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Great Lakes Navigation Program Update Mike O Bryan Great Lakes Navigation Business Line Manager Feb 11, 2010 US Army Corps of Engineers

Great Lakes Navigation Update Meeting Agenda FY09 Accomplishments FY10 Program FY11 President s Budget Dredging Backlog Reduction Plan Soo Locks Reliability 2

FY09 Great Lakes Navigation Program Accomplishments Groundbreaking at New Soo Lock: 2 contracts $16M Soo Asset Renewal; $17M Chicago Lock Gates $61M Dredging (51 projects, 5.2M cu yds) $27M in CDF work (fill management, offloading, reuse) $27M in structures work 3

FY09 Construction Projects Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Commercial WI Recreational La Pointe Bayfield Ashland Saxon Black River Keweenaw Waterway Ontonagon IL Eagle Harbor MI Big Suamico Green Bay Sheboygan Port Washington Milwaukee Kenosha Chicago Harbor Lac La Belle Grand Traverse Bay Waukegan Presque Isle Cedar River Menominee Oconto Pensaukee Two Rivers Manitowoc Chicago River Calumet Big Bay Marquette Gladstone Little Bay de noc Lake Michigan IN Washington Island Sturgeon Bay Algoma Kewaunee Little Lake Grand Marais Manistique St. James Frankfort Arcadia Channels in Straits of Mackinac Grays Reef Portage Lake Manistee Ludington Pentwater White Lake Cross Village Petoskey Leland Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Burns Small Boat Harbor Burns Waterway Harbor Indiana Harbor Whitefish Point Harbor Charlevoix Greilickville Soo Locks St. Marys River Mackinac Island Mackinac City Cheboygan Inland Route Point Lookout MI Detour Les Cheneaux Island Black River Harbor Au Sable Harbor Saginaw OH Hammond Bay Alpena Harrisville Tawas Bay Rouge River Detroit River Monroe Bolles Harbor Bay Port Caseville Sebewaing Lake Huron Pine River Clinton River Black River Lake St. Clair Toledo Cooley Canal Toussaint River Port Clinton West Harbor Port Austin Harbor Beach Port Sanilac Lexington Belle River Put-In-Bay St. Clair River Lorain Vermilion Huron Sandusky Lake Erie Fairport Cleveland Rocky River Erie Conneaut Ashtabula Geneva On-The-Lake CANADA Little Sodus Bay Great Sodus Bay Irondequoit Bay Rochester Oak Orchard Olcott Wilson Little River Black Rock Lock/Tonawanda Buffalo Sturgeon Point Cattaraugus Dunkirk Barcelona Lake PA Ontario NY Cape Vincent Sackets Harbor Port Ontario Oswego Ogdensburg Morristown 4

Structure Repair Cleveland, OH Contractor: TAB Construction 5

Structure Repair Petoskey, MI Contractor: Industrial Maintenance Services, Inc. 6

Structure Repair Sturgeon Bay, WI Contractor: Gillen Co 7

FY09 Dredging Projects Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Deep Draft WI Shallow Draft La Pointe Bayfield Ashland President s Budget Omnibus Bill Adds Regional Funding ARRA Funding Saxon Black River Keweenaw Waterway IL Eagle Harbor Ontonagon MI Channels in Straits of Mackinac Detour Manistique Les Cheneaux Island Gladstone Grays Reef Mackinac Island Little Bay de noc St. James Cross Village Mackinac City Cheboygan Hammond Bay Inland Route Cedar River Menominee Washington Island Petoskey Charlevoix Leland Oconto Alpena Pensaukee Sturgeon Bay Black River Harbor Big Suamico Algoma Greilickville Frankfort Harrisville Green Bay Kewaunee Arcadia Au Sable Harbor Portage Lake Two Rivers Tawas Bay Manitowoc Manistee Point Lookout Sheboygan Port Washington Milwaukee Kenosha Waukegan Chicago Harbor Chicago River Lac La Belle Grand Traverse Bay Presque Isle Marquette Calumet Big Bay Lake Michigan IN Little Lake Grand Marais Ludington Pentwater White Lake Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Burns Small Boat Harbor Burns Waterway Harbor Indiana Harbor Whitefish Point Harbor Soo Locks St. Marys River MI Saginaw OH Rouge River Detroit River Monroe Bolles Harbor Bay Port Caseville Sebewaing Lake Huron Pine River Clinton River Black River Lake St. Clair Toledo Cooley Canal Toussaint River Port Clinton West Harbor Port Austin Harbor Beach Port Sanilac Lexington Belle River Put-In-Bay St. Clair River Lorain Vermilion Huron Sandusky Lake Erie Fairport Cleveland Rocky River Erie Conneaut Ashtabula Geneva On-The-Lake CANADA Little Sodus Bay Great Sodus Bay Irondequoit Bay Rochester Oak Orchard Olcott Wilson Little River Black Rock Lock/Tonawanda Buffalo Sturgeon Point Cattaraugus Dunkirk Barcelona Lake PA Ontario NY Cape Vincent Sackets Harbor Port Ontario Oswego Ogdensburg Morristown 8

