7b. Study Report
Item No. 7b_attach
Meeting Date: June 27,2017
February 2017
Economic Impacts of the
Hiram M. Chittenden
Locks
Prepared for
Lake Washington
Ship Canal Users Group
Prepared by
February 2017
Economic Impacts of the
Hiram M. Chittenden
Locks
Prepared for
Lake Washington
Ship Canal Users Group
Prepared by
www.mcdowellgroup.net
Table of Contents
0
Executive Summary ....................................................................................................................... 1
Study Purpose and Methodology ................................................................................................ 4
Purpose............................................................................................................................................................................ 4
Methodology................................................................................................................................................................. 4
Report Sponsors........................................................................................................................................................... 5
Profile of the Ballard Locks .......................................................................................................... 6
Ballard Locks Facilities ............................................................................................................................................... 6
Historical Development of the Locks ................................................................................................................... 7
Current Locks Operations ......................................................................................................................................... 8
Locks-Dependent Businesses ................................................................................................................................ 10
Product Shipments .................................................................................................................................................... 12
Ballard Locks Funding .............................................................................................................................................. 13
Role in Seattle Economic Development Planning ......................................................................................... 14
Key Benefits of the Ballard Locks .............................................................................................. 15
Commercial Fishing Industry ................................................................................................................................. 15
Ocean Transport Industry ....................................................................................................................................... 21
Shipyards and Marine Services ............................................................................................................................. 22
Public Safety and Science ....................................................................................................................................... 24
Yacht Moorage and Sales ....................................................................................................................................... 26
Passenger Carriers ..................................................................................................................................................... 29
Construction and Manufacturing ........................................................................................................................ 29
Local Transport ........................................................................................................................................................... 31
Visitor Industry ........................................................................................................................................................... 32
Tribal Access ................................................................................................................................................................ 33
Other Locks-Related Businesses .......................................................................................................................... 33
Economic Impact Analysis .......................................................................................................... 34
Measuring the Value of Locks............................................................................................................................... 35
Ballard Locks Business Contribution .................................................................................................................. 36
Ballard Locks Non-Business Impacts .................................................................................................................. 40
Washington's Maritime Industry Cluster .......................................................................................................... 41
Suggested Value to the Nation Method........................................................................................................... 41
Potential Impacts of Locks Closures or Failures ....................................................................... 43
Cost of Service Disruption ...................................................................................................................................... 43
Probability of an Unplanned Closure ................................................................................................................. 43
Appendix 1 Interviews ............................................................................................................. 47
Appendix 2 Locks Closure Data .............................................................................................. 48
Executive Summary
The Hiram M. Chittenden (Ballard)
Locks, operated by the U.S. Army Corps
of Engineers (USACE) are the busiest
locks in the nation in terms of vessel
traffic, with more than 40,000 transits
annually. More than 1 million tons of
shipments move through the Lake
Washington Ship Canal and the Ballard
Locks each year. The locks' greatest
significance, however, is the billiondollar
economy it has made possible
over its 100-year history, an economy
that includes:
Source: USACE.
A group of 50 core businesses with approximately $120 million in annual payroll and a full-time
equivalent employment impact of approximately 3,000 jobs tied directly to the locks. Another
estimated 150 businesses benefit in more general ways from the locks and the vessels that use them.
A unique freshwater, tide-free marine environment that reduces maintenance costs and prolongs
vessel life for an estimated 700 commercial and 4,000 recreational vessels that use the locks for access to
Puget Sound.
Moorage, services, and saltwater access that annually support an estimated $1.2 billion in gross
business sales including commercial fishing companies, shipyards and marine services, yacht and boat
sales, freight and shipping services, passenger services, construction, and marinas (see chart below).
Gross Sales by Businesses Dependent on the
Ballard Locks, 2016
Commercial Fishing $545 million
Shipyards/Marine Services $163 million
Yacht/Boat Sales $150 million
Freight/Shipping Services $109 million
Passenger Services $83 million
Consruction $50 million
Marinas $32 million
All Other $59 million
Source: McDowell Group estimates.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 1
A Ballard Locks visitor attraction that generates approximately $40 million in spending impacts each
year, with more than 1.25 million site visitors, including 150,000 tourists, school children and other
passengers who book cruises through the locks each year.
A key control point for the water levels in Lake Washington and Lake Union necessary to maintain,
among other key infrastructure, the Route 520 and I90 floating bridges and the water and sewer systems
that serve Mercer Island's 24,000 residents, as well as approximately 75 miles of residential, municipal and
commercial shoreline and moorage in the lakes and the Lake Washington Ship Canal.
An access and egress point for
equipment and supplies for major
infrastructure projects such as
renewal of the two Lake Washington
floating bridges and removal of
excavated muck during construction of
a planned Ballard/Wallingford
stormwater tunnel.
A facility, currently in need of repair
and upgrade, that supports water
quality and traditional Native
American fishing grounds. The
Ballard Locks also safeguard an Source: Port of Seattle.
investment of more than $125 million in freshwater salmon habitat protection and restoration over last two
decades.
Rapid access for public safety and scientific vessels between the lakes and Puget Sound that saves
money and increases effectiveness.
The full economic impact of this complex set of relationships is not addressed in the federal methodology for
estimating the "Value to the Nation" (VTN) of USACE infrastructure. To complement the USACE methodology,
this study analyzes the unique business and moorage environment made possible by the Ballard Locks and its
role in supporting both the local economy and large, multi-state ocean-shipping, commercial fishing, and
recreation industries. Other key findings include:
A dozen components at the locks have been identified for major repair or replacement. These include
the valves used to empty and fill the lock chambers, the miter gates that seal each end of the locks and
retain the water level behind them, and the saltwater diffuser well that helps prevent deterioration of water
quality on the freshwater side of the locks. Some work has been done, but most projects remain partly or
wholly unfunded.
An extended, unplanned closure of the locks would have significant negative effects on nearly all
the businesses that move vessels, materials or people through the locks or serve customers that do.
Most businesses said closures of a week or less would be manageable, but many said a closure of one to
three months would mean significant lost business and layoffs.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 2
A major failure of the locks or spillway due to earthquake or uncontrolled flooding could jeopardize
billions of dollars in public infrastructure and threaten human life. The potential for such an event is
currently under study by USACE.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 3
Study Purpose and Methodology
Among the nearly 200 marine locks sites operated nationwide by the U.S. Army Corps of Engineers (USACE),
the Hiram M. Chittenden Locks in the Ballard neighborhood of Seattle are unique. The Ballard Locks, as they are
more commonly known, are the only marine link between Seattle's inland lakes, Lake Washington and Lake
Union, and Puget Sound. The locks serve more individual vessels than any other locks in the nation: more than
40,000 transits in 2015. This year marks the 100th anniversary of the locks' opening day in 1917, and as the locks
reach this important milestone, there is growing concern about making the critical infrastructure upgrades
needed for the locks continue operating reliably and safely.
Purpose
The method prescribed by the federal government to evaluate the funding priority of the nation's various locks
systems is based heavily on the gross weight of shipments through the locks. The formula therefore fails to
account for most of the infrastructure value provided by the Ballard Locks, which results mainly from its role as
a lynchpin for several different economic and infrastructure systems in and around Ballard, the Lake Washington
Ship Canal, and Seattle's inland lakes. Those systems include public safety, construction, shipbuilding and marine
services, ocean-going tug-and-barge companies, commercial fishing, cruise and charter vessels, and a large
recreational boating community.
