a new tool for estimating and simulating economic impacts of dredging activity new, increased and...
TRANSCRIPT
A New Tool for Estimating and Simulating Economic Impacts of
Dredging ActivityNew, Increased and Reduced
Dredging
Drs. Yue Cui and Ed Mahoney, Michigan State Universityand Dr. Wen–Huei Chang, Institute of Water Resources, USACE
Functions of the New Tool
1. Simulate the “economic effects” of new, increased, decreased or the stoppage of dredging
2. Estimates direct and secondary impacts: sales, employment and income
3. Estimates direct and “stemming –from” impacts
4. Enables users to identify and assess impacts for very specific economic impact areas
Tool is being Modeled After the USACE’s RECONS Model and Other Web-based Economic Impact Tools
Designed By MSU
1. Regional Economic System (RECONS) provides accurate and defensible estimates of local job creation and retention and other economic measures such as value added, income and sales
2. RECONS allows the USACE to evaluate direct investment spending associated with the annual Civil Work budget of the eight business lines managed by the USACE.
3. RECONS also enables users to evaluate the economic contribution of industries and activities that are dependent on or benefit from USACE programs and infrastructure; these downstream effects are termed “stemming from effects.”
RECONS Approach – USACE Project Work Activities Economic Impacts
Business Line Contracted Project Work
Activities
Expenditure by Work Activities
Navigation, Hydropower, Environmental, Flood Risk, Emergency Management, Regulatory, Recreation, Water Storage
Dredging, Lock Construction, Levee Repair, Investigations
Spending Profiles and IMPLAN Industry Data
Labor, Materials, Equipment, Fuel, Services and Other Expenditures
Impact Areas and Multipliers
Economic Impacts
Direct, Indirect and Induced EffectsMeasured as Jobs, Earnings, Output (Sales), and Valued
Added (GDP)
IMPLAN Industry Multipliers(Region, State, Nation)
Economic Impacts of Dredging
1. Economic Impacts of Dredging Related Spending
2.1 Commercial Use of Dredged Materials 2.2 Beneficial Re-use of Dredged Materials
3. Stemming From Economic Impacts 3.1 Enhanced Shipping Capacity 3.2 Cruise Ships 3.3 Marinas 3.4 Commercial Fishing
Dredging Proposal and Definition of Economic Impact Area
2Define and Describe
Economic Impact Area
1.Describe Dredging Project
Including Alternative Scales and Requirements
Lflfdldfllf;l;l;f
3.DESCRIB
EDREDGI
NGACTIVITI
ES
PREPARATIONINVESTIGATIONACQUIRE LAND
PERMITS
DREDGING SITE TYPE OF
WATERBODYGEOGRAPHY
TYPE OF DREDGE MATERIAL
SAND, GRAVEL,CLAY,
MUD, CONTAMINATION
AMOUNT OF MATERIAL TO BE
REMOVEDYards of Material
4.$$$
Budget(Cost) Breakdown:
LaborReal EstateMaterialsSupplies
FuelPer Diem
DREDGING METHOD
HOPPER, PIPELINE,MECHANICAL
LOCATION & ACQUISITION OF PLACEMENT SITE
RENTALPURCHASE
PLACEMENT METHOD
OPEN-WATERCONFINED DISPOSAL
BENEFICAL RE-USE
Direct Dredging Spending : Items and Amounts
-
Lflfdldfllf;l;l;f
DredgingBudget(Cost) Breakdown:
LaborReal EstateMaterialsSupplies
FuelPer Diem
5. Estimate
Costs/Spending
Across Different
(IMPLAN)Industries
6.Calculate and
Apply Multipliersand LPCs
for Economic Impact
Area
7.Estimate Direct &
Secondary[Indirect –Induced] Economic Impacts
Direct Dredging Spending : Economic Impacts
The USACE’s RECONSEconomic Impact
Assessment of Dredging Project
The USACE’s RECONSEconomic Impact
Assessment of Dredging Project
Dredging Proposal and Definition of Economic Impact Area
Dredging Proposal and Definition of Economic Impact Area
The USACE’s RECONSEconomic Impact
Assessment of Dredging Project
The USACE’s RECONSEconomic Impact
Assessment of Dredging Project
Lflfdldfllf;l;l;fSTEMMING FROM
EFFECTSOF DREDGING
CHANNEL IMPROVEMENT
COMMERICAL SHIPPING
RECREATIONAL BOATINGMARINAS & ACCESS
CRUISE SHIPSHARBORS & ACCESS
COMMERCIAL FISHING HARBOR & ACCESS
BENEFICIAL USES OF DREDGE MTERIALS
