The information below and attached was provided to Major General Scott A. Spellmon as the U.S. Army Corps of Engineers (USACE) Deputy Commanding General of Civil and Emergency Operations in response to his letter (attached) to the Big River Coalition advising of the USACE efforts to recapitalize the USACE hopper dredge McFARLAND.

The Big River Coalition’s response to Major General Spellmon and the referenced letter to Mr. Thomas Smith (Chief, Operations and Regulatory Division Directorate of Civil Works) on the National Dredging and Industry Corps Hopper Dredge Management Group (ICHDMG) Meeting Notes of June 13, 2019 are also attached for your convenience.

Major General Spellmon,

Please accept the attached response letter that identifies the Big River Coalition’s support for the recapitalization of the U.S. Army Corps of Engineers hopper dredge McFARLAND.

The Big River Coalition appreciates you informing us of the U.S. Army Corps of Engineers (USACE) efforts to recapitalize the government hopper dredge McFARLAND.  The Coalition supports efforts to modernize the USACE’s hopper dredge fleet.  The McFARLAND has responded to a record number of Red Flag Emergency Call Outs in Southwest Pass, including one earlier this year.  An overwhelming majority of all Red Flag Emergency Call Outs nationally have occurred on the Mississippi River Ship Channel (MRSC) to respond to shoaling in Southwest Pass. The navigation industry on the MRSC appreciates the emergency responses of the McFARLAND.

The Coalition would greatly appreciate being kept up to date on the recapitalization efforts and remains committed to collaboration designed to increase the availability federal authorized channel dimensions in Southwest Pass. As discussed at the National Dredging and Industry Corps Hopper Dredge Management Group meetings and documented in our previous letter (also attached).

Please do not hesitate to contact me if the Coalition can be of assistance on these efforts.

 

U.S. ARMY CORPS OF ENGINEERS HOPPER DREDGE MCFARLAND RECAPITALIZATION

MG Scott Spellmon Response McFARLAND Recapitalization 71819[2].pdf

Dear Major General Spellmon,

The Big River Coalition appreciates you informing us of the U.S. Army Corps of Engineers (USACE) efforts to recapitalize the government hopper dredge McFARLAND. The Coalition supports efforts to modernize the USACE’s hopper dredge fleet. The McFARLAND has responded to a record number of Red Flag Emergency Call Outs in Southwest Pass, including one earlier this year. An overwhelming majority of all Red Flag Emergency Call Outs nationally have occurred on the Mississippi River Ship Channel (MRSC) to respond to shoaling in Southwest Pass. The navigation industry on the MRSC appreciates the emergency responses of the McFARLAND.

The USACE hopper dredges, WHEELER and McFARLAND have been approved for 6 Red Flag Emergency Call Outs in Fiscal Year 2019 to respond to record shoaling in Southwest Pass. This tied the maximum number of approved Red Flag Call Outs issued with Fiscal Year 2010, indications are that the Red Flag Call Out days in 2019 will establish a new record for the number of days of Red Flag response. The Ship Channel has increasingly been deficient and draft restrictions continue to occur more frequently, in 2019 draft restrictions were first implemented on January 31st and the channel may not be fully recovered before the end of Fiscal Year 2019.

There is a compelling and urgent need to increase the “committed capacity” of hopper dredges to maintain the MRSC at federally authorized channel dimensions.

There are two major factors that severely restrict maintenance of the MRSC and play a role in Ship Channel deficiencies, the inadequate amount of funding in the President’s Budget request and the need for additional hopper dredges.

The Big River Coalition fully supports increased investments to modernize the nation’s fleet of hopper dredges. The nation must prepare for the ongoing influx of modern neopanamax sized vessels pushing channel limits coupled with an increase of channel deepening and emergency beach restoration (post-storm) projects that are already testing the limits of the combined hopper dredge fleet. The Coalition believes that the an increase in hopper dredge capacity will help the USACE maintain channel dimensions on the MRSC and establish the “committed capacity” needed to perform proper channel maintenance.

The Coalition would like to remain engaged in discussions involving the efforts to better respond to shoaling in Southwest Pass as referenced in recent dredge industry meetings hosted at the USACE New Orleans District in June 2019. Our belief is that input from the USACE, dredge contracts and navigation industry must be streamlined to develop comprehensive workable channel maintenance solutions.

The 52-year old McFARLAND has over the last few years, been unable to properly respond in the strong currents and varying consistency of sediments in Southwest Pass, ranging from hard sands to light clays with the seasonal abnormality of flocculation. The Coalition requests that the McFARLAND’s replacement be designed to function properly in the home port of the USACE Philadelphia District and in conditions present along the east coast and in Southwest Pass.

The Big River Coalition is committed to ensuring the future of navigation on the Mississippi River Ship Channel (MRSC) as one of the nation’s fundamental natural resources and true economic powerhouse. The Coalition encourages and supports investments be made to ensure the availability of the hopper dredge fleet to respond to channel maintenance projects across the nation. Solutions developed to solve the deficiencies of the Mississippi River Ship Channel and the establishment of “committed capacity” will benefit the nation’s economy while also increasing channel reliability on other navigation channels.

