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Title: San Juan Harbor, Puerto Rico : Integrated Feasibility Report and Environmental Assessment : Appendix C, Economics
Authors: United States. Army. Corps of Engineers. Jacksonville District.
Keywords: San Juan (P.R.)
Harbors--Puerto Rico
Environmental management
Publisher: United States. Army. Corps of Engineers. Jacksonville District.
Abstract: San Juan Harbor is located on the northeastern coast of Puerto Rico and is the island’s busiest port, accounting for over half of the total cargo tonnage passing through Puerto Rican ports in 2015. San Juan is also an important cruise port. In 2015 San Juan Harbor ranked 8th among North American and Caribbean cruise ports in terms of total number of passengers. Among Caribbean ports it ranked 4th in total passengers. Currently there are navigational constraints, which cause loading inefficiencies, in-port delays, and increased maneuvering times. The existing and future fleets of petroleum tankers and the future fleet of LNG tankers transiting the Army Terminal Channel and the current fleet of cruise vessels utilizing the cruise docks north of the San Antonio Approach Channel are the main sources of project benefits. Measures considered in the analysis would allow larger petroleum tankers and LNG vessels to call San Juan Harbor, allow these larger vessels to use San Juan Harbor more efficiently through increased vessel loading, allow existing medium range (MR) tanker vessels to use San Juan Harbor more efficiently through increased vessel loading, reduce cruise vessel maneuvering times within the port, and allow use of waterway transportation of LPG direct to San Juan rather than trucking of the product from the island’s southern coast. This economic analysis examined widening and deepening. The HarborSym model was used to determine total transportation costs attributable to the study port. Transportation cost savings were determined based on the difference in total transportation costs between the with- and without-project conditions. Power generation cost reduction benefits were calculated using power generation cost information provided by the Puerto Rico Electric Power Authority (PREPA). Due to uncertainty associated with PREPA’s future conversion from the use of diesel fuel to LNG for power generation, the economic analysis and plan formulation were completed using two distinct sets of future with-project (FWP) condition assumptions resulting in a range of possible project benefits. The two scenarios considered are the following: 1.) Assume San Juan area power plants will convert from the use of diesel fuel for power generation in the future without-project condition to the use of LNG for power generation if a Federal navigation project is constructed. Include power generation cost reduction benefits as a project benefit. 2.) Assume San Juan area power plants will maintain use of diesel fuel in the future both with and without a Federal navigation project. Do not include power generation cost reduction benefits as a project benefit. Both analyses outlined above resulted in the same National Economic Development (NED) plan, which includes the following measures: - Widen Army Terminal Channel from 350’ to 450’ - Deepen Cut 6 to 46’ - Deepen Anegado Channel to 44’ - Deepen Army Terminal Channel to 44’ - Deepen Army Terminal Turning Basin to 44’ - Construct eastern and western flares at the southern end of the Army Terminal Turning Basin - Deepen Cruise Ship Basin East to 36’ - Deepen San Antonio Approach Channel, San Antonio Channel, and San Antonio Channel Extension to 36’ - Expand the Federal limits of San Antonio Channel Extension to the east by 1,050 feet to incorporate into the Federal project that area which was previously constructed to a 36 foot depth by the Port. The combination of measures listed above reasonably maximizes net benefits and makes up the recommended plan. Considering each of the aforementioned scenarios, the recommended plan provides average annual net benefits ranging from $2,041,000 to $60,097,000 and has a benefit-cost ratio ranging from 1.9:1 to 5.0:1 at the FY18 Federal Water Resources Discount Rate of 2.75 percent and FY18 price levels.
Description: Feasibility Report / Environmental Assessment
Rights: Approved for Public Release; Distribution is Unlimited
Size: 96 pages / 3.221 Mb
Types of Materials: PDF/A
Appears in Collections:Environmental Documents

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