This report describes, and where possible quantifies, the non-shipping-related economic contribution of the
Ballard Locks. The report includes a qualitative discussion of the potential economic impacts should a major
failure of the locks occur.
Methodology
Information for this study was obtained from the following sources:
Interviews with representatives of more than 50 businesses, business associations, public agencies, and
sovereign tribes. A full list of these organizations is provided in the Appendix.
Interviews with USACE personnel familiar with locks operations.
Spending, employment, and locks usage data provided by the firms and organizations interviewed.
USACE data on Ballard Locks usage and operations.
Review of past economic studies of the Ballard Locks and other locks systems and dams.
USACE budgets, "Value to the Nation" manuals, and other reports.
Publicly available economic and demographic data for Washington Congressional Districts 7 and 9,
which encompass Lake Union, Lake Washington and South Puget Sound.
Alaska Commercial Fisheries Entry Commission (CFEC) data on harvest levels and value for applicable
Alaska fishing fleets.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 4
Washington Department of Fish and Wildlife data on commercial fish and crab harvests.
National Oceanic and Atmospheric Administration Stock Assessment and Fishery Evaluation reports for
federal commercial fishing harvest value, participation, and volume.
Recreational boating data collected by the National Marine Manufacturers Association (NMMA), NMMA
Canada, Washington Sea Grant, Washington Maritime Federation, City of Seattle, and others.
Report Sponsors
The study was administered by the Marine Exchange of Puget Sound. The following companies and
organizations contributed funds towards this report.
Ballard Oil Company
City of Kenmore
City of Kirkland
City of Seattle
Coastal Transportation
Covich-Williams
CSR Marine
Ferguson Terminal
Foss Maritime Company
Fremont Dock Company
Kane Environmental
Kirby Offshore Marine
Lake Union Drydock Company
Malone Law Group PS
Nautical Landing Marina
Northwest Marine Trade Association
Northwest Yacht Brokers Association
O'Hara Corporation
Pacific Fishermen Shipyard
Port of Seattle
Seattle Marine Business Coalition
Stabbert Maritime
The American Waterways Operators
Vigor Industrial
Western Towboat
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 5
Profile of the Ballard Locks
Ballard Locks Facilities
The Hiram M. Chittenden Locks site includes two sets of locks, a spillway, botanical gardens, and historical
buildings that house a visitor center, administrative offices, and maintenance facilities. It is located in Salmon
Bay in the Ballard neighborhood of Seattle.
The small lock is 30 feet by 150 feet and handles most of the recreational traffic. The large lock is 80 feet by 825
feet. An extra set of miter gates in the center of the large lock allows it to be divided in half to reduce the
amount of water needed when vessels do not require the full length, but are still too large for the small lock.
The spillway is 235 feet across and incorporates a fish ladder for salmon migration. Pathways allow pedestrians
to cross both the spillway and the locks from either side of Salmon Bay and to view locks operations.
Figure 1. Map of Ballard Locks
Source: USACE.
The locks have three formal purposes, described by USACE as follows:
To maintain the water level of the fresh water Lake Washington and Lake Union at 20 to 22 feet above
sea level.
To prevent the mixing of seawater from Puget Sound with the freshwater of the lakes.
To move boats from the water level of the lakes to the water level of Puget Sound and vice versa.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 6
Historical Development of the Locks
The Hiram M. Chittenden Locks and the Lake Washington Ship Canal were completed in 1917 but were first
proposed more than half a century earlier, when the City of Seattle was only three years old.1 The locks and
canal were originally conceived to support timber and other heavy industry on Lake Union and Lake Washington
and to export coal being quarried to the east of the city. The U.S. Navy also hoped to create freshwater moorage
for military vessels. Over the next century, however, Seattle evolved into a very different city from the one its
founders would have recognized. Supporting industry and providing freshwater moorage remain key benefits
of the locks, but the early visionaries could not have anticipated the complex economic and social systems that
would evolve in large part because of the Ballard Locks.
While the merits of a canal linking Lake Washington to salt water were being debated, local interests constructed
two small canals in the 1880s to connect Lake Washington with Lake Union. Backers of those projects
understood, however, that bigger projects and outside funding would be needed if large ships were to transit
between the lakes and Puget Sound. When Washington became a state in 1889, Congress agreed to conduct a
feasibility study to evaluate various routes. It was completed in 1892, but it was not until 1906 that wrangling
over the routes among the various interests was resolved and focus was turned to designing a canal and lock
system at the current locations.
It was during the final discussions
about the particulars of the
proposed canal and locks that
Hiram M. Chittenden, an
experienced member of the U.S.
Army Corps of Engineers, arrived
in Seattle. Chittenden quickly
determined that although the
route was acceptable, the locks
being envisioned for the project
by the proposed builder would be
inadequate. Chittenden led an
effort that, in 1910, resulted in
authorization from Congress for
$2.3 million in funding for the Source: Friends of the Ballard Locks.
locks. King County agreed to
improve the attendant waterways. Construction began in 1911, the locks closed on July 12, 1916 to allow water
in Salmon Bay to rise to 21 feet above mean sea level, and on July 4, 1917, the opening of the Hiram M.
Chittenden Locks was officially celebrated.
1 Information in this section is based primarily on articles by David B. Williams, for example, Lake Washington Ship Canal (Seattle),
(http://www.historylink.org/File/1444)
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 7
Prior to the opening of the new locks, water levels in Lake Washington varied by as much as seven feet due to
seasonal variations in rain, snow-melt, and evaporation. The new locks lowered the level of Lake Washington by
approximately nine feet and enabled USACE to modulate the water level there and in Lake Union, a function
critical to residential and commercial development along the lake and Ship Canal waterfronts ever since.
Current Locks Operations
The Ballard Locks are the busiest in the nation in terms of the number of vessels that pass through, with more
than 40,000 transits in 2015. While the large majority of those vessel transits (82 percent) are by yachts and
other pleasure craft, there were approximately
Chart 1. Non-Recreational Vessels Using the Locks,
7,500 transits by commercial vessels, including
By Vessel Type, 2015
freight barges, local and ocean-going tugs, cruise
passenger vessels, public safety and research
Cargo/
vessels, and a large component of the Alaska and crew
Washington commercial fishing fleets. The vast boats, Other, 25
604
majority of these vessels either moor or obtain Government,
regular maintenance and repairs within the Ballard 792 Towboats,
Locks. 3,414
The chart at right shows the wide variety of non- Passenger boats/
ferries, 1,094 TOTAL NON-REC.
recreational vessels that transited the locks in 2015. VESSELS: 7,500
The most common type of non-recreational vessel
was towboat (46 percent), followed by commercial Commercial
fishing,
fishing vessels (21 percent), passenger boats/ 1,542
ferries (15 percent), government vessels (8 percent),
and cargo vessels/crew boats (8 percent).
The chart below shows total vessel traffic over the
Source: USACE.
2011 to 2015 period, during which traffic stayed
fairly steady at between 40,000 and 44,000 vessels.
