BIG RIVER COALITION RED RIVER VALLEY ASSOCIATION Sean M. Duffy, Sr. Executive Director

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1 BIG RIVER COALITION RED RIVER VALLEY ASSOCIATION Sean M. Duffy, Sr. Executive Director

2 MARITIME NATION ENGINEER S WEEK 22217

3 MARITIME STATE

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5 MISSISSIPPI RIVER SHIP CHANNEL #1 Largest Port Complex in the United States (World?) Largest Navigation Project in Corps U.S. Tonnage Rankings: #1 - Port of South Louisiana 308 million short tons #7 - Port of New Orleans #11 - Port of Plaquemines #13 - Port of Baton Rouge Corps annually expends $125 M on average (NOT ENOUGH)

6 DEEP-DRAFT VESSEL MOVEMENTS ON THE MISSISSIPPI RIVER SHIP CHANNEL Approximately 7,500 ships entered and then exited Southwest Pass the last three years, each requiring either a State or Federal Pilot. Lower Mississippi River Deep-Draft Ports Complex: Baton Rouge, South Louisiana, New Orleans, St. Bernard and Plaquemines. Combined these five port move approximately 500 million tons of cargo every year. The LMR Deep-Draft Ports Complex is connected by nearly 256 miles of the Mississippi River Ship Channel.

7 VESSEL TYPES TRANSITING MISSISSIPPI RIVER SHIP CHANNEL

8 VIEW OF AFROMAX TANKER FROM NEW AGE SHIP

9 VIEW OF SWP CHANNEL FROM POST PANAMAX VESSEL

10 HISTORIC OPENINGS OF THE BONNET CARRE SPILLWAY Year Days Bays Opened

11 16.5 FEET 3/12/19

12 R.S WEEKS 2019 STARTS OFF IN BLUR

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15 Corps MISSISSIPPI VALLEY NEW ORLEANS Operations and Maintenance Budget YEAR PRESIDENT'S BUDGET REQUEST Conference or WORK PLAN SUPPLEMENTAL REPRORGRAM TOTAL FUNDED 2019 $89,169,000 $58,660,000 $147,829, $83,846,000 $15,000,000 $75,000,000 $173,846, $82,884,900 $20,250,000 $10,000,000 $113,134, $85,866,000 $40,000,000 $33,364,507 $159,230, $85,341,000 $10,000,00 $5,020,080 $100,361, $84,074,000 $11,000,000 $95,074, $81,670,000 [$73,339,660] $73,339, $68,000,000 [$66,664,000] $84,000,000 $6,000,000 $156,664,000 AVERAGE $82,606,363 $127,434,905

16 MISSISSIPPI RIVER SHIP CHANNEL DRAFT RESTRICTIONS 2019/ DATES MAXIMUM DRAFT RECOMMENDATION JANUARY 31, 2019 FEBRUARY 8, 2019 FEBRUARY 8, 2019 FEBRUARY 8, 2019 REDUCED TO 44 FEET REDUCED TO 40 FEET INCREASED TO 41 FEET INCREASED TO 44 FEET 2018 DATES MAXIMUM DRAFT RECOMMENDATION MARCH 19, 2018 APRIL 7, 2018 APRIL 26, 2018 MAY 30, 2018 JUNE 6, 2018 JUNE 9, 2018 REDUCED TO 44 FEET REDUCED TO 42 FEET INCREASED TO 44 FEET INCREASED TO 45 FEET INCREASED TO 46 FEET INCREASED TO 47 FEET

17 MISSISSIPPI RIVER SHIP CHANNEL HOPPER DREDGES HOPPER DREDGES HOPPER CAPACITY CUBIC YARDS ELLIS ISLAND (2017)* 15,500 CHARLESTON, SC GLENN EDWARDS 13,500 SOUTHWEST PASS PRESENT LOCATION STUYVESANT 9,400 KINGS BAY, FL [Coming Soon Southwest Pass] MAGDALEN (2017)* 8,550 MANASQUAN, NJ *WHEELER (USACE) 8,256 SOUTHWEST PASS Red Flag LIBERY ISLAND 6,540 CHARLESTON, SC *ESSAYONS (USACE) 6,423 MAINTENANCE WEST COAST TERRAPIN ISLAND 6,400 SOUTHWEST PASS BAYPORT 4,855 KINGS BAY, FL B.E. LINDHOLM 4,000 JUPITER, FL NEWPORT 4,000 SOUTHWEST PASS R.N. WEEKS 4,000 MANASQUAN, NJ DODGE ISLAND 3,600 BRUNSWICK, GA PADRE ISLAND 3,600 BRUNSWICK, GA *McFARLAND (USACE) 3,000 SOUTHWEST PASS Red Flag

18 M/T ADVANTAGE START 156,639 DWT, 899 X Depth

19 MISSISSIPPI RIVER SHIP CHANNEL DEEPENING TO 50 FEET By deepening 65 miles of the Mississippi River Ship Channel to 50 feet, a total of 254 miles of the waterway will be connected at a depth of 50 feet or more. The majority of the Ship Channel is naturally deeper than 50 feet (Baton Rouge to the Gulf of Mexico). The first phase of the deepening to 50 feet will utilize dredges to deepen 33 river miles between the Gulf of Mexico and Venice (LA) and connect the first 176 miles of the Ship Channel to a depth of 50 feet or more. Phase two requires the deepening of approximately 32 river miles to add over 78 miles of Ship Channel at50 feet.

