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EXTENSIONS of REMARKS 11723 EXTENSIONS of REMARKS GREAT LAKES POLICY ISSUES Gave" the Existing $110 Million Seaway Cap­ Action Has Been Undertaken by Canada

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EXTENSIONS of REMARKS 11723 EXTENSIONS of REMARKS GREAT LAKES POLICY ISSUES Gave May 10, 1983 EXTENSIONS OF REMARKS 11723 EXTENSIONS OF REMARKS GREAT LAKES POLICY ISSUES gave" the existing $110 million Seaway cap­ action has been undertaken by Canada. The ital construction debt owed to the federal Corps has made two preliminary recommen­ government. Since debt retirement has been dations: HON. 808 EDGAR a major element in Seaway tolls, this action Construction of a locks system parallel to OF PENNSYLVANIA will help the Seaway Development Corpora­ present U.S. locks and capable of providing IN THE HOUSE OF REPRESENTATIVES tion hold the line on shipping costs. simultaneous two-way access. This option Containerized cargo ships now dominate contemplates no increase in lock capacity. Tuesday, May 10, 1983 the international shipping industry. Yet be­ Construction of a new locks system capa­ e Mr. EDGAR. Mr. Speak.er, I wish to cause of the size of these vessels, many of ble of accommodating 1,000 foot vessels. share with my colleagues a report pre­ the Seaway's locks and canals, such as the This proposal would retain existing locks pared by Margaret Downs of the Welland Canal, are not capable of handling and greatly increase the potential of ship­ them. To improve the entire system's capac­ ping on the Seaway. Northeast Midwest Institute on Great ity and reliability, the Corps of Engineers is The Corps anticipates completion of the Lakes Policy Issues. It is hoped that conducting a preliminary feasibility study of study by 1986, assuming congressional sup­ this will help to shape our concern the Great Lakes Connecting Channels and port of $956,000. Representative Carl Pur­ during the 98th Congress for the Harbors. This report is studying lock im­ sell CR-Michigan) is preparing a moderniza­ Great Lakes Region. provements, examining the need for a tion strategy for the Seaway with assistance GREAT LAKES POLICY ISSUES second modern lock at the Soo to handle from the St. Lawrence Seaway Development larger bulk cargo vessels, and recommending Corporation and the Corps of Engineers. Water resources will play a dominant role optimum dimensions for future lake vessels. in defining the characteristics and growth The first component of this strategy in­ Besides this report, the Corps is exploring cludes accelerated completion of the Corps' of the Great Lakes region to the year 2000. the need for additional locks on the St. Law­ Extensive discussion and planning among study and a fiscal 1984 appropriation of rence Seaway and alternative means of $200,000. the region's policy makers are essential if moving cargo to and from the Great Lakes the full promise of this resource's economic region. User fees-Seaway toll reduction/ opportunity is to be realized. The April 27 elimination meeting of members of the House and Soo Locks-Connecting channels and harbors The St. Lawrence Seaway is the only fed­ Senate and board members of the Center eral navigation project ever to charge a user for the Great Lakes will help set priorities The Corps of Engineers has studied the fee. To reach the political compromise nec­ and strategies for the careful use of an in­ connecting channels and harbors in the essary to insure Seaway construction, a user comparable natural asset. Great Lakes for more than ten years. The fee system was established to recover the The Great Lakes hold one-fifth of the study is now in the final stages with the costs of construction (principal and interest> world's surface fresh water supply. Lake Su­ Corps evaluating several recommendations. and the cost of operating and maintaining perior is the world's largest fresh water One recommendation would involve dupli­ the system. It is important to note that, lake, Lake Huron is the fifth largest, Lake cating the Poe Lock at Sault Ste. Marie. since the Seaway was built, navigation Michigan the sixth, Lake Erie the 12th, and The Poe is the only Soo lock capable of han­ projects that benefit other port regions Lake Ontario the 14th. Yet some federal of­ dling 1,000 foot carriers that transport ore have been, and continue to be, constructed ficials refuse to recognize the Great Lakes and fossil fuels from Lake Superior to the without a user fee requirement. as a special resource at all, and federal lower lakes. Duplication of the Poe would In the last seven years, Congress has not budget decisions often have reflected that increase the efficiency of the Soo system, approved any significant new navigation attitude. and would provide a contingency in the projects. The administration wants to recov­ This memorandum addresses Great Lakes event of mechanical failure or