Thursday, October 19, 2023

90% of U.S. iron ore travels through the Soo Locks, and the system needs expensive upgrades

Map by Marine Cadastre, Army Corps of Engineers via 
The Wall Street Journal

It isn't just the mighty Mississippi River that moves U.S. commerce. A system of locks, known as the Soo Locks is also vital to trade, but the neglected system needs ongoing, long-term repairs.

"About 10,000 ships pass through the Soo Locks each year to bring iron ore, grain, limestone and other staples across the Great Lakes and Canada into the Midwest and beyond," reports Ken Thomas of The Wall Street Journal. "The navigational system allows large ships to bypass rapids below Lake Superior. . . . Every few decades, the locks were upgraded — until recently."

The pandemic gave Americans a first-hand look at the havoc supply chain disruptions can cause, helping projects like the Soo Locks repairs become a national priority. "Now, construction crews are working to complete a modernization of the locks," Thomas writes. "The question is whether the upgrades can get the funds they need in time." And while the Biden administration has increased funding, more will be needed through 2030 when the upgrades are slated for completion.

In 2015, a Department of Homeland Security study "found that the aging network serves shipping vessels carrying nearly 90% of the nation's iron ore, a critical component of the steel used to make cars and refrigerators," Thomas explains. "The study estimated that if it closed for an extended period, it would also disrupt steel production, cost millions of jobs, and reduce U.S. gross domestic product by $1.1 trillion. . . . John Walsh, the chief executive of the Michigan Manufacturers Association, said trade associations as well as congressional delegations from the Great Lakes states are working to keep the funding a priority.

"The locks are the only effective way to transport the raw materials because distributing iron ore and other supplies by trucks or trains would be cost-prohibitive. Supporters noted that 13 of 14 North American integrated steel mills are dependent upon the Soo Locks to transport iron ore from Minnesota and Michigan," Thomas adds. "The system is nearly as old as the U.S.: The first lock, about 40 feet long to handle canoes, was built on the St. Marys River in 1798 by the Northwest Fur Co. to enhance the fur trade."

No comments: