The Cost of Ending Ocean Shipping on the Great Lakes

For years, many environmentalists have wanted to stop ocean-going ship traffic on the Great Lakes. That’s because vessels traveling from the ocean to the Lakes sometimes carry invasive species. But opponents call the industry a vital part of the economy. A new study paid for by the Joyce Foundation questions how vital that industry really is. The Great Lakes Radio Consortium’s Shawn Allee reports:

Transcript

For years, many environmentalists have wanted to stop ocean-going ship
traffic on the Great Lakes. That’s because vessels traveling from the
ocean to the Lakes sometimes carry invasive species, but opponents call
the industry a vital part of the economy. A new study paid for by the
Joyce Foundation questions how vital that industry really is. The Great
Lakes Radio Consortium’s Shawn Allee reports:


The study tackled this question:


How much would it hurt the economy if we end ocean shipping on the
Great Lakes?


The report suggests transportation prices would rise about fifty-five
million dollars per year.


Co-author James Roach says ending ocean ship traffic will cost money,
but keeping it could cost more.


“One has to look at that in terms of, for example, the costs of invasives.
You know, and if that’s 3, 4, or 5 hundred million dollars a year, then
policy makers are gonna have to take that into consideration.”


Independent transportation experts who’ve read the study question some
of its methodology.


For example, it assumes prices for alternatives, such as rail, would
remain constant, but some experts say it’s possible those costs would rise,
making the transition away from ocean shipping more expensive.


For the GLRC, I’m Shawn Allee.


“Host Tag: In the interest of full disclosure, the Joyce Foundation also
provides funding to the GLRC.”

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Ten Threats: Expanding the Seaway

  • A freighter leaving the Duluth harbor in Minnesota. (Photo courtesy of EPA)

One of the Ten Threats to the Great Lakes identified by many of the experts we surveyed
is dredging channels deeper and wider for larger ocean-going ships. In the 1950s, engineers
carved a shipping channel from the Atlantic Ocean to the Great Lakes via the St. Lawrence
River. The St. Lawrence Seaway was to make ports in cities such as Chicago and Duluth main
players in global commerce. Today, the Seaway operates at less than half its capacity.
That’s because only five percent of the world’s cargo fleet can fit through its locks and
channels. For decades, the shipping industry has wanted to make them bigger. David
Sommerstein reports:

Transcript

We’re continuing our series Ten Threats to the Great Lakes with a look at the idea of
letting bigger ships into the lakes. Lester Graham is our guide through the series.


One of the Ten Threats to the Great Lakes identified by many of the experts we surveyed
is dredging channels deeper and wider for larger ocean-going ships. In the 1950s, engineers
carved a shipping channel from the Atlantic Ocean to the Great Lakes via the St. Lawrence
River. The St. Lawrence Seaway was to make ports in cities such as Chicago and Duluth main
players in global commerce. Today, the Seaway operates at less than half its capacity.
That’s because only five percent of the world’s cargo fleet can fit through its locks and
channels. For decades, the shipping industry has wanted to make them bigger. David
Sommerstein reports:


(Sound of rumbling noise of front-loaders)


The port of Ogdensburg sits on the St. Lawrence River in northern New York State.
When the Seaway was built, local residents were promised an economic boom. Today
what Ogdensburg mostly gets is road salt.


(Sound of crashing cargo)


Road salt and a white mineral called Wallastonite – the Dutch use it to make ceramic tile.
Front-loaders push around mountains of the stuff. In all, the port of Ogdensburg
welcomes six freighters a year and employs just six people.


Other Great Lakes ports are much bigger, but the story is similar. They handle low-value
bulk goods – grain, ore, coal – plus higher value steel. But few sexy electronic goods
from Japan come through the Seaway, or the gijillion of knick-knacks from China or
South Korea.


James Oberstar is a Congressman from Duluth. He says there’s a reason why. A
dastardly coincidence doomed the Seaway.


“Just as the Seaway was under construction, Malcolm McLean, a shipping genius, hit on
the idea of moving goods in containers.”


Containers that fit right on trains and trucks. The problem was the ships that carry those
containers were already too big for the Seaway’s locks and channels.


“That idea of container shipping gave a huge boost of energy to the East Coast, Gulf
Coast, and West Coast ports, and to the railroads.”


Leaving Great Lakes ports behind ever since the regional shipping industry has wanted to
make the Seaway bigger.


The latest effort came in 2002, when the U.S. Army Corps of Engineers studied the
economic benefits of expansion. The study said squeezing container ships through the
Seaway would bring a billion and a half dollars a year to ports like Chicago, Toledo, and
Duluth. But if you build it, would they come?


“Highly doubtful that container ships would come in. Highly doubtful.”


