ANALYSIS OF PROBABLE IMPACTS OF USERS' FEES ON MINNESOTA'S GREAT LAKES SHIPPING

Proposed user charges present perplexing questions of economic impact on major bulk commodity movements and for individual ports on the Great Lakes. Minnesota has a major stake in Great Lakes shipping, and user fees in whatever form will create additional difficulties for the state's commercial navigation activities. Full recovery of U.S. Army Corps of Engineers operations and maintenance expenditures on the Great Lakes would result in a substantial increase in the cost of Minnesota-Great Lakes shipping. This analysis based on a site-specific, per ton charge and applied to Minnesota's share of principal bulk commodity traffic on the Great Lakes indicates that the annual cost recovery burden for the state would amount to more than $22 million. Among the major bulk commodities affected, iron ore and ore concentrates and grain would incur more than 95 percent of the total projected user charges. Increases in ore transportation costs related to user fees would increase domestic steel prices and make foreign steel more competitive in U.S. markets. As a consequence, U.S. ore production may decline. The additional grain transportation costs resulting from user fees would complicate the marketing situation for Upper Midwest grain producers and merchants especially when combined with increased St. Lawrence Seaway tolls. Another consequence for grain movements may be diversion to other transportation modes or other ports. (Author)

• Record URL:
  http://onlinepubs.trb.org/Onlinepubs/trr/1983/925/925-001.pdf
• Summary URL:
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• Supplemental Notes:
  • Publication of this paper sponsored by Committee on Inland Waterborne Transportation. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Authors:
  • Newstrand, M W
  • THORP, STEPHEN
• Publication Date: 1983

Media Info

• Media Type: Print
• Features: References; Tables;
• Pagination: pp 1-6
• Monograph Title: Inland water transportation
• Serial:
  • Transportation Research Record
  • Issue Number: 925
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Costs; Economic impacts; Grain; Impact studies; Inland waterways; Lakes; Shipping; User charges
• Geographic Terms: Minnesota
• Subject Areas: Administration and Management; Economics; Finance; Highways; Marine Transportation; Society;

Filing Info

• Accession Number: 00385245
• Record Type: Publication
• ISBN: 0309036143
• Files: TRIS, TRB
• Created Date: May 30 1984 12:00AM