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PNWA Nor'wester Issue #372
Schedule announced for the extended lock closure to begin December 10, 2010
Schedule announced for the extended lock closure to begin December 10, 2010 
 
The extended lock closure on the Columbia Snake River System (CSRS) is scheduled to begin December 10th of this year.  Extended closures of this kind are very unusual, but are necessary to maintain the integrity of the transportation system.  The funds invested in the CSRS today will have long term benefits for the entire Northwest for decades to come.  The targeted maintenance during this extended closure will allow the system to efficiently handle tremendous growth expected in the coming years.  PNWA continues to work closely with the Corps and navigation stakeholders to minimize impacts on river users during this closure and to assure the continued reliability of navigation in the Northwest.
 
Corps releases detailed closure schedule
 
The U.S. Army Corps of Engineers' Portland and Walla Walla Districts have released the CSRS Major Rehab and Maintenance Schedule for 2010-2011, which includes detailed closure dates for all eight locks on the system.  Locks at The Dalles, John Day and Lower Monumental (LoMo) will be closed for 13-14 weeks, while the other five locks have varying closure schedules listed below.  

Columbia Snake River System Major Rehab and Maintenance Schedule 2010-2011

The length of the closure is primarily due to the installation of new lock gates at The Dalles, John Day, and Lower Monumental Dams.  PNWA has been in regular communication with the two Corps districts to stay abreast of any changes that arise in the fabrication schedule of the gates.  Hal Thomas, Business Line Manager at the Walla Walla District, and Matt Cutts, Critical Infrastructure Program Manager at the Portland District, have stated that "fabrication of the new gates in their districts is on schedule."  
 
Stakeholders prepare for closure
 
In addition to PNWA's work with the Corps, we have also been in close contact with stakeholders to ensure they have the latest information as they prepare for the closure.  Since the need for the closure was announced, stakeholders have been working with their clients to meet expectations and demand, while adhering to the dates of the scheduled closure.     
 
"The producers of wheat have been learning about the scheduled river closure for several months now," stated Tammy Dennee, Executive Director of the Oregon Wheat Growers League.  "Their preparations have included analysis concerning their individual business models and need for cash flow during the fourteen week period.  For some, the strategy is to harvest and sell the crop as it is delivered to the local elevator.  For others, they may choose to store their crop on farm or pay for storage at the local elevator and sell incrementally when the market price is favorable.  Ultimately, they are in control of when the title of their grain passes to the elevator and then they look to the next planting season and care for that crop through harvest.  The uniqueness for the farm sector is the cost of transportation of the grain to the market is a cost that is passed to the farmer.  Farmers consider this a cost of doing business and appreciate the favorable transportation rates in the Pacific Northwest as compared to farmers in other states.  In the Columbia Basin region, the river system is the preferred mode of transportation for commerce moving to and through the Port facilities for export.  Maintenance of the lock system is viewed as a necessary investment to ensure ongoing use of the river for movement of commerce long into the future. "
 
Wheat growers in Washington are also making preparations for the closure.  Harvest has begun, which is allowing growers to implement some of the plans they have been working on for several months.  Some growers and country elevators may increase storage, while others are looking to move product before or after the closure, and some will be looking to rail during the closure.  Other issues influencing grower sales irrespective of the closure, include any protein discounts for red wheat, price changes and perceived price movement, and a need to cover production costs.  For many growers, selling grain at harvest is simply what they do each year.   
 
In Idaho, things are moving along at a quick pace.  So far, growers aren't seeing any major changes or adjustments in marketing their wheat.  "Weather related problems in Russia and other areas have greatly reduced the world's wheat supplies," says Blaine Jacobson, Executive Director of the Idaho Wheat Commission. "Prices are up and demand for Pacific Northwest wheat is strong. Growers are selling now instead of using home storage or waiting until later to sell. Things may change as we get closer to December," says Jacobson, "but for now, overseas buyers are keeping our wheat moving."  
 
Barging companies on the CSRS report that they will be ready for full load out in the months prior to the closure to enable shippers to move as much product as capacity allows.  Towboaters may also be able to provide some grain storage on barges that could be placed on the Lower Columbia River during the closure.  In addition, Mid-Columbia Producers located just below The Dalles Dam has recently increased capacity at its grain elevator and will be operational during the closure.  This will allow growers in that area to still make use of barging.  A limited number of fuel barges will also be loaded in advance of the closure and staged in the Tri-Cities area.
 
The CSRS is a vital transportation link for the states of Idaho, Montana, Oregon and Washington.  The deep draft channel supports 40 million tons of cargo each year, valued at $17 billion.  The inland system supports 10 million tons of cargo, valued at over $2 billion annually.  Overall trade on the CSRS is expected to increase significantly in the future.  The reliability resulting from repairs made during the extended closure will ensure the economies of these four states, which rely heavily on the commerce that flows up and down the CSRS, will thrive. 
 
PNWA continues our efforts to ensure that navigation infrastructure on the CSRS and throughout the Northwest is adequately maintained, to support the economic vitality of our region.  For more information, log on to our website, www.pnwa.net.  For frequent updates on the extended lock closure visit the Corps site directly at http://www.nwp.usace.army.mil/navigation/lockoutage.asp.
 
PNWA staff contact: Kristin Meira