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Impact, Opportunities, and Challenges

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Impact, Opportunities, and Challenges https://www.portpitt.com/ THE PORT OF PITTSBURGH: IMPACT, OPPORTUNITIES, AND CHALLENGES Final Report, February 17, 2021 Prepared by CENTER FOR PORTS AND WATERWAYS TEXAS A&M TRANSPORTATION INSTITUTE 701 NORTH POST OAK, SUITE 430 HOUSTON, TEXAS 77024-3827 CONTENTS LIST OF TABLES ............................................................................................................................................. iv LIST OF FIGURES ............................................................................................................................................ v ACKNOWLEDGEMENTS ................................................................................................................................ vi PREFACE ...................................................................................................................................................... vii EXECUTIVE SUMMARY .................................................................................................................................. 1 Introduction to the Port ............................................................................................................................ 1 The Lock and Dam System ........................................................................................................................ 1 Funding the System................................................................................................................................... 4 Challenges ................................................................................................................................................. 5 Opportunities ............................................................................................................................................ 6 CHAPTER 1: THE IMPORTANCE OF THE WATERWAYS IN THE PITTSBURGH AREA ..................................... 11 Introduction to the Port of Pittsburgh .................................................................................................... 11 Importance to Local Industry .................................................................................................................. 18 Economic Impact ..................................................................................................................................... 21 Importance to the Nation ....................................................................................................................... 23 Marine Highway ...................................................................................................................................... 25 The Effect on the Nation of Waterways Service Disruptions .................................................................. 25 Non-navigation Beneficiaries of the Lock and Dam System ................................................................... 27 CHAPTER 2: WATERWAYS INFRASTRUCTURE ............................................................................................. 31 Locks and Dams in Southwest Pennsylvania ........................................................................................... 31 Condition/Status of Locks and Dams ...................................................................................................... 35 Overall Assessment ............................................................................................................................. 35 Ohio River ............................................................................................................................................ 37 Allegheny River ................................................................................................................................... 38 Monongahela River ............................................................................................................................. 40 Funding for Locks and Dams ................................................................................................................... 41 Inland Waterways Trust Fund ............................................................................................................. 41 Funding Needs .................................................................................................................................... 42 Status of New USACE Capital Projects .................................................................................................... 43 Ohio River ............................................................................................................................................ 43 Allegheny River ................................................................................................................................... 44 i Monongahela River ............................................................................................................................. 44 CHAPTER 3: POTENTIAL OBSTACLES AND CONCERNS ................................................................................ 47 Market Trends for Coal ........................................................................................................................... 47 Regional Greenhouse Gas Initiative ........................................................................................................ 49 Barge Surplus .......................................................................................................................................... 51 Construction Schedule for U.S. Army Corps of Engineers ...................................................................... 51 Zoning Issues (Waterfront Development) .............................................................................................. 52 Problems with Benefit-Cost Analysis Methodology ............................................................................... 53 Trade War ............................................................................................................................................... 55 CHAPTER 4: TRENDS AND OPPORTUNITIES ................................................................................................ 57 Energy ..................................................................................................................................................... 57 Energy Demand ................................................................................................................................... 57 Fracking Industry and Industrial Development ................................................................................... 60 Legislation ............................................................................................................................................... 68 The Process ......................................................................................................................................... 68 WRRDA 2014 ....................................................................................................................................... 69 WRDA 2016 ......................................................................................................................................... 70 WRDA 2018 ......................................................................................................................................... 70 WRDA 2020 ......................................................................................................................................... 71 Achieving a Better Life Experience (ABLE) Act/Tax Increase Prevention Act of 2014 ........................ 71 Energy and Water Development Appropriations ............................................................................... 71 Infrastructure Construction Legislation .............................................................................................. 71 Improvements in Marine Transportation Operations ............................................................................ 71 Equipment and Propulsion Advances ................................................................................................. 71 Traffic Management Technologies ..................................................................................................... 72 Remote Operation of Locks ................................................................................................................ 72 Commodity Mix ....................................................................................................................................... 73 Coal ..................................................................................................................................................... 73 Ethane Crackers .................................................................................................................................. 76 Marine Highway Funds ........................................................................................................................... 77 APPENDIX A: TYPICAL PETROCHEMICAL DOWNSTREAM INDUSTRIES ....................................................... 79 APPENDIX B: ECONOMIC IMPACT ASSESSMENT OF THE PORT OF PITTSBURGH ....................................... 81 Economic Impact Overview .................................................................................................................... 81 ii Methodological Approach .....................................................................................................................
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