2012 Position Paper
Re-Imposition of U.S. Tolls on the St. Lawrence Seaway
GOAL: Oppose any proposal to re-impose U.S. tolls on the St. Lawrence Seaway.
BACKGROUND: When the St. Lawrence Seaway opened in 1959, the U.S. portion was the only Federally built and Federally maintained navigation system in the United States to charge tolls. This inequity continued until the Water Resources Development Act of 1986 established the Harbor Maintenance Tax ("HMT") to fund Operation and Maintenance Dredging ("O&M") and new construction projects at the nation's deep-draft ports and waterways. Starting in 1987, the U.S. portion of the Seaway was funded from the Harbor Maintenance Trust Fund, the depository for revenues raised by the HMT.
Since then there have been proposals to re-impose tolls on the U.S. portion of the Seaway, but Congress wisely rejected them. Increased costs will make the Seaway less competitive with other port ranges and other modes of transportation. (It is already hampered by its comparatively shallow draft and winter closure.) The competition among port ranges and modes of transportation is so fierce that contracts can be lost if costs increase a mere tenth of a cent per ton.
BENEFITS TO THE NATION: The nation's largest coastal ports are plagued with delays and backlogs that will only grow worse as overseas trade increases in the years ahead. Overseas cargos destined for the heartland that are delivered to Baltimore, Philadelphia, New York/New Jersey & must then be railed or trucked to the region, further congesting the nation's rail beds and highways. Great Lakes ports have the capability and the capacity to handle cargo landed at East Coast ports destined for the region and its environs. Furthermore, ships are the most environmentally-friendly mode of transportation - they use less fuel per ton of cargo carried than any other mode of transportation - but re-imposition of U.S. tolls on the St. Lawrence Seaway would drive cargo from the system.
BENEFITS TO GREAT LAKES REGION: The St. Lawrence Seaway is the Great Lakes basin's only direct water link to the Atlantic Ocean. Each year, mid-west and Canadian farmers ship 10-12 million tons of grain to overseas markets via the Seaway. Inbound cargos of specialty steels and general cargo play an important role in keeping the U.S. economy strong. The American steel industry has made significant investments in Canadian iron ore mines, and each year receives 5 million tons of iron ore via the Seaway. It is estimated the Seaway trade annually generates 30,000 direct jobs in the Great Lakes states and tens of thousands more in related activities.
ACTION: Work with the Great Lakes Congressional delegation to stop any proposal to re-impose U.S. tolls on the St. Lawrence Seaway.
