Michigan Locks Expansion Vital To U.S Supply Chain
The Soo Locks, previously instrumental in the fur trade, currently facilitate the transportation of 90% of iron ore for automakers and manufacturers.
Approximately 10,000 ships navigate through the Soo Locks annually, transporting essential commodities such as iron ore, grain, and limestone across the Great Lakes and Canada into the Midwest and other regions.
The system's history stretches back nearly as far as that of the United States itself. The initial lock, spanning about 40 feet to accommodate canoes, was constructed on the St. Marys River in 1798 by the Northwest Fur Co. to bolster the fur trade.
Initially established in the 1850s to manage a surge in copper mining, this navigational system allows large vessels to bypass rapids below Lake Superior. While the locks have undergone periodic upgrades over the decades, the most recent improvements have been lacking.
The Poe Lock, the largest among them, constructed in the 1960s, serves as a crucial link in the U.S. industrial supply chain. However, it has experienced closure for repairs 20 times within the last decade, with nine of these instances occurring in the past four years.
Presently, construction teams are diligently working to finalize the modernization of the locks, a task that has gained increased urgency following revelations about the economic repercussions of disrupted supply chains during the Covid-19 pandemic. The pivotal concern lies in whether these necessary upgrades can secure the essential funding in a timely manner, despite a substantial influx of financial aid from the federal government.
The indispensability of the locks lies in their role as the sole practical means of transporting raw materials. Distributing iron ore and other essential supplies via trucks or trains would be excessively expensive. Proponents emphasize that 13 out of 14 North American integrated steel mills rely on the Soo Locks to convey iron ore from Minnesota and Michigan.
A study conducted by the Department of Homeland Security discovered that the deteriorating network supports the transportation of approximately 90% of the country's iron ore, a fundamental material in the production of steel for various products including automobiles and refrigerators. The study projected that if the network were to shut down for an extended period, it would not only disrupt steel manufacturing but also lead to the loss of millions of jobs and a decrease in the United States' gross domestic product by $1.1 trillion.
Courtesy: WSJ