Chart 2. Annual Vessel Traffic through the Ballard Locks (both directions), 2011-2015
43,840 43,236 42,838 40,677 40,558
2011 2012 2013 2014 2015
Source: USACE.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 8
The ability to transit at will between Puget Sound and the inland lakes and Ship Canal gave birth to a complex
system of businesses that enjoy cost savings from access to the freshwater moorage environment and proximity
to each other. The businesses include shipbuilding and repair, boat and yacht sales, moorage, marine transport,
commercial fishing, and a host of
marine technical and professional
services.
Finally, the spillway of the Ballard
Locks is an important tool for
managing and preserving salmon
runs and for regulating water depth
in Lake Washington and Lake Union,
both of which improve safety and Source: Friends of the Ballard Locks.
quality of life for all Seattle residents.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 9
Locks-Dependent Businesses
The Northwest Marine Trade Association
estimates there are 200 businesses that
depend in one way or another on the Ballard
Locks.
Marine Services and Manufacturing.
Shipyards, marine services, marine products,
construction products, and manufacturers are
located along the shores of Salmon Bay, the
Lake Washington Ship Canal, Lake Union, and
Lake Washington. Many professional services
firms, such as naval architects, attorneys,
insurance brokers, and others, have located Source: Robin Pitt; Port of Seattle.
near the locks to serve these companies.
Washington and Alaska Fishing Fleets. An
estimated 700 commercial fishing vessels
participating in more than a dozen different
fisheries depend on the locks for access to
marine services and freshwater moorage.
Traditional and Customary Use. The locks
are used to control salt-water intrusion into
the freshwater lake environment and to track
and help manage salmon runs. Three Native Source: Robin Pitt; Port of Seattle.
American tribes exercise traditional fishing
rights at the locks.
West Coast Marine Transport Companies.
Four major shipping companies have key
operations inside the Ballard Locks.
Passenger Cruise Companies. Ships moored
and maintained inside the locks carry several
thousand passengers annually on tours to
destinations in Alaska, Canada and
Washington State.
Yacht Sales and Marinas. The large, Source: UnCruise Adventures.
protected, freshwater area inside the locks
gives these businesses an ideal environment that is close to upscale population centers but with ready access
to Puget Sound and beyond.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 10
Scientific Research Vessels. Three research
vessels, two owned by the University of
Washington, make regular passages
through the locks from their freshwater
moorage inside. The Washington
Department of Fish & Wildlife also uses the
locks.
Recreational Visitors. The locks are one of
the most popular public sites in Seattle, with
approximately 1,250,000 visitors each year.
Approximately 150,000 visitors, residents
and school children transit the locks
annually on local sightseeing cruises.
Source: University of Washington.
Property Owners. Owners of houseboats,
private docks, marinas and other waterfront
property depend on the locks spillway to
regulate water levels in the lakes. Without
the locks' spillway, more than 70 miles of
residential, commercial and municipal
shoreline would be subject to variations in
water level of up to 7 feet from rain and
snow run-off.
Recreational Boaters. Owners and
passengers of yachts and other saltwater-
Source: Friends of the Ballard Locks.
capable recreational vessels made 16,000
trips through the locks in each direction in 2015 to access saltwater boating activities and cruising grounds or
to obtain repairs, maintenance and other services.
The General Public. Several public safety agencies depend on the locks to move vessels and equipment
between the lakes and Seattle's saltwater waterfront, both for routine patrols and to respond to emergencies.
The function of the locks as a regulator of lake depth is also critical to the functioning of major public
infrastructure, including the Route 520 and I-90 bridges across Lake Washington and the water and sewer
utilities serving Mercer Island. These bridges are critical transportation infrastructure for the area, carrying
147,000 and 64,000 vehicles, respectively, each weekday.2 Finally, the locks facilitate movement of equipment
and materials for major infrastructure projects, including barging out the equivalent of tens of thousands of
truckloads of waste material from the Ballard/Wallingford stormwater tunnel scheduled for construction
between 2018 and 2024.
2 Seattle Department of Transportation (www.seattle.gov).
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 11
Product Shipments
A wide variety of products are transported through
the locks every year, representing 1,088 KT
(thousand tons). The most significant commodity in
terms of weight is sand and gravel, representing 77
percent of total tonnage in 2015 (838,000 tons).
Other common products include 47,000 tons of
manufactured products ("not otherwise specified");
46,000 tons of fish (including shellfish); 40,000 tons
of ships and boats (not under their own power);
39,000 tons of machinery, electrical machinery, and
bulkheads; and 22,000 tons of pontoon pipe. Source: Friends of the Ballard Locks.
Additional commodities include cement and
concrete, fabricated metal products, pallets with multi-commodities, electrical machinery, and dredged material.
Chart 3. Tonnage Through the Locks, 2015: Chart 4. Tonnage Through the Locks, 2015:
Sand/Gravel vs. All Other (KT) Commodities Other Than Sand/Gravel (KT)
Dredged
Electrical Material, 3 All Other, 11
Pallets w/ Mach., 4
Multi-
Commodities, 7
Fab. Metal Manufac.
Products, 13 Prod., 47
All Other
Commodities, Cement and
250 Concrete, 16
Sand and
Gravel, Pontoon Pipe,
22
838 Fish, 46
TOTAL TONNAGE: Machinery,
1,088 KT Bulkheads, 39
Ships and
Boats, 40
Source: USACE.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 12
Ballard Locks Funding
For Fiscal Year 2017, the President's Budget provides a total of $4.62 billion in gross discretionary funding for
the USACE Civil Works program. Nearly one-half ($2.7 billion) is allocated to operations and maintenance, while
one-quarter ($1.1 billion) is allocated to construction.3 The remainder is distributed among a variety of
categories, as seen in the following table.
Table 1. USACE Civil Works Program, Fiscal Year 2017 Budget
Amount
Operations and Maintenance $2.7 billion
Construction $1.1 billion
Mississippi River and Tributaries $222 million
Regulatory Program $200 million
Expenses $180 million
Formerly Utilized Sites Remedial
$103 million
Action Program (FUSRAP)
Investigations $85 million
Flood Control and Coastal
$30 million
Emergencies
Office of the Assistant Secretary of
$5 million
the Army for Civil Works
Total $4.62 billion
Source: USACE.
The budget allocation for the Ballard Locks and Lake Washington Ship Canal in FY2017 is $6.4 million for
maintenance and $5.9 million for operations, or a total budget of $12.3 million, approximately the same as
FY2016 and FY2015.
Table 2. Lake Washington Ship Canal/Ballard Locks,
Fiscal Year 2017 Budget
Amount
Operations $6.4 million
Maintenance $5.9 million
Total $12.3 million
Source: USACE.
Non-routine work covered by the 2015 budget included:
Phase 1 of pump plant replacement
Design of the emergency closure system crane replacement
Initial design to replace filling culvert valves
Minor rehabilitation of the Cavanaugh house
3President's Fiscal 2017 Budget for U.S. Army Corps of Engineers Civil Works released, February 9, 2016.
