The executed Director’s Report or Record of Decision for the General Reevaluation Report (GRR) for the Mississippi River Ship Channel Deepening to 50 Feet from Corps Headquarters is attached.
A Press Release prepared by the Big River Coalition is also attached, members are encouraged to distribute this information to promote the channel deepening project.
The United States Army Corps of Engineers’(USACE) Director of Civil Works, Mr. James C. Dalton signed the Director’s Report on August 3, 2018, to authorize the GRR (economic update) and Supplement to the Final Environmental Impact Statement (SEIS) as required to justify the deepening of the Mississippi River Ship Channel to 50 Feet. As reproduced from the signed Director’s Report by Mr. Dalton:
“I request that you concur with my finding that the recommended deepening of the MRSC is economically justified and environmentally sustainable, and approve budgeting for this project based on the Final GRR and SEIS.”
The Big River Coalition in 2011 identified the three steps that would have to be completed, when it revitalized along with the Corps of Engineers (federal sponsor) and Louisiana Department of Transportation and Development, the effort to deepen the Mississippi River Ship Channel to 50 Feet:
- The channel threshold for full federal funding must be increased from 45 feet to 50 feet. COMPLETED in the Water Resources Reform and Development Act of 2014 (WRRDA 2014).
- General Reevaluation Report to update the economic impact of deepening the Mississippi River Ship Channel to 50 feet must be funded and completed by USACE and LDOTD. COMPLETED, the Director’s Report or Record of Decision was signed on August 3, 2018.
- Fund and deepen the Mississippi River Ship Channel, the WRDA 2016 changed the cost-share from 50-50% between the federal government and the non-federal sponsor was changed to 75-25% (federal and non-federal) and the Water Infrastructure Improvements for the Nation Act (WIIN). According to the Director’s Report the total to deepen the MRSC from the Gulf of Mexico to Baton Rouge is a total of $237,700,000 million, with $157,500,000 in total dredging costs and $80,200,000 for pipeline relocations on the Crossings Above New Orleans. The $157,500,000 equates to $118,100,000 at 75 percent federal responsibility and $39,400,000 at 25 percent non-federal responsibility (Louisiana Department of Transportation and Development for the state of Louisiana).
The Big River Coalition applauds the efforts of our colleagues at the U.S. Army Corps of Engineers and the Louisiana Department of Transportation and Development and is committed to assisting them with securing funding and executing this deepening project of national significance.
The article linked below relates to the channel deepening project as cutterhead dredges will be used to deepen the channel in the area of Southwest Pass, this will ensure that the maximum amount of dredged material is beneficially used. The Director’s Report estimates that the channel deepening will create approximately 1,500 acres below Venice (LA). The Corps Mississippi Valley New Orleans will also soon solicit bids for a contract to dredge the Hopper Dredge Disposal Area (HDDA) at the Head of Passes, the HDDA project should also restore over 1,000 acres of marsh. The beneficial use of dredged material, or “Sediment Recycling” as coined by the Big River Coalition, will have created approximately 10,000 acres by the time these two projects have been completed.
The “Feature Article” published in: REVITALIZATION The Journal of Urban, Rural & Environmental Resilience Issue #81 today, Wednesday, August 15, 2018.
DREDGING THE MISSISSIPPI RIVER FOR SHIPS AND RESTORING LONG-LOST WETLANDS FOR WILDLIFE
MISSISSIPPI RIVER SHIP CHANNEL DEEPENING TO 50 FEET DIRECTOR’S REPORT
The United States Army Corps of Engineers’(USACE) Director of Civil Works, Mr. James C. Dalton signed the Director’s Report on August 3, 2018, to authorize the General Reevaluation Report (GRR) (economic update) and Supplement to the Final Environmental Impact Statement (SEIS) as required to justify the deepening of the Mississippi River Ship Channel to 50 Feet. As reproduced from the signed Director’s Report by Mr. Dalton:
“I request that you concur with my finding that the recommended deepening of the MRSC is economically justified and environmentally sustainable, and approve budgeting for this project based on the Final GRR and SEIS.”
The scope of the project identified in the Director’s Report is:
The identified National Economic Development Plan provides deep draft navigation to a depth of 50 feet from the Gulf of Mexico beginning at River Mile 22 Below Head of Passes through the Port of Baton Rouge ending at River Mile 232.4 Above Head of Passes. The National Economic Development Plan provides benefits to the nation in terms of transportation cost savings by allowing more efficient use of vessels.
Material dredged from River Mile 13.4 Above Head of Passes to River Mile 19.5 Below Head of Passes will be used beneficially under the Federal Standard, and it is anticipated that construction dredging in this reach will result in the creation of 1,462 acres of marsh habitat.
