Direct Economic Effects of Lack of Maintenance Dredging of the Houston Ship Channel

This study involves two types of analyses of the Houston Ship Channel (HSC): (1) the economic effects due to vessel operational and loading limitations associated with channel maintenance at actual depth for actual vessel traffic during the base years, 2008 and 2009; and (2) the same types of economic effects but assuming a loss of 1 foot of draft from actual maintained channel depths, resulting in increased economic impacts. The majority of estimated economic impacts of HSC maintenance are due to light loading of vessels carrying non-containerized cargoes. Under actual conditions, estimated HSC losses totaled over $52 million in 2008?2009. There were no estimated losses due to light loading for containerized cargoes. Assuming an additional loss of 1 foot of available draft, HSC losses would total nearly $373 million in 2008-2009. As with estimates for actual conditions, lost business opportunities due to light loading of non-containerized vessels accounts for a high percentage of impacts. The over seven-fold increase in estimated economic losses with a loss of 1 foot of available draft in the Houston Ship Channel suggests the significance of HSC maintenance to HSC users, the Port of Houston, and Southeast Texas. The sharp increase in economic losses with a loss of only 1 foot of available draft suggests that many vessels using the HSC are operating to the maximum degree allowed by current channel depth.