CHAMPLAIN WATERWAY FEASIBILITY REPORT
SUPPLEMENTARY REPORT
THE INTERNATIONAL JOINT COMMISSION
(UNDER THE REFERENCE OF 5 JULY 1962)
THE INTERNATIONAL CHAMPLAIN WATERWAY BOARD
31 DECEMBER 1965
INTERNATIONgL CHAMPLAIN' MATEXWAY BOARD Washington, D . C . Ottawa, Ontario.
31 December 1965.
In te rna t iona l J o i n t Commission, Ottawa, Ontario. Washington, D.C . Gentlemen,
bansmi t t ed herewith i s a Supplementary Report i n response t o
your request of 26 October 1965 f o r addi t ional information t o t h a t contained
i n our f e a s i b i l i t y r epor t t o you dated 30 June 1965.
Respectful ly submitted,
FOR THE UNITED STATES: FOR CANADA:
&L E& Z
Melvin E. Scheidt, Member Gerald N i l l a r , Member
>
Mark Abelson, Member Robert H o Clark, Member
INTERNATIONAL CHBMPLAIN WATERWAY BOARD
CHAMPLAIN WATERWAY F U S I B I L I T Y REPORT
SUPPLEMENTARY REPORT
TABLE O F CONTENTS
D e s c r i p t i o n
I - GENERAL
AUTHORITY CHANGES I N BOARD AND COMMITTEE MEHBERSHIP PURPOSE O F REPORT
I1 - FUTIONALE O F BOARD' S STUDY
CONCEPT IMF'ROVEMENTS CONSIDERED COST ESTIMATES ECONOMIC B E N E F I T S
C o m m o d i t i e s Selected f o r Principal A n a l y s i s Surveys of Po ten t i a l Traffic E s t i m a t e s of A c t u a l Traffic E s t i m a t e s of A c t u a l B e n e f i t s
I11 - FRYER'S ISLAND DAM
GENERAL FUTURE O F FRYERnS ISLAND DAM I N THE EVENT O F
AN INTERNATIONAL WATERWAY IMPROVEMENT FUTURE O F FRYERDS ISLAND DAN I N THE ABSENCE O F
AN INTERNATIONAL WATERWAY IMPROVEMENT
I V - REQUIREMEMIS O F WATER-RELATED RECREATION
V - PLANS O F STATES O F VERMONT AND NEW YORK AND PROVINCE OF QUEBEC J N R FUTURE DEVELOPMENT O F AREA
I m m T I O U CHAEPUIR WATERvJkY BOARD
CHBMPLdIM 1JBTER#BY PEASIBILITY REPORT
SUPPLENFJTARY REPCW T
.l+. AU'I'HORIn.,. In a letter dated 26 October 3965 to the Chairmen
of the International Champlain Waterway Board, the International Joint
Commission requested the Board to supplement its 30 June 1965 Feasibility
Report in the following particulars:
"(a) Further elaboration of the rationale underlying
the Board's feasibility study;
(b) the future role of Fryer's Island Dam and related
works, with or without the improvements in the
Champlain Waterway considered in the report;
(c) requirements for water-related recreation, in
the absence of an improved commercial waterway;
and
(d) clarification of the extent to which plans,
which the States of New York and Vermont and
the Province of Quebec or their agencies may
have for future development in the area, have
been taken into account in the'80ardts study of
alternative plans of improvement,"
The Board was requested to fqnish this supplemental information as soon
as possible, and, in any event, before the end of Dececber 1965.
Za GEANGES IN BOARD AND GOMNITTEE MEMBEZiSHIP. Following the
eempletion of the Board" Feasibility Report dated 30 June 1965# the
International Joint Commission appointed Mr, Mark Abelson, Regional
Coordinator, Bortheast Region, UoSo Department of the Interior, as
member of the United States Section of the International Champlain
Waterway Board vice Mr, John B, Bennett, retired, Mr, D,C. Leavens,
member of the Uo S. Section of tHe Board, rresigned from the UeS.
