Future of the Future of the Upper Mississippi Upper Mississippi

Waterway in Waterway in MinneapolisMinneapolis

Case Study #5Case Study #5

By Paul Morris, Ed By Paul Morris, Ed Sanderson, Patricia HemquistSanderson, Patricia Hemquist

BackgroundBackground

Upper St. Anthony Lock and Dam is Upper St. Anthony Lock and Dam is uppermost lock and dam on the Mississippi uppermost lock and dam on the Mississippi RiverRiver

Minnesota barge economy originally moved Minnesota barge economy originally moved large quantities of corn and grainslarge quantities of corn and grains

Today, barges generally used to ship cement, Today, barges generally used to ship cement, aggregate, and scrap metal to ports in aggregate, and scrap metal to ports in Minneapolis and St. PaulMinneapolis and St. Paul

Commercial traffic remains the river's biggest Commercial traffic remains the river's biggest user, however more and more pleasure boats user, however more and more pleasure boats are passing through the locksare passing through the locks

Land Use TimelineLand Use Timeline 11stst Era – Sawmills, Era – Sawmills,

lumberyards, breweries, lumberyards, breweries, and foundriesand foundries

22ndnd Era – Railroad yards Era – Railroad yards and barge terminaland barge terminal

33rdrd Era – Light industry Era – Light industry and open spaceand open space

44thth Era – Riverfront Era – Riverfront communities and housing communities and housing and park and recreation?and park and recreation?

Amenity vs. Working RiverAmenity vs. Working RiverTransportation AffectsTransportation Affects

3 Riverfront Options3 Riverfront Options Heavy Industry and ParksHeavy Industry and Parks

Barging continuedBarging continued Rail service continuedRail service continued BN Bridge converted to pedestrianBN Bridge converted to pedestrian

Light Industry and ParksLight Industry and Parks Barging discontinuedBarging discontinued Rail service continued on west bank, not on east bankRail service continued on west bank, not on east bank BN Bridge converted to pedestrianBN Bridge converted to pedestrian

Parks and ResidentialParks and Residential Barging discontinuedBarging discontinued Rail service continued on east bank, BN Bridge remains in Rail service continued on east bank, BN Bridge remains in

useuse

Preferred Preferred PlanPlan

Create public Create public access to riveraccess to river

System of System of Riverway streetsRiverway streets

Link parkwaysLink parkways

Economic Economic developmentdevelopment

Ecological Ecological functionsfunctions

Plan BenefitsPlan Benefits

90 acres of new park90 acres of new park 15 miles of recreational trails15 miles of recreational trails Restored riverbankRestored riverbank Approximately 5 miles of parkway Approximately 5 miles of parkway

and boulevardand boulevard 2,500 housing units2,500 housing units 2,000 jobs2,000 jobs Over $10 million additional tax Over $10 million additional tax

revenuerevenue

Preferred Plan: Preferred Plan: Transportation ChangesTransportation Changes

BN Railroad Bridge converted to BN Railroad Bridge converted to pedestrian and bicycle bridgepedestrian and bicycle bridge

Close Upper Harbor TerminalClose Upper Harbor Terminal Barging eliminated - phase out Barging eliminated - phase out

heavy industryheavy industry Intermodal phase-outIntermodal phase-out

Fewer trucksFewer trucks Fewer rail carsFewer rail cars

Preferred Plan: Preferred Plan: Transportation ChangesTransportation Changes

Marshall StreetMarshall Street Possibility of utilizing BNSF Railroad Possibility of utilizing BNSF Railroad

Corridor to relieve traffic on Marshall Corridor to relieve traffic on Marshall Street – rejected by residentsStreet – rejected by residents

Reconstruct as boulevardReconstruct as boulevard Remain 4 lanesRemain 4 lanes

Establish Riverway street systemEstablish Riverway street system RailroadsRailroads

East bank eliminated, west bank East bank eliminated, west bank remainsremains

Eliminating BargingEliminating Barging

Upper Harbor Terminal on Upper Harbor Terminal on RiverfrontRiverfront 48 acre site48 acre site Tax exemptTax exempt Investments have not returned benefitsInvestments have not returned benefits

Too Few Industries to Justify LocksToo Few Industries to Justify Locks Local taxes subsidized for 30 yearsLocal taxes subsidized for 30 years Only 4 private industriesOnly 4 private industries

