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Title: Reevaluation of the Oliver Lock Replacement Project. Appendix B: Economics
Authors: United States. Army. Corps of Engineers. Mobile District.
Daggett, Larry L.
Smith, Glenda.
Keywords: Black Warrior-Tombigbee Waterway
Tennessee-Tombigbee Waterway
Inland waterways
Inland navigation
Inland water transportation
Oliver Lock Replacement Project
Publisher: Hydraulics Laboratory (U.S.)
Engineer Research and Development Center (U.S.)
Series/Report no.: Miscellaneous paper (U.S. Army Engineer Waterways Experiment Station) ; HL-85-6.
Description: Miscellaneous Paper
Abstract: A systems analysis of the inland waterways that affect or that might be affected by the replacement of the Oliver Lock on the Black Warrior River was conducted to determine the benefits (or costs) of such a replacement. The present lock is smaller than the other locks on the Black Warrior-Tombigbee (BWT) Waterway and is a major point of congestion and delay to tow traffic. The analysis of the benefits of replacing this lock is complicated by the opening of the Tennessee-Tombigbee Waterway (TTW), which junctions with the BWT just above Demopolis Lock and Dam. This brings together traffic from two waterway systems on an existing waterway with two locks and many difficult bends. In order to conduct such an analysis, an evaluation methodology and procedure had to be developed to measure total system performance. By evaluating the economic performance of the system for the existing and proposed improvement at Oliver Lock and Dam, the marginal system benefits attributable to this improvement can be measured. Project feasibility and benefits can then be determined. In analyzing a lock and dam project, the interdependence of traffic flows between the many individual elements of the system must be taken into account. A change in the performance capabilities of one lock or channel segment can affect the efficiencies of other components in at least two ways -- by increasing aggregate service demands at other structures, and by changing the economic and physical characteristics of the traffic. Conversely, the capabilities of other components of the system can restrict traffic flows at the project under study and prevent the materialization of expected benefits. Both situations were very real factors that had to be accounted for in this investigation. The modeling system employed in this study consists of a series of interlinked computer programs and simulation models. The basic components of the system are the Tow Cost Model (TCM) , the Waterway Analysis Model (WAM), and the Marginal Economic Analysis (MEA) Postprocessor. The TCM is a fleet sizing and costing program that is used to measure differences in the cost characteristics associated with different traffic levels and different system definitions. The TCM depends on accurate definition of the system capacities and delays at congestion points to accurately determine the operation costs. However, capacity and the resulting delays are strongly affected by the fleet makeup and commodity movement demands. Therefore an interface was developed that allowed the WAM to simulate the system response to the traffic generated by the TCM based on the projected traffic movements. The WAM can then determine the utilization of the locks and the resulting delays by simulating in detail the lockage operations required to service the traffic movements generated by the TCM. In addition, the WAM was extended to determine the effects of constrained reaches of the waterway on the channel transit times. By iterating between the TCM and the WAM, it is then possible to obtain an accurate measure of the changes in system costs and to estimate the incremental changes in waterway rates under the conditions tested. The MEA Postprocessor was used to evaluate the resultant impacts on transportation rate savings and to determine system traffic levels by measuring the effects of alternative improvements, the esulting traffic demand scenarios, and traffic diversions. The waterway system used in this investigation included the BWT, the Gulf Intracoastal Waterway System, and the Lower Mississippi, the Lower Ohio, the Tennessee, and the Cumberland Rivers. The Upper Mississippi, Missouri, Arkansas, Kanawha, Green, Monongahela, and Alabama Rivers and the Illinois Waterway were included in the system also, however, at a much lower level of detail. For the future year analyses, the system also included the TTW. The systems analysis study demonstrated that the benefits resulting from the replacement of the Oliver Lock continue to be large even with the TTW traffic sharing the lower BWT. Another important result of the analysis is the identification of locks in the system that cannot process all of the projected traffic. It was found that the Inner Harbor Navigation Canal Lock could not pass the projected traffic in even the first future year, 1990. Kentucky/Barkley and Chickamauga Locks were found to reach capacity early in the simulated future. The Kentucky/Barkley Locks were found to have the most influence on constraining TTW traffic and not Demopolis or Coffeeville Locks on the BWT. The constrained bends on the lower BWT that were of initial concern proved not to be a serious constraint.
Rights: Approved for public release; distribution is unlimited.
Appears in Collections:Miscellaneous Paper

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