The Army Corps of Engineers announces a plan to spend $85 million this year to deepen the Mississippi River. Port of New Orleans spokesperson Matt Gresham says the initial phase will see work done on the first thirty miles of the river.
“From Head of Passes through Southwest Pass, up to approximately Venice, Louisiana, which opens up the rest of the Mississippi River channel up to mile marker 150 which is just about Oak Alley,” said Gresham.
The goal is to deepen the river to 50 feet. Gresham says that allows for several southeast Louisiana ports to accept larger cargo ships built to take advantage of the Panama Canal’s expansion.
“The buzz word for all ports around the country is to get to 50 feet because that’s the controlling draft of the new Panama Canal locks, so you want to be able to take those ships at their full dimensions that are coming through the Panama Canal,” said Gresham.
The Corps estimates a national economic benefit of $127.5 million annually. It’s a project that has been pushed for a long time and Gresham says a study indicated that improvements offer an 80-to-1 cost-to-benefit ratio.
“This is great news for the Port of New Orleans and really all the ports along the lower Mississippi River and the shippers and growers, the manufacturers all along the river. This has been a multi-year effort, more than a decade,” said Gresham.
The project is expected to cost nearly $240 million, with the state covering more than $100 million, with an annual maintenance cost of $17.7 million.
