Closure of Chicago & O'Brien Locks Would Cost $4.7 Billion Over 20 Years According to Report Released by Illinois Chamber of Commerce.

CHICAGO, April 7 /PRNewswire/ -- The Illinois Chamber of Commerce today released an economic impact analysis reporting that the economic value lost from permanent closure of the Chicago and O'Brien locks would be $582 million the first year, $531 million annually over the subsequent 7 years and would result in a net loss of $4.7 billion over a 20-year planning horizon.

The report, conducted by DePaul University economist Dr. Joseph Schwieterman, stands in stark contrast to Michigan's 'Taylor and Roach' report, which attempted to trivialize the impact of lock closure on the Chicago economy, purporting that losses would fall within the range of $64 million to $69 million annually. Where the 'Taylor and Roach' report focused on a very narrow scope of impact, the Schwieterman report accounts for the impact lock closure would have across multiple industries locally and regionally, thereby providing a more well-rounded and accurate assessment of the total effect on the region's economic well-being.

"It is the Chamber's hope that this study will bring some well-reasoned perspective to a debate that has been fueled by rhetoric from the state of Michigan," said Jim Farrell, executive director of the Illinois Chamber of Commerce's Infrastructure Council. "The Schwieterman study shows, through well-reasoned economics, that closing these locks will have a devastating affect on our local economy, resulting in the loss of potentially hundreds of area jobs and hurting a range of industries and services."

The economic debate on closing of the Chicago and O'Brien locks has recently been reliant on Michigan's 'Taylor and Roach' study, which has since been peer reviewed and proven unscientific and inaccurate.  The Illinois Chamber of Commerce released three independent critiques of the 'Taylor and Roach' report last week, which are available for download on the Illinois Chamber's website at www.ilchamber.org.

"Beyond the economics, we question the science as well.  The eDNA test cited in claims that Asian Carp are above the electric barrier was only recently developed within the past year, and has not had the benefit of peer review to determine its reliability or accuracy," added Farrell. "Essentially, the Asian Carp debate has been fueled by an unscientific economic analysis and an experimental eDNA test. This hardly seems like sufficient evidence to bring the most environmentally friendly mode of transportation and a billion-dollar industry to a halt."

Two weeks of recent targeted fishing in areas above the electronic barrier yielded zero Asian Carp, calling into question the original eDNA testing mechanism used to detect the Carp's existence.  According to Farrell, "The Illinois Department of Natural Resources used a very sound scientific approach which yielded Asian Carp more than 50 miles from Lake Michigan, but none where eDNA had indicated in the Chicago Area Waterways."

The Schwieterman report concludes that the closure of the locks would result in enormous financial losses resulting from added transportation costs and losses to commercial shipping, recreational boating, commercial cruises and tours, and public protection. Specific examples of these costs include:

Costs of lock closure for existing shippers

"With 7,289,428 tons moving through the Chicago and O'Brien locks annually, the increase in costs for shippers in estimated at approximately $89 million."

External Costs and Highway Cost Responsibility

"All transportation modes generate external costs in the form of pollution, congestion, and safety risks. For some modes, these are not offset by user fees, creating inefficiency in the use of resources….. Shifting to heavy trucks also increases wear and tear on the highway system, most notably in the form of pavement and structural fatigue….. We estimate the additional costs to be $27.5 million annually."

Boats using Chicago Park District facilities and marinas on the Calumet River

"Between April and June each year, an estimated 2,600 recreational boats depart marinas, boat ramps or winter storage facilities on the Chicago River or Cal Sag Channel en route to Chicago Park District facilities on Lake Michigan, where they remain for the summer…. The lost value to boat users from losing their preferred option would, as a rough approximation, be about $5.1 million annually."

Commercial Tours and Cruises

Approximately 75% of all tour and cruise activity in Chicago that uses the river system involves use of the locks…. The river-cruise industry has a total boat capacity for 4,500 to 5,100 passengers. The five companies (operating boat tours and cruises) employ 604 workers and have an approximately $7 million payroll….. The cumulative effect of this lost value is $19.6 million per year."

Stormwater, Flooding and Water Reclamation

"Stormwater management and flooding has been a problem in metropolitan Chicago for more than a century…. The locks must be periodically opened to allow rising waters of the river to flow into the lake for the inadequacy of stormwater systems…. Metropolitan Water Reclamation District of Chicago has reported that it would be necessary to bore a tunnel between the North Branch on the river if operations at the locks, sluice gates and pump stations are halted…. The costs would be $226 million per year (over eight years)."

Schwieterman further notes that his report includes conservative estimates and that additional research is needed to fully understand the effects of lock closure. For example, this study does not look at the investments industries have made in specialized transportation equipment and facilities, the effects of changing shipping patterns on employment at suppliers of barge services, the effects that changes in barge transportation will have on the rates charged by competing transportation modes, changes in tax revenue and the effects of changing water quality on the demand for river-oriented recreation.

Dr Joseph Schwieterman is a Professor at the School of Public Service and Director of the Chaddick Institute for Metropolitan Development at DePaul University.

Full copies of the report are available for review and download by visiting the Illinois Chamber of Commerce's website at www.ilchamber.org.

To speak with representatives from the Illinois Chamber of Commerce, or Dr. Joseph Schwieterman, call Patrick O'Connor at 312-573-5510.

SOURCE Illinois Chamber of Commerce