Department of Commerce on 30 November 1965 and as of the date of this
report, no replacement for him has been named, Also Colonel R.T, Batson,
District Engineer, UoSo Arqy Engineer District, New York, replaced
Colonel 14,M. Miletich as Chairman of the United States Section of the
Board's Committee, The Board wishes to note also that throughout the
course of its studies Mr, Jean-Paul Chevalier, District Engineer,
Federal Department of Public Works, Montreal, Quebec, served as alternate
to Mr, G, Millar on the Canadian Section of the Board, The remainder of
the Board and Committee membership is as noted in paragraphs 2 and 4 of
the Board's Main Report of 30 June 1965,
3. PURPOSE OF REPORT. The purpose of this supplementary report
is to present the results of the Board's investigations with respect to
the four items referred to in paragraph 1 , The comments on each of the
items are contained in the following paragraphs,
I1 - RATIONALE OF BOARD'S STUDY
4* CONCEPTo The International Joint Commissionos directive to
the Board relative to the conduct of the Champlain study stated in part:
"In scheduling the various phases of investigation and study necessary
under the Reference, the Board is requested to examine carefully the
economic consequences of such an improved waterway and its effects in
both countries and to proceed, subsequently, with further investigation
in such detail as it may deem appropriate", Pursuant to this instruction,
the Board interpreted its initial task to be the accomplishment of a
first-phase or feasibility study, to establish reasonable estimates of
t,he costs and benefits for several alternative waterways with different
governing dimensions and following more than one route. Then, i I ' onf; oc
nore of these alternatives awearea eccnonically scvantaqeou,, a 1ui.ltL 7.)
rnore detailed investigation would be undertaken to determine tile nci.:i
suitable dimensions and other features with greater precision, and to
provide a more rigorous analysis of the costs and benefits. The current
re~ort covers the first of the two phases.
5. liiZ3i.VEIvENTS CilNSIBEEiED, In order to judge the comparative
advantages of various channel depths,the Board considered three degrees of
improvement as being representative of the type of waterway that might
warrant more detailed study, It was considered that the three scales of
improvement chosen were adequate to bring out the economic potentialities
of shallow and deep-draft canals, The three improvements were:
(3.) a. 1 2 - f t , xaterway in Canada r~ith some improvenent
to the 12-ft, facilities now available in the
United States, to represent the minimum improvement
that might provide soine benefit to co~;~n.ercial
navi-tion;
(b) a 14-ft, wa,terwa?j tc, y m i t the passage of a four-
bzrge tow in a single lockage, 51,s representative
of a modern barge type waterway;
(c) a 27-ft. waterway similar to the existing
St, Lawrence Seaway as representative of a
deep-draf t waterway.
6 . The only route considered in Canada for a 12-ft. waterway
would follow the Richelieu River for its entire length. For this depth,
it was considered that there would be less construction involved in
modifying existing channels and fadlities than in building a completely
new artificial section, thus satisfying the criterion of a minimum cost
improvement. For the 14-ft. and 27-ft. waterways in Canada this same
route was considered, as well as an overland route from the Richelieu
River in the vicinity of St. Jean, Quebec, to the South Shore Canal of
the St, Lawrence Seaway near Montreal, This overland route was selected
as being the most practical of several alternatives which were investigated
in this study, In the United States, the route for all scales of improve-
ment would follow the existing waterway.
7 , COST ESTIMATES: Cost estimates were compiled on the basis of
available information, supplemented by general reconnaissance surveys of
routes and by a limited program of subsurface investigation in Canada.
Although neither detailed surveys nor comprehensive geological explora-
tions were conducted, the estimates are considered sufficiently accurate
for the purpose of the report, The construction costs were reduced to
average annual charges in accordance with standard grocedures, based on
an assumed project life of 50 years, The estimated annual cost for
operation and administration was added, less a credit for the costs that
would be involved in maintaining the existing waterway if no new develop-
ment were undertaken, to give an estimate of the total annual costs of
new facilities.
