Grain shippers praise efforts to modernize U.S. inland river systems
Two large American grain shipper groups praised the U.S. Army Corps of Engineers’ efforts to press forward with the modernization of certain locks and dams along the Upper Mississippi and Illinois rivers.
“One of the few advantages U.S. soybean farmers have over our international competitors is an efficient transportation system, particularly an efficient inland waterway system,” said Dwain Ford, chairman of the American Soybean Association, in a statement.
Grain shippers said new 1,200-foot structures are needed at Locks 20, 21, 22, 24 and 25 on the Mississippi River, and the LaGrange and Peoria Locks on the Illinois River. Guide wall extensions are needed on the Mississippi River Locks 14, 15, 16, 17 and 18.
“It’s time to get the ball rolling,” said Rick Tolman, chief executive officer of the National Corn Growers Association and chairman of the Midwest Area River Coalition 2000. “It’s going to take at least 15 years to upgrade these locks, so we’ve got to get started on this immediately.”
In January, the Corps issued its “draft tentative” plan, which recommended a $2.3-billion investment for lock modernization and $5.3 billion for environmental restoration over the next 50 years.
The Corps recently said it would prepare a draft report in May, which will contain the draft proposal. The agency will then hold public meetings in June before completing its final report in late summer. During the fall, the Corps’ Chief of Engineers Report containing the recommendations will be reviewed by the administration and released to Congress.
The American Soybean Association urges Congress to provide $20 million in pre-construction engineering and design funding for new locks and dams on the Mississippi and Illinois rivers in the fiscal year 2005 budget.
The group pointed out that U.S. farmers are coming under increased competition from grain shippers overseas. Argentina, for example, has invested more than $650 million in its transportation systems to make its grain more competitive on the world market. Brazil has revived its water transport network to reduce shipping cost for soybeans by at least 75 percent.
“Due in part to these efforts, the two countries have captured 50 percent of the total growth in the world soybean market during the past three years,” the group said.