(http://www.usace.army.mil/Media/News-Releases/News-Release-Article-View/Article/652668/presidents-fiscal-2017-budget-for-usarmy-corps-of-engineers-civil-works-releas
/)
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 13
In 2016, non-routine work included completion of the emergency closure system crane design, continued
design for the culvert valve replacement, dredging, and initial work to replace the dewatering pumping plant,
as well as continued rehabilitation of the Cavanaugh house. Funding in 2017 includes $3.9 million to complete
the new emergency closure system crane.4
The following table shows total operations and maintenance budgets for the Lake Washington Ship
Canal/Ballard Locks for the past seven years. In addition to regular maintenance, funding for non-routine repairs
and upgrades to individual locks components are included in these budgets.
Table 3. Lake Washington Ship Canal/Ballard Locks
Operations and Maintenance Budgets, 2011 2017
(in nominal dollars)
Amount
2011 $8.0 million
2012 $10.5 million
2013 $8.6 million
2014 $11.6 million
2015 $12.4 million
2016 $12.1 million
2017 $12.3 million
Source: USACE Civil Works Budget.
Role in Seattle Economic Development Planning
Seattle's latest Community Development
Plan, adopted in October 2016, addresses
the neighborhood around the Ballard
Locks, which it calls the "Ballard/Interbay
Northend Manufacturing & Industrial
Center." The plan makes clear that the
marine services hub made possible by the
locks are key to the neighborhood's future.
The Community Development Plan calls for
the area to be maintained as a working
waterfront, with improved utilization by
marine/fishing, high tech and small
manufacturing businesses. Source: Port of Seattle.
The remainder of this report describes the role and benefits of the Ballard Locks in more detail and provides
estimates of the economic value of the functions for which data is available.
4Civil Works FY2017 Budget Justification Information, Volume II, Operations & Maintenance with National Program O&M
(http://cdm16021.contentdm.oclc.org/cdm/compoundobject/collection/p16021coll6/id/12/rec/23)
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 14
Key Benefits of the Ballard Locks
This section of the report describes the key components of the economic ecosystem made possible by the
Ballard Locks. Businesses and organizations that depend on the locks are grouped by primary industry/activity,
although some businesses and organizations are involved in more than one component.
The businesses and organizations referenced here are those identified as making regular use of the locks in
day-to-day operations. According to representatives of local business associations, they represent perhaps onequarter
to one-third of businesses in the area that are to some degree dependent on the locks. Information
about individual firms was compiled from a combination of personal interviews and company websites. The
study team conducted a total of approximately 55 interviews with locks users.
Commercial Fishing Industry
Overview and Economic Significance
Because very little fish processing occurs in the Lake Washington Ship Canal or Lake Union, the fishing fleets
carry only small amounts of cargo when they transit the locks. The locks, however, play a key role in mooring
and maintaining vessels from all the major Pacific Northwest fisheries.
In 2016, 271 unique commercial fishing vessels over 40 feet in length made approximately 1,600 transits of the
Ballard Locks. More than 200 of those vessels (80 percent) are homeported in Washington State. Approximately
40 percent of all the fishing vessels over 58 feet long that are active in the major North Pacific/Alaska commercial
fisheries are moored or
serviced at least once
annually in the freshwater
environment inside the
locks. Vessels under 58 feet,
primarily gillnetters and
seiners, typically moor
inside the locks for longer
periods during the winter.
Approximately 30 to 40
gillnetters and seiners
moored behind the locks
engage in Washington
fisheries. They transit
regularly to fish openings in
and around Puget Sound. Source: Port of Seattle.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 15
Vessels that transited the locks earned in excess of $500 million in 2016. Fishing fleets that use the locks regularly
include the following:5
Amendment 80 Fleet The fleet
consists of approximately 17 trawl
catcher/processors averaging 178
feet in length and targeting
yellowfin sole, Pacific Ocean perch,
and other species. Twelve of the
vessels used the Ballard Locks in
2016 for a total of 69 transits.
Earnings for those 12 vessels in
2016 were an estimated $162.9
million.
American Fisheries Act Fleet
Source: Iquique.
The fleet harvests mainly pollock
and includes catcher vessels, catcher/processors, and large floating processors. Forty-one catcher
vessels and two catcher/processors used the locks in 2016 for a total of 234 transits. The earnings by
those vessels in 2016 are estimated at $98.4 million for the catcher vessels and $32.4 million for the
catcher/processors, for a total of $120.8 million.
Bering Sea Crab Fleet In addition
to king crab and two species of
Tanner crab, many of these vessels
also fish for cod and tender for
salmon in the summer. In 2015,
there were 117 active vessels, with
an average length of 118 feet. In
2016, 33 crab vessels used the locks
for a total of 188 transits. Those 33
vessels earned an estimated $75.9
million.
Source: Alaska Bering Sea Crabbers.
Freezer Longline Fleet The
freezer longline fleet is composed of 29 vessels that harvest mainly Pacific cod in the Bering Sea and
Aleutian Islands. In 2016, 16 vessels from this fleet used the locks 71 times and earned an estimated
$94.1 million.
Alaska Salmon Fleet The salmon fleet consists of trollers, gillnetters and seiners. Trollers typically do
not travel between Seattle and Alaska and therefore do not use the locks. Gillnet vessels made 295
transits through the locks in 2016, and purse seine vessels used the locks 413 times. These smaller
5 Estimates of fisheries participation and earnings were developed by McDowell Group using USACE locks transit records, Alaska Commercial
Fisheries Entry Commission (CFEC) data, and National Marine Fisheries Service (NMFS) data.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 16
commercial vessels, typically between 35 and 58 feet in length, primarily engage in salmon fishing. Some
of these vessels also fish in Puget Sound (see Puget Sound Fleets, below). In 2016, 47 purse seine vessels
active in Alaska used the locks 298 times. It is likely a portion of these vessels were also active in other
fisheries in Puget Sound or along the coast of Washington and Oregon. Estimates of the earnings for
these vessels are not readily available.
Halibut and Sablefish Longline Fleet In 2016, 19 vessels primarily targeting halibut, cod, and sablefish
in Alaska, Washington, and Oregon transited the locks 50 times. The average length of these vessels is
approximately 70 feet. Several are wooden schooners more than 100 years old. It is not possible with
available data to estimate earnings per vessel, due to the wide range of vessel characteristics and quota
holdings. However, in 2015, Washington residents earned a total of $51.3 million from harvest of halibut
and sablefish in Alaska.
Puget Sound Fleet Commercial fishermen in Puget
Sound are active in a variety of salmon, crab, and other
fisheries. The number of local commercial fishing vessels
that use the locks regularly is estimated to be at least 50
based on information from locks operators and
interviews with local fishing associations. Lock transits
(but not earnings) for these vessels are included in the
"Alaska Salmon" totals above. Puget Sound salmon and
Dungeness crab harvests typically total between $30
million and $40 million in earnings (ex-vessel value).
Federal Pacific Northwest Fleet In addition to being
active in Alaska fisheries, many commercial fishing
vessels homeported in Seattle harvest groundfish, crab,
and others species in federally managed fisheries off the
West Coast. In 2015, estimated landings for this region
totaled nearly 500 million pounds, worth $336.2 million.
Approximately 16 percent of the Washington harvest
was delivered to the Puget Sound area.6,7 Source: Port of Seattle.
