Defunding Tributaries Would Seriously Damage Economy
Waterways Journal
11 July 2011
Politicians at all levels have been waving the banner high for creating
jobs. jobs, and more jobs. Ironically, the government (at which level
we don't know) has directed the U.S. Army Corps of Engineers to reduce
spending on what they call the low use Kaskaskia River Project because
it moves less than a billion ton-miles of cargo annually.
As reported in the WJ (July 4). the projects recommended budget level
for 2012 is $1,539.000. and the reduction would be $6:37.000. What
would be left of the budget is critical. George Andres, general manager
of the Kaskaskia Regional Port District, predicts 2012 tonnage to reach
2 million tons (reflecting just over a billion ton-miles of cargo). If
it doesn't, the Corps says the traffic may not be sufficient to justify
keeping the lock and channel operational.
Andres says the Corps is using outdated information to reach its
conclusions, and challenges the reduction. The Corps is seeking
stakeholder input. Due to the July 15 deadline, the quickest way to
comment might be to contact the Carlyle Lake/Kaskaskia Project Office,
e-mail carlylelake@usace.armv.mil; Kaskaskia River Project Office at
618. 284-7160: or the Carlyle Lake Project Office at 618. 594-2484.
But let's try a new approach. We don't even have to speculate. The
Corps said it has been directed to reduce funding for "low-use"
projects by $ 6 million. That is less than one-tenth of a billion
dollars. And the action would impact projects all around the country.
The perpetrators of this folly seem to have no knowledge of how the
transportation system in this country works.
Did they ever hear of a feeder system? Or feeder lines? In the trucking
business, over-the-road transporters drop off their cargo with local
operators (consider them feeder factors) who make the final deliveries.
These local operators are crucial if the transportation contracts are
to be completed. Railroads have feeder lines as well. Kill the feeder
lines and the contracts can't be completed. The feeder lines of the
river system can be the smaller tributaries like the Kaskaskia, or
larger waterways like the busy Ohio and Illinois rivers, which feed the
Mississippi. (While the feds don't control railroads. they do control
the navigable waterways. and they are proposing disaster.)
In the case of rivers. operators on tributaries move cargo out to the
main waterway to be added to larger tows. thus providing sufficient
cargo for the long haul to be profitable. Each navigable tributary is
key to the health of a larger river: and the larger river is key to the
survival of the operators and businesses along the length of the
tributaries. The Kaskaskia channel in question is 36 miles in length.
If carried out. the feds' proposal would eliminate thousands of jobs
around the country. Many businesses have no other way to move cargo
inexpensively. If they lose the waterways. they have to move by truck
or rail, thus increasing transportation costs. Would it be worth the
damage to the economy to save less than a tenth of a billion dollars?
But there is more to the Kaskaskia issue. Andres reminds its that the
Corps just finished spending $16 million to reopen a navigation channel
to Fayetteville. Ill. Andres said. "Completed in June 2011. this
project opened the door for the long-planned Fayetteville Harbor
project. Three companies have signed letters of interest in locating at
Fayetteville. Why would you spend $16 million and then not let the
development occur? So much for long-range planning!
As for questioning the data upon which the Corps projections for the
Kaskaskia were built, the Kaskaskia Port District said the Corps used
two-year-old figures to develop a budget.
Andres said they use "nonsensical metrics to determine the value of a
particular waterway."
Ironically. the administration is now touting desires to spend in the
neighborhood of $500 billion more to repair h highways and bridges.
Some say it represents a third stimulus package.
At the root of this folly is the fact that too many in Washington do
not understand business and how the free enterprise system works. Right
now they are stumbling all over themselves, further damaging the
economy.