. of Transportation Seminar

April 29, 2001 St. Louis, MO


Corps of engineers activities

Corps of Engineers Activities

  • Civil Works Missions

    • Navigation

    • Flood Control

    • Hydropower

    • Environmental Stewardship

    • Emergency Response & Recovery

    • Shore & Hurricane Protection

    • Water Supply

    • Recreation

    • Regulatory Programs


Corps of engineers funding for navigation infrastructure

Million Tons

Over 100

50 - 100

25 - 50

10 - 25

Principal U.S. Ports

Handling Over 10 Million Tons in 1997

Anacortes

Seattle

Tacoma

Two Harbors

Presque Isle

Portland

Duluth/Superior

Portland

Calcite

Boston

Burns WW Hbr

Lorain

Detroit

Indiana Hbr

Ashtabula

Chicago

New York/NJ

Pittsburgh

Toledo

Philadelphia

Gary

Cleveland

Richmond

Paulsboro

Baltimore

Marcus Hook

Oakland

Cincinnati

Newport News

Huntington

Norfolk

St. Louis

Los Angeles

Long Beach

Memphis

Charleston

Baton Rouge

Savannah

Pascagoula

Lake Charles

Jacksonville

Houston

Mobile

Texas City

Honolulu

Plaquemines

Freeport

Port Arthur

New Orleans

Tampa

Beaumont

S. Louisiana

Galveston

Valdez

Corpus Christi

Port Everglades


National challenge aging water resources infrastructure

National Challenge:Aging Water Resources Infrastructure

  • Investments in water resources Infrastructure have declined

  • Aging infrastructure will cause performance and customer satisfaction problems

  • Corps infrastructure:

    • 49% of lock chambers; 29% of dams at least 50 years old

    • O&M backlog of $450M doesn’t provide needed maintenance to prolong life of infrastructure

National Need

A High-Performance, Environmentally Sustainable Infrastructure


National challenge water transportation system

National Challenge:Water Transportation System

  • Contributes 8% of GDP

  • System nearing capacity

  • Commerce to double by 2020

  • Already a generation behind in channel design

  • Capacity constraints increase transportation costs, pollution, congestion

National Need

A strong environmentally sustainable maritime transportation system

Investment Required: $14.7 B


U s waterborne commerce 1960 1999

U.S. Waterborne Commerce1960 - 1999

Annual Growth

1.9%

3.3%

0.8%


Key deep draft harbor improvement projects in fy01 budget

Key Deep-Draft Harbor Improvement Projects in FY01 Budget

L. Washington

Ship Canal

Columbia R.

Great Lakes

Boston

Navigation System

Port Jersey

Arthur Kill

Waukegan Hbr

New York/NJ

Redwood City

Delaware R.

Kill Van Kull

Stockton

Baltimore

C&D Canal

Oakland

James R.

Norfolk/Craney I.

Santa Barbara

Los Angeles

Wilmington

San Diego

Charleston

Savannah

Pascagoula

Under Study (17)

Brunswick

Houston/

Under

Galveston

Construction (14)

Sabine-Neches

Pt. Everglades

Manatee

Corpus

Christi

Miami


Corps of engineers funding for navigation infrastructure

Container TEUs

(Millions)

Over 2.0

1.0 - 2.0

.25 - 1.0

Under .25

Top 25 U.S. Container Ports

Seattle

Tacoma

Portland

Boston

New York/NJ

Philadelphia

Wilmington, DE

Oakland

Baltimore

Hampton Roads

Los Angeles

Long Beach

Wilmington, NC

Charleston

Savannah

Jacksonville

Houston

Gulfport

Anchorage

New Orleans

Palm

Honolulu

Beach

San Juan

Port Everglades

Miami


Forecasted growth in teu throughput at u s deep draft ports 2000 2020 thousands of teus

Forecasted Growth in TEU Throughput at U.S. Deep Draft Ports: 2000-2020(thousands of TEUs)

60,000

50,000

40,000

Imports

TEUs (thousands)