20 M/V OLYMPIC HARMONY 182,644 DWT 1,093 X DRAFT

21 MISSISSIPPI RIVER SHIP CHANNEL DEEPENING TO 50 FEET BIG RIVER COALITION IDENTIFIES STEPS NEEDED TO DEEPEN MISSISSIPPI RIVER SHIP CHANNEL 1) The channel threshold for full federal funding must be increased from 45 feet to 50 feet. COMPLETED: Water Resources Reform and Development Act of 2014 (WRRDA 2014). 2) 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: Director s Report signed August 3, ) 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).

22 MISSISSIPPI RIVER SHIP CHANNEL DEEPENING COSTS 1) The estimated total for dredging from Venice to the Gulf of Mexico (Southwest Pass +) is approximately $110 million. From approximately Mile 10 Above Head of Passes (AHP) to Mile 22 Below Head of Passes. The Federal cost-share at 75% is $82.5 million and the non-federal cost-share at 25% is $ 27.5 million. The State of LA indicates it is prepared to fund its portion of this phase. This phase must be completed first and would open up 176 miles of the Ship Channel to a controlling depth of 50 feet. TOTAL: $110 million 2) The next phase of dredging will be on the Crossings Above New Orleans, from approximately Mile 154 AHP to Mile AHP is estimated to cost $47.5 million. The Federal cost-share at 75% is $ million and the non-federal cost-share at 25% is $ million. TOTAL: $47.5 million 3) there are up to six utility pipelines that might need to be relocated or deepened sufficiently below the mudline after channel deepening. The price tag for all pipelines to be deepened is estimated to be $80.2 million. TOTAL: $80.2 million 4) Dredging Costs: Southwest Pass: $110 million Crossings: $47.5 million TOTAL: $ million Pipeline Relocation: Non-federal: $40.1 million Pipeline owners: $40.1 million TOTAL: $ 80.2 million TOTAL PROJECT COSTS: $237,700,000

23 MISSISSIPPI RIVER SHIP CHANNEL (MRSC)DEEPENING TO 50 FEET The Soy Transportation Coalition and Informa Economics, Inc. estimate the larger, more efficient Capesize vessels (120,000 metric tons) ships, could reduce the cost of the movement of grains by upwards of $20 per metric ton due to being able to transport more soy cargo per vessel. The per bushel costs savings ranged from 13 to 20 cents depending on the proximity to a navigable waterway (barge fleeting). The same study identified a draw area, a metric related to the distance from the Mississippi River and Tributaries to the point of waterborne or barge commerce being cheaper than truck or rail shipments, the existing draw area is 150 miles. The draw area is projected to increase to 247 miles and could capture up to 82 percent of U.S. soybean exports. The economic update also repeated an idea that was first referenced by the Big River Coalition: Improving the depth of the Mississippi River would improve reliability of navigation on the river and reduce the impact of the occasional low water events.

24 SELECTED PLAN 50 FEET CHANNEL DEPTH The Selected Plan was adjusted based on the disparity between the 1-dimenisonal sediment modeling and the 2-dimensional sediment modeling. The 1-dimensional modeling over estimated the amount of sediment that would have to be removed, acknowledging this, led the Corps to suggesting the following deepening plan: Recommended deepening the Mississippi River Ship Channel below Venice (Mile 13.4 AHP to Mile 22 BHP) to 50 feet Mean Lower Low Water (MLLW) and deepening the Ship Channel up to Baton Rouge (Mile AHP) to 50 feet Low Water Reference Plane (LWRP). Investment Cost Total Cost $ 237,670,000 Federal Cost $ 118,130,000 Non-Federal Cost $ 119,540,000 ($39,380,000) Benefit Cost Ratio 7.2

25 LARGEST WETLANDS RESTORATION PROJECT IN THE WORLD

26 MISSISSIPPI RIVER SHIP CHANNEL FUNDING REQUESTS FY ) Approve Federal Funding for Deepening the MRSC to 50 Feet. 2)Approve $60 Million in Supplemental Funding for O&M to restore authorized channel dimensions on the MRSC in FY ) Support increasing NOAA PORTS Funding by $10 million to fund all U.S. PORTS Sensors. 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 and Tributaries has an estimated annual impact of $735 billion on the nation s economy and is responsible for 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 when including the IL River).

27 SEDIMENT RECYCLING

28 QUESTIONS?