Tribal Fishing Fleet A representative of the
Muckleshoot Indian Tribe Fisheries Division estimates that, depending on salmon run sizes and prices,
between 20 and 80 tribal fishing vessels a year use the locks. In recent years, participation has been at
the lower end of the range due to smaller runs. In addition to salmon, Washington's tribal fishing fleet
receive an allocation of the West Coast groundfish harvest. Treaty allocations of West Coast groundfish
were worth $4.4 million in 2015 for 4.1 million pounds of groundfish.8 An unknown amount of tribal
fishing vessels harvesting groundfish use services located within the locks.
6 Pacific Fishery Management Council, Status of the Pacific Coast Groundfish Fishery, 2016, http://www.pcouncil.org/wpcontent
/uploads/GroundfishSAFEtables/GF_SAFE_%201.htm
7 Ibid.
8 Ibid.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 17
Dependence on the Locks
The commercial fishing fleets depend on the
locks for access to centralized goods and
services. Obtaining a full range of repair,
maintenance, equipment, provisioning, and
other marine products and services in a single
location saves money and time. Access to
freshwater moorage also saves money. The less
corrosive environment reduces hull and
equipment maintenance and extends vessels'
working lives. In addition to being in saltwater,
the main commercial moorage alternative to
the Ship Canal, Pier 91 on the Seattle
Source: Port of Seattle.
waterfront, has limited capacity, caters to large
cruise ships, and allows for only limited types of marine services.
Key Firms and Organizations
Fishermen's Terminal Located
inside the locks in Salmon Bay,
Fishermen's Terminal is a key piece of
infrastructure for the fishing fleets and
other commercial vessels as well. The
terminal was built in 1914 as a center
for moorage and marine services in
large part because of the opportunity
presented by the locks to concentrate
services in a freshwater environment.
The terminal provides moorage for
more than 500 vessels, all of which are Source: Port of Seattle.
primarily operated in saltwater.
Tenants are mainly commercial fishing vessels, but also include eight small cruise ships, 40
tugs/workboats, and 10 charter vessels. Fishermen's Terminal collects approximately $2 million in
moorage fees annually. The terminal's FY2016 total operating budget was $5.6 million.
Alaska Bering Sea Crabbers ABSC is a harvester association that represents 70 percent of quota
shareholders in the Bering Sea Tanner and king crab fisheries. The crab fleet consists of approximately
75 vessels in an average year, and the majority either homeport in Seattle or go there periodically to
access services and repairs.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 18
Freezer Longline Coalition The
Coalition represents approximately
30 active hook-and-line catcher/
processor vessels between 120 and
190 feet. The majority are
homeported in Seattle, but they
operate year-round and spend time
in port only for maintenance and
repairs. They dock either at
Fishermen's Terminal or the fishing
companies' private docks. Roughly
half the fleet transits the locks
annually for haul-outs or repairs.
Source: Blue North; Kevin Suver.
Groundfish Forum The Groundfish
Forum represents the Amendment 80 fleet, which consists of 17 active vessels. Several of these fishing
companies' operations are based in Lake Union (US Seafoods and O'Hara Corporation, for example).
Iquique and Ocean Peace are based at Pier 90/91, but use the Locks to access maintenance services.
Purse Seine Vessel Owners' Association PSVOA is the largest commercial fishing trade organization
on the West Coast. There are 400 members, with up to 40 of them homeported in Seattle at Fishermen's
Terminal.
Washington Trollers Association -
The WTA represents 100 vessels and
40 associate support businesses.
There are about 158 salmon troll
licenses altogether. The vessels
homeport all over Washington,
some in Oregon and California.
About 60-80 homeport in Puget
Sound because their owners live in
Seattle. About half of the trollers
have wooden boats and require
shipyards that specialize in wooden
vessel maintenance, several of which Source: Port of Seattle.
are located inside the locks.
Aleutian Spray Fisheries The headquarters for this family-owned fish company is inside the locks,
and they depend on businesses along the Ship Canal for docking space and marina services. Eight of
their fishing vessels transit the locks twice a year, and several mega yachts transit the locks and lease
space at their docks to transfer passengers.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 19
Coastal Alaska Premier Seafoods This company is a subsidiary of one of the six Alaska Community
Development Quota (CDQ) Groups, Coastal Villages Region Fund. It homeports the majority of its
vessels in Lake Union at their headquarter docks.
Icicle Seafoods Icicle Seafoods, a seafood processing company, moors three 300- to 400-foot-long
floating processors and a 117-foot crab/tender in Salmon Bay on Lake Union. These vessels work in
Alaska most of the year but come back through the locks for maintenance. The company's fleet of 10
trawlers operates in the Gulf of Alaska and Bering Sea but transits the locks occasionally for repairs and
maintenance. Roughly half come through the locks in any given year, as does their 180-foot tug, Impala,
which can haul 14, 40-foot containers of seafood.
Ferguson Terminal The terminal, located where 9th Avenue meets the Ship Canal, provides parking,
moorage and storage for boats, cars, RVs and trucks. Icicle Seafoods, above, leases moorage there.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 20
Ocean Transport Industry
Overview and Economic Significance
All four of the ocean transport companies interviewed have sizeable operations, primarily between Seattle and
Alaska, and all four use the locks to access the Ship Canal and Lake Union for moorage and services.
Communities all along the Alaska coast, and inland as well, depend on the freight carried by these barges, which
typically run weekly during the months when Alaska harbors are ice-free. Deliveries in the late fall are especially
critical to communities in far-western Alaska because they include fuel and supplies needed for the duration of
the winter.
Three of the four companies described below estimated a total of $40 million in revenue associated with vessels
that use the locks. The fourth declined to provide an estimate.
Dependence on the Locks
Ocean-going freight shippers have direct and indirect dependence on the Ballard Locks. Tug and barge
companies may not carry cargo through the locks (most of their barges are too large to fit through the locks).
However, all use the locks to moor and maintain tugboats in the Ship Canal or Lake Union. An operator of a
fleet of five small freighters routinely carries freight through the locks, including out-bound supplies and inbound
fish.
Key Firms and Organizations
Western Towboat Western operates 23 tug boats. Their main shop, offices and yard are inside the
locks. They make weekly trips between Seattle and Alaska and also keep and build boats at their
shipyard. They use the locks every day.
Source: Western Towboat.
Foss Maritime The largest tug and barge company on the West Coast is headquartered in Seattle
and has offices in six other cities. Foss provides harbor and ocean towing along with a wide range of
other maritime services. They operate a shipyard inside the Ballard Locks (see below). The company
owns 56 tugs, 8 service vessels, and 25 barges. All the vessels that use their Seattle shipyard must transit
the locks.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 21
Coastal Transportation Coastal Transportation is a major carrier of freight to Southwest Alaska. Their
fleet of five self-sustaining freighter vessels, ranging from 225 to 244 feet, make weekly trips from
Seattle to Dutch Harbor, the Pribilof Islands, and the Aleutian Islands. Coastal is the largest carrier of
break-bulk freight through the locks. They serve a broad range of customers including municipal
governments, major seafood companies, and smaller, mostly fishing-related, companies.
Kirby Corp Kirby operates tugs and barges that primarily carry oil on offshore routes. Their Seattle
facility, behind the locks on the shore of Salmon Bay, is an operations center and a maintenance yard.
They lease an office building from the Port of Seattle and dock space on the Ship Canal for tug boats
getting repairs and maintenance or laying up between trips.
