A New Soo Lock: An Overview

The Water Resources Development Act of 1986 (P.L. 99-662) authorized, among other projects, a new large lock at Sault Ste. Marie, Michigan. Non-federal cost sharing for navigation construction projects was required by the law. The proposed new lock would be designed to replace two old and outmoded small locks.

Justification for lock construction is based on the need to maintain efficient lock operations and reduce the risk of dependency on the existing large lock which was opened in 1969. On the Great Lakes, U.S. flag vessels restricted to the Poe Lock represent two-thirds of fleet carrying capacity. Also, the Soo Locks' importance in serving the nation's steel industry and, hence, its role in national defense is an acknowledged fact.

The locks have played a vital role in the movement of commodities through the Upper Great Lakes system. In the early years, grain, flour, copper, iron ore and wood products were the traffic mainstays. Iron ore, grain and coal eventually became dominant. Through 1997, the total tonnage locked through the Soo Locks was nearly 8.4 billion tons. Average tonnage for the 10 year period 1987-1996 has been 85.5 million tons.

On the Great Lakes, U.S. flag vessels
restricted to the Poe Lock represent
two-thirds of fleet carrying capacity.

With respect to regional coordination on funding for a new Soo Lock, the Great Lakes states have asked the Great Lakes Commission to assume a lead role. The Commission is an interstate compact agency established in 1955 to coordinate among and represent the eight Great Lakes on water resource issues. In 1996, the Commission along with regional shipping and port interests were successful in lobbying Congress to secure a longer payback (50 years) for the non-federal share and in reducing the amount. The non-federal cost share was reduced by several million dollars to account for Soo traffic that does not have U.S. port connections. A remaining cost share issue -- that of interest applicability is a significant concern. The Commission and the states are currently advocating an interest waiver and senior members of the Great Lakes Congressional Delegation including Representative Jim Oberstar from Minnesota's 8th District, who is the ranking minority member of the Transportation and Infrastructure committee, have indicated support.

In 1998, the Great Lakes Commission directed its Soo Lock Funding Alternatives Task Force to develop an equitable funding plan for the non-federal share. The Task Force has initially ruled out a regionally-imposed tonnage tax or other form of vessel toll at the Soo. With this point, it hasn't abandoned the private sector contribution factor but says it should be up to each individual state for implementation. The Task Force has also investigated several state share funding options and now is concentrating its efforts on two basic approaches tied to origin -- destination tonnage. One option is based on port or terminal tonnage and the other on tonnage originating in a state or where it is ultimately delivered. A third option is an average of these two. In addition to discarding the regional tolls option for complete or partial funding, the Task Force rejected one based on a state population and manufacturing employment formula.

Through 1997, the total tonnage
locked through the Soo Locks
was nearly 8.4 billion tons.

A new large Soo Lock has both national and regional benefits. Employment and tax revenue related to steel-making infrastructure, iron ore/toconite mining, electric utility service areas and port facilities in many of the Great Lakes states, confirms the benefit derived from the commodity flow through the Soo locks complex.

For Minnesota and Michigan, the stakes are particularly high. Under the three origin-destination options being considered, the two states account for 50% to 69% of the total Soo tonnage and therefore may ultimately have the largest state shares. Michigan is moving ahead with Governor John Engler announcing in September 1998 that he will make the matter a priority and intends "to rally support to build a new Soo Lock."

Under a new plan, the states of
Minnesota and Michigan would account
for 50-69% of the total Soo tonnage

The puzzle pieces are on the board. An interest waiver coupled with a Great Lakes states agreement on a funding approach will set the stage for Congressional action supporting construction of a new large lock at the Soo.