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GLIN==> Sault Michigan Superlock Project Is "Shovel Ready" For Stimulus Funding



Title: Big story

1/6/09

Sault Michigan Superlock project is 'shovel ready' for stimulus funding

Posted By BOB MIHELL

 
The United States Congress could decide as early as this month whether to fund a new 1,000 foot lock at Sault, Michigan.

If approved in January, the estimated $500 million project, that would take 10 years to complete, could begin this spring.

There is a general consensus that Congress would be asked to endorse $100 million of the total cost to kickstart the project in the first year.

President-elect Barack Obama, who assumes office on Jan. 20, has indicated he would favour projects that are "shovel ready". Advocates of the new super lock to complement the 40-year-old Poe Lock, agree the proposal meets that criterion.

Jim Weakley, president of the U.S. based Lake Carriers Association, and a commander in the United States Coast Guard Reserve, said, "In fact, [the Army Corps of Engineers] accelerated the design work to the point where if the money gets approved in January, they can start issuing contracts by March, and start digging in June."

The proposed new lock first received Congressional approval in 1986, and over the last 13 years, the U.S. Army Corps of Engineers has spent an estimated $20 million on engineering and design work.

In 2007, a mandate for the project was reaffirmed at full federal expense.
"I'm hoping it is funded in the stimulus package," Weakley said. "This is a great opportunity for the federal government to boost the regional economy through this single project."

But whether or not Congress approves Superlock funding as part of its economic stimulus package will depend on a variety of factors, Weakley acknowledged.

The project has the strong backing of Bart Stupak, the Democrat Congressman representing Michigan's First District. Stupak was first elected in 1994, and has been re-elected six times.

In a Dec. 10, 2008 letter to David Obey, the chair of the House Committee on Appropriations, Stupak wrote, "President-elect Obama has emphasized that the second economic stimulus will include 'shovel ready' projects. No project meets that definition of 'shovel ready' more than the replacement Soo Lock."

Stupak went on to say that the project would have a national impact for workers and manufacturers providing materials, equipment, and expertise.

He noted that 80 per cent of the U.S. steelmaking capacity, supporting about 400,000 industry-wide jobs, was dependent on the reliability of the Sault Lock system.

The Democrat Senator for Michigan Carl Levin has added his voice in support of the new lock.
In a Dec. 18, 2008 letter to Lt. General Robert Van Antwerp, chief of engineers for the U.S. Army Corps of Engineers, Levin wrote that not only would the construction of a new lock generate about 1,000 new jobs, it represented a "critical infrastructure project".

Levin explained, "If the one large lock (the Poe Lock) should fail, shipping between Lake Superior and Lake Huron would essentially cease, and the steel and coal-reliant industries would be crippled."

Weakley stressed also the critical role the Poe Lock plays in the American transportation network. He said that 80 million tonnes moved annually through the Poe Lock. If something were to cause it to shut down, 60 million tonnes of that could not be moved by ship because 70 per cent of the U.S. fleets' carrying capacity needs the 1,000 foot Poe Lock.

"So the question becomes: Is there 60 million tonnes of capacity that could move by rail? I think the answer is no," he said.

The Poe Lock already is scheduled for an estimated $70 million "asset renewal" over the next six years, including the complete replacement of its hydraulic system. The hydraulic system was responsible for four unscheduled outages in 2008, which delayed shipping on four separate occasions, according to a U.S. Army Corps of Engineers report.

That same report estimated a $160 million economic loss from a single 30-day outage of the Sault Locks.
Besides the real possibility of mechanical failure shutting down the aging Poe Lock, Weakley said the lock posed a security risk also.

"I take the security issue very seriously," he said. "After 9/11, that remains a priority on the U.S. side."
He said that the Poe represented the "Achilles heel" of the entire locking system. "As long as there is a single potential point of failure in any system, it remains vulnerable to attack."

He said that if "redundancy" were achieved by building a twin lock to complement the Poe, it would greatly reduce the security threat that currently exists.

Despite those arguments, Weakley said the financial support of Congress for the new lock is far from assured.
He said that the Lake Carriers Association, which was founded in 1880, and today represents a fleet of 63 vessels on the Great Lakes, would be actively lobbying for the project on Capitol Hill prior to the vote.

One of the target groups for the lobbying effort would be the U.S. Army Corps of Engineers itself.
"It is still unclear to me within the U.S. Army Corps of Engineers where the Sault Lock fits," Weakley said. "I think that is because there are a lot of priorities, and I'm not sure they're using job creation and national security as their number 1 and number 2 priorities."

While the Army Corps has been responsible for most of the engineering and design work for the project over the past decade, he said that the Corps itself is a complex institution made up of eight districts. Three of the Corps' districts are in the Great Lakes system, and five are located in the Ohio River System.

Weakley said all eight districts report to a regional division in Cincinnati, Ohio, and Cincinnati, in turn, reports to Army Corps national headquarters in Washington, D.C.

Weakley said that the roots of the Army Corps were based on the barge and river system. "They understand how to move cargo on the Ohio, Mississippi and Illinois Rivers better than anybody in the world," he said. "There is a bias to go with what you know. I also think that there is a lack of understanding at the Corp's national level of the importance of the Sault locks and the Great Lakes Navigational System."

But Weakley remained cautiously optimistic that the new lock will get its funding soon. One of the reasons is Congress need only obligate $100 million of the total cost for the first year. "Remember, there is not enough steel in inventory for this project, so you'd be putting blast furnaces back online to manufacture the steel for the project. In the second year, they could obligate another $25 million," he said.

A second factor making this an ideal package is that there is not a cost share element, Weakley said. Projects for the inland system, however, have to be 25 per cent cost shared through an inland trust fund that is currently broke. He also questioned whether any competing projects targeted for the inland river system had enough design work completed to be ready to go.

Weakley did not reject the possibility that President-elect Obama, as someone from Chicago, familiar with the Great lakes Navigation system, and with respect for the region, could lend his voice in support of a new lock.

"I'm certainly hoping that some of his influence will translate into national priorities within the Army Corps of Engineers and within the funding process," he said.

Glen G. Nekvasil

Vice President-Corporate Communications

Lake Carriers' Association

Suite 720

20325 Center Ridge Road

Rocky River, OH  44116

   P:  440-333-9996

   F:  440-333-9993

   C:  216-702-6360

   E:  nekvasil@lcaships.com


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