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Industrial Usage of Chicago Area Waterway System

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Industrial Usage of Chicago Area Waterway System Industrial Usage of Chicago Area Waterway System DRAFT Final Report March 31, 2015 Table of Contents I. Executive Summary......................................................................1 II. Barge Facilities by Industrial Corridor...........................................7 a. North Branch Industrial Corridor..............................................7 b. Pilsen Industrial Corridor...........................................................9 c. Little Village Industrial Corridor................................................10 d. Calument Industrial Corridor....................................................11 III. The Port of Chicago....................................................................15 IV. Case Studies of Barge Users.......................................................21 a. General Iron..........................................................................21 b. Ozinga...................................................................................22 c. Prairie Material....................... ...............................................23 V. Trends and Forecasts of Industrial Usage of the Chicago Area Waterway.................................................................................29 VI. CAWS Infrastructure Conditions and Needs.......................39 I. Executive Summary ChicagoChica Areago A Waterwaysrea Water wSystemays M Mapap § ¨¦ S 8 3 ¨¦§I94 ¯ 3 5 S ¨ ¦ § l Wilmette Pump Station e n n a h C e r o h S N h North Side WWTP t o r r o t h N B ra nc 90 h, I§¨¦1 Ch ica *#North Branch Pump Station go Ri ver *# r e Chicago Harbor Lock v i South Branch, R Chicago River §I290 Chicago River ¨¦ s 4 e 9 n # i #* 2 * I § ¨¦ a l *# P Bubbly Creek s e D Racine Ave Pump Station ¨¦§I88 Stickney WWTP nal Ca p hi S d ¨¦§I9 n 0 a 5 5 y r 3 r I ¨ ¦ § a e it iv Illinois International Port District n R a t S e go m a u ic Lake l h a C C Calumet Indiana Harbor Cal- T.J. Sag Cha Calumet WWTP nnel O'Brien Lock Burns Harbor Indiana Harbor Canal L ittle Gran C d Calum alum et River et R iver Lockport Lock and Dam Hart Ditch 1 Brandon Lock and Dam 4 U ¨ ¦ § ¨¦§U30 S A I N O A LEGEND I N I D L L N Calumet Industrial Corridor I I Little Village Industrial Corridor North Branch Industrial Corridor Pilsen Industrial Corridor 7 5 ¨¦§ I I Interstates §¨¦ 6 5 *# Boathouses Esri, DeLorme, GEBCO, NOAA NGDC, and other contributors 0 2.5 5 10 Miles 1:400,000 Figure 1. Chicago Area Waterways System Map Introduction Nature of the Assignment Goodman Williams Group is heading a team retained In December 2014, the team completed a draft by the City of Chicago Department of Planning and of a Phase I – Existing Conditions report. This Development (DPD) to analyze the industrial usage document presented information on the four industrial of the Chicago Area Waterway System (CAWS) corridors in the City with sites located adjacent to the and to make recommendations related to the use Waterway: of parcels located adjacent to the Waterway. Team members include Cambridge Systematics Inc., and • North Branch U.S. Equities Realty, now part of CBRE. • Pilsen • Little Village The Chicago Area Waterway System is a strategic • Calumet transportation link, connecting the Mississippi River System (MRS), the Gulf Coast, and the Great Lakes. The report also included historic information on The CAWS is comprised of a number of segments. trends in barge traffic by tonnage and commodities, As shown in Figure 1, the following segments are as well as a summary of recent studies addressing a entirely or partially located within the boundaries of number of environmental, safety, infrastructure, and the City of Chicago: commercial issues related to the CAWS. • Chicago River Main and North Branches; Subsequent to the Phase I report, the team continued • Chicago River South Branch, which extends from to collect and refine waterway usage data, forecast Lake Street south to Damen Avenue. Bubbly future usage based on current and anticipated trends, Creek is the name given to the dead-end fork in and conducted select interviews with barge users the Chicago River that flows from Ashland to just and with the Chairman of the Illinois International Port north of Pershing Road; District. • Chicago Sanitary and Ship Canal, which extends in a southwesterly direction from Damen to well Key Findings and beyond Chicago’s borders. Recommendations • The Calumet River, which connects Lake Key findings and recommendations from the Phase Michigan to the Cal-Sag Channel and Lake I data collection and subsequent work are described Calumet; below. • Lake Calumet; • The Little Calumet River and Cal – Sag Recognize the importance of barge usage to key Channel, small portions of which