sabotage of er part of the cost of any new construction policy issues and potential federal action in the Poe. This year, vessel traffic waited nine and operation and maintenance through a three different areas: water transportation, hours while a valve failure prevented the user fee system. Many ports view the insti­ water quality, and lake levels. All three are Poe from opening at the beginning of the tution of user charges as the only realistic integrally related to the future vitality of navigation season. prospect for funding new navigation the Great Lakes region. The Great Lakes Governors endorsed du­ projects. Most of the proposed projects in­ I. WATER TRANSPORTATION plication of the Poe Lock at a summit on volve channel deepening to allow for the use Mackinac Island in June of 1982. According of larger, deeper-draft ships at coal and Shipping activity in the Great Lakes con­ to the current study schedule, a final trans­ tinues to be depressed. Though much of the grain ports. mittal from the Corps to Congress is not Although the 97th Congress did not ap­ downturn can be traced to the recession, the likely to take place until 1988 or 1989. The figures remain startling-a 23.7 percent de­ prove port user fee legislation, the adminis­ crease between 1979 and 1981 in grain ship­ Great Lakes Task Force and the Great tration and several members of the Senate ments, a decline of 18.0 percent in iron ore Lakes Commission have urged an expedited and House have launched another effort study process. The Commission has suggest­ this year to institute a cost recovery system. traffic, and a 12.7 percent decline in coal ed including a provision directing the Corps movements. For the first four months of Navigation interests in the Great Lakes 1982, total iron ore, grain, and coal traffic to expedite its evaluation of the Soo Locks presently are divided in their approach to was down 57.3 percent compared to the in the omnibus water resources bill sched­ user fee proposals. A majority of the Lakes' same period in 1980. uled for House Public Works Committee's port directors have taken the position that Although the opening of the St. Lawrence consideration. the institution of a national, uniform user Seaway in 1959 held great promise for St. Lawrence Seaway improvements charge could improve their competitive pos­ Great Lakes ports and shippers, the actual Although the opening of the Seaway in ture, if it would also eliminate the cost of record of shipments during the past two 1959 began a new phase in U.S. water com­ tolls on the U.S. portion of the St. Lawrence decades has been mixed. Bulk cargos pass­ merce, the system already was out of date at Seaway and set up a forum for negotiating ing through the Montreal-Lake Ontario sec­ the time of completion. Even then, its locks elimination of the Canadian tolls as well. tion of the Seaway tripled between 1959 and system was too small to allow for the most The International Association of Great 1980. In 1977, the Seaway set a record 57.4 efficient use of the Seaway. The Seaway can Lakes Ports views Seaway tolls as a major million tons of cargo. Shipments then de­ accept vessels no larger than 726 feet, with obstacle to efforts to increase the amount of clined over a three-year period, reaching a drafts of no more than 26 feet, precluding cargo moving into the Lakes. The Port of low point of 49.5 million metric tons in 1980, use by most modern ships. These circum­ Cleveland and some representatives of the followed by a 1.1 million metric ton upturn stances, unfortunate in 1959, present far steel industry in the Lakes take an opposing in 1981. greater difficulties in the 1980s. view. Steel interests object to measures that A major victory in enhancing the system The Corps of Engineers has spent several would have the effect of reducing charges was gained in December as Congress, at the years studying possible improvements to the currently applied to steel imports. Ut urging of the Great Lakes governors, "for- St. Lawrence Seaway lock system. Similar should be noted that a value-based user fee e This "bullet" symbol identifies statements or insertions which are not spoken by the Member on the floor. 11724 EXTENSIONS OF REMARKS May 10, 1983 would be significantly lower than current Export Act that would exempt from cargo percent of the total budget. Attached is a U.S. Seaway tolls on a ton of imported preference requirements the new "payment­ listing of water resource development steel.) The Great Lakes Commission has in-kind" and "blended credit" export subsi­ projects that were named as priority contracted with Data Resources, Inc. for an dies offered by USDA. The Senate Agricul­ projects by the Great Lakes states, as well analysis of the economic impact of Corps ture Committee has adopted this amend­ as a breakdown of fiscal 1983 and fiscal 1984 user fees on the Great Lakes.
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