Shipyards and Marine Services
Overview and Economic Significance
Including the Western Towboat and Foss Maritime yards mentioned above, there are eight shipyards and several
smaller boatyards located behind the locks. All the vessels they build or service must transit the Ballard Locks.
Marine services companies have developed behind the locks because of the shipbuilding/repairing activities
there. Together the shipyards and marine services businesses form the hub of Puget Sound's boatbuilding and
repair industry.
The companies described below estimated a total of $150 million in revenue associated with vessels that use
the locks.
Dependence on the Locks
Locating behind the locks offers two major advantages to these businesses: a freshwater environment that is
not subject to tidal action and the efficiencies gained from access to the wide range of co-located services and
expertise.
Key Firms and Organizations
Northlake Shipyard Northlake has
two drydocks with capacity for
vessels up to 220 feet in length. They
have a whirley crane and a 40-ton
crane and do new construction as
well as repairs. They work on steel,
wood, glass, and aluminum, primarily
commercial fishing vessels but also
tugs, barges, and some cruise
vessels.
Pacific Fishermen Shipyard
Originally founded as a fishermen's
cooperative, Pacific Fishermen Source: Alaska Bering Sea Crabbers.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 22
services tugboats, cruise vessels, charter boats, yachts and fishing vessels up to 300 feet in length at its
yard in Salmon Bay. The facility includes two marine railways and a 600-ton lift dock, as well as a general
ship supply store.
Lake Union Dry Dock Founded in 1919, Lake Union Drydock is almost as old as the Ballard Locks.
The company is a full-service yard that specializes in ship repair and conversion. It has two drydocks
with capacity up to 6,000 tons. Much of their work is on military and other government vessels.
Stabbert Maritime Stabbert Maritime operates a shipyard inside the locks that services all types of
vessels, including tugs, passenger boats, private yachts, government vessels, science and sub-sea
research vessels, and commercial fishing vessels. The yard is equipped with an 1,100-ton drydock as
well as equipment for in-water repairs. The facility has 1,600 feet of pierside moorage and can
accommodate vessels up to 450
feet.
Vigor Marine/Vigor Industrial
Vigor recently acquired Kvichak
yard, located on Lake Union. The
company also owns four other yards
in Washington, two in Oregon, and
two in Alaska. The 27-acre Kvichak
yard has two drydocks and
specializes in aluminum boats. It
primarily does new construction but
works on many kinds of fishing
vessels, ferries, barges, military ships
and offshore oil and gas vessels.
Source: Vigor.
LeClercq Marine LeClercq owns
five marinas in the Ship Canal and builds boats there as well. They specialize in construction and
upgrades of large yachts and also sell new and used yachts.
CSR Marine The company services mainly yachts, typically from 50 to 80 feet long, at their Ballard
shipyard. They also service smaller commercial vessels and manufacture fiberglass and other boat
components. The company has a second yard located in Des Moines, WA.
Covich Williams Covich Williams is a commercial fuel dock that has been in operation behind the
locks for 50 years. They sell fuel, lube, and filters primarily to the commercial fishing fleet. They estimate
they have 3,000 customers located within the Ballard Locks.
Foss Washington Shipyard In addition to Foss' tug and other operations, the company owns and
operates a shipyard inside the locks that provides a range of repair, maintenance and new construction
services in addition to maintaining company vessels. Foss has a second shipyard in Rainier, Oregon.
Canal Boatyard The boatyard has a 55-ton Travelift and provides mainly haul-out services to yachts
and smaller commercial vessels.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 23
Public Safety and Science
Overview and Economic Significance
Four public safety organizations and three research entities use the
locks on a regular basis. The Seattle Fire Department depends on the
locks to move vessels and equipment rapidly to the site of a fire or
other emergency. The Seattle Harbor Patrol uses the locks any time it
must respond to an emergency in saltwater. King County Sheriff and
the U.S. Coast Guard both moor their boats in saltwater, but use the
locks for maintenance and patrols. They are somewhat less
dependent on them for emergencies.
The University of Washington operates two research vessels that
transit the locks for virtually all their work, as does the private research
vessel Kittiwake. The Washington Department of Fish and Wildlife has
a large fleet of boats and vessels that are divided between fresh and
salt water. Roughly ten use the locks annually for maintenance.
Finally, the Ballard Locks are the only point of access and egress
Source: University of Washington.
available to salmon migrating in and out of the Lake Washington,
Cedar, Sammamish watershed (known as "WRIA 8"). All salmon in the watershed must travel through the locks
twice in their lives, as juveniles on their way to the ocean and again as adults returning to spawn. The locks,
therefore, are key to the outcome of more than $125 million in federal, state, local and matching or leveraged
funding for habitat protection and restoration projects undertaken since 1998 in the WRIA 8 watershed.
This study did not attempt to estimate economic values for the safety and science functions related to the locks.
Dependence on the Locks
An important public safety role for the locks is to allow agencies to move equipment and personnel quickly to
where they are needed. To maintain the same level of service without the locks would require duplicate assets
stationed in fresh and saltwater. Both public safety and science vessels use the locks to access the marine
services available inside, and all the vessels moored behind the locks save money because of the freshwater
environment.
Migrating salmon depend on both the fish ladder and several major locks components to ensure their safe
passage into and out of the Lake Washington Ship Canal. The locks also help protect water quality by preventing
the mixing of seawater with fresh water from the lakes. Related to the need for upgrades to the Locks, the
Stoney Gate valves that fill and empty the locks were originally designed to open and close slowly to avoid
causing violent water movements fatal to small fish. This incremental control of the valves is not possible in
their current condition, however.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 24
Key Organizations
Seattle Fire Department The locks are critical for marine firefighting and emergency response. Fire
Department vessels transit the locks for training and for drills or if the vessel they keep moored in Lake
Union is out of service. They occasionally transit the locks under non-emergency conditions for planned
events. Currently, the department's freshwater unit operates from an unstaffed, temporary station. The
locks allow the fire department to move equipment as needed to emergencies on both sides. In addition
to firefighting, the department helps with spill mitigation and water rescues, all of which are time sensitive.
King County Sheriff King County
Sheriff is responsible for a wide
jurisdiction that includes rivers, lakes,
Puget Sound and other large bodies of
water, and encompasses the City of
Seattle. They moor one vessel in Des
Moines to respond to calls in saltwater.
They have three vessels on Lake
Washington that respond to calls and
conduct patrols in lake Washington.
King County Sheriff uses the locks
intermittently to move vessels back
and forth for repairs, maintenance, and Source: Port of Seattle.
special events (like Seafair) or security
measures that require multiple vessels. Incorporated cities along lake Washington that do not have police
can contract with King County Sherriff for marine safety patrols.
Seattle Harbor Patrol Because of budget cuts over the years, there is no longer a harbor patrol station
on the saltwater side of the locks, so responding to saltwater emergencies requires transiting the locks.
Transits are made for emergency calls, routine patrols, and training dives.
United States Coast Guard USCG vessels are moored outside the locks in salt water, but use the locks
to respond to incidents, conduct safety patrols, and access repair services. They are responsible for the
region's maritime transportation security and provide water-side support for a variety of emergencies.
