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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Questions?