Supply

Olmsted Lock and Dam Plans Proceeding

Well-functioning waterways are crucial to U.S. infrastructure and the timely, reliable delivery of U.S. soybeans. For the Olmsted Lock and Dam project, the next steps are the removal of Lock and Dam 52 and 53 that were made redundant by Olmsted Lock and Dam. The demolition of Lock and Dam 53 started after the Olmsted Dam became operational, but the unprecedented high-water event has pushed the removal of Lock and Dam 52 and 53 into 2021. Once the Olmsted Lock and Dam project is totally complete, a tremendous amount of money will be freed up to work on other important major maintenance projects on the Inland Mississippi River System.

According to the U.S. Army Corps of Engineers, the tonnage that transits through or over the Olmsted Dam is approximately the equivalent of 3.6 million semi-tractor trailer trucks annually or 9,800 trucks daily. Without a working Ohio River, all those large 80,000-pound semi-tractor trailers would be adding to the general congestion on local roads.

In October 2018, the U.S. Army Corp of Engineers Louisville District opened the Olmsted Locks and Dam on the Ohio River. This project is very important in terms of improving transportation on the Ohio River. The Olmsted Locks and Dam relieve a choke point created at Locks 52 and 53, which hampered the flow of export grain and soybeans that caused cost inefficiencies for shippers and barge operators. Olmsted’s twin 1,200-foot locks eliminate the need to break up and reassemble tows, preventing hours of delays. The elimination of this cost and uncertainty will make the U.S. more competitive in the world market and ultimately improve the soybean price for producers upriver.

Source: USACOE

 

Alan Barrett
Alan Barrett

Director of Consulting

Doane Advisory Services

Alan Barrett is Doane’s project consultant and accomplished commodity economist with more than 25 years of experience in futures and cash markets with a focus on cotton, commodity projects, non-traditional agricultural products, transportation and supply chain studies. Alan spent six years as a commodity futures broker. His expertise encompasses feasibility studies of oilseed crushing plants (soybean canola, and cottonseed), grain elevators, export elevators, shuttle elevators, grain container operations, flourmills and other processing facilities. Alan also has conducted transportation supply chain studies for grains, oilseeds, fertilizer, coal, natural gas, crude oil, and petroleum products. Alan has considerable experience in non-traditional agricultural products such as coal, coke, natural gas, chemicals, hydraulic fracturing fluid, hydraulic fracturing proppants, glycerin, fertilizer, micronutrients, salt, limestone, cement, iron ore, pig iron, and steel, especially feed ingredients. Mr. Barrett has a BS and MS in Agricultural Economics from the University of Tennessee.