“Erie Pier Process Re-use Facility Cost Analysis”

Rodger Brannan and James Skurla, UMD Labovitz School of Business and Economics (LSBE) Harbor Technical Advisory Committee (HTAC) December 5, 2007

Source: http://www.glc.org/announce/06/pdf/Ojard.pdf

Erie Pier CDF

Erie Pier Management PlanFrom the Erie Pier Management PlanJune 2007, Produced by the Metropolitan Interstate

Council

Including preliminary discussion of Re-Use Facility Issues

Preparation of Material for ReuseCertification of Material for Resale

Erie Pier Management PlanFrom the Erie Pier Management PlanJune 2007, Produced by the Metropolitan Interstate

Council

The MIC management plan included this figure to describe processing operations as projected for the Erie Pier PRF by the USACE and others. [Note: this diagram may change to include a one-car railroad spur, and/or other access and transportation attributes.]

Labovitz School Research Issue ― Constraints on options for placing dredged materials at

the Erie Pier have urged action on a plan for re-cycling material.

― The LSBE project, funded by the Great Lakes Maritime Research Institute, will determine cost accounting and capital budgeting for a proposed Process Re-use Facility (PRF), and evaluate market opportunities.

LSBE Project ObjectivesTo identify ― the operating, fixed, and capital costs of

extending the life of the existing Erie Pier CDF

― including operations for physical separation of the facility’s existing material

― the cost to get the dredged material off-site ― and variable operating costs ― the costs necessary to situate the recycle

center as a financially break-even enterprise.

LSBE Project Objectives

To support the proposition that Erie Pier can be operated as a recycle site

To estimate opportunities associated with upgrading the CDF to a PRF

LSBE Project Objectives

Market Analysis (and business planning)― Commercial applications― Definition of types of materials― Consumer demand

Methodology:

The methodology will be based on cost minimization rather than profit maximization.

The goal of the study will be to estimate the costs, revenues, and fees necessary to get the dredged materials off the Erie Pier CDF.

The findings from this project may be of use as a model for other ports for the Great Lakes.

Methodology:

Much of this research involves standard methodology. However many aspects of the data collection and analysis will be specific to the Duluth-Superior Great Lakes port used to situate the cost comparisons.

Methodology:

The project will involve a literature search to compare beneficial use projects on the Great Lakes and to investigate related issues in the disposition of dredged materials for other ports, as well as accounting landfill issues.

Data collection will be directed by the Principal Investigator. Phone interviews and secondary data sources will be used.

Methodology:

Researchers will coordinate with HTAC, MARAD and USACE on this project.

Supply chain information will also be identified. The total landed cost will be estimated from all production, stowage, inventory and transportation costs.

External costs related to environmental issues will not be estimated.

Site Visit 11/29/2007 Entry to the CDF at 40th Ave. W. and I-35

Site Visit 11/29/2007 Dredged material, SW corner looking NW.

Site Visitation Erie Pier Confined Disposal Facility?

Site Visit 11/29/2007 View of BN&SF, from top of washed dredged material (est. 100,000 cu. yds.), at NW perimeter of CDF looking NW.

Site Visitation Erie Pier Confined Disposal Facility?

Site Visit 11/29/2007 View of BN&SF, from top of washed dredged material (est. 100,000 cu. yds.), at NW perimeter of CDF looking NW.

Site Visit 11/29/2007 Looking NE at Hallett Dock from sluice.

Site Visit 11/29/2007 Dike at NE perimeter of sluice

BBER thanks Jim Sharrow, Duluth Seaway Port Authority facilities manager, for the opportunity to tour this site.

Key Findings from Literature Search Erie Pier Confined Disposal Facility?

Planning should continue because time will run out.

Green Bay, selling a mix/compost solution, GB re-classified bio-hazard material.

Using dredge material to create new islands is not happening anymore

Beach nourishment is still good option NRRI study mining ground cover

Work planErie Pier Process Re-Use Facility Cost Analysis

Project Schedule Start Date1-Sep

SepOct NovDec Jan Feb Mar Apr MayJun Jul AugSepOct2007 2008

Project Start HTAC

presentation Dec. 5, 2007

Task 1 Literature Search (1 month)

Final Task Report Draft (3 months)

Presentation

GLMRIfinal presentations

Task 3 CostAnalysis (2 months)

EriePier Visit by team

Task 2 Data Collection (2 months)

For more information, please contact:Jim Skurla, Acting Director, UMD LSBEBureau of Business and Economic ResearchLabovitz School of Business and EconomicsUniversity of Minnesota Duluth412 Library DriveDuluth, MN  55812-2496phone: 218 726-7895, 726-8614fax:  218 726-6555jskurla@d.umn.edu