Cochran and Wicker: Commerce Hampered By Lack of Dredging on Lower Mississippi River

Letter to Obama Points to Silt Hindering Shipping, Administration's Export Goals

April 4, 2011

WASHINGTON, D.C. – American merchandise and farm products intended for export via the Mississippi River are being hampered due to a lack of dredging activity on lower reaches of the river, U.S. Senators Thad Cochran and Roger Wicker (R-Miss.) today asserted in a letter to President Obama.

Cochran and Wicker signed a letter drafted by Senators David Vitter (R-La.) and Mary Landrieu (D-La.) that calls the President’s attention to the consequences of a new Army Corps of Engineers policy to limit dredging activities on the Lower Mississippi River.  The policy has allowed silt to accumulate and restrict the width and depth of the deep-draft navigation channel that is vital to moving U.S. goods on more than 12,000 miles of waterways to the Gulf of Mexico for export.

“The commerce from our ports in the Delta, Vicksburg and Natchez will be disadvantaged if the Lower Mississippi River channel is restricted enough to slow or stop shipments,” Cochran said.  “I believe the Obama administration needs to address this problem now before it becomes more critical.”

“Mississippi’s ports create economic opportunities and jobs throughout our state,” said Wicker.  “These ports give businesses and farmers access to new markets across the country and around the world.  This strategic advantage must be maintained.  If not, more jobs will be at risk.  I will continue working to make sure the Corps addresses dredging on the lower Mississippi River.”

The Army Corps policy change on dredging has led to shipping restrictions, which could be worsened as river levels drop in the next few months.  The Corps has warned that it may only be able to guarantee a 40-foot channel in late spring, which is five feet less than the authorized channel depth.  Some shippers estimate that a one-foot reduction would require ships to reduce cargo by 1,500 tons.

The Senators’ letter cites the effect the lack of dredging and reduced capacity will have on shipping costs and overall U.S. international competitiveness.

The letter was also signed by Senators John Boozman (R-Ark.), Roy Blunt (R-Mo.) and Claire McCaskill (D-Mo.).  The following is the text of the letter to the President:

Dear Mr. President:
 
As Representatives from states that rely on the Mississippi River to transport cargo to other states and to the international export market, we understand the need to adequately dredge and maintain the deep draft navigation river channel. While river conditions have improved, the dredging policy put in place by the Army Corps of Engineers (Corps) and ensuing draft restrictions have had a negative impact on commerce and remain a serious concern. As river levels change over the next few months, draft restrictions will likely have to be re-imposed because the river is not being sufficiently dredged by the Corps.
 
The Mississippi River system, with its 12,000 miles of inland waterways, helps more than 30 states compete in the international export markets. Nearly two-thirds of our grain and seed oil products are exported through the river, and the total value of cargo exported can exceed $104 billion annually. But without a dependable Mississippi River channel for deep draft navigation, a wide range of goods and products will be placed at an immediate competitive disadvantage for participation in the nation’s export markets due to increased shipping costs. Ports and marine transportation companies will lose business, and industries that rely on these companies to ship products will suffer. This reduction in maritime transportation capability and commercial activity will place further stress on our economy at a time when America is recovering from a recession and there is increased demand for agricultural, manufacturing, construction and other cargos.
 
Mr. President, in the State of the Union address you restated your goals of doubling our exports by 2014 and making America the best place in the world to do business. We support these goals, but they cannot be achieved without a properly dredged and maintained Mississippi River. The waterway is vital to our national economy and our international competitiveness, as well as to the hundreds of thousands of Americans who depend on it for their jobs.
 
Thank you for your prompt attention to this matter of importance to our nation.

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