August 11, 2022
Fargo, US 67 F

Soy Transportation Coalition Exec. Dir. says waterways infrastructure important to soybean industry

Executive Director of the Soy Transportation Coalition Mike Steenhoek testified before the House Transportation Subcommittee on Water Resources and Environment Wednesday morning as part of a hearing examining the reliability of America’s aging waterways infrastructure and how it impacts economic competitiveness.

Steenhoek cited the prominence of soybeans as an export commodity, the erosion of U.S. competitive advantage in transportation, the need to invest in waterways infrastructure, and just as importantly, the need to improve the way we utilize the funding.

“One of the primary reasons U.S. agriculture is so viable and competitive is our expansive and efficient transportation network,” stated Steenhoek. “However, the Soy Transportation Coalition and many others are gravely concerned with the condition of our inland waterway system.”

Steenhoek pointed to a recent study from USB that projects the impact of potential lock and dam failures on the competitiveness of the soybean industry. “Unfortunately,” he said, “there is an established and growing consensus that such failures are not a matter of if they occur, they are a matter of when. … Our dilapidated lock and dam inventory is increasingly plagued by unscheduled maintenance and mechanical breakdowns. This discourages investment by those who utilize the inland waterway system toward modernization of river terminals, towing equipment, or barge fleets.”

Steenhoek’s testimony supported more investment in inland waterways and also highlighted the importance of better project management on infrastructure improvements. “One of the arguments in our ongoing analysis is examining ‘how money is allocated is just as important as how much money is allocated’,” said Steenhoek. “It is discouraging to observe how many other countries are able to construct their major infrastructure projects much more efficiently than we can. The Panama Canal expansion project is a great example. This $5.25 billion project commenced in 2007 and is scheduled to be completed in late 2014 or early 2015. The expansion project is more imposing and complex than any project we have underway or planned in our inland waterway system, yet all indications are that the project will be completed within budget and only a handful of months behind schedule. Compare this to our Olmsted Lock and Dam project that had an original cost estimate of $775 million and has recently been updated to more than $3 billion with a significant time horizon remaining before it will be completed. When examining the various reasons for our repeated cost overruns and project delays, it quickly becomes evident that a major contributing factor is the piecemeal and unpredictable manner in which we finance these projects.”

Source: ASA

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