John Taylor is a transportation expert at Grand Valley State University in Michigan.
He’s studied Seaway traffic patterns extensively. He says there would have to be “a sea
change” in global commerce.


“Rail is too competitive, too strong moving containers from the coast in and out say from
Montreal and Halifax and into Chicago and Detroit and so on, too cost-effective for it to
make sense for a ship to bring those same containers all the way to Chicago.”


The expansion study sparked a flurry of opposition across the Great Lakes. It failed to
mention the cost of replumbing the Seaway — an estimated 10 to 15 billion dollars. It
didn’t factor in invasive species that show up in foreign ships’ ballasts. Invasives already
cost the economy 5 billion dollars a year, and environmentalists said it glossed over the
ecological devastation of dredging and blasting a deeper channel.


Even the shipping industry has begun to distance itself from expansion. Steve Fisher
directs the American Great Lakes Ports Association.


“There was quite a bit of opposition expressed through the region, and in light of that
opposition we took stock of just how much and how strongly we felt on the issue and
quite frankly there just wasn’t a strong enough interest.”


Most experts now believe expansion won’t happen for at least another generation.
Environmentalists and other critics hope it won’t happen at all.


So instead, the Seaway is changing its tactics. Richard Corfe runs Canada’s side of the
waterway. He says the vast majority of Seaway traffic is actually between Great Lakes
ports, not overseas. So, the Seaway’s focus now is to lure more North American shippers
to use the locks and channels.


“Our efforts have to be towards maximizing the use of what we have now for the benefit
of both countries, the economic, environmental, and social benefit.”


Today, trucks and trains haul most goods from coastal ports to Great Lakes cities.
Shippers want to steal some of that cargo, take it off the roads and rails, and put it on
seaway ships headed for Great Lakes ports.


For the GLRC, I’m David Sommerstein.

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Economy Maintains Cycle of Sprawl

As businesses and governments struggle to find ways to revive the economy, Great Lakes Radio Consortium commentator James Howard Kunstler says that it’s time to re-scale the marketplace. And, ultimately, to re-think how we live and work:

Transcript

As businesses and governments struggle to find ways to revive the economy, Great Lakes
Radio Consortium commentator James Howard Kunstler says that it’s time to re-scale the
marketplace. And, ultimately, to re-think how we live and work:


Not long ago, The New York Times reported that car sales had fallen off 30 percent. The
paper commented that quote “strong auto sales this year have been a key contributor in
propping up consumer spending, which in turn has been the main impetus of economic
growth.”


Is that all our economy is about? Buying and selling cars? In a way, the answer is yes.
The U.S. economy is now based on the creation and maintenance of suburban sprawl and
all its furnishings and accessories.


What keeps the cycle going? The easiest credit the world has ever seen. Often to people
with poor records of repaying loans. What happens when the music stops, and the zero
percent “miracle loans” stop with it? What other economic activity is there in the United
States? We don’t make anything here anymore except movies, TV shows, and pop music,
and only a tiny percent of Americans can be in show biz.


We’ve outsourced the actual making of most mundane products to distant nations where
people work for peanuts. Everyday retail trade is conducted through so-called “efficient”
national chain stores. Behind this mask of efficiency, though, lies the wreckage of
America’s communities, and the complex, fine-grained networks of economic relations
that once supported them. In rural America, ruin and depression are rampant among
small farmers. Today, we subsist on Caesar salads which travel an average of 2,500
miles from field to table.


This a system primed for unwinding. We are fast becoming a nation reliant on everyone
but ourselves. More tragically, as it unwinds, we will be stuck with all the unsustainable
furnishings: the far-flung subdivisions of commodity housing; the redundant chain stores;
the countless miles of blacktop in need of continual repair; the gazillion cars that we can
no longer afford to replace. We’ll be stuck living in places that are not worth living in,
and not worth caring about, far from any food supplies, and with no networks of local
economic interdependency.


These are our prospects, and they can only be worsened by looming international military
mischief, Jihad, de-stabilized oil markets, and terrorism.


There’s really only one reasonable way out of this predicament: the re-scaling of
America. We face the enormous task of reconstructing local economic networks that add
up to real communities, which in turn add up to places worth caring about. It’s time to
re-size and downscale everything we do from farming to schooling to shopping. The
future is telling us very clearly that we have to start living locally, but we are not
listening, and we are not prepared.


James Howard Kunstler is the author of The Geography of Nowhere and other books. He
comes to us by way of the Great Lakes Radio Consortium.

D-D-E May Degrade Naturally

The notorious pesticide D-D-T was banned in the United States in the 1970’s. But D-D-T left behind several toxic byproducts. One of those is D-D-E. However, a new study published in this month’s Science magazine suggests that D-D-E may be decaying naturally. The Great Lakes Radio Consortium’s Steve Frenkel reports: