TheMostImportantInfrastructureProjectintheUnitedStates:
DredgingTheMississippiRiverShipChannel
Overthelastdecade,therehasbeenconsiderabledialogueaboutrepairingAmerica’saging
infrastructure.Thediscussionhasbeenmostlyaboutbridgesandhighways,butperhapsthe
singlemostimportantinfrastructureprojectintheUnitedStatesisdredgingtheMississippi
RiverShipChannel,whichservesthePortofSouthLouisiana,thelargestportbytonnageinthe
WesternHemisphere.ThePortofSouthLouisianaconnects31statestotheGulfofMexicoand
exportsvastquantitiesofAmericanmadeagriculturalproductslikewheatandcorn,
petrochemicalsandothergoodsacrosstheglobe.
Dredgingiscriticalbecauseannualhighriverlevelsandfloodsdeposittremendousamountsof
siltintheShipChannel.Also,thenewlyexpandedlocksonthePanamaCanalnowsupportthe
movementofthelargerneo-Panamaxships.Theuseoftheseshipswillcontinuetogrowas
markettrendsintheworldfleetattempttomaximizethecost-savingbenefitsoflargervessels
throughreducedtransportationcosts.IfthePortofSouthLouisianacannotaccommodateneoPanamaxvessels,futurecargoeswillseekdeeperU.S.ports.Theinabilitytomaintainand
deepentheMississippiRiverchannelwillhaveanegativeimpactonAmericanfarmersandput
thematacompetitivedisadvantage,creatingeconomicstrainthroughoutmuchofthenation.
IMPORTANTFACTS
• DredgingtheMississippiRiverShipChannelto50feetiscritical.Thiswouldallowcargo
shipswithadraftofupto50feet,asopposedtotoday’smaximumchannel
authorizationof45feet.
• Whyisitsocriticaltogetto50feet,asopposedto45feet?Becauseeveryfootofdraft
onaPanamaxorneo-Panamaxvesselsequatestoanaverageofa$1millionincargo
value.Lessdraftmeanslostrevenuesandfewerexports.Thenearly4,000shipsayear
thatpassthroughthePortofSouthLouisianawouldbeunabletoexportandimport
billionsofdollars’worthofcargo.
• SixtypercentofallgrainexportedfromtheU.S.isshippedviatheMississippiRiverfrom
theLowerMississippiRiverDeep-DraftPortsComplex,comprisedoftheportsofSouth
Louisiana,BatonRouge,NewOrleans,St.BernardandPlaquemines.
• Thevalueoftheagriculturalproductsandthelargeagribusinessindustryinthe
MississippiRiverBasinequals92percentofthenation’sagriculturalexportsand78
percentoftheworld’sexportsinfeedgrainsandsoybeans.
• Over500milliontonsofvitalcommoditiesincludingcoal,fertilizer,cement,graveland
salt--buildingblocksoftheworld’seconomy–aretransportedontheMississippiRiver.
*Thedraftofashipistheverticaldistancebetweenthewaterlineandthebottomofthehull
(keel)anddeterminestheminimumdepthofwaterashipcansafelynavigate.
WHATNEEDSTOBEDONE:FIXTHEHMT
• TheHarborMaintenanceTax(HMT)isa0.125percentadvalorem-basedtaxpaidon
importsenteringthecountry.It’sdesignedtotaximportsinordertofundchannel
maintenancearoundtheUnitedStates.Currently,abouthalfofthe$1.8billiontakenin
bytheHMTeveryyearisnotbeingusedforharbormaintenance.Rather,itisbeingused
topaydownthenationaldebtorfundprojectsunrelatedtochannelorharbor
maintenance.
• IfHMTfundswerefullydedicatedtoimprovingandmaintainingAmericanports--which
iswhytheHMTwascreatedinthefirstplace--theUnitedStatesArmyCorpsof
Engineers(USACE)hasconfirmeditwouldbeabletofullymaintainauthorizedchannel
depthonallthenation’sdeep-draftharbors.
• Since2003,HMTcollectionshavefarexceededtheamountsappropriatedforharbor
maintenance,resultinginalargeandgrowingsurplusinthefund.Itisestimatedthatby
thebeginningof2017,thesurplusofcollectionsoverexpenditureswillgrowtoover$9
billion.
• TheU.S.mustalsoraisetheUSACE’sannualbudgetthroughincreasedappropriations
fromtheHMT.Recently,aCorpsofEngineersstudyshowedthatournation’s59busiest
deep-draftharborshadfullyauthorizedchanneldepthsonly35percentofthetime.
• ThedeepeningoftheMississippiRiverShipChanneloffersauniqueopportunityto
rebuildwetlandsintheenvironmentallysensitivehabitatalongtheMississippiRiver’s
“Bird’sFootDelta.”Thematerialremovedfromthechannelintheimmediateareawill
beusedtocreateapproximately5,000newacresofLouisiana.
• TheBigRiverCoalition,withthesupportofthePortofSouthLouisiana,commissioneda
studyin2013byDr.TimothyRyantojustifytheeconomicbenefitsofdeepeningthe
ShipChannel.ThestudydeterminedthedeepeningoftheShipChannelto50feet
wouldcreate16,991jobsasaresultofincreasesinproductionand$849.5millionin
increasedincomeforAmericanworkers.TheChamberofCommerceoftheUnited
StatesofAmericareportsthatLouisianawaterwaysandportssupport281,590jobsand
directlycontribute$47.7billiontothestate’seconomy.
ABOUTTHEPORTOFSOUTHLOUISIANA
ThePortofSouthLouisianaisthelargestportintheWesternHemispherebytonnage,having
handledover292.7milliontonsin2015.Itstretches54milesalongtheMississippiRiver
betweenNewOrleansandBatonRouge.Thereare64majorindustrieslocatedwithintheport’s
jurisdiction,includingsevengrainterminals,fourmajorgasolinerefineries,sevenmajoroil
storageterminalsand11petrochemicalmanufacturingfacilities.Theportisalsothelargest
grainexportingportintheU.S.,(exportinggrainto90differentcountries),amajorenergy
transferportandthelargestforeigntradezoneintheU.S.with$75billionincargo.