touch the City’s industries on various segments of the Chicago southernmost boundary. Area Waterway System. Two locks along the CAWS are located within the City Commerce on the waterway system is small when of Chicago: the Chicago Lock, which is located at compared to Chicago’s massive trucking and rail the Main Branch of the Chicago River at the entrance industries, and has been generally declining in recent to Lake Michigan; and the T.J. O’Brien Lock located years, as summarized in the table below. along the Calumet River. The T. J. O’Brien Lock provides the only commercial access from CAWS to Nonetheless, waterway access remains critical Lake Michigan. for certain industries that transport raw materials including sand and gravel, scrap metal, and certain minerals. While the South and North Branches of the Chicago River carry a fraction of the waterborne commerce compared to the Calumet River, construction and metal recycling, in particular, are key waterway-oriented industries along these segments. Industrial Usage of the Chicago Area Waterway System Phase II Draft Report 1 Construction. Poured concrete is a critical Metal Recycling. Scrap metal recyclers are also component of many of Chicago’s construction active barge users in the CAWS. According to our projects, from roadway and public infrastructure interview with General Iron, the company receives improvements to the development of new downtown discarded scrap metal from a variety of sources, highrises. Concrete is a time-sensitive material that typically by truck. Once it is shredded and processed must be poured at the construction site within 30 at the company’s North Branch facility, much of the minutes of being “mixed”, depending on the customer recycled metal is shipped via barge through the specification. Therefore, close proximity of the redi- Sanitary and Ship Canal down the Mississippi River mix concrete yards to project sites is critical. System to steel companies and other buyers. The company reported shipping an average of 13.5 Ozinga and Prairie Material, two of the city’s largest barges per month in 2014, each barge carrying the concrete suppliers, maintain multiple locations within equivalent of 80 trucks worth of scrap metal. the City, including barge facilities in the North Branch, Pilsen, and Little Village Industrial Corridors. Support Increased Investment in The Port of Prairie Material and Ozinga receive raw materials Chicago and along the Calumet River. via barges traveling up the Mississippi River System. Both companies noted that transporting material The majority of the City’s waterway-oriented industrial by barge is less expensive than trucking in raw activity takes place in the Calumet Industrial Corridor materials, helping to keep construction costs in on the City’s southeast side. According to the U.S. Chicago comparatively low. In addition, barge Army Corps of Engineers, The Calumet Corridor travel eliminates trucks on the City’s expressways, contains 58 commercial docking facilities, or 71% reducing traffic and truck emissions. According of all those located in the City. The Corridor also to our interviews, which are described in more detail contains critical rail and highway infrastructure, later in this report, one barge carries about 1,500 making it an important area for warehousing, tons of raw material, or the equivalent of between 60 logistics, and other transport-oriented industrial and 90 trucks. activities. The Illinois International Port District (IIPD or “the Table 1. Waterways Tonnage Port”) controls industrial areas on the east and west banks of Lake Calumet, as well as Iroquois landing, Waterways - Total Tonnage (000s of tons) located six miles to the north at the confluence of the Segment 2003 2012 Change % Calumet River and Lake Michigan. The Port itself Chicago River, Main and North Branch 1,828 792 -56.7% does not conduct commerce, but serves as a landlord that leases sites and facilities to private companies Chicago River, South Branch 3,946 1,267 -67.9% needing waterway access. Lake Calumet 963 808 -16.1% A Strategic & Capital Needs Study was completed Calumet Harbor and River 11,213 11,968 6.7% for the Port District in 2012. It recommended a new direction for the Port that: Calumet Sag Channel 6,576 5,461 -17.0% (On City boundary and outside City) • “Is focused on industrial, maritime, and freight Sanitary and Ship Canal 19,465 11,915 -38.8% (Only a small portion within City) movement issues and opportunities; • Provides for active management of IIPD property; Source:Source: USACE USACE Waterborne Waterborne Commerce Commerce of the United States of the United States • Aggressively promotes and markets the Port as an ideal location for industrial/maritime business; and • Rigorously seeks operational efficiency and financial accountability.” 2 Industrial Usage of the Chicago
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