The Mississippi River has an estimated $ 735.7 billion annual impact on the nation’s economy and is responsible for approximately 2.4 million jobs (585,000 jobs on the Lower River – Cairo, IL to the Gulf of Mexico and 1.86 million plus jobs on the Upper River-Lake Itasca, MN to Cairo, IL and including the IL River).

Thank you for providing us with this update and the opportunity to comment on this important matter.

 

National Dredging and Industry Corps Hopper Dredge Management Group (ICHDMG) Meeting Notes 61319

National Dredging Meetings Response 62819[5].pdf

Mr. Smith,

Please accept the following observations based on the dialogue at the meetings of the National Dredging and Industry Corps Hopper Dredge Management Group in New Orleans. During your introductory statement you highlighted three key USACE objectives: to accelerate project delivery, transform financing and budgeting and to improve permitting and regulation reform.

In opening statements Bill Doyle of the Dredge Contractors of America referenced significant capital investments being made by the dredge contractors, including reference of two 6,000 cubic yard hopper dredges being built by Cashman Dredging. Mr. Doyle also suggested addressing challenges related to channel maintenance of Southwest Pass and contracting dredges earlier than normal, prior to high-river conditions or shoaling. He also mentioned challenges caused by various environmental windows on the east coast.

The Big River Coalition requests additional information about the capital investment referenced by the dredge contractors specifically regarding the new hopper and cutterhead dredges. The members of the BRC depend upon the dredging industry to provide sufficient equipment to respond to shoaling on the Mississippi River Ship Channel. Mr. Doyle pointed out the newest two hopper dredges increased the capacity of the hopper dredge fleet by a reported 30 percent, however, neither of the hopper dredges christened in 2017 have responded to bid advertisements for contracted work in Southwest Pass. The mention of the new hopper and cutterhead dredges is good news and we remain hopeful to test this new equipment on the Mighty Mississippi.

Kathy Griffin (USACE) requested that those in attendance get more involved on efforts to sort out the problems related to the annual equipment challenges related to maintaining Southwest Pass. There was reference to a follow up meeting in October (2019) and then Bill Doyle suggested a meeting before October to review the same efforts to maintain Southwest Pass. I requested that the Big River Coalition also be invited to participate in future meetings, especially those discussing the maintenance of Southwest Pass.

Cody Eckhardt (USACE – Mississippi Valley New Orleans) referenced that over 150 days of Red Flag work had been completed in Southwest Pass this year under 4 Red Flag Emergency Call Outs. The WHEELER is presently working under Red Flag Emergency Call Out #5-2019 and is scheduled to work Red Flag Emergency Call Out #6-2019 in July and August. The number of Red Flag Call Outs for Southwest Pass highlights that we have a shortage of industry hopper dredges and arguments to the contrary are misleading, with the WHEELER working so many Red Flag days only a minimal number of Readiness Exercise days have been utilized. If industry hopper dredges responded to the advertised contract the WHEELER would still be able to work under Readiness Exercise days. The simplified form is that the Red Flag means we have one dredge working when we have justification for two, especially considering we have had a deficient channel since January 2019.

Dr. Katherine E. Brutsché then discussed the Regional Sediment Management Program and noted a belief that the Coalition is very supportive of, simply that sediment is a valuable resource. Dr. Brutsché also referenced the 10 projects that were chosen to be “pilot projects” under Section 1122 of the Water Resources and Development Act of 2016. According to our records of the nearly 100 projects submitted for inclusion, the most of any state were from Louisiana, sadly though none of the 10 selected pilot projects are in Louisiana.

On the second day, the USACE Project Manager for the Mississippi River, Michelle Kornick of Mississippi River Valley New Orleans (MVN) presented on the equipment needed for the maintenance of the Mississippi River Ship Channel. This discussion brought to light that there is great disparity between the President’s Budget and the actual funding needed for average annual dredging requirements.

Earlier this year there were five hopper dredges and two cutterhead dredges working in Southwest Pass at one time and authorized dimensions could not be restored. Historical data indicates that 6 hopper dredge contracts are needed for the Mississippi River and Southwest Pass annually. There are 2 major factors that severely restrict maintenance of the Mississippi River and play a role in Mississippi River Ship Channel deficiencies:

  1. The inadequate amount in the President’s Budget Request is one contributor to the problem of maintaining Southwest Pass. This can be verified by the continual need for emergency supplemental funding. The average President’s Budget Request is approximately $90 million, while the 5-year average of total funding for MVN has now reached $151 million.

    The other problem is that the U.S. hopper dredge fleet is inadequate and new hoppers designed to flourish in the harsh environment of Southwest Pass are needed. This can be verified by the number of no bids from the dredge contractors and for the most part documented by the large number of Red Flag Emergency Call Outs. During record flood events since 2008, 10 to 14 hopper dredge contracts to restore Southwest. Pass were solicited each year with several solicitations unanswered.