Exports

30,000

Total

20,000

10,000

0

Year 2000

Year 2010

Year 2020


Containership sizes

Containership Sizes

Million Tons

500

Post-

Panamax

Panamax

400

300

200

100

0

1990

1995

2000

2005

2010


Corps of engineers funding for navigation infrastructure

Constrained Containership Calls by Coastal Region with and without Planned Corps Projects: Year 2000 and 2020

20

16

Year 2000

constrained calls (thousands)

Year 2020 with planned projects

12

Year 2020 without planned projects

8

4

0

Atlantic Coast

Pacific Coast

Gulf Coast

Great Lakes


Corps of engineers funding for navigation infrastructure

Total U.S. Inland Waterway Traffic

Historic and Forecast: 1975-2020

Million Tons

1,000

950

900

836

800

700

722

630

600

500

400

75

80

85

90

95

2000

05

10

15

20

Year


Corps of engineers funding for navigation infrastructure

Average Queue Delays at Locks

Locks Over 1.5 Hours, 1998

Inner Harbor

Bayou Sorrel

Miss 25

Miss 24

Kentucky

Algiers

Miss 22

Marmet

Miss 14

Ohio 52

Port Allen

Miss 17

LaGrange

Miss 15

Lockport

Greenup

Harvey

Miss 20

Chickamauga

Miss 21

Miss 27

Miss 16

Marseilles

0

2

4

6

8

10

12

14

Hours


Why delays at locks

Why delays at locks?

Multiple lockages to pass a tow result in long queues that are costly and inefficient.

Queues at old L&D 26 on the Mississippi could last hours or even days.

A new 1200-foot main chamber allows tows of 15 barges to pass in a single lockage, eliminating most of the delay.

The new lock handles 70 million tons annually -- mostly export grain.


Inland navigation construction program

Montgomery

Point

New Construction

Inner

Harbor

Major Rehabilitation

Operational While

Construction Continues

Inland NavigationConstruction Program

  • Ongoing construction:

    • 9 lock & dam construction projects

    • 5 major rehabs

    • Cost: $4.4 billion

L&D 3 Rehab

L&D 12 Rehab

Lower Mon 2-4

L&D 14 Rehab

Winfield

Byrd

L&D 24 Rehab

Marmet

London Rehab

McAlpine

Olmsted

Kentucky


Major inland navigation studies

Upper Miss

& Illinois

(37 Locks)

Black Warrior -

Tombigbee

Major Inland Navigation Studies

  • Several major studies of inland navigation needs to 2020 and beyond

    • Upper Miss & Illinois - 7 locks authorized for PED if justified

    • Ohio River – 600’ lock extensions at Greenup and Myers auth WRDA 2000

    • Other candidate locks on GIWW and BWT

L&D 11 Rehab

Greenup

Myers

Ohio River Mainstem

(19 Locks)

White R.

Arkansas R.

Chickamauga

Red R. to Index

Ala. R.

Calcasieu

GIWW Texas Coast

Bayou Sorrel

(Multiple Studies)

LA Intracoastal

Waterway Locks


Corps civil works appropriation by business program fy 2001

Corps Civil Works Appropriationby Business Program, FY 2001

Water Supply: $7.2M 0.2%

Recreation

$280.1M 6%

Hydropower

$196.5M 4%

Environment

& Regulatory

$808.0M 18%

Navigation

$1,887.5M

42%

Total:

$4.5 billion

Flood & Coastal

Storm Damage

Prevention

$1,358.4M

30%

Emergency Management:

$7.3 M 0.1%


Fy01 appropriation navigation business program

FY01 Appropriation:Navigation Business Program

GI $40 million

MR&T

$32.9 million

TOTAL:

$1,887.5 million

Const. Gen.