Dredging Calumet Harbor Contractor: Luedtke Engineering 9

Dredging Lorain Harbor, OH Contractor: Ryba Marine 10

Dredging Dunkirk Harbor, NY Contractor: Geo Gradel Co 11

Dredging U.S. Coast Guard Slip Sault Ste. Marie, MI Contractor: Great Lakes Dock & Materials 12

FY10 Anticipated Construction Projects Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Commercial WI Recreational La Pointe Bayfield Ashland Saxon Black River Keweenaw Waterway Ontonagon IL Eagle Harbor MI Big Suamico Green Bay Sheboygan Port Washington Milwaukee Kenosha Chicago Harbor Lac La Belle Grand Traverse Bay Waukegan Presque Isle Cedar River Menominee Oconto Pensaukee Two Rivers Manitowoc Chicago River Calumet Big Bay Marquette Gladstone Little Bay de noc Lake Michigan IN Washington Island Sturgeon Bay Algoma Kewaunee Little Lake Grand Marais Manistique St. James Frankfort Arcadia Channels in Straits of Mackinac Grays Reef Portage Lake Manistee Ludington Pentwater White Lake Cross Village Petoskey Leland Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Burns Small Boat Harbor Burns Waterway Harbor Indiana Harbor Michigan City Whitefish Point Harbor Charlevoix Greilickville Soo Locks St. Marys River Mackinac Island Mackinac City Cheboygan Inland Route Point Lookout MI Detour Les Cheneaux Island Black River Harbor Au Sable Harbor Saginaw OH Hammond Bay Alpena Harrisville Tawas Bay Rouge River Detroit River Monroe Bolles Harbor Bay Port Caseville Sebewaing Lake Huron Pine River Clinton River Black River Lake St. Clair Port Austin Toledo Cooley Canal Toussaint River Port Clinton West Harbor Harbor Beach Port Sanilac Lexington Belle River Put-In-Bay St. Clair River Lorain Vermilion Huron Sandusky Lake Erie Fairport Cleveland Rocky River Erie Conneaut Ashtabula Geneva On-The-Lake CANADA Little Sodus Bay Great Sodus Bay Irondequoit Bay Rochester Oak Orchard Olcott Wilson Little River Black Rock Lock/Tonawanda Buffalo Sturgeon Point Cattaraugus Dunkirk Barcelona Lake PA Ontario NY Cape Vincent Sackets Harbor Port Ontario Oswego Ogdensburg Morristown 13