8, ECONOMIC BENEFITS. The economic benefits that could be exgected
over a 50-year period were evaluated on an average annual basis for compari-
son with the annual costs. The appraisal covered all likely benefits,
including possible industrial stimulation and other collateral benefits as
well as saving in transportation charges to prospective users of the ' water-
way, It was found that almost all of the benefits would be in the form of
transportation savings; the other benefits and detriments would be too
small to affect the evaluation.
9 . Commodities Selected For Principal Analysis - In recognition of the fact that an improved waterway would require a major capital investinent,
it w2s apparent that, if the improvement were to be justified, a large
volume of traffic in those bulk materials for which water transportation
offers substantial savings must be developed, Consideration of the
economics and resources of the tributary area disclosed that the primary
cornodities most susceptible to movement by water were iron ore, coal, -.
forest products, non-ferrous metals and chemicals* In addition, petroleum
and grain were selected for detailed analysis, the first because it now
constitutes the major commodity transported over the existing waterway in
the United States, and the second because of its importance to the
agricultural industry in the area adjacent to the waterway.
10, Surveys of Potential Traffic - Surveys of potential traffic were made by economic consultants. Questionnaires were widely distributed
to cover the whole range of possible shippers on the waterway and were
followed up by personal interviews and by telephone. iJhile the surveys
were intended to secure information with respect to the seven commodity
groups noted above, respondents were encouraged to include any potential
traffic in other commodity groups, The survey returns included 1a.r-
movements that would not be carried on the International Champlain Waterway
for any one of a number of reasonso The largest portion in this category
- some 30 million tons - consisted of coal, limestone and aggregates moving between points which would not be served by the waterway whether
or not it was improved. These and other irrelevant movements were
eliminated as a first step in preparing estimates of potential traffic,
Further, analyses were made of the relevant industries in the area to
determine the volume of movement not reported in the survey, and to estiaatc
the volume that might possibly move with advantage by the waterway, In
addition to the information obtained in the Champlain rJaterway traffic
survey, data developed in a prior survey conducted in the United States
relative to improvements in the entire New ~ o r k State Barge Canal systein
were also taken into account in the evaluation of potential traffic on an
improved Champlain Waterway, The potential movements reported in the @or
survey and not duplicated in the Champlain survey consisted of the same
commodities as those selected for detailed study. Further, the prio>
survey disclosed that some industries important to the local economy,
such as the graniteand marble industry in Vermont, would not use water
transportation because of high transhipment and handling costs and require-
ments for more frequent shipments and shorter transit times than would be
available by water, An estimate of the total potential traffic was
developed from these various sources and was projected into the future on
the basis of careful analysis of the economic base of the regions served
by the waterway,
11, Estimates of Actual Traffic - An estimate of the traffic that would move by an improved waterway was made by comparing the freight rates
at which commodities could be expected to move on an improved waterway
with the lowest freight rates now available for movements over the existing
facilities, whether by road, by rail or by existing waterway, If the
estimated rate by the improved waterway was found to be lower than that
now available, it was assumed that the traffic would move on the improved
waterway, Thie method of estimation exaggeratee the volume of potential
traffic that may be diverted to the improved waterway, because it neglects
the probability that the present carriers would retain a substantial part
of the traffic by judicious rate reductions. mile it is possible that
the waterway may attract or create some new traffic that is not foreseen,
it is unlikely that such traffic would be substantial enough to offset
the loss of potential traffic because of rate competition. It may be
concluded therefore that the total volume of potential traffic as foreseen
in the report is substantially on the high sideD
12. Estimates of Actual Benefits - The estimates of savings per ton of waterway traffic similarly are based on comparisons of unadjusted
freight rates, and hence are optimistic on much the same grounds, Since
both the estimate of the traffic and the estimate of the savings are on
the high side, it is apparent that the benefit estimates are likewise
overstated, A more precise estimate of benefits would require a comparison
of the estimated costs of movement by the competing routes, rather than a
comparison of the freight rates payable, Such a refinement of analysis
would, in the Boardvs opinion, produce a lower estimate of potential
traffic and a lower evaluation of economic benefitse Since the benefits
as calculated fall far short of the estimated cost of each project, refine-
ment of-the analysis is not warranted.
