Digging Deeper...
/A new barge terminal is open for business on the Missouri River. It came on stream (no pun intended) in June, giving corn and soybean producers in western Iowa an effective, efficient, and economical venue from which to ship millions of bushels of row crops to markets downstream and overseas – and to offload tons of vital equipment, fertilizer and other inputs western Iowa farmers need for profitable growing. It may herald good times to come on the Missouri River. By: Dennis McLaughlin, McLaughlin Writers LLC
(Sources: Tom Waters, chairman, Missouri Levee and Drainage District Association and chairman, Missouri Highways and Transportation Commission; Chris Chinn, director Missouri Department of Agriculture; Ben Nuelle, Agri-Pulse Communications, June 16, 2021; Mike Steenhoek, executive director, Soy Transportation Coalition; Dan Dix, general manager, Port of Blencoe, Iowa; Mike Naig, Iowa Secretary of Agriculture)
Missouri River Gets Much Needed Infrastructure Funding
Located half-way between Council Bluffs and Sioux City, on the Iowa side of the Missouri River, the Port of Blencoe will serve as a gateway to world markets. The port is the farthest stop north on the Missouri River and will shift high-volume freight from road to waterway. With its newly constructed, recently christened barge terminal, the port provides a marketing option for Midwest corn and soybean producers. “The facility's ability to ship millions of bushels of row crops downstream toward the Mississippi River could also increase the prices grain buyers will pay for their grain,” noted Ben Nuelle, in an Agri-Pulse Communications report (June 16, 2021).
The Port of Blencoe, operated by Iowa-based NEW Cooperative, Inc., and three-years in development, will provide western Iowa farmers with direct access to international markets. It’s a doorway to global trade, Iowa Secretary of Agriculture Mike Naig told Agri-Pulse. “I call it an on-ramp to the superhighway to the Gulf of Mexico.” The port will service six barges and a single towboat about 17 times a year.
It has been 16 years since barges have navigated into the region. State and local officials as well as business leaders in the area hope the new port will help increase end-market grain prices. "This part of Iowa, typically, has some of the lowest prices for grain,” said Dan Dix general manager of the Port of Blencoe. However, he noted, producers are so far-removed from end-users that over-the-road and rail- transportation costs cut into their profits.
Commenting on freight rates, and congested rail and highways, Tom Waters, chairman of the Missouri Levee and Drainage District Association (MLDDA) said, “Rivers remain the one mode of transport underutilized in the transportation system; it’s environmental and economic benefits continue to make it a viable choice for transportation well into the future.”
More to the Story
The recent commencement of barge operations at Port Blencoe may not have elicited more than a ho-hum from communities and businesses down river, but it is emblematic of positive efforts from federal, state and local government to implement river infrastructure projects that will improve flood control systems and enhance commercial navigability. With infrastructure high on the list of priorities in the White House and in Congress, it is a good time for floodplain communities, river-dependent commerce and transportation operations to put forth proposals and applications for financial allocations from governmental agencies and departments. “Infrastructure is a big deal right now,” says Waters, referring to the multi-trillion dollar projects being discussed by the White House and Congress.
While the iron is hot, it’s a good time to strike. And that’s what seems to be happening. The Missouri River flooding of 2019 has forced lawmakers, business leaders, engineers and communities to demand more attention be directed toward upgrading the nation’s inland waterways infrastructure. In particular its dams and levees. On January 19, 2021, The U.S. Army Corps of Engineers (USACE) delivered to Congress its Fiscal Year 2021 Work Plan for the Army Civil Works program. It was a presentation detailing where USACE would spend its allotments from the 2021 Consolidated Appropriations Act, Public Law 116-260 that became law on December 27, 2020.
Of the $7.3 billion funding that the Act provides for USACE’s Army Civil Works projects, $2.2 billion will be spent on the nation’s rivers: Navigation - $1.3 billion; Flood Risk Management - $0.5 billion; Other Authorized Project Purposes - $0.4 billion.
In its own words, here is how USACE described its spending plans to lawmakers:
“The Army Civil Works program includes funds for the planning, design, construction, and operation and maintenance of water resources projects, with a focus on the highest performing work within the three main Civil Works mission areas: commercial navigation, flood and storm damage reduction, and aquatic ecosystem restoration. It also funds programs that contribute to the protection of the nation’s waters and wetlands; the generation of low-cost renewable hydropower; the restoration of certain sites contaminated as a result of the nation’s early atomic weapons development program; and emergency preparedness and training to respond to natural disasters.”
Close To Home
Late last December, the United States Congress passed the bipartisan Water Resources Development Act (WRDA) of 2020, and it was signed into law in early January 2021. According to a release from the U.S. House Committee on Transportation and Infrastructure, “WRDA 2020 included essential provisions to invest in U.S. ports, harbors and inland waterways; build more resilient communities; and ensure that the U.S. Army Corps of Engineers carries out projects in an economically and environmentally responsible manner.”
The efforts of Missouri’s U.S. Senators Roy Blunt and Josh Hawley and U.S. Congressional Representatives Emanuel Cleaver and Sam Graves were key in making sure lawmakers understood how critical the Missouri River is to overall national agricultural, inland navigational and regional flood control interests. Biennial WRDA legislation – which the Transportation and Infrastructure Committee has developed and passed on a bipartisan basis since 2014 – is critical to all 50 states, territories, and Tribal communities.