Current Barge Traffic…Current Barge Traffic…Onto TrucksOnto Trucks

81,357 tons by water 81,357 tons by water dailydaily

Approximately 1,500 Approximately 1,500 tons per bargetons per barge

Total annual increasesTotal annual increases 1,543,500 truck ton-1,543,500 truck ton-

milesmiles 66,123 truckloads66,123 truckloadsDaily IncreasesDaily Increases Generate 648 new truck Generate 648 new truck

trips in Minneapolis trips in Minneapolis each weekdayeach weekday

512 of these to St. Paul 512 of these to St. Paul on I-94/I-35W & I-35E on I-94/I-35W & I-35E interchangesinterchanges

*Transitional scenario *Transitional scenario gives higher estimatesgives higher estimates

Heavier Highway TrafficHeavier Highway Traffic

Costs of New Truck Costs of New Truck TrafficTraffic

Private CostsPrivate Costs 406,000 gallons of diesel fuel per 406,000 gallons of diesel fuel per

yearyear Total: $4.9 million in trucking costsTotal: $4.9 million in trucking costs Net Cost : Total - Barge savings = Net Cost : Total - Barge savings =

$4.084 million$4.084 million

* Transitional scenario gives higher * Transitional scenario gives higher estimatesestimates

External CostsExternal Costs

FHWA explains costs FHWA explains costs are borne by affected are borne by affected individualsindividuals

Costs per 1000 VMT of Costs per 1000 VMT of 5-axle truck traffic5-axle truck traffic

Emissions: $44.90Emissions: $44.90 Congestion: $200.60Congestion: $200.60 Noise: $30.40Noise: $30.40 Accidents: $11.50Accidents: $11.50 Road wear and tear: Road wear and tear:

$409.00$409.00

TotalsTotals Public Sector (Road Public Sector (Road

Maintenance): Maintenance): $600,500$600,500

Externalities: Externalities: $488,200$488,200

Total: $1,088,700Total: $1,088,700* Transitional scenario * Transitional scenario

gives higher estimatesgives higher estimates

Policy IssuesPolicy Issues

American Iron & Steel (AIS) unlikely to American Iron & Steel (AIS) unlikely to move due to high levels of investmentmove due to high levels of investment

Upper Harbor Terminal would close and Upper Harbor Terminal would close and trucks and trains would be divertedtrucks and trains would be diverted

Added transport costs will increase the Added transport costs will increase the cost of concrete and reduce profitability cost of concrete and reduce profitability of AIS of AIS

Difficult to re-establish service (for Difficult to re-establish service (for containers) once it has been discontinuedcontainers) once it has been discontinued

US Army Corps of US Army Corps of EngineersEngineers

Federal government organization providing a variety Federal government organization providing a variety of services related to inland waterways and portsof services related to inland waterways and ports

Flood control, environmental protection, navigation, Flood control, environmental protection, navigation, military constructionmilitary construction

Flood control work – building dams to augment low Flood control work – building dams to augment low summer river flows constructing and levees to summer river flows constructing and levees to improve channels and control floodsimprove channels and control floods

Environmental quality work – river improvements to Environmental quality work – river improvements to support Upper Mississippi as a scenic and bird flyway support Upper Mississippi as a scenic and bird flyway routeroute

Navigation - maintains a 9-foot channel in the Upper Navigation - maintains a 9-foot channel in the Upper Mississippi River using a series of locks and dams; Mississippi River using a series of locks and dams; creates a predictable flow keeping river reliable for creates a predictable flow keeping river reliable for transportation.transportation.

Army Corps Navigation Army Corps Navigation StudyStudy

Started in the early 1990sStarted in the early 1990s Upper Mississippi is that portion of the river Upper Mississippi is that portion of the river

stretching from Minneapolis south through stretching from Minneapolis south through portions Wisconsin, Iowa, Illinois, and Missouriportions Wisconsin, Iowa, Illinois, and Missouri

Consists of 29 locks and damsConsists of 29 locks and dams Evaluate whether or not future economic Evaluate whether or not future economic

activity justified modernization of existing lock activity justified modernization of existing lock and dam systemand dam system

Original lock and dams built in the early to mid Original lock and dams built in the early to mid 1900s1900s

existing lock and dam systems are quite existing lock and dam systems are quite inefficient, causing traffic backups.inefficient, causing traffic backups.