7
I11 - FRYER'S ISLAND DAM
13, GENERAL. The Order of Approval of the International Joint
Commission dated 10 June 1937 authorized the construction and operation
of remedial works in the Richelieu River for the reclamation and protection
of low lands in the counties of St, Jean, Iberville and Missfsquoi in the
Province of Quebec, The two essential elements of these works were to be
the excavation and enlargement of the channel through the natural barrier
in the river in the vicinity of St, Jean and, as a compensating feature,
the construction of a control dam at Frgerls Island, about seven miles
downstream of St. Jean. Operation of these works in accordance with the
approved regulation plan would produce lower flood stages in the spring,
reduce the duration of the flood period, increase Lake Champlain levels
in the late summer and fall, and slightly reduce them during the non-
navigation winter months. The reduction in the flood peak, and in the
duration of the flood, would be beneficial to' foreshore interests along
both sides of the upper Richelieu River and the shores of Hissisquoi Bay
by making additional acreage of fertile soil available to agricultural
production, The proposed regulation plan was not prejudicial to fore-
shore interests below the dam, nor to power installations which existed
in 1937 but which have since been dismantled. Although flood control
was the primary purpose of the authorized works, an incidental benefit
would accrue to navigation interestsby virtue of slightly improved channel
depths during the late summer months,
1 4 The Fryerss Island Dam was constructed in 1938, and has
subsequently been maintained in working order, but the channel excavation
through the natural rock barrier, and other related works, have never
8
been carried out. For this reason the dam cannot effect the proposed
regulation, and its gates remain in the fully open position.
15. FUTURE OF FRYER'S ISLAND DAM IN THE EVENT OF AN I ~ A T I O N A T J
WATERWAY ImOVEMENTo The ourrent study of the feasibility of an improved
International Champlain Waterway included an examination of five alternative
plans for the Canadian Section. In all cases, Fryer's Island Dam could be
incorporated in the Waterway eo as to provide control of the upper reach
and alleviate flood conditions. Excavation through the natural rock
barrier near St, Jean would provide the navigation channel as well as
permit the release of increased outflows in accordance with the regulation
plan. The dam is located such that both the overland waterway route to
Lafiairie Basin and the alternative Chambly Canal cut-off section of the
Richelieu River route to Sore1 would lead from the controlled waters of
its head pond.
16, The 12-ft, barge canal improvement scheme considered in this
feasibility study comprises a 150-ft. wide channel in the St. Jean-Fryer's
Island section, excavated to the same depth as the 400-ft, channel originally
proposed and approved for the 1937 remedial works project, In all other
respects, the land acquisition and construction work involved in this
6,7-mile section are substantially the same as that proposed in the 1937
project, and the estimated total first cost is $16,6 million (~e~tember
1964 price level), This is therefore the estimated cost of those works
which would not only be a component part of an international 12-foot water-
way, designed for the benefit of navigation, but would at the same time
virtually accomplish the original Lake Champlain regulation project, which
was designed to provide flood control benefitso The Board did not interpret
9
its terms of reference in this waterway study to include an investigation
of the economic benefits of flood control which would be realized by
completing the remedial works as an independent project, and putting
Fryer's Island Dam into operation,to consummate the original Lake
Champlain regulation scheme It cannot therefore state whether the $16,6
million expenditure would be economically justifiable from the point of
view of flood relief benefits only. However, if such justification were
found to exist today, as it was considered to exist in 1937, then this
part of the estimated waterway cost could be deducted from the benefit-cost
analysis, For example, in the case of the 12-ft. depth waterway, the net
annual charges to Canada would then be an estimated 83,330,000, giving a
benefit-cost ratio to Canada of 0,06 instead of 0.04, In the case of the
14-ft, and 27-ft. depth waterways, the channel bottom widths in the
St* Jean-Fryerts Island section have been designed as 370-ft. and 350-ft.
