Coal Age

MAR 2013

Coal Age Magazine - For nearly 100 years, Coal Age has been the magazine that readers can trust for guidance and insight on this important industry.

Issue link: https://coal.epubxp.com/i/131326

Contents of this Issue

Navigation

Page 26 of 127

transport tips continued the barge fleet that currently hauls coal to those plants that would close. Again, it would be a supply/demand effect in which there is likely to be a greater supply of hopper barges than the demand for them, and this could depress the price of barge freight. Projected Economic Effects The drought has caused significant concern that the Corps would not be able to maintain the 9 ft minimum depth navigation channel in the Mississippi River between St. Louis and Cairo in December 2012 and January 2013. To assess the potential economic impact of a twomonth closure American Waterways Operators and the Waterways Council hired Navigistics Consulting to prepare a study of the expected impacts. Highlights of the Navigistics report include: • 5 million barrels of domestically produced crude oil would be replaced by imported crude oil—costing $545 million additional imports ($109/bbl) • Approximately 300 million bushels of agricultural products would be delayed reaching market—representing $2.3 billion product value • 3.8 million tons of coal would be shut in—valued at $192 million To summarize, cargo valued at more than $7 billion would stop moving if the Mississippi River were closed due to low water between St. Louis and Cairo. While at least 10 states would be impacted, the three states most impacted would be Illinois, Louisiana and Missouri. Nearly 20,000 jobs and more than $130 million in wages and benefits would be impacted. Since none of this has happened yet, it may seem a bit like "sky is falling" predictions. The Corps has made significant progress on removing the rock pinnacles, so it may not be likely that a river closure would last for two months. Rock Pinnacles at Thebes and Grand Tower A 3-D map of the river bottom shows a strange and disturbing rock structure that exists near Thebes and Grand Tower. Referred to as rock pinnacles, these structures do not appear as a threat to navigation when the river gage is running at normal levels. However, if there is less than 10 ft of water over the pinnacles, they become a hazard to barge traffic. The Corps is charged with the responsibility of maintaining a 300-ft March 2013 www.coalage.com 25

Articles in this issue

Links on this page

Archives of this issue

view archives of Coal Age - MAR 2013