Item No. 7b_supp_1
Meeting date: June 27, 2017
Economic Impact of
the Hiram M.
Chittenden Locks 
August 12, 2016

Lake Washington
Ship Canal Users
Group
Prepared for:
Port of Seattle

Reason for the Study
Ballard Locks is 100 years old and needs up to $60 million in new investment
to make major systems reliable and safe
USACE (US Army Corps of Engineers) budget process prioritizes investment
based on a formula for national economic benefit that tends to emphasize
shipping tonnage. 
Ballard Locks transits approx. 1 million tons/yr of freight
U.S. coastal shipping is approx. 1 billion tons/yr (not counting foreign
shipments)
There are approx. 200 other locks systems in the U.S.
Ballard Locks provides many benefits for which the Corps' economic analysis
traditionally has not fully accounted

Methodology
Study Purpose
Describe and quantify, where possible, the full range of economic activity
facilitated by or dependent on the Locks
Study Tasks
Interviews with 55+ businesses, business associations, public agencies, tribes,
USACE
Collection and analysis of secondary data (past studies, Locks usage and repair
history, state and federal fisheries, Fish & Wildlife, Nat'l Marine Manufacturers
Assn., WA Maritime Federation, City of Seattle, demographic, economic data)
Economic impact analysis
Stakeholders contributed to proposal, scope of work, interview
targets, study progress

Analytical Approaches
Value of business activity and employment that has evolved over a
century and today is directly dependent on Locks operations
Reduced costs/increased efficiency businesses realize as a result
of the Locks' unique location 
Impact of brief closures on dependent businesses and agencies
Impact of longer (3-month) closure (would businesses relocate,
downsize, fail?)

Locks-Dependent Businesses
Businesses that generate revenue directly from operations inside
Locks and depend on transits of materials or customers
E.g., Shipyards, yacht sales, moorage, construction materials
Businesses headquartered inside the Locks, generating revenue
primarily outside the locks
E.g., Marine products manufacturers, commercial fishing companies,
passenger cruise companies
Businesses with no permanent presence in the lakes or ship canal, but
that benefit economically from services provided inside the Locks
E.g. Marine insurance, legal, and other professional services; marine salvage
and other vessels not specifically addressed in the report

Ballard Locks Budget and Funding
Routine Operations and MaintenanceBudget
Between $8.0 and $8.4 million/yr from 2011 through 2017.
Non-routine Repairsand Upgrades Expenditures
Avg of $1.8 million/yr 
over the same period
Major projects remain
unfunded

Major (Non-Routine) Projects Needed
Major Project                                                          Approximate Cost
Large Lock Emergency Closure System (partly complete)                $4 million to $8 million
Filling Culvert Valve and Machinery                                    $5 million to $12 million
Large Lock Gate Rehabilitation                                         $6 million to $10 million
Emergency Generator Connections                                  Less than $1 million
Saltwater Drain Intake System and Diffuser Well                        $5 million to $10 million
Small Lock Emergency Closure                                       $1 million to $5 million
Electrical System                                                         $5 million to $7 million
Small Lock Machinery                                               $3 million to $5 million
Saltwater Barrier Replacement                                       $1 million to $2 million
Total Needed                                       ~ $30 million to $60 million

Value of the Ballard Locks
Economic Value
Environmental and Public
Infrastructure Value
Tribal Obligations
Public Safety

Economic Value
Busiest in nation in vessel transits  
40,000/yr 
12th busiest in commercial transits  
7,500/yr 
Supports $1.2 billion in economic
activity
Tide-free, freshwater environment
reduces maintenance costs and
prolongs vessel life for 700
commercial and roughly 4,000
recreational vessels

Economic Value (cont.)
Indirectly supports an estimated $785 million in seafood exports
2016: 271 vessels 40'+ made ~1,600 transits of Locks 
200+ homeported in Washington
~40% of active North Pacific fishing vessels over
58' moored and/or serviced annually inside the 
Locks
Vessels that transited the locks earned over
$500 million in 2016
One of Seattle's most popular visitor 
attractions
1.25 million visitors annually
$38 million in visitor-related economic activity

Environmental and Public Infrastructure Value
Locks, spillway, and fish ladder safeguard $125+ million in salmon
habitat protection and restoration
The only point of access and egress for salmon migrating in/out of the
Lake Washington/Cedar/Sammamish watershed
Controls water levels in Lake Washington and Lake Union to maintain
SR 520, I-90, and 75 miles of shoreline in lakes and canal
Access point for major infrastructure projects including 520 floating
bridge and Ballard/Wallingford stormwater tunnel

Tribal Obligations
Locks are key to meeting federal responsibilities under treaties with
Muckleshoot and Suquamish tribes.
Muckleshoot fishing boats use the Locks annually (range of 20-80
vessels/year).
Muckleshoot biologists work in
partnership with USACE to monitor
and manage fish runs.
Coho (21k/year)
Sockeye (115k/year)
Chinook (11k/year)