Mr. Doyle and representatives of Manson Construction then advised those in attendance about their recent efforts to keep the hopper dredge GLENN EDWARDS working in Southwest Pass by requesting an extension from the USACE. Manson reported that the job in Thimble Shoal, Virginia did not represent an emergency condition or deficient channel (or something close to that, I defer to Manson to better document what they shared). Manson indicated that they could fulfil the Thimble Shoal contract and continue to respond to the emergency channel conditions in Southwest Pass. As I stated at the meeting when the hopper dredge GLENN EDWARDS departed Southwest Pass, the navigation industry and pilots were left to believe that the Corps had given up and failed their mission to maintain authorized channel dimensions on the Mississippi River Ship Channel. The USACE’s #1 Navigation Project in the country, the Mississippi River Ship Channel has been at reduced dimensions for nearly six months and the Corps has not been able to adequately respond to the perceived changes related to increased precipitation and record flooding. Our economic prosperity depends on our ability to adapt to the present channel conditions and the development of strategies that can maintain commerce and the deeper channel dimensions required by modern neopanamax vessels.

On the last day you made comments about the ELLIS ISLAND (Great Lakes Dredge & Dock) or MAGDALEN (Weeks Marine), the two newest hopper dredges, being unable to work in Southwest Pass because they had not completed the water pumping test. I was pleased to hear the response from Weeks Marine indicating they were prepared to conduct the necessary test this summer. As you will recall, Weeks Marine indicated the MAGDALEN would be working nearby on Ship Island (Mississippi) and would allow the required tests to be conducted during that time. The navigation industry hopes that the ELLIS ISLAND can also be made available to respond to the need for hopper dredges in Southwest Pass in the near future.

The Big River Coalition is committed to ensuring the future of navigation on the Mississippi River Ship Channel (MRSC) as one of the nation’s fundamental natural resources and true economic powerhouse. The Mississippi River has an estimated $ 735.7 billion annual impact on the nation’s economy and is responsible for approximately 2.4 million jobs (585,000 jobs on the Lower River – Cairo, IL to the Gulf of Mexico and 1.86 million plus jobs on the Upper River-Lake Itasca, MN to Cairo, IL and including the IL River). The Coalition strongly believes that the recurring draft restrictions in Southwest Pass cannot be properly addressed without representatives from the navigation industry present to ensure that the path forward will promote real and workable channel maintenance solutions.

 

USACE Big River Coalition Hopper Dredge

USACE Big River Coalition Hopper Dredge June 2019[1].pdf

Dear Mr. Duffy:

I am writing to provide you an update with regard to the ongoing efforts of the U.S. Army Corps of Engineers (Corps) toward maintaining a modern and efficient federal fleet, tasked with the primary missions of emergency response and national security. We understand there is significant interest in the topic of hopper dredge recapitalization and wanted to provide you with some of the latest information.

The Corps maintains a minimum fleet that includes the hopper dredges ESSAYONS, YAQUINA, WHEELER, and MCFARLAND, pursuant to Public Law (PL) 95-269 (1978). These government hopper dredges play an important role in guaranteeing the ability of the Corps to deliver our navigation mission and enable safe, reliable, effective and environmentally sustainable waterborne transportation systems for vital national securit y, commerce, and recreation needs. The Water Resources Development Act (WRDA) of 1996 and WRDA 2007 further directed the dredges WHEELER (WRDA 1996) and MCFARLAND (WRDA 2007) to operate in a Ready Reserve status for national defense, for emergency needs, and contract work when private industry has failed to submit a responsive and responsible contract bid. As a reserve fleet, the WHEELER and MCFARLAND have provided essential capability to the Nation in maintaining the flow of commerce, the support of national security missions and other emergencies.

We manage the minimum hopper dredge fleet using accepted asset management principles, including a Plant Replacement and Increment Program (PRIP) that ensures th e financial capacity to fund replacement of vessels when needed. Based on the importance of the minimum fleet to the mission, the age and operating condition of the ve ssels, and the capacity of the PRIP fund, the Corps has a long term plan for recapitalizing its minimum fleet with in-service dates of replacement vessels no later than : MCFARLAND (2025), WHEELER (2033), ESSAYONS (2033), and YAQUINA (2040). Decommissioning of the old dredges will occur at the time of replacement.

We strongly believe replacement of the 52-year old MCFARLAND is essential to reducing risk to our navigation mission and is consistent with statute requiring us to maint ain a technologically modern and efficient fleet. Therefore, to achieve the in service date of the replacement MCFARLAND (2025), the Corps has proposed, as part of the President’s Budget, the design and acquisition of a medium class hopper replacement dredge in Fiscal Year 2020. We are not planning to change the operational employment of the ready reserve and do not intend to increase the number of dredges, nor otherwise change our statutory responsibilities to utilize private industry vessels.

I sincerely appreciate your partnership and request the continued support of the Big River Coalition and its members in delivering our dredging mission. An identical copy of this correspondence has been sent to American Association of Ports Authorities, Dredging Contractors of America, Maritime Exchange for the Delaware River and Bay, California Marine Affairs and Navigation Conferences, and Pacific Northwest Waterways Association. Thank you for your partnership with the Corps on our important navigation work for the nation.