FY10 Anticipated Dredging Contracts Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Commercial WI Recreational La Pointe Bayfield Ashland President s Budget Omnibus Bill Adds Saxon Black River Keweenaw Waterway IL Eagle Harbor Ontonagon $6M MI Regional Dredging Fund $1.9M Lake Superior WI Small Harbor Regional Maintenance Provision ARRA Funding MI Pensaukee Big Suamico Green Bay Sheboygan Port Washington Milwaukee Kenosha Waukegan Cedar River Menominee Oconto Two Rivers Manitowoc Chicago Harbor Chicago River Calumet Lac La Belle Grand Traverse Bay Presque Isle Big Bay Marquette Gladstone Little Bay de noc Algoma Kewaunee Lake Michigan Grand Marais Channels in Straits of Mackinac Detour Manistique Les Cheneaux Island Grays Reef Mackinac Island St. James Mackinac City Cheboygan Cross Village Hammond Bay Inland Route Washington Petoskey Island Charlevoix Leland Alpena Sturgeon Bay Frankfort Arcadia Portage Lake Manistee Ludington Pentwater White Lake Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Burns Small Boat Harbor Burns Waterway Harbor Indiana Harbor Little Lake Greilickville IN Whitefish Point Harbor Point Lookout Saginaw MI Soo Locks Black River Harbor Au Sable Harbor OH St. Marys River Harrisville Tawas Bay Monroe Bolles Harbor Bay Port Caseville Sebewaing Rouge River Detroit River Lake Huron Clinton River Black River Pine River Lake St. Clair Toledo Cooley Canal Toussaint River Port Clinton West Harbor Port Austin Harbor Beach Port Sanilac Lexington St. Clair River Belle River Put-In-Bay Lorain Vermilion Huron Sandusky Lake Erie Cleveland Rocky River Erie Conneaut Ashtabula Geneva On-The-Lake Fairport CANADA Little Sodus Bay Great Sodus Bay Irondequoit Bay Rochester Oak Orchard Olcott Wilson Little River Black Rock Lock/Tonawanda Buffalo Sturgeon Point Cattaraugus Dunkirk Barcelona Lake PA Ontario NY Cape Vincent Sackets Harbor Port Ontario Oswego Ogdensburg Morristown 14

Harbors Eligible for $6M Regional Dredging Fund FY10 ALPENA, MI ARCADIA, MI AU SABLE, MI BAY PORT, MI BIG BAY, MI BLACK RIVER (GOGEBIC), MI BOLLES HARBOR, MI CLINTON RIVER, MI EAGLE HARBOR, MI FRANKFORT, MI GRAND MARAIS, MI INLAND ROUTE, MI LAC LA BELLE, MI LELAND, MI LES CHENEAUX ISLAND CHANNELS, MI LEXINGTON, MI LITTLE LAKE, MI LUDINGTON, MI MANISTEE, MI MANISTIQUE, MI MARQUETTE, MI MENOMINEE, MI NEW BUFFALO, MI PENTWATER, MI POINT LOOKOUT, MI PORT AUSTIN, MI PORT SANILAC, MI PORTAGE LAKE, MI ROUGE RIVER, MI SAUGATUCK, MI SOUTH HAVEN, MI WHITE LAKE, MI 15

Lake Superior Small Harbor O&M Regional Provision Total Provision $1.9 M to be used on Small Harbor O&M in Wisconsin Harbors Dredging Bayfield, WI $230K Structure Repair at Port Wing, WI $1.7M 16

Omnibus Bill Regional Dredging Provisions FY08 Commercial Dredging ($6.544M) Transportation Cost Savings Relationship Among Harbors Coordinate with Stakeholders FY08 Lake Superior Small Harbor Dredging ($1.564M) FY08 Michigan Reprogramming Provision FY09 $5M Michigan Provision (30 Eligible Harbors) FY10 $6M Michigan Provision (32 Eligible Harbors) FY10 Lake Superior Small Harbor O&M ($1.9M) 17

FY 11 President s s Budget Great Lakes Navigation $98.4M in all appropriations $8.0 M Construction for Indiana Harbor CDF $0.4M in Investigations for GL Nav Study $90.0M in Operation & Maintenance $32.8M in Dredging $13.4M in Dredged Material Management $1M in Soo Asset Renewal 18

