BUILDING STRONG®

US Army Corps of Engineers BUILDING STRONG®

Systems-based Budgeting for Inland Navigation Operations and Maintenance

Kenneth Ned Mitchell, PhD Engineer Research and Development Center Coastal and Hydraulics Laboratory Vicksburg, Miss. Smart Rivers 2011 Conference New Orleans, Louisiana Sept. 15th, 2011

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Scarce O&M Funding • Fiscal constraints are forcing the Corps to make difficult decisions concerning allocation of limited Operations and Maintenance (O&M) funds across the vast portfolio of inland navigation projects.

• This is driving the push towards system-based methods to ensure that limited resources are optimally distributed and benefits to the Nation are maximized.

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Waterborne Commerce Data The Corps’ Waterborne Commerce Statistics Center

(WCSC) collects and collates data from several sources concerning historical commercial use of US waterways. ► Dock-level, origin-to-destination routing (Corps-use-only) ► Includes tons, commodity types, vessel counts, drafts ► Aggregated data already published at project/port level

The richness of this dataset allows the performance of

navigation projects to be objectively compared and also allows for rigorous, systems-based optimization strategies to be developed.

http://www.ndc.iwr.usace.army.mil/wcsc/wcsc.htm

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Channel Portfolio Tool (CPT)

CPT is a web-based decision-support package for Corps personnel at all levels to quantify the direct impacts of dredging and other O&M (in)activity on commercial shipping.

https://cpt.usace.army.mil

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Spatial Join to Waterway Network • CPT spatially joins the docks in the WCSC database with the respective sub-reaches. • Full network connectivity, ensuring that all transited channels are appropriately credited. • Shortest-path routing used for domestic and inland river traffic transiting multiple projects.

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Ranking System Components

Components of larger system can be compared to one another.

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Ranking System Components

They can also be consolidated to see overall system performance.

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Visualizing System Utilization

Ohio River traffic Both directions, 2009

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Visualizing System Utilization

Upbound traffic, 2009

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Visualizing System Utilization

Downbound traffic, 2009

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Visualizing System Utilization

Docking cargo, 2009

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Visualizing System Utilization

Coal sources, 2008

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Visualizing System Utilization

Coal sinks, 2008

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Visualizing System Utilization

Coal sources & sinks, 2008

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Visualizing Commodity Flows

Lower Miss. River Outbound petroleum, 2009

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Understanding Navigation Systems

Lower Miss. River Inbound corn, 2009

Corps O&M activities must be coordinated in order to realize system-level efficiencies and maximize benefits to the Nation.

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Optimization Strategies • Application of Operations Research (OR) concepts to the Corps’ O&M budgeting process allows for improved system-level efficiencies to be realized.

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• For Navigation O&M, there are interdependencies which arise due to commercial tonnage shared across projects → transportation system issues.

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Cargo Shared Across Projects

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System Connectivity Analysis Duluth-

Superior Indiana Harbor

Two Harbors, MN

St. Clair River Detroit Presque

Isle, MI Burns Harbor Conneaut Cleveland Ashtabula

Duluth-Superior 66.0 M 7.2 M - 23.0 M 4.9 M 4.9 M 14.6 M 1.4 M 28 k 626 k

Indiana Harbor 7.2 M 37.1 M 7.4 M -

-

-

-

- 37 k

-

TwoHarbors_MN - 7.4 M 28.0 M

- 3.0 M -

- 4.0 M 361 k

-

St. Clair River 23.0 M -

- 23.1 M

-

-

-

- - 25 k

Detroit 4.9 M - 3.0 M

- 17.5 M 9.4 M -

- -

-

Presque_Isle_MI 4.9 M -

-

- 9.4 M 17.1 M

- 40 k 173 k 574 k

Burns Harbor 14.6 M -

-

-

-

- 14.9 M

- - -

Conneaut 1.4 M - 4.0 M

-

- 40 k - 5.5 M -

-

Cleveland 28 k 37 k 361 k -

- 173 k

-

- 4.4 M -

Ashtabula 626 k -

- 25 k

- 574 k -

- - 4.2 M

Total domestic tonnage drafting >27 ft, 2005 - 2008

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Systems-based Budgeting

Dredging Costs $ 10 M $ 20 M $ 30M $ 40 M $ 50 M

Duluth-Superior $ 6.0 M 1 1 1 1 1

Indiana Harbor $ 12.5 M 0 0 1 1 1

Two Harbors_MN $ 212 k 1 1 1 1 1

St. Clair River $ 17 M 0 0 0 1 1

Detroit $ 7.5 M 0 1 0 0 1

Presque_Isle_MI $ 1.5 M 0 1 1 1 1

Burns Harbor $ 2.5 M 1 1 1 1 1

Conneaut $ 2.5 M 0 0 1 0 1

Cleveland $ 9.0 M 0 0 0 0 1

Ashtabula $ 20 M 0 0 0 0 0

Restored Tonnage 39.2 M 63.8M 90.3 M 107.9 M 130.9 M

$/ton Rank

$0.09 2

$0.34 5

$0.01 1

$0.74 8

$0.43 6

$0.09 3

$0.17 4

$0.45 7

$2.03 9

$4.75 10

Tonnage Rank

66.0M 1

37.1M 2

28.0M 3

23.1M 4

17.5M 5

17.1M 6

14.9M 7

5.5M 8

4.4M 9

4.2M 10

• Note that a prioritized listing of projects is no longer completely straightforward.

• Certain projects seem to get funded regardless of budget ceiling, and for this example at least, they correlate fairly well with the “$/ton” heuristic.

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System Connectivity Analysis

• Presently exploring system optimization approaches for O&M budgeting of inland waterways using binary programming.

Problem formulation will use results from the Corps’ Asset Management initiative to minimize the system-level risk to cargo flows.

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Navigation Systems Analysis • The Waterborne Commerce data via the CPT gives the Corps a straightforward O&M budget formulation capability and allows for more advanced navigation systems analysis.

• These efforts are drawing interest from other Federal agencies (e.g. CMTS) as well as the Transportation Research Board (TRB).

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System-based Budgeting for Inland Navigation Operations and Maintenance

Questions?

Dr. Ned Mitchell U.S. Army Engineer Research and Development Center

Coastal and Hydraulics Laboratory Kenneth.n.mitchell@usace.army.mil

601-634-2022