Public Safety
Rapid access between lakes and Puget
Sound saves money and increases
effectiveness for Seattle Fire Department,
Seattle Harbor Patrol, U.S. Coast Guard,
and King County Sherriff
A major Locks failure due to earthquake or
flooding could jeopardize billions of
dollars in public infrastructure and
threaten human life
Full extent of safety impacts currently under
study by USACE
Report anticipated in Fall 2017

Locks Traffic
Recreational vs. Non-Recreational Vessels, 2015       Non-Recreational Vessels by Type, 2015
Cargo/ crew                 Other, 25 
boats, 604 
Nonrecreational
vessels                                                                 Gov't, 792
7,471 
Passenger                     Towboats,
boats/                         3,414 
ferries, 1,094 
Recreational
vessels 
Commercial
33,087 
fishing, 1,542


Source: USACE                   Total Vessel Transits: 40,558

Locks Shipments
Sand and Gravel vs. All Other Commodities, KT, 2015    Commodities other than Sand and Gravel, KT, 2015
Fab. Metal
Products, 13       Other, 25 
All Other                                          Cement &                        Manufac.
Commodities,                               Concrete, 16                     Prod., 47 
250                 Sand and
Gravel,
838                   Pontoon                                     Fish, 46 
Pipe, 22 
Machinery,
Bulkheads,
Ships &
39 
Boats, 40 


Source: USACE                       Total Tonnage: 1,088 KT

Major Types of Locks Beneficiaries
Marine services and manufacturing
Washington and Alaska fishing fleets
Marine transport companies
Passenger cruise companies
Yacht sales and marinas
Scientific research vessels
Recreational visitors
Property owners
Recreational boaters
General public

BUSINESSES DEPENDENT ON THE BALLARD LOCKS      LOCKS ECONOMIC lMPACT AREA
The Ballard Locks generate nearly $1.2 billion in annual economic benet. Areas impacted by the locks include the Lake Washington Ship Canal and adjacent
properties, Lake Union, Lake Washington, Lake Sammamish and rivers and streams owing into the lakes. The locks also have an economic nexus with the
Lower Duwamish Waterway. Locations of maritime industrial activities and vital infrastructure are shown below and at right.

Lake
Sammamish

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..   Boat/Ship               Maritime              Maritime
Education             Ocean Transport .
Services & Supply          Industrial                                                        Sh'Pyade
.M.
Ballard-Interbay Northend
oCommercral Fishln' ' '           Key           '3 Maritime. .                                ' . .
ll'Ifrastructure                                                     Manufacturing Industrial Center
Related Industries9 0                      Fuel Supply      @Moorage               Rail

Economic Impact Analysis
Locks serve as critical infrastructure that historically has:
Spurred business development that may otherwise not have occurred
Provided for more efficient (lower-cost) operations for businesses that rely on
that infrastructure.
Today a complex web of economic activity depends on safe, efficient,
and reliable Locks operations.
Fully measuring all of the Locks direct and indirect economic linkages
would be exceedingly complex.
By focusing on key users and uses, we can make informed estimates of
the scale of economic activity supported by the Locks.

Gross Revenues of Locks-Dependent Businesses
Commercial fishing                                                         $545 million
Shipyards/                $163 million 
Yacht/ boat sales                   $150 million 
Freight/ shipping             $109 million                   Total:
Passenger services                 million                     $1.2 Billion
$83 
Construction        $50 million 
Marinas      $32 million 
All other          $59 million

Summary of Business Impacts
Impacts
Total annual gross revenues connected to the Locks         $1.2 billion
Direct locks-dependent annual payroll                     $120 million
Total:
Direct locks-dependent jobs                          $1.2 Billion3,000
Locks-dependent annual federal tax revenues              $15 million

Impacts of Locks Closure/Failure
Service disruption
Short, scheduled closures mostly manageable
Long closures would lead to significant layoffs and business closures
Timing of closure is a major factor in scale of impacts.
Likely causes of extended closure
Vessel collision involving miter gates
Mechanical failure of multiple filling culvert valves
Flood overpowering/damaging miter gates
Earthquake
USACE risk assessment team is studying this issue;
report anticipated in fall 2017

A long-term closure would be
astronomical for usContracts would be
lost. All of the shipyards would shut
down. We would have to lay off workers.      The Locks are critical for marine
firefighting and emergency response.
Tug andBarge Company                   Without the Locks, it would significantly
impact marine operations for
firefighting. 
A three-month closure would mean
laying off half of our workforce. Any           Seattle Fire Department 
longer, we would go out of business.
Shipyard Owner                              Honestly, we could not afford a
three-month closure. I don't think it
Quite frankly, if we didn't have the                 would be viable. We are providing a
facility inside the Locks, there are not               critical interstate transportation
many options to do business in the              service that would no longer exist. 
Seattle area.
Tug and Barge Company 
ConstructionCompany

Economic Impact of
the Hiram M.
Chittenden Locks 
August 12, 2016

Lake Washington
Ship Canal Users
Group
Prepared for:
Port of Seattle