FY11 Dredging Projects Beaver Bay Grand Marais Chippewa Harbor Lake Superior Two Harbors Knife River Cornucopia Duluth- Superior Port Wing Commercial Recreational WI La Pointe Bayfield Ashland President s Budget Saxon Black River Keweenaw Waterway Ontonagon IL Eagle Harbor MI Big Suamico Green Bay Sheboygan Port Washington Milwaukee Kenosha Chicago Harbor Lac La Belle Grand Traverse Bay Waukegan Presque Isle Cedar River Menominee Oconto Pensaukee Two Rivers Manitowoc Chicago River Calumet Big Bay Marquette Gladstone Little Bay de noc Lake Michigan IN Washington Island Sturgeon Bay Algoma Kewaunee Little Lake Grand Marais Manistique St. James Frankfort Arcadia Channels in Straits of Mackinac Grays Reef Portage Lake Manistee Ludington Pentwater White Lake Cross Village Petoskey Leland Muskegon Grand River Grand Haven Holland Saugatuck South Haven St. Joseph St. Joseph River New Buffalo Michigan City Burns Small Boat Harbor Burns Waterway Harbor Indiana Harbor Whitefish Point Harbor Charlevoix Greilickville Soo Locks St. Marys River Mackinac Island Mackinac City Cheboygan Inland Route Point Lookout MI Detour Les Cheneaux Island Black River Harbor Au Sable Harbor Saginaw OH Hammond Bay Alpena Harrisville Tawas Bay Rouge River Detroit River Monroe Bolles Harbor Bay Port Caseville Sebewaing Lake Huron Pine River Clinton River Black River Lake St. Clair Toledo Cooley Canal Toussaint River Port Clinton West Harbor Port Austin Harbor Beach Port Sanilac Lexington Belle River Put-In-Bay St. Clair River Lorain Vermilion Huron Sandusky Lake Erie Fairport Cleveland Rocky River Erie Conneaut Ashtabula Geneva On-The-Lake CANADA Little Sodus Bay Great Sodus Bay Irondequoit Bay Rochester Oak Orchard Olcott Wilson Little River Black Rock Lock/Tonawanda Buffalo Sturgeon Point Cattaraugus Dunkirk Barcelona Lake PA Ontario NY Cape Vincent Sackets Harbor Port Ontario Oswego Ogdensburg Morristown 19

Path Forward to Reduce Backlog 2011-2017 Cubic Yards Dredged (x1000)- Blue Line 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 FY11 PB 0 1985 1990 1995 2000 2005 2010 2015 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Cum. Backlog (1000 cu yds) - Green Line Annual Great Lakes Dredging 1986-2010 Average Annual Need Dredging Backlog FY11 20

Dredging Funding Trends 2007-2011 Quantity Dredged (1000 cu yd) 5.5 5.0 ARRA (Stimulus) 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.3M Annual Reqm t FY07 FY08 FY09 FY10 FY11 2.2M cu yds ($26M) needed over annual reqmt to meet backlog removal plan 0.6M cu yds ($7M) needed to meet annual reqmt L. Superior Regional Provisions Michigan Regional Provision Commercial Regional Provisions Energy & Water Adds President's Budget 21

The Soo Locks Economic Strength to the Nation Soo Locks allow ships to navigate the 21 foot drop from Lake Superior to the lower Great Lakes Nearly 80M tons of commercial commodities pass through the Soo Locks annually Majority of American steel industry s iron ore passes through the Locks Cities such as Detroit & Toledo run on electricity supplied by coal transported through the Locks Unscheduled outages are increasing as the facility ages 40 year old Poe Lock 66 year old MacArthur Lock 22

The Soo Locks A Lynch Pin of the Great Lakes Navigation System 70% of the commercial commodities transiting the Soo Locks are limited by size to the Poe Lock Security concerns - foreign crews in vessels are capable of seriously damaging or destroying locks There is currently no redundancy for the Poe Lock The economic impact of a 30-day unscheduled closure of the Soo Locks = $160M Two major efforts are underway to improve reliability of the Soo Locks 1. Maintain existing infrastructure through Asset Renewal Plan 2. Add redundancy by constructing a new replacement lock with the same dimensions as the Poe Lock 23

New Replacement Lock Inconsistent with Administration policy due to BCR of 0.73 WRDA 2007: Construction at 100% federal expense Proposed revisions to the Principles and Guidelines will allow reanalysis of the Federal interest in the project Other Considerations: Security, rail/infrastructure capacity, impacts of extended closure 24

Lock Construction Sault Ste. Marie, MI Contractor: Durocher Marine 25

Lock Construction Sault Ste. Marie, MI Contractor: Durocher Marine 26

Stakeholder Involvement We need your input on critical system needs at your harbor or project Will solicit input on FY12 needs by email in April (no spring stakeholder meeting) Contact Operations Chiefs from each District to discuss harbor specific issues and needs Webpage is an important mode of communication: meetings, presentations, data, updated fact sheets www.lre.usace.army.mil/greatlakes/navigation 27

Key Great Lakes Contacts GL Navigation Business Line Manager Mike O Bryan (313) 226-6444 Shamel Abou-El-Seoud - Chicago Operations Chief (312) 846-5470 Ray Lewis - Buffalo District Operations Chief (716) 879-4206 Wayne Schloop - Detroit Operations Chief (313) 226-5013 www.lre.usace.army.mil/greatlakes/navigation 28

Questions? 29