COMMERCIAL SALE OF DREDGE MATERIAL
USE OF MATERIALSBEACH
HABITATRESTORATION
Stemming-From Economic Impacts of Dredging
Lflfdldfllf;l;l;fBENEFICIAL RE-USES OF DREDGE MATERIALS
COMMERCIAL SALE OF DREDGE MATERIAL
RE-USEUSE OF MATERIALS
Capping a landfill or brownfield
Transforming dredged material into lightweight aggregates
Reclaiming lands impaired by sand, gravel, and coal mining
Manufacturing bricks and blocks and construction aggregates
Creating fill for construction projects
Wetland creation and restoration
Creating wildlife habitat
Levee maintenance
Landfill daily cover
Beneficial Uses of Dredge Materials
Lflfdldfllf;l;l;fCHANNEL IMPROVEMENT
COMMERICAL SHIPPING
RECREATIONAL BOATINGMARINAS & ACCESS
CRUISE SHIPSHARBORS & ACCESS
COMMERCIAL FISHING HARBOR & ACCESS
Stemming-From Economic Impacts of Dredging
The USACE’s RECONS Newly Enhanced (Stemming
From Effects) Port Model
The model allows users to estimate the stemming from effects of port industries based on a modified version of Port Kit consist of the following:
1. Definition of Port locations and impact areas
2. Mapping of RIMSII industries to IMPLAN industries; extracting relevant industry economic multipliers derived from IMPLAN
3. Port default expenditures by sector for cargo
4. Identify cargo tonnage
5. Modal shares and distance for inland movements
RECONS: Port Model
Choose Type of Impact – Origin and/or Destination
Impacts
The Impact Region, Multi-State Region, and Nation
Choose Impact Area
18 Cost Profiles for Shipper Rates Shipper Rates IMPLAN Sector (No.)WW line-haul Waterborne transport (334) Assessorial W Trans support svcs (338)
Calculate Multiplier Effects Direct Sales * Multipliers
and Ratios
Jobs, Income, Value Added, Sales for
Waterway Industries
Identify Tons Shipped by
Commodity
Calculate Direct ImpactsShipper Rates * Tons Shipped
RECONS: Newly Enhanced Port Model
Cargo Volume by Shipping Type
Per Unit Expenditure by Type of Cargo
Inflation-adjusted Port Kit default values for
labor, materials, equipment, fuel, services
Industry Multipliers
Economic Contribution
Direct, Indirect and Induced Effects
Measured as Jobs, Earnings, Output
(Sales), and Valued Added (GDP)
IMPLAN Industry Multipliers
(Region, State, Nation)
Identify Port And Associated Impact
Area
Modal Share & Distance of Inland Movements
Percent Rail, Short/Long Distance Truck, Barge,
Air (FAF2)
RECONS User Input -- Cargo Forecast (Port
Data/Research)
Total Expenditure
Cargo Volume by Shipping Type and Commodity Type
Total Expenditure by Each Type of Commodity
Economic Contribution by Each Type of Commodity
The USACE’s RECONSEconomic Impact
Assessment of Ports and Shipping
The USACE’s RECONSEconomic Impact
Assessment of Ports and Shipping
The RECONS port module estimates the economic contribution of cargo shipments within ports for various types of cargo (for example, dry bulk, automobiles, containers, etc.).
The USACE’s RECONSEconomic Impact
Assessment of Ports and Shipping
The USACE’s RECONSEconomic Impact
Assessment of Ports and Shipping1. The cost elements associated with the port include port services, cargo handling, fuel service, vessel and crew supplies, cargo storage, cargo packing and unpacking, crew leave and finally, inland transport costs.
2. The costs were then aggregated by IMPLAN sector for each type of cargo to summarize the costs for the various types of cargo by type of cost, with the appropriate IMPLAN industry.
The USACE’s RECONSEconomic Impact
Assessment of Ports and Shipping
The USACE’s RECONSEconomic Impact
Assessment of Ports and Shipping
The USACE’s RECONSEconomic Impact
Impact Assessment of Marinas
The USACE’s RECONSEconomic Impact
Impact Assessment of Marinas
The USACE’s RECONSEconomic Impact
Impact Assessment of Marinas
The USACE’s RECONSEconomic Impact
Impact Assessment of Marinas
The USACE’s RECONSEconomic Impact
Impact Assessment of Marinas
Questions?