Army Corps Navigation Army Corps Navigation StudyStudy

In 2000, study’s lead economist accused In 2000, study’s lead economist accused Corps of inflating river transport growth Corps of inflating river transport growth projections to justify lock and dam expansion projections to justify lock and dam expansion and boost the Corps’ stagnant budgetand boost the Corps’ stagnant budget

Congress halted original studyCongress halted original study New study commissioned combined goal of New study commissioned combined goal of

sustainable navigation and ecosystem sustainable navigation and ecosystem restorationrestoration

Environmental Impact StatementEnvironmental Impact Statement Dated September 2004Dated September 2004 Recommended plan proposes $2.4 billion for Recommended plan proposes $2.4 billion for

modernizing locks and dams and $5.3 billion for modernizing locks and dams and $5.3 billion for the environmental ecosystem managementthe environmental ecosystem management

The NumbersThe Numbers

Estimated that barge industry will move 20 Estimated that barge industry will move 20 million tons of cargo on the Upper Mississippi million tons of cargo on the Upper Mississippi this year. this year.

Traffic on the Upper Mississippi peaked in the Traffic on the Upper Mississippi peaked in the 1990s and has been flat to lower in recent 1990s and has been flat to lower in recent years. years.

Many existing locks are only 600 feet in Many existing locks are only 600 feet in length, too short to handle typical 1,100-foot-length, too short to handle typical 1,100-foot-long barge tow; towboats have to go through long barge tow; towboats have to go through twice, disassembling the barges on one side twice, disassembling the barges on one side and reassembling them on the other. and reassembling them on the other.

Barge Supporter ClaimsBarge Supporter Claims Existing lock and dam system can result Existing lock and dam system can result

in waits of more than three hoursin waits of more than three hours Updated infrastructure gives the US Updated infrastructure gives the US

competitive advantage to deliver its competitive advantage to deliver its product more reliably than foreign product more reliably than foreign competitorscompetitors

Lock and dam improvements would Lock and dam improvements would benefit many other industries besides benefit many other industries besides farming, allowing building materials, for farming, allowing building materials, for example, to move more quickly to and example, to move more quickly to and from Chicagofrom Chicago

Barge Supporter ClaimsBarge Supporter Claims

Midwest Area River Coalition 2000 Midwest Area River Coalition 2000 argues river traffic forecasts are hardly argues river traffic forecasts are hardly relevant, pointing out that the project relevant, pointing out that the project would create 3,000 construction jobs and would create 3,000 construction jobs and thousands more indirectlythousands more indirectly

Mississippi River supports some 1.6 Mississippi River supports some 1.6 million jobs and $284 billion in annual million jobs and $284 billion in annual economic activity, according to a study economic activity, according to a study prepared for the U.S. Fish and Wildlife prepared for the U.S. Fish and Wildlife ServiceService

Barge Opponent ClaimsBarge Opponent Claims

Taxpayers for Common Sense and the Taxpayers for Common Sense and the National Wildlife Federation claim 7.8-National Wildlife Federation claim 7.8-mile stretch of the Mississippi River mile stretch of the Mississippi River between Minneapolis and St. Paul “is between Minneapolis and St. Paul “is among the most highly subsidized among the most highly subsidized sections of waterway in America.”sections of waterway in America.”

Corps spends $3 million to maintain Corps spends $3 million to maintain three locks and dams to lift and lower three locks and dams to lift and lower a trickle of barges on this short reacha trickle of barges on this short reach

Barge Opponent ClaimsBarge Opponent Claims

Question whether there will be Question whether there will be significant increases in barge traffic to significant increases in barge traffic to justify extensive investment in lock and justify extensive investment in lock and dam upgradesdam upgrades

National Academy of Sciences claim the National Academy of Sciences claim the Corps’ projections of rising grain exports Corps’ projections of rising grain exports were “inconsistent with the past 20 were “inconsistent with the past 20 years of relatively steady export levels.” years of relatively steady export levels.”

It’s a pork barrel projectIt’s a pork barrel project

ConclusionConclusion Urban riverfront developmentUrban riverfront development The impact of closing the harborsThe impact of closing the harbors The Corps studyThe Corps study

Discussion QuestionsDiscussion Questions Should the Upper Mississippi River be used for industrial Should the Upper Mississippi River be used for industrial

barge traffic, parks and recreational boating, or both?barge traffic, parks and recreational boating, or both? Who will pay the costs of increased truck traffic? Safety?Who will pay the costs of increased truck traffic? Safety? What lessons can we learn from previous intermodal What lessons can we learn from previous intermodal

shifts?shifts? What is the value of barge traffic vs. parks and open What is the value of barge traffic vs. parks and open

spaces?spaces? What issues surround barges vs. trucks?What issues surround barges vs. trucks? What are the costs and benefits, in economic, ecological What are the costs and benefits, in economic, ecological

and aesthetic terms?and aesthetic terms? What markets can be captured by increased barge What markets can be captured by increased barge

traffic? Local? Regional?traffic? Local? Regional?

There is only one Mississippi.