University of Washington Research Vessels Two research vessels homeport at the University of
Washington docks, located within the locks. The Thomas G. Thompson, a 274-foot research vessel, is used
primarily for deep ocean research around the world. It requires the large lock. The Clifford A. Barnes, a
55-foot vessel research vessel, is used less because at 51 years old the vessel is nearing the end of its
useful life. It primarily does research in Puget Sound in both fresh water and salt water. It uses the small
lock.
Washington Department of Fish and Wildlife The department does a variety of management and
conservation activities in Puget Sound including fish surveys, water monitoring, sampling the fish ladder
at the Ballard Locks, test fishing for crab, salmon, hydroacoustics, creel surveys of anglers, and Dungeness
crab assessment. They have about 200 vessels of all sizes, and approximately 10 of them pass through
the locks annually for services.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 25
Bio-Marine Enterprises This private company operates the Kittiwake, a research vessel owned by
Charles Eaton since 1981. The Kittiwake operates exclusively in Puget Sound, and 98 percent of its work
is in saltwater. The vessel transits the locks an average of four times a month to do pollution and water
quality sampling.
Yacht Moorage and Sales
Overview and Economic Significance
MOORAGE
There are at least 42 commercial or publicly
owned marinas located behind the Ballard
Locks that serve primarily recreational
vessels. Those 42 marinas provide
approximately 5,000 long-term slips.
Occupancy rates typically exceed 80 percent,
and marinas in desirable locations, especially
close to saltwater, often have waiting lists. Of
the 5,000 slips, an estimated 4,000 are
suitable for vessels 35 feet or longer that
could be used in saltwater. This figure does
not include saltwater yachts moored at
private docks, which could number an
Source: Port of Seattle.
additional several hundred. Though not every
saltwater-capable vessel uses the locks, most are purchased and maintained at least partly because they can be
used for cruising, racing, and other activities outside the locks, according to local yacht brokers. These saltwatercapable
vessels accounted for the bulk of the 33,000 lock transits by recreational craft in 2016.
A detailed accounting of total fees for long-term and transient moorage by yachts and other recreational craft
that use the locks to access saltwater cruising and other activities is outside the scope of this analysis. Estimates
of total ownership and operating expenditures are provided below.
Finally, an unknown number of recreational vessels with long-term moorage outside the locks, for example at
Shilshole Bay Marina, or that visit Seattle from other cities or states, transit the locks for haulouts and other
services or tie up at transient moorage during visits to Seattle.
An estimated $150 million in sales of new and used recreational vessels in 2016 was made possible by the
Ballard Locks. University of Washington Sea Grant statistics for 2016 identify 7,625 boats sold in King County,
worth $235.7 million.9 Based on an average of estimates by five industry experts, approximately 70 percent of
9 https://wsg.washington.edu/community-outreach/outreach-detail-pages/boat-sales/
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 26
King County boat sales, measured in dollars, occur on the freshwater side of the Ballard Locks and at least 90
percent of those sales involve vessels primarily intended for saltwater use.
OWNERSHIP AND OPERATING SPENDING
A study in 2011 estimated the average value of Washington-based recreational yachts between 35 and 50 feet
in length at $143,000 (2016 dollars) and the average value of yachts 50 or more feet in length at $715,000 (2016
dollars).10 The study also estimated that annual ownership and operating expenditures for yachts between 50
and 85 feet are approximately 10 percent of vessel value, or about $70,000 per year on average. If we apply the
10 percent figure to the smaller yachts as well, we get average annual ownership and operating expenditures
of approximately $14,000 per year for Table 4. Yacht Moorage and Sales Indicators, 2016
Washington yachts from 35 to 50 feet long. Indicator
Number of marinas located inside
There are 3,200 recreational vessels between 35 ~42
the Locks
and 50 feet in length, and 845 recreational vessels Number of long-term slips ~5,000
over 50 feet in length owned by residents of King Recreational vessel sales made
~$150 million
possible by Ballard Locks
County, Washington.11 If we assume that three-
Average yacht value 35'-50' $143,000
quarters are moored inside the locks and apply
Average yacht value 50'+ $715,000
the spending estimates above, then roughly $80
Estimated annual spending on
million in annual ownership and operating ownership and operations for $80 million
locks-dependent vessels
spending is associated with yachts that depend
Source: McDowell Group estimates.
on the locks.
These calculations do not include so-called "super yachts," which are defined as professionally crewed yachts
with a waterline length of at least 24 meters (79 feet). When super yachts visit Seattle, they may moor in Elliott
Bay, but several access moorage in the Ship Canal and Lake Union through the locks each year. Their spending
is much greater than that of typical private yachts, and several businesses in the Lake Union area cater to them.
A super-yacht visit may result in half a million dollars in local spending.12
Dependence on the Locks
The locks benefits most important to recreational vessels are again access to marine services and freshwater
moorage. Without the locks, most of the saltwater-capable recreational craft currently moored within the locks
would either move to a distant location or would be sold. Moving would be difficult, since there are waiting lists
at all the available moorages on the saltwater side of the Seattle waterfront, according to yacht brokers. The
area behind the locks is a key location for boat sales. It is home to the on-water portion of the Seattle Boat
Show, many other water-based boating events, and the largest concentration of yacht brokers in the state. For
cruising yachts, transient moorage in Lake Union or the Ship Canal provides a very desirable location from which
to visit Seattle.
10 Washington Boats: Economic Impact Research, Hebert Research, 2011
11 Yacht registration database for King County, BoatinfoWorld, 2/9/17
12 http://www.bizjournals.com/seattle/blog/2016/06/look-what-slipped-into-seattle-under-cover-of.html
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 27
Key Firms and Organizations
Below are the major marinas and yacht brokerages located inside the Ballard Locks. The Northwest
Yachtbrokers' Association is the principal representative of local yacht-sales businesses.
Larger commercial or municipal marinas located in Lake Washington:
Bellevue Marina Carillon Point
Harbor Village Marina Kenmore Marina
Kirkland Homeport Marina Kirkland Yacht Club
Lakewood Moorage Leschi Marina
Leschi Sailboat Moorage Marina Park
Newport Yacht Basin Parkshore Marina
Spinnaker Bay Marina Yarrow Bay Marina
Larger commercial or municipal marinas located in Lake Union, the Lake Washington Ship Canal or
Portage Bay:
Affinity Marina Ballard Mill Marina
Boatworld Marina Commercial Marine
Fairiew Marinas Gasworks Park
Lake Union Yacht Harbor Nickerson Marina
Ocean Alexander Marina Salmon Bay Marina
Tillicum Marina AGC Marina
Boat Street Marina Canal Marina
Ewing Street Marina Freemont Boat Company
Harbormaster Marina Marina Mart
Northlake Marina Sagstad Marina
Thunderbird Marina Westlake Landing
Businesses specializing in mega-yacht moorage and services:
La Casse Maritime
Nautical Landings Marina
Salmon Bay Marine Center
Yacht Brokerages located in Lake Union, the Lake Washington Ship Canal or Lake Washington:
Crows Nest Yachts Emerald Pacific Yachts
Hebert Yachts Irwin Yacht Sales
Lake Union Sea Ray Lake Union Yacht Sales
Northwest Yacht Sales Premier Yachts
Salmon Bay Marine Center Seattle Yacht Sales
Signature Yachts
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 28
Passenger Carriers
Overview and Economic Significance
Two companies, Anchor Bay Charters and Argosy Cruises, sell tours of the locks and the Ship Canal to
approximately 150,000 people per year. The other two passenger services moor vessels inside and must transit
the locks to conduct their cruises and charters.