$571.6 million

O&M

$1,179.9 million


Navigation operations maintenance expenditures 1977 99 current and 1996 constant

Navigation Operations & Maintenance Expenditures 1977-99Current $ and 1996 Constant $

($000)

1,400,000

Current

$

1,200,000

Constant

1,000,000

1996 $

800,000

600,000

400,000

200,000

77

80

85

90

95

99

Year


Navigation construction expenditures 1990 2000 current and 1996 constant

Navigation Construction Expenditures1990-2000Current $ and 1996 Constant $

Million

550

Current

500

$

450

Constant

1996 $

400

350

300

250

200

90

92

94

96

98

2000

Year


Navigational activities fy 2001 civil works budget millions

Navigational ActivitiesFY 2001 Civil Works Budget ($ Millions)

Navigation Studies$14

Preconstruction Eng. & Design*14

R&D, etc.13

Inland Construction*175

Coastal Harbor Construction*285

Other Construction11

Inland Waterway Operation & Maint.475

Coastal Harbor O&M* 665

Gen. Expenses64

Total in Civil Works Appropriation$1,716

*Cost-Shared Activities

(sponsor contributions not included except IWTF)


Funding sources for corps navigation expenditures

Funding Sources forCorps Navigation Expenditures

Harbors

O&MFederal Government0%

Harbor Maintenance TF100%

ConstructionFederal Government40-80%

Project Sponsors20-60%

Inland Waterways

O&MFederal Government100%

ConstructionFederal Government50%

Inland Waterways TF50%


Harbor maintenance trust fund

Harbor MaintenanceTrust Fund

  • Established in WRDA 1986

  • Ad valorem tax of .125% on cargo value

  • Reimburses Treasury for 100% of harbor O&M since 1990

  • Issues:

    • Tax on exports ruled unconstitutional by U.S. Supreme Court in 1998 and no longer collected

    • Tax on imports may be challenged at WTO

    • Alternative Harbor Services Fee rejected by Congress

    • Increasing balance


Harbor maintenance trust fund revenues transfers and balance 1988 2000 and projected 2001 04

Harbor Maintenance Trust FundRevenues, Transfers and Balance1988 - 2000 and Projected 2001-04

Million

2,000

Projected

Balance

Revenues

1,500

& Interest

Transfers

1,000

500

0

88

90

95

2000

04

Year


Harbor improvement cost sharing requirements

20

Harbor ImprovementCost Sharing Requirements

Non-Federal sponsors pay a share of project cost based on deepening increment:

  • 20’ or less:

    • 10% up front

    • 10% over time

  • 20-45’

    • 25% up front

    • 10% over time

  • +45’

    • 50% up front

    • 10% over time

45


Inland waterways trust fund legislative background

Inland Waterways Trust FundLegislative Background

  • Inland Waterways Revenue Act of 1978

    • Created fuel tax at 4 cents per gallon

    • Designated 26 shallow draft waterways on which the tax would apply

  • Water Resources Development Act of 1986

    • Established Users Board

    • Authorized expenditures from fund for 8 lock & dam projects

    • Precedent for 50/50 cost-sharing

    • Increase tax to 20 cents by 1995

  • WRDAs 88, 90, 92, 96, 99, 2000

    • Criteria for “major rehab” and “modernization”

    • Added 7 new locks, 9 major rehabs, 1 protective coastal barrier

    • PED for 1200-ft chambers at 5 Upper Miss and 2 Illinois locks


Inland waterways trust fund current status end fy 00

Inland Waterways Trust FundCurrent Status: End FY 00

  • Starting Balance: $370.6 Million

  • Revenues: $99.6 Million

  • Interest: $20 Million

  • Outlays: $102.4 Million

  • Ending Balance: $387.8 Million

$$$


Funding for lock dam construction cost shared with iwtf 1987 2007

Funding for Lock & Dam ConstructionCost-Shared with IWTF: 1987 - 2007

$ Million

600

Historic

Historic

Potential Outlays

500

Ceilings

400

Capability

300

200

100

0

88

90

92

94

96

98

2000

02

04

06

Year


Iwtf balance based on historic and potential outlays 1987 2002

IWTF BalanceBased on Historic and Potential Outlays: 1987 - 2002

$ Million

700

Historic

Historic

With Potential Outlays

600

Ceilings

500

400

Capability

300

Income

200

100

0

(100)

88

90

92

94

96

98

2000

02

04

06

Year


Summary

Summary

  • Navigation infrastructure will need major investments through 2020 to meet traffic growth – nearly $15bn est.

  • Funding has been and continues to be constrained

  • Mix of funding sources and policies complicates situation and adds to uncertainty

  • Trust fund balances continue to grow and are treated as part of Corps’ budget ceiling


  • Login