respectively, Although these closely approximate the 1937 project width,
the excavation depths are greater, and other construction features are
different, so that a cost comparison cannot so easily be made, However,
due to the high capital cost of these 14-ft. and 27-ft, waterway proposals,
the deduction of any amount in the order of $16.6 million would not alter
the benefit-cost ratios within the two decimal places to which they have
been given,
17. FUTURE OF m m q s ISW DAM IN THE ABSENCE OF AN INTERNATIONAL
WATERMAY IMPROVEMENT. Without knowledge to the contrary, it is assumed
that these works may yet be completed and operated for their originally
intended purpose, Based on 1964 construction prices, the cost qf doing
so, including the construction of dykes, the excavation of a 400-ft. wide
channel through the rock shoal at St, Jean, the modification of existing
~bridgea, and the expropriation of riparian property, has been estimated at
$20,400,000. Compared with the 150-ft, channel previously mentioned, the
difference of $3.8 million is due almost entirely to the greater quantity
of solid rock excavation involved,
18, In addition to providing flood relief for low lands adjacent to
Lake Champlain and the Richelieu River, the following benefits might be
attributed to the regulation of Lake Champlain outflows and water levels:
(a) An increase in the controlling water depth for
navigation in Lake Chnmplain and in the Richelieu
River upstream from Fryer's Island,
(b) Recreational improvement of Lake Champlain and
the Richelieu River as a result of the stabili-
zation of water levels and outflows,
(c) Some beneficial effect on water quality in the
Richelieu River and the north end of Lake
Champlain by virtue of increasing the minimum
flow at Fryerss Island from about 2,400 cfs.
to 4,700 cfe,
19, A partial development of the project, somewhere below the
level required to meet conditions set forth in the 1937 Order of Approval,
might provide part of the benefits of full development, Blso, some local
benefits might be obtained from Fryer's Island Dam as it presently exists
if it were used to regulate the water level upstream to St, Jean at some
elevation below that at which the stage-discharge relationship for Lake
Champlain would be affected, 11
20. It may be noted that a full development of the remedial works
project would, and a partial development might, permit navigation to follow
a river course from the international boundary to Fryer" Island, thereby
eliminating several miles of the existing Chambly Canal. A new entrance
to the canal would be constructed near the dam. The depth of the rock
excavation at St. Jean would determine permissible vessel draft,
21, A precise determination of the various possibilities of
operating F'ryerPs Island Dam would require further detailed study,
IV - REQUIR23ENTS OF WATER-RELATED RECREBTION
22. During the course of the feasibility studies the emphasis has
been placed on commercial transportation economics and the costs df improved
commercial navigation facilities, but the recreational aspects of the
Champlain Waterway were also considered, The investigations undertaken by
the Board confirm the excellent qualities of the Champlain Vaterway area
for water-related recreational activities, It is evident that the
recreational capability of the area depends to some extent on the
continuing maintenance of the existing navigation canals as necessary to
accommodate the present volume and the anticipated growth of recreational r
boat traffic,
23, The recreation data available to the Board indicates that the I
project area can expect to experience an annual growth rate in recreational
boating of about 2 percent up to the year 2020, The general growth in the
demand for outdoor recreation has been interpreted to be proportional to
the rate of increase in boating in the system, The present and projected
facilities demand for the United States boating population is shown in
12
Appendix B, Table 4 of Section 3, Also, the estimated transient boating
will become increasingly important in relation to the overall recreational
traffic, This is illustrated in Appendix B, Table 5 of Section 3,
24. As required by the Terms, of Reference,the Board has determined
the benefit-cost position of an improved waterway as an alternative to the
existing canal and other competing modes of transportation, In this
oontext, and there being no evidence to the oontrary, it has been taken I .
for granted that the existing waterway facilities will be continued in
service.
25. The level of maintenance and the rate of replacement or
rehabilitation of all these facilities are subject to the policies of the
operating entities. At the present time the agencies in both countries
responsible for the maintenance of the navigation facilities along the
route of the proposed waterway maintain them at as high a standard as is
feasible, considering age and obsolescence of equipment. In the United
States, the Federal Government has recently completed improvements at
the Troy Lock and Dam, The State of New York is following a long term
program of restoration and modernization in the entire barge canal system.
