A study titled “Emerging South American Competitiveness to U.S. Soybean Exports” was released this week by the International Business Committee of the World Trade Center of New Orleans (WTCNO) and the Big River Coalition. The purpose of the study is to bring attention to issues that threaten the United States' position as a leader in the world soybean market, specifically the critical need for infrastructure investments to improve the inland waterway infrastructure of the Mississippi River System in order to compete with South American markets.

Following is an excerpt from the executive summary that describes the basis and findings of the paper:

“The United States of America (U.S.) is failing to adequately fund infrastructure maintenance throughout the Mississippi River corridor. South American competitors are making significant investments in their transportation infrastructures. Brazil, for one, is engaged in significant modernization programs, while the U.S. lags behind. This imbalance compromises the U.S. strategic competitive advantage, particularly in the export of agricultural products.

It is critical to maintain the competitiveness and infrastructure of this vital corridor from the heartland of the U.S. to the sea. Failure to perform necessary maintenance along the inland waterway infrastructure, and failure to increase the maximum draft of the Lower Mississippi River, exposes the agricultural heartland of the U.S. to significant reduction in its ability to transport products to world markets. This is particularly troubling in the face of emerging modernization and increases in capabilities by our competitors.”

The report cites the prominence and importance of agricultural exports to the Mississippi River Basin and the ports of Baton Rouge, South Louisiana, New Orleans, St. Bernard, and Plaquemines. It also points to the expected completion of the Panama Canal expansion and the need for the Lower Mississippi River to be deepened to accommodate larger Post or New Panamax vessels. The weight and size of these particular vessels require a deeper draft—50 feet, whereas the current depth is only 45 feet. A Capesize grain vessel with a draft of 45 feet can carry an additional 13,475 metric tons of cargo over the present maximum draft of the Panama Canal (39 Feet 6 inches). The same vessel at a draft of 50 feet can carry an additional 25,725 metric tons, an approximate 91 percent increase.  The full report can be viewed here.

The report has already had a significant impact by garnering the attention of the Majority Whip of the U.S. House or Representatives. Majority Whip Steve Scalise (R-LA), the 3^rd ranking member of Republican Leadership, attended the event where the report was released at the World Trade Center of New Orleans and he issued the following statement:

"The Mississippi River and Louisiana’s ports have a strong and positive impact on our national economy, our global competitiveness, and American job creation,” Rep. Scalise said. “According to this newly released report, the Mississippi River Basin produces 92 percent of our nation’s agricultural exports and just five Louisiana ports facilitate nearly three-quarters of our nation’s grain exports. This new study reinforces the importance of the Mississippi River to America's economic success, and highlights the importance of modernizing our waterborne infrastructure and the critical nature of deepening the Mississippi River to 50 feet in order to keep Louisiana competitive and dominant in domestic and international commerce.

“Earlier this year, I proudly fought to ensure passage of the Water Resources and Development Act (WRDA), a bipartisan bill that strengthens our nation’s water transportation infrastructure, and modernizes our ports. WRDA makes a long-overdue reinvestment in our ports by authorizing important reforms to the Harbor Maintenance Trust Fund to deepen our waterways and allow America to remain competitive in the global marketplace.”