Erie, Pa.  -  Disappointed with the president’s budget for fiscal year 2009, U.S. Rep. Phil English (R-Pa.) is turning up the heat in Washington, calling on the Administration to provide adequate funding for the dredging of the Erie Harbor to maintain sufficient depth for the safe navigation of vessels.

“The wealth of Erie’s economy is dependent on the health Erie’s harbor,” said English, a senior member of the House Ways and Means Committee, which has jurisdiction over economic issues.  “Our local harbor has served as a vital gateway to exporting Erie’s products and retaining good-paying jobs in our community. Without proper care and maintenance, we threaten the very economic benefits that have allowed our region to continue to develop and grow.”

The U.S. Army Corps of Engineers Operations and Maintenance (O&M) program provides financial assistance for water resource projects throughout the country.  Although the president’s budget for fiscal year 2009 provides $2.475 billion for the Corps’ O&M budget, specific projects, like the dredging of the Erie Harbor, have yet to be allocated funds. In the coming weeks, the Office of Management and Budget (OMB) will allocate specific funding amounts to water resource projects eligible for the program.

Ranked 38th among the Great Lakes ports, the Erie Harbor is a deep draft commercial harbor, which ships and receives materials for local companies like Erie Sand and Gravel and the Lake Erie Biofuels, among others. Bulk commodities that pass through the harbor generate nearly $12 million in direct revenue and support more than 169 jobs, which generate over $6.2 million in personal income each year. 

“We cannot underestimate the need to maintain the depth of the Erie Harbor,” said Ray Shreckengost, Executive Director at the Erie-Western Pennsylvania Port Authority.  “As congestion and transportation costs continue to climb, our waterborne transportation link will help keep western Pennsylvania competitive in the global marketplace.”

Recognizing the Harbor’s robust economic impact on the Erie region, English, in a recent letter, urged OMB Director Jim Nussle to release adequate funding for the dredging of the Erie Harbor.

“The Erie Harbor and the port it supports are on the cusp of an unprecedented period of growth, resulting from the growth of established business and the addition of a biofuel production facility which will utilize the port to move products,” English wrote.

The Erie Harbor was last dredged in 1998.  The current sediment backlog within the functional harbor area is estimated at approximately 658,000 cubic yards.  Without proper maintenance dredging, the harbor will not be able to maintain adequate channels of depth for the safe navigation of commercial vessels, which, in turn, will limit the ability of local companies to receive or ship products and goods.

“This presents a major challenge for retaining and attracting jobs and facilities which rely on the shipping capacity of a deep draft harbor,” noted English. “At a time when our nation is facing an unprecedented challenge in moving goods and services, a harbor which is rapidly growing and employing the underutilized Great lakes system should be encouraged.”

In his letter, English warned that, without dredging this year, shippers will be forced to light load vessels, which could lead to unnecessary increases in transportation costs.

“This will be a major impediment to Erie’s economy and to the positive growth of the port,” English wrote.  “I strongly encourage you (OMB) to include funds within the Army Corps O&M budget for this project.”

OMB is expected to announce funds for water resources projects by the spring 2008.

*Copy of the letter follows:

February 14, 2008

The Honorable Jim Nussle
Director
Office of Management and Budget

VIA FACSIMILE: (202) 395-3888

Dear Director Nussle:

The President’s fiscal year 2009 U.S. Army Corps of Engineers Operations and Maintenance (O&M) budget did not include project-specific levels, but it is my understanding that OMB will release project allocations for O&M in the near future.  I write to express my disappointment that the President’s budget, once again, failed to allocate funds for sand replenishment at Presque Isle, PA in the Army Corps Construction budget, and also to ask that funds for dredging Erie Harbor, PA be included in the O&M budget.
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Erie Harbor is a deep draft commercial harbor located on Lake Erie in the city of Erie, Pennsylvania.  The harbor supports the 144th leading U.S. port with 1,100,000 tons of material shipped or received in 2005, also ranking it 38th among Great Lakes ports.  The harbor is in major need of dredging at a particularly critical time. 

The Erie Harbor and the port it supports are on the cusp of an unprecedented period of growth, resulting from the growth of established business and the addition of a biofuel production facility which will utilize the port to move its products.  New passenger and cargo ferry service to and from Canada are also actively being explored.  Using data which does not reflect the added volume of the biofuel facility and the ferries, bulk commodities that pass though Erie harbor generate approximately $11.8 million annually in direct revenue and support over 169 jobs.  These jobs, in turn, generate over $6.2 million per year in personal income.

Erie Harbor, however, was last dredged in 1998, and the current sediment backlog within the functional harbor area is estimated at approximately 658,000 cubic yards.  This presents a major challenge for retaining and attracting jobs and facilities which rely on the shipping capacity of a deep draft harbor.  At a time when our nation is facing an unprecedented challenge in moving goods and services, a harbor which is rapidly growing to employ the underutilized Great Lakes system should be encouraged.

Without dredging this year, shippers will likely be forced to light load vessels, potentially resulting in increased transportation costs of between $397,000 and $692,000 annually.  This will be a major impediment to Erie’s economy and to the positive growth of the port.  I strongly encourage you to include funds within the Army Corps O&M budget for this project.

Sincerely,
Phil English
Member of Congress

CC: Associate Director for Legislative Affairs Steve Cote

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