In Canada, it is understood that reconstruction by the Federal Government
of the St, Ours Dam in the Richelieu River is planned and some moderni-
zation of equipment of the Chambly Canal is contemplated,
26, Recreational activity constitutes a major source of income
and employment in the project area but the benefits already accruing
from water related recreation cannot be credited to future improyements
considered in the feasibility study. Also, any capital expenditures which
may be made in the foreseeable future to maintain the existing system as
a going concern have not been taken as a credit against the cost of an
improved waterway as given in Table 6 of the bin Report. However, in
computing annual charges,a credit has been allowed for the present
average annual maintenance expenditures in view of the fact that a new
waterway would replace all or part of the existing facilities*
27. As indicated in the Main Report, water-related recreation is
already well developed in the project area and fully integrated with am
existing navigation system that now provides adequately for recreation
seekers who travel by water, While a new waterway might result in some
improvement for recreational traffic, other offsetting factors such as
more rigorous regulations occasioned by increased commercial traffic would
preclude any significant increment of recreation benefits attributable to
an improved commercial waterway,
28. The feasibility study, which has taken into account the water-
related recreation aspect as outlined in the foregoing, has led to the
conclusion that an improved commercial waterway would not be an economic
undertaking nor would it contribute significantly to the other uses of the
water resources of the project area, including recreation, These findings
with respect to an international improvement should not be construed as
implying a lack of justification or desirability of improvements or
modifications as may be considered unilaterally by the present operating
entities* There may well be justification for major improvements in the
present canals to ensure continued full use of the recreation potential;
this could be true, for example, in respect to the Chambly Canal, This
canal facility would be completely replaced by any of the alternative
14
proposals for an International Champlain Waterway via the Richelieu River
route, If no such international development is undertaken, and if it is
assumed that navigation is not to be disrupted by abandonment of this
link in the existing system, it can be expected that steadily muunting
annual maintenance costs will be incurred to keep the present canal in
operational order. In the not too distant future, progressively heavier
capital investment for major rehabilitation work or possibly a new canal
eystem may be required, The latter might be designed for 12-foot navigation
to conform with the dimensions of the existing St, Ours Canal and the United
States part of the system, or to some lesser depth in view of the
predominant recreational use, The estimated first cost of a new 12-foot
canal between Chambly Basin and Fryer's Island is $4003 million, provided
that byergs Island Dam were placed in operation by completing the remedial
works in the section up to St, Jean, at a cost of $16,6 million, as explained
in a previous section of this Supplementary Report, No design or cost
estimates have been prepared for the construction of a replacement canal
to a lesser draft, but it would be reasonable to expect that even a new
6*-ft, draft facility would cost in the order of 75 percent of the 12-foot
project estimate,
29, With respect to the Champlain Canal, if the growth in transient
recreational traffic occurs as estimated in lippendix B, Section 3, and no
improvements are made in the interests of co&ercial navigation, it is
anticipated that an increase in water supply for canal operation will be
required to accommodate the increased recreational traffic around the
close of the current century,
V - PLANS OF STATES OF VERMONT AND NEW YOBK AND PROVINCE OF QUEBEC FOR FFTURE DERBLOP~NT IN AREA
30. In the course of the feasibility study and associated collateral
studies, numerous agencies of the States of New York and Vermont, and the
Province of Quebec, were contacted. While the primary purpose of these
contacts was to develop engineering or statistical data pertinent to a
particular phase of the study being investigated, information obtained on
planned activities or anticipated developments was also utilized.
31, Recently, the designated liaison representatives of the Governors
of New York and Vermont, and of the Government of the Province of Quebec,
were requested to furnish information on any plans which the states,
province or their agencies might have for future development in the area
of the Champlain Waterway, None of the information that has been received
in response to these enquiries would significantly change the economic
analysis presented in the Main Report or modify the conclusions reached
therein.
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