In accordance with the cost sharing provisions of Section 101 of Water Resources Development Act of 1986 as amended for the total first cost of the general navigation features, presently estimated to be $157,500,000, the estimated federal share of the National Economic Development Plan would be $118,100,000 (75 percent). For the total first costs of the general navigation features, the estimated non-federal share of the National Economic Development Plan would be $39,400,000 (25 percent).
In 2011 the Big River Coalition identified the three steps required to deepen the Mississippi River Ship Channel to 50 feet to match the controlling depth of the new locks on the Panama Canal. The three steps are listed below, the lone remaining step is to secure federal and state funding to dredge the channel. The next phase will be to dredge from Mile 13.4 Above Head of Passes to Mile 19.5 Below Head of Passes.
- Increase the federal threshold for full channel maintenance from 45 feet to 50 feet. Completed in the Water Resources Reform and Development Act of 2014.
- Complete the General Reevaluation Report to update the economic impact of the deepening the MRSC to 50 feet. Completed on August 3, 2018 in the Director’s Report.
- Fund and dredge the MRSC to 50 feet.
The Mississippi River Ship Channel connects more miles of navigable waterways than the rest of the world combined connecting the nation’s interior to international trade and maximizing waterborne commerce. The Mighty Mississippi is the only major navigable channel in the world connected to over 300 million acres of agricultural lands. The Mississippi River remains the nation’s most economically prolific natural resource. Annually over sixty percent of the nation’s grain cargoes are exported out of the Ship Channel.
The average annual cost of the deepening project is estimated to be $17,700,000 while the average annual benefits are projected to be $127,500,000, making the benefit-to-cost ratio of the Final Plan 7.2 to 1. The deepening of the Mississippi River Ship Channel is an infrastructure project of national and international significance that would not only promote the economic prosperity of Louisiana, but also that of the nation.
About the Big River Coalition:
“Advocating for a Mightier Mississippi River”
The Big River Coalition was created in Fiscal Year 2011 in response to the announcement by the Commander of the United States Army Corps of Engineers’ Mississippi Valley Division confirming the discontinuation of reprogramming funds to maintain the Lower Mississippi River navigation channel. This position change immediately meant the Mississippi River’s navigation channel would no longer receive preferential treatment. Shortly after the 1989 grounding of the M/V MARSHAL KONYEV (Pilottown) that, in essence, closed the navigation channel to all ship traffic, the USACE’s Headquarters announced in a position statement that it would maintain the nation’s most critical navigation channel. The BRC’s original focus was to obtain additional funding to supplement the shortfall in the Corps’ Operations and Maintenance budget, to strive to establish a legislative firewall around the Harbor Maintenance Trust Fund and to represent members of the Mississippi River navigation industry in matters related to coastal restoration. As our membership grew and continued to make effective progress on these initiatives, members requested that the Coalition actively advocate for the deepening of the LMR navigation channel to 50 feet. The Big River Coalition comprises over 100 maritime entities that rely on the full availability of the Mississippi River navigation channel and properly operating maritime infrastructure to effectively transport nearly 500 million tons of imported/exported cargo annually.
The Big River Coalition is committed to “Advocating for a Mightier Mississippi River” to promote the future of navigation on the Mississippi River Ship Channel (MRSC) as our nation’s most productive channel, prolific natural resources and to preserve our economic prosperity. The Mississippi River and Tributaries project 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).
MEMORANDUM FOR ASSISTANT SECRETARY OF THE ARMY (CIVIL WORKS)
SUBJECT: Mississippi River Ship Channel, Gulf to Baton Rouge, Louisiana Final
Integrated General Reevaluation Report and Supplement to the Final Environmental Impact Statement
- Purpose. Request your review of the enclosed Mississippi River Ship Channel (MRSC), Gulf to Baton Rouge, Louisiana Final Integrated General Reevaluation Report and Supplement to the Final Environmental Impact Statement (Final GRR and SEIS) and Record of Decision (ROD). I request that you concur with my finding that the recommended deepening of the MRSC is economically justified and environmentally sustainable, and approve budgeting for this project based on the Final GRR and SEIS.
- Authorizations. The Final GRR and SEIS were completed under the existing construction authorities for the Mississippi River Ship Channel Gulf to Baton Rouge, Louisiana Project, as authorized in the 1985 Supplemental Appropriations Act, and in Section 201(a) of the Water Resource Development Act of 1986 (WRDA 1986), as amended. These acts provided appropriation and authorization for construction, among other things, of a main navigation channel to a depth of 55 feet. Under the existing construction authority, these reports consider the next phase of construction to advance the provision of the authorized project depth. If funded, preconstruction engineering and design activities for the National Economic Development (NED) Recommended Plan would continue under the authority of WRDA 1986, as amended.
