The plan is immensely costly - each lock alone cost $50 million dollars.
ASCE 06’ [American Society of Civil Engineers, 140,000 members of the civil engineering profession worldwide and America's oldest national engineering society, “Inland Waterways”, Report Card for America’s Infrastructure, April 10th]
Currently, the Corps has $180 million per year available for lock repairs—half comes from the IWTF revenues and half comes from congressional appropriations. With an average rehabilitation cost of $50 million per lock, the current level allows the Corps to fully fund only two or three lock projects each year
Inland waterways is the most expensive form of transportation
Nicollet Island Coalition 10
Brad Walker,UMR Coordinator at Izaak Walton League Wetlands & Floodplain Director at Missouri Coalition for the Environment, “Big Price – Little Benefit,” February 2010, http://www.iwla.org/index.php?ht=a/GetDocumentAction/i/2079
Barge Industry contributions are inadequate to properly fund the Inland Waterways Trust Fund’s projects backlog, yet the industry wants to restore IWTF solvency and increase inland waterways navigation investment primarily by increasing the burden on all other taxpayers. • The barge industry touts itself as the cheapest form of commodity transportation. Unfortunately, the equation used to derive that designation excludes over 90 percent of the costs to support the inland waterways system. According to the National Academy of Sciences,1 U.S. taxpayers pay 92 percent of the inland waterway system (IWS) costs of constructing, operating and maintaining barge navigation infrastructure. This is compared to virtually no taxpayer support for rail system users and only 20 percent for highway system users. The general public does receive some benefits from the current dams on the rivers, though it can be argued thatthe costs, both financial and to the environment, have far exceeded these benefits. The barge industry paid nothing for the original lock and dam system and do not contribute to repairing and restoring degraded riverine ecosystems, which the inland waterways navigation system is largely responsible for causing. The taxpayers have been totally responsible for these costs, and as mentioned above all of the O&M costs and 50 percent of the construction and rehabilitation costs. • When all costs are accounted for, the inland waterways system is by far the most expensive shipping system in the country.What the 1986 Inland Waterways Trust Fund Legislation Requires: • Funding of the IWTF comes from a diesel fuel tax per gallon paid by commercial transportation on inland waterways. The tax increased incrementally from 1986 at $0.10 to 1995 at $0.20. The tax from this legislation has not increased since 1995.2 • The legislation requires 50 percent of the cost of construction3 of new inland waterways navigation facilities to be funded from the IWTF.
Waterway investment is expensive- and could further exasperate fiscal issues. Leach, Editor of the Journal of Commerce, 6-22-12 (Peter, “Congress Hears Calls for New Approach on Port Funding” http://www.joc.com/infrastructure/congress-hears-calls-new-approach-port-funding)
Ports in the U.S. Southeast and the Gulf, the regions that will be most heavily impacted by the expansion of the Panama Canal, lack the capacity to handle post-Panamax ships, the Army Corps of Engineers said Thursday in a report to Congress.
The report, “U.S. Port and Inland Waterways Modernization: Preparing for Post-Panamax Vessels,” said the U.S. will have to find a way to fund the deepening of harbors at some Southeast and Gulf ports to remain competitive in global trade.
But it raised concerns about finding the funds necessary for the dredging projects “due to overall economic and fiscal conditions and concerns about the deficit.” It called for a new approach to the public and private financing of such strategically critical maritime infrastructure projects.
Air Pollution Turn
Increase in waterway infrastructure could lead to more air pollution.
Environmental Defense Fund, 7-3-12 (“USACE Releases Report On U.S. Port And Inland Waterways Modernization To Prepare For Panama Canal Expansion” http://blogs.edf.org/texascleanairmatters/2012/07/03/usace-releases-report-on-u-s-port-and-inland-waterways-modernization-to-prepare-for-panama-canal-expansion/)
On June 20, the U.S. Army Corps of Engineers (USACE) submitted a vision and strategy document to Congress for the development of port and inland waterway infrastructure related to Panama Canal expansion.Expected to be completed in late 2014 or early 2015,the expansion will double the capacity of the Canal by allowing larger container ships to travel through the channel. U.S. ports seek to capture much of that traffic and are engaged in numerous projects to increase their capacity, primarily by dredging (the removal of sediment from a waterway) the areas leading to their terminals.
The Panama Canal expansion, U.S. port modernization and subsequent expected rise in container volumes at U.S. ports may have adverse environmental effects if proactive mitigation steps are not undertaken. With respect to air pollution, many ports are located in areas already burdened by unhealthy air and the potential rise in emissions from increased traffic would further deteriorate local air quality. EDF has worked with a number of ports on air quality mitigation programs and the USACE report indicates that further measures may be needed to ensure the well-being of the local population and environment.