As if you need one more reminder of the economic importance of the Global Great Lakes, the Soo Locks enable ships to travel between Lake Superior and the lower Great Lakes, allowing for the smooth passage of 90% of iron ore used today by automakers and manufacturers.
Situated on the St. Marys River at Sault Ste. Marie, MI, the Soo Locks allow ships to transit the 21-foot elevation change at the St. Marys Falls Canal.
Ten thousand ships pass through the Soo Locks each year to bring iron ore, grain, limestone, and other essential commodities across the Great Lakes and Canada into the Midwest and globally.
Moving bulk cargo by water through the Soo Locks saves more than $3.9 billion per year in freight costs compared to moving the same load by rail or truck and provides for the movement of more cargo.
The US Army Corps of Engineers reports that one 1,000-foot vessel can carry the equivalent of seven 100-car trains with a 10,000-ton capacity or 3,000 large trucks with a 25-ton capacity each.
"The Soo Locks are critical to Michigan's economy and to our entire country," Sen. Gary Peters (D-MI) told the Detroit Free Press. "There's no question that continuing to modernize the Soo Locks is long overdue — and even a temporary shutdown of one lock would have incredibly harmful impacts on Great Lakes commerce, jobs, national supply chains, and our national security."
Most ships today use the Poe Lock, built in the 1960s to accommodate the larger size of modern ships, which has been shut down for repairs 20 times in the last ten years and closed nine times since 2019.
The new lock project is working to build a second Poe-sized lock in the place of two decommissioned locks and add resilience to this vital navigational and commercial infrastructure.
Team Biden is pouring nearly $700 million from the $1 trillion infrastructure law into building a new supersize navigation lock, almost doubling the money dedicated to the project at $1.6 billion.
As reported by the Wall Street Journal, John Walsh, the chief executive of the Michigan Manufacturers Association, said trade associations, as well as congressional delegations from the Great Lakes states, are working to keep the funding a priority. "We are going to have to keep this fire lit."
Mark Barker, the president of the ship operator Interlake Steamship Company, told the Wall Street Journal an extended problem with the Poe Lock would disrupt domestic manufacturing of automobiles, refrigerators, and countless other products.
Supporters of the new Poe-sized lock noted that 13 of 14 North American integrated steel mills depend on the Soo Locks to transport iron ore from Minnesota and Michigan. Once you have a steel mill running, it's very difficult and expensive to stop.
According to a 2015 Department of Homeland Security study, "an unanticipated closure of the Poe Lock, the only lock large enough at the Soo Locks to allow passage of the Lakers carrying iron ore, would be catastrophic for the Nation. A six-month Poe Lock closure would temporarily reduce the US gross domestic product by $1.1 trillion, resulting in the loss of 11 million jobs."
Representative Marcy Kaptur (D-OH) told the Associated Press: "The critical role that Great Lakes waterways play in sustaining and advancing America's economic vitality cannot be overstated. The revitalization of the Soo Locks will strengthen America's commercial shipping capabilities and support good-paying jobs throughout the Industrial Heartland."
Remember, Global Great Lakes... The future of the global economy is the Great Lakes.
If you need help with economic development messaging and corporate diplomacy, Caracal is here to help.
Caracal believes successful communications requires intelligence, strategy, engagement, and education.
Caracal is here to help you succeed in today's interconnected business environment.
Enjoy the ride + plan accordingly.
-Marc