- Background and Discussion. The MRSC services four of the top 13 ports in the United States: the Port of Greater Baton Rouge (Port of Baton Rouge), the Port of South Louisiana, the Port of New Orleans, and the Plaquemines Port, Harbor and Terminal District. The Port of South Louisiana is the largest port in the nation in terms of tonnage. Construction of the channel was initially planned in three phases. The first phase deepened the channel to 45 feet from the Gulf of Mexico beginning at River Mile (RM) 22 Below Head of Passes (BHP) to Donaldsonville, LA, and the second phase deepened the channel to 45 feet from Donaldsonville, LA to RM 232.4 Above Head of Passes (AHP). The third phase planned to deepen the length of the entire project to 55 feet. The third phase which would result in full implementation of the project depth has not been constructed. The current depth of the MRSC results in the need for vessels such as bulk carriers and tankers to light load to navigate the channel and reach the ports. This results in increased transportation costs. A GRR and SEIS were prepared to examine additional deepening needs beyond the current 45-foot depth. The identified NED Plan provides deep draft navigation to a depth of 50 feet from the Gulf of Mexico beginning at RM 22 BHP through the Port of Baton Rouge ending at RM 232.4 AHP. The NED Plan provides CECW-MVD.
SUBJECT: Mississippi River Ship Channel, Gulf to Baton Rouge, Louisiana Final Integrated General Reevaluation Report and Supplement to the Final Environmental Impact Statement benefits to the nation in terms of transportation cost savings by allowing a more efficient use of vessels. Implementation of the Recommended Plan requires construction and subsequent operation and maintenance in discrete reaches of the channel. All other reaches of the main navigation channel have depths that are naturally greater than 55 feet. In the present condition, these reaches do not require construction or maintenance to provide deep draft access to 55 feet. Implementation of the Recommended Plan as described in the Final GRR and SEIS consists of the following:
Constructing the Mississippi River Ship Channel from its current depth to a depth of 50 feet in the lower Mississippi River from RM 13.4 AHP to RM 22 BHP. Material dredged from RM 13.4 AHP to RM 19.5 BHP will be used beneficially under the Federal Standard, and it is anticipated that construction dredging in this reach will result in the creation of 1,462 acres of marsh habitat. Material dredged from RM 19.5 BHP to RM 22 BHP will be placed in the approved Southwest Pass Ocean Dredge Material Disposal Site. Once commenced, construction of this reach to the proposed depth would be complete within one year.
Constructing the twelve regularly maintained deep draft crossings located within the Port of South Louisiana and the Port of Baton Rouge from the current depth to a depth of 50 feet. Material will be placed adjacent to the crossings for natural dispersion down river. In order to remain in conformity with the emission standard of the Clean Air Act, construction of the 9 crossings located within the Port of Baton Rouge would be staggered over a three year period.
It is recommended that full implementation of the project to a depth of 55 feet be addressed in phases beyond the third phase of construction for the project.
Maintenance of the channel to a depth of 50 feet would continue under the same dredging and disposal practices currently utilized for the project reaches at existing depths. It is anticipated that maintenance dredging is only required in the discreet locations described above that require construction from the current depth to the depth of 50 feet. The intent of the project is to provide deep draft navigation within the main deep draft navigation channel to a depth of 50 feet from the Gulf of Mexico beginning at RM 22 BHP to Baton Rouge ending at RM 232.4 AHP. Should existing conditions change in these reaches, such that areas of the main navigation channel that are presently deeper than 50 feet become shallower than 50 feet, it is within the authority and intent of this Report that the U.S. Army Corps of Engineers will conduct operation and maintenance actions to maintain the approved depth and width, subject to the possibility that additional environmental analysis may be necessary regarding those reaches.
The Recommended Plan has no significant adverse effects. Consequently, there are no compensatory mitigation requirements.
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SUBJECT: Mississippi River Ship Channel, Gulf to Baton Rouge, Louisiana Final Integrated General Reevaluation Report and Supplement to the Final Environmental Impact Statement
Project Cost and Benefits. The Louisiana Department of Transportation and Development (LaDOTD) is the non-federal cost-sharing sponsor (NFS) for the project. Based on October 2017 price levels, the estimated total project first cost of the Recommended Plan is $237,700,000, which includes the cost of constructing the General Navigation Features (GNF) and the lands, easements, rights-of-way and relocations (LERR). GNF are estimated at $157,500,000 and LERR are estimated at $80,200,000 divided into the estimated federal and non-federal costs as follows:
In accordance with the cost sharing provisions of Section 101 of WRDA 1986 as amended for the total first cost of the general navigation features, presently estimated to be $157,500,000, the estimated federal share of the NED Plan would be $118,100,000 (75 percent). For the total first costs of the general navigation features, the estimated non-federal share of the NED Plan would be $39,400,000 (25 percent).