Tom Waters said, “MLDDA worked with Congressman Sam Graves and the House Transportation and Infrastructure Committee staff, Congressman Emanuel Cleaver and Senator Roy Blunt to get language in the WRDA 2020 regarding the Missouri River.” WRDA 2020 also has several exciting things in it, he pointed out, involving the Missouri River. “The Lower Missouri River Study in WRDA 2020 begins a process of developing a system plan for the River and opens the door to begin feasibility studies for a few critical locations along the River where flood control infrastructure improvements can be made.
In addition to Missouri’s Washington Congressional Delegation, Waters noted his groups have been working closely with the Missouri Department of Natural Resources and the State Legislature to begin implementing some of the ideas developed by Governor Parson’s Missouri River Flood Recovery Advisory Working Group. He also pointed out that MLDDA and MHTC have acquired funding for requisite feasibility studies. “We’ve raised our share of the costs, and are ready to go,” he said, adding, “We’re just waiting for federal allocations to arrive.”
The 2019 flood event once again demonstrated how important flood control infrastructure is for Missouri, Waters reported. “For years, the Levee Association has been telling the story about the need for improvements in our flood control system. In recent years, the River itself has been telling the story. Flood after flood over the past several years has drawn attention to the Missouri River, and I am hopeful we will begin to see improvements made to benefit all those impacted by Missouri River flooding.”
WRDA 2020: What’s in it for Mighty Mo?
The legislation provides more than $7.7 billion for the Army Corps of Engineers (which is $145 million above the Fiscal Year “enacted” level. The funding will support vital flood control and navigation projects across Missouri and the nation. How much of that will actually be carved out for the Missouri River remains to be seen after feasibility studies have been completed.
Navigation and Ecosystem Sustainability Program (NESP): Bill includes language that advances the NESP, which authorizes the modernization of seven locks and dams on the Upper Mississippi River.
Missouri River Bank Stabilization and Navigation Program: The legislation provides $9.4 million for operation and maintenance work activities, including critical structure maintenance for navigation.
Lower Missouri River: The bill includes language that urges the Corps to work with state and federal agencies and stakeholders to identify authorities and opportunities for the development of a more comprehensive, system-wide plan for flood control in the Lower Missouri River Basin. Senator Blunt has also introduced legislation (cosponsored by all the Senators from lower Missouri River basin states) that would overhaul the Corps’ process for managing projects along the lower Missouri River system.
Inland Waterways Trust Fund: The bill makes full use of the Inland Waterways Trust Fund revenues. The bill also ensures the resources inland navigation operators put into the Inland Waterways Trust Fund are used for construction and modernization of our nation’s locks and dams.
Mississippi River and Tributaries Project: The legislation includes $380 million for the Mississippi River and Tributaries Project, providing vital funding for the Corps to fulfill its flood control and navigation missions.
Delta Regional Authority (DRA): The bill provides $30 million for the DRA with a focus on infrastructure development in rural areas, including $15 million for flood control, public infrastructure, and transportation improvements. The DRA provides infrastructure, health care, and economic development assistance to 29 counties in Southeast Missouri.
Small Ports: The legislation includes $65 million for the dredging of small ports, including those in Missouri located on the Mississippi River.
Kansas City National Security Campus: The bill provides more than $4 billion for the Infrastructure and Operations account at the National Nuclear Security Administration. This funding is essential to the operation of the Kansas City National Security Campus, and will help ensure the safety, security, reliability, and effectiveness of the nation’s nuclear weapons stockpile.
MDA Director Chinn Touts Missouri River
In a recent press release, Chris Chinn, director, Missouri Department of Agriculture, counted the Missouri River among the “unsung heroes” of the state’s agricultural industry. “As Missouri farmers and ranchers, we are blessed with this advantage, in addition to our rail and trucking options to get our products to market,” she said. “The three transportation options working together create a competitive environment that brings down the cost of grain transportation overall.”
Director Chinn also pointed to the large amount of fertilizer that is carried upriver to Missouri farmers during planting season. On their return trip, she said, the barges are loaded down with grain for export to customers around the world. But it takes a lot of work to maintain these systems appropriately.
“We’ve seen leaders, such as Governor Mike Parson, step up to prioritize navigation and flood control along our river systems that have paid off for agriculture.” Barge traffic has been increasing over the years because of these collective efforts, Chinn said. “Since the 1990s, we’ve seen a renaissance on both the Missouri and Mississippi rivers in terms of management,” she added.
According to Missouri’s Grain Inspection Services – with service sites in St. Joseph, Marshall and New Madrid – barge traffic has grown dramatically. For example, since 2008, New Madrid’s service point saw nearly 12,500 barges inspected; Marshall’s service point (which includes Missouri and Mississippi River locations) saw more than 8,500 barges come through for inspection.
“But the most impressive numbers are found in the increases in five-year averages,” Chinn explained. “Marshall’s five-year average increased from 373 barges annually from 2008 to 2012, to 953 annually from 2016 to 2020.” An impressive 255% bump in activity. Farther south, she noted, “New Madrid’s five-year average went from 759 annually from 2008 to 2012, to well over 1,000 annually from 2016 to 2020. That’s a 31% increase at one of the most critical river shipping ports in our state.”