The success of the American soybean farmer, and the broader economy, relies on inland waterway system—which provides close proximity to productive farm ground and the ability to accommodate commercial traffic.

But the condition of the nation’s locks and dams continues to deteriorate due to underinvestment of federal funding.  As a result, a recent study funded by the soybean checkoff explored the potential of private partnerships to improve conditions of the inland water system.

The Soybean Transportation Coalition comprised of several soybean groups, including the American Soybean Association, announced findings of the study this week.

“While there is substantial interest in this concept, there is little understanding in how it could work,” said Patrick Knouff, a soybean farmer from Minster, Ohio, and chairman of the Soy Transportation Coalition in a news release.  “The goal of this report is to increase the awareness of both the potential advantages and shortcomings of such an approach. As we proceed toward possibly accessing private investment for our locks and dams, we need to make sure we have our eyes wide open.”

According to the news release, the study, “Proposed Public-Private Partnership Projects for U.S. Inland Waterways Infrastructure Financing, Operations, and Governance,” was performed by The Horinko Group. The analysis provides an introduction to the concept of public-private partnerships, suggests locations that would be likely sites for such an approach and highlights successful public-private partnerships (P3) in other industries that could serve as a model for the inland waterway system.

“A P3 is a contractual agreement between a public sector agency and a private sector entity to deliver a public service.  In a future P3, a non-federal entity, either one or more private entities or a public authority, could assume responsibility for the funding, operation and maintenance, replacement, and/or major rehabilitation of the locks and dams under a cooperative agreement,” the Soybean Transportation Coalition writes in the release. “The Army Corps of Engineers is the agency with jurisdiction over the lock and dam system and would therefore be the federal partner in a P3 agreement.  The research recommends that the U.S. government, under the jurisdiction of the Army Corps of Engineers, would retain ownership of any lock and dam site under a P3 arrangement.”

The analysis suggests that under a P3 arrangement, the private sector would likely not have the enthusiasm for investing in the construction of new lock and dam facilities and a more likely solution would be private investment being devoted to proper maintenance of existing sites.

“In our estimation, a public-private partnership approach for locks and dams could be appealing because of the potential for better project execution and delivery,” said explains Mike Steenhoek, executive director of the Soy Transportation Coalition. “The private sector often is better able and equipped to deliver the same or elevated services at a lower cost. We believe it is appropriate to examine and investigate alternative methods to finance, operate, maintain, and enhance our inland waterway system. We hope this analysis and soybean farmers in general can play a constructive role in this important discussion.”

According to the release, it is widely accepted and anticipated that the final version of the Water Resources Development Act (WRDA) will authorize the establishment of a series of pilot projects to examine the feasibility of a P3 approach to the inland waterways system. Congressional negotiators are currently finalizing the legislation that is expected to be passed by both the House of Representatives and the Senate and signed by the President in May or June 2014.

To see the full results of the study, click here.  www.soytransportation.org or  www.unitedsoybean.org