In addition to the total project first cost of the GNF, as described in sub-paragraph (a), the LaDOTD is responsible for the provision of all LERR deemed necessary by the government for the construction and operation, maintenance, repair, replacement and rehabilitation (OMRR&R) of the work described in the Final GRR and SEIS. As required by Section 101 (a)(4) of WRDA 1986, the NFS must provide and ensure the performance of all relocations, including the obligation to bear a share of the cost of any deep-draft relocation determined by the government to be necessary for the construction and OMRR&R of the work described in the Final GRR and SEIS. The estimated cost of all relocations presently determined by the government to be necessary for Phase 3 construction and OMRR&R is presently estimated to be $80,200,000. Pursuant to Section 101(a)(4) of WRDA 1986, the NFS’s share of that cost is estimated to be $40,100,000 plus eligible incidental expenses that the NFS incurs in performing or ensuring the performance of the required relocations/removals.
In addition to the NFS’s share of the estimated total project first cost of construction, presently estimated to be $119,600,000 (25 percent of GNF plus LERR) pursuant to Section 101(a)(2) of WRDA 1986, as amended, the NFS must pay an additional 10 percent of the costs for NED GNF of the project, in cash over a period not to exceed 30 years, with interest. The value of LERR provided by the NFS under Section 101(a)(3) of WRDA 1986 as amended will be credited towards this payment, not to exceed the 10 percent of GNF. Under the NFS LERR obligation for this project, the nonfederal share of the current estimated $80,200,000 cost for relocations is $40,100,000 plus the NFS’s incidental expenses associated with the relocation performance. No other LERR acquisition is anticipated at this time for Phase 3 construction and OMRR&R. The NFS’s anticipated share of the cost of relocations (estimated at $40,100,000) exceeds 10 percent of the estimated cost of construction of GNF features. Therefore, it is not anticipated that the NFS will owe a cash contribution for its 10 percent share.
In accordance with Section 101 of WRDA 1986, as amended by Section 2102(b) of the Water Resource Reform and Development Act of 2014, the cost share for OMRR&R
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SUBJECT: Mississippi River Ship Channel, Gulf to Baton Rouge, Louisiana Final Integrated General Reevaluation Report and Supplement to the Final Environmental Impact Statement of GNF for deep draft navigation for a channel depth up to a depth of 50 feet is 100 percent federal. Since the Recommended Plan is for the construction and OMRR&R of a 50-foot channel depth, all cost of OMRR&R of the Recommended Plan is a federal responsibility. The estimated incremental annual OMRR&R cost for the Recommended Plan is $8,500,000.
Channel improvement modifications result in reduced transportation costs by allowing a more efficient use of vessels. The primary effect from channel deepening that can induce changes in vessel utilization is an increase in a vessel’s loading capacity. Channel restrictions can limit a vessel’s capacity by limiting its ability to load to its design draft. Deepening the channel can reduce this constraint. This increase in vessel capacity utilization can result in fewer trips being required to transport forecasted cargo. Based on October 2017 (Fiscal Year 2018) price levels, at the 2018 federal discount rate of 2.75 percent, and a 50-year period of analysis, the total equivalent average annual cost of the project is estimated to be $17,700,000. The average annual benefits are $127,500,000. The benefit-to-cost ratio for the Recommended Plan is 7.2 to 1.
Environmental Considerations. Signing the ROD will complete the National Environmental Policy Act compliance requirements for this project. Neither public scoping nor the public comment periods for the GRR and SEIS and the Clean Water Act 404 public notice resulted in negative response to the environmental consequences of proposed project. Based on the results of four models (1D hydraulic model, 2D hydraulic model, 3D hydraulic model, and Wetland Value Assessment model), and based on minimization efforts, the Recommended Plan is expected to have net positive environmental impacts. During construction of the Recommended Plan, the beneficial use of dredged material into open water habitat is anticipated to result in the creation of approximately 1,462 acres (576 average annual habitat units) of intermediate marsh. It is anticipated that through the efforts taken to avoid wetlands impacts and the beneficial use of dredged material that functionally compensates for unavoidable remaining impacts, the proposed project would not result in overall adverse cumulative impacts to the aquatic environment and human environment in or near the project area. Additionally, taking a phased approach to construction of the nine northernmost crossings will not exceed de minimis threshold of air quality emissions in compliance with Clean Air Act requirements.
Conclusion. I have reviewed the report and concur with the Recommended Plan to increase the depth of the MRSC to 50 feet. I recommend that you concur with my finding that the recommended deepening of the MRSC is economically justified and environmentally sustainable, and approve budgeting for this project based on the Final GRR and SEIS.
