1. 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. 15 th, 2011

2. BUILDING STRONG ® 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.

3. BUILDING STRONG ® 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

4. BUILDING STRONG ® 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

5. BUILDING STRONG ® 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.

6. BUILDING STRONG ® Ranking System Components Components of larger system can be compared to one another.

7. BUILDING STRONG ® Ranking System Components They can also be consolidated to see overall system performance.

8. BUILDING STRONG ® Visualizing System Utilization Ohio River traffic Both directions, 2009

9. BUILDING STRONG ® Visualizing System Utilization Upbound traffic, 2009

10. BUILDING STRONG ® Visualizing System Utilization Downbound traffic, 2009

11. BUILDING STRONG ® Visualizing System Utilization Docking cargo, 2009

12. BUILDING STRONG ® Visualizing System Utilization Coal sources, 2008

13. BUILDING STRONG ® Visualizing System Utilization Coal sinks, 2008

14. BUILDING STRONG ® Visualizing System Utilization Coal sources & sinks, 2008

15. BUILDING STRONG ® Visualizing Commodity Flows Lower Miss. River Outbound petroleum, 2009

16. BUILDING STRONG ® 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.

17. BUILDING STRONG ® Optimization Strategies Application of Operations Research (OR) concepts to the Corps’ O&M budgeting process allows for improved system-level efficiencies to be realized. For Navigation O&M, there are interdependencies which arise due to commercial tonnage shared across projects → transportation system issues.

18. BUILDING STRONG ® Cargo Shared Across Projects

19. BUILDING STRONG ® System Connectivity Analysis Duluth- Superior Indiana Harbor Two Harbors, MN St. Clair River Detroit Presque Isle, MI Burns Harbor Conneaut ClevelandAshtabula Duluth-Superior66.0 M7.2 M-23.0 M4.9 M 14.6 M1.4 M28 k626 k Indiana Harbor7.2 M37.1 M7.4 M - - - - - 37 k - TwoHarbors_MN - 7.4 M28.0 M - 3.0 M - - 4.0 M361 k - St. Clair River23.0 M - - 23.1 M - - - - -25 k Detroit4.9 M - 3.0 M - 17.5 M9.4 M - - - - Presque_Isle_MI4.9 M - - - 9.4 M17.1 M - 40 k173 k574 k Burns Harbor14.6 M - - - - - 14.9 M - - - Conneaut1.4 M - 4.0 M - - 40 k - 5.5 M - - Cleveland28 k37 k361 k - - 173 k - - 4.4 M - Ashtabula626 k - - 25 k - 574 k - - -4.2 M Total domestic tonnage drafting >27 ft, 2005 - 2008

20. BUILDING STRONG ® Systems-based Budgeting Dredging Costs $ 10 M$ 20 M$ 30M$ 40 M$ 50 M Duluth-Superior $ 6.0 M11111 Indiana Harbor$ 12.5 M00111 Two Harbors_MN$ 212 k11111 St. Clair River$ 17 M00011 Detroit$ 7.5 M01001 Presque_Isle_MI$ 1.5 M01111 Burns Harbor$ 2.5 M11111 Conneaut$ 2.5 M00101 Cleveland$ 9.0 M00001 Ashtabula$ 20 M00000 Restored Tonnage39.2 M63.8M90.3 M107.9 M 130.9 M $/tonRank $0.092 $0.345 $0.011 $0.748 $0.436 $0.093 $0.174 $0.457 $2.039 $4.7510 TonnageRank 66.0M1 37.1M2 28.0M3 23.1M4 17.5M5 17.1M6 14.9M7 5.5M8 4.4M9 4.2M10 Note that a prioritized listing of projects is no longer completely straightforward. Certain projects seem to get funded regardless of budget ceiling, and for this example at least, they correlate fairly well with the “$/ton” heuristic.

21. BUILDING STRONG ® 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.

22. BUILDING STRONG ® 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).

23. BUILDING STRONG ® 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