Here’s a simple enough riddle of economics: If $85 million is needed annually to keep the Mississippi River deep enough for ships to navigate from the Gulf of Mexico to Baton Rouge, but the U.S. Army Corps of Engineers only receives about $53 million for dredging operations, what is the end result? Shipping restrictions, which are currently curtailing traffic on the lower Mississippi. The formula becomes even more skewed when you consider that dredging the Baton Rouge to Gulf of Mexico corridor sometimes costs as much as $100 million. Although Congress has authorized a 45-foot draft, the Associated Branch Pilots is presently restricting ships to 44 feet. A reduction of one foot of draft is equivalent to roughly 1,500 tons, which shippers equate with hundreds of thousands of dollars. “If these restrictions continue it will ultimately become much more difficult for Louisiana and the agricultural and industrial producers of our country to compete in the global market,” says Agriculture and Forestry Commissioner Mike Strain.
One solution could be the Realize America’s Maritime Promise Act, or RAMP, which was introduced by U.S. Rep. Charles Boustany, R-Lafayette, in January. With this bill, Boustany is targeting the Harbor Maintenance Trust Fund, which is maintained by taxes paid on cargo for the purpose of channel maintenance. The Harbor Maintenance Trust Fund currently has a balance of approximately $5.1 billion, yet historically only about half of the money generated by this tax is spent on dredging and related activities. “For too long, Congress used the Harbor Maintenance Trust Fund to disguise the federal deficit, limiting the fund’s ability to address real problems along many of the waterways important to trade, commerce and jobs,” Boustany says. Read the full story here. —Jeremy Alford