Dependence on the Locks
The ability to moor in freshwater is
especially important to passenger
operators with steel vessels because Coast
Guard regulations are less restrictive than
for saltwater moorage. One passenger
carrier said the freshwater environment
inside the locks reduces the number of
required haulouts over a five-year period
from three to just one.
Key Firms and Organizations Source: UnCruise Adventures.
Anchor Bay Charters The company has one vessel and provides commercial passenger charters.
Argosy Cruises Argosy Cruises operates ten vessels and sells passenger charters and scheduled cruises.
UnCruise Adventures UnCruise operates eight vessels that provide cruises to Washington, Alaska, and
Canada.
Spirit of 76 The Spirit of 76 is a charter vessel used for private cruises and marine education.
Construction and Manufacturing
Overview and Economic Significance
The principal firms engaged in construction and manufacturing in the area of the Ballard Locks are marine
related. Two firms produce building materials from sand and gravel shipped through the locks and distribute
them primarily to construction sites inside the locks. Manufacturing firms produce various types of marine
machinery.
In addition to facilitating day-to-day sand and gravel shipments, the locks allow movement of large construction
components such as the pontoons used to renew the Route 520 Bridge across Lake Washington. Beginning in
2018, the locks will be used five-to-six days a week to barge waste material from construction of a 3-mile-long,
14-to-18-foot diameter tunnel between Ballard and the Wallingford waste transfer facility. The tunnel will
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 29
control what is currently 60 million gallons a year of untreated sewage that flows into the Lake Washington Ship
Canal.13
Dependence on the Locks
Much of the tonnage that passes through the Ballard Locks consists of sand, gravel or other aggregates that
are shipped from Dupont in south Puget Sound and processed at facilities either in Salmon Bay or Kenmore, at
the north end of Lake Washington. The locks make that commerce possible, as there is no other cost-effective
way to move those materials, according to interviews for this study.
If the locks were to fail during construction of the tunnel described above, it would require round-the-clock
trucking of waste material through residential and commercial areas to make up for the lost barge capacity.
Manufacturing firms operating in the area near the locks typically make marine-related products. They benefit
from being near their customer base, but are not heavily dependent on the locks, themselves.
Key Firms and Organizations
CONSTRUCTION PRODUCTS
Lakeside Industries The company manufactures asphalt using gravel shipped from Dupont in south
Puget Sound through the locks.
Salmon Bay Sand and Gravel The company provides concrete and other building products using
sand and gravel shipped from Dupont in south Puget Sound through the locks.
Source: Salmon Bay Sand and Gravel.
MANUFACTURING
Markey Machinery Markey makes deck machinery such as winches that are marketed nationwide.
MER Equipment MER manufactures commercial generators for maritime industry.
Hatton Marine Hatton Marine is a marine engine distributor and service provider for pleasure crafts,
commercial fishing vessels, tugboats.
13Seattle Public Utilities, http://www.seattle.gov/util/EnvironmentConservation/Projects/ShipCanalWaterQuality/index.htm.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 30
Local Transport
Overview and Economic Significance
Two types of local tug and barge activity commonly involve the locks. One consists of companies that move
sand, gravel and other aggregates through the locks for concrete and asphalt production at the constructionproducts
firms described above. The aggregates come mainly from Dupont, at the southern end of Puget Sound.
Some are used immediately inside the locks at facilities in Salmon Bay. Some aggregate ships through the locks
to processing facilities in Kenmore, at the north end of Lake Washington. The sand, gravel, and aggregate cargo
is tracked by USACE and amounts to roughly 800,000 tons per year.
Tugs are also used to move bring vessels through the locks for repairs or maintenance at one of the shipyards,
and then to assist it back to saltwater when the work is done. These are mainly fishing vessels, and they have
no cargo aboard other than nets and other fishing equipment, which is not counted by USACE in its annual
tallies.
Dependence on the Locks
Although the amount of construction materials that move through the locks is not large compared to most
inland waterways, the shipments are important because trucking those materials through Seattle's urban
neighborhoods would be an expensive alternative with undesirable noise, congestion, and other environmental
impacts. The local towing of vessels through the locks is a necessary component of the marine services hub that
exists in the Ship Canal and Lake Union.
Key Firms and Organizations
Fremont Tugboat The company has 11 tugboats
stationed at Lake Union. They operate in Lake Union,
Puget Sound, and Lake Washington. They also operate a
125-slip marina at the north end of Lake Union. The
tugboats taking fishing vessels through the locks in both
directions average ten transits a month. Many of the
boats that moor in their marina, which range from 15 to
75 feet long, use the locks to sail, cruise and sightsee. The
company estimates that, on average, 15-20 of the boats
in their marina transit the locks several times each month.
Island Tug Island Tug transports gravel for concrete
production. They make frequent trips through the locks
with loaded and unloaded barges.
Source: Fremont Tugboat.
Westar Marine Westar Marine is a tug, barge, and water
taxi company that does primarily construction support. They moor vessels at North Lake Shipyard and
use them to move materials, equipment and personnel. The Route 520 bridge project is an example of
the kind of project they service.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 31
Visitor Industry
Overview and Economic Significance
Approximately 1.25 million people visit the Ballard
Locks every year to see the fish ladder, tour the gardens
and the facility, and visit the gift shop. Visitors to the
Locks arrive in three ways. Residents of nearby
neighborhoods can access the locks by footpaths from
either side of the Ship Canal. They use the gardens and
walkways for strolling, jogging, bicycling, and
picnicking. Approximately 150,000 visitors arrive on
local sightseeing cruises as described under "Passenger
Carriers," above. Other visitors arrive by car or bus.
The USACE methodology for estimating Value to the
Nation includes a component that measures the
economic impacts of visitation. A 2013 analysis by Source: USACE.
USACE estimated locks-related visitor spending at $38.2
million. (See Economic Impacts chapter for additional detail.)
Dependence on the Locks
In the absence of statistical visitor research, it is difficult to estimate the precise role the locks play in visitor
itineraries and spending throughout the Seattle area. However, the popularity of the locks as an attraction
suggests they may influence visitors to remain in the area longer than they otherwise would, thereby increasing
the value of the visitor experience and the amount of visitor spending.
All of the revenue, employment and taxes created by local water and ground tour businesses that take visitors
to or through the locks depends entirely on the locks operations. Those companies are described under
"Passenger Carriers," above.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 32
Tribal Access
Three species of salmon migrate past the Ballard Locks by means of its fish ladder. Fish are counted each year
under a co-management arrangement between the Department of Fish and Wildlife and the Muckleshoot Tribe.
Average run sizes for the past several years, based on counts taken at the locks, have been as follows:
Coho salmon = 21,134 (average for years 2004-20014)
Sockeye salmon = 115,175 (average for years 2006-2016)
Chinook salmon =11,442 (average for years 2006-2016)
In past years as many as 80 Muckleshoot tribal fishing boats have used the locks. More recently, due to weaker
runs and lower fish prices, the number has been closer to 20. The tribe also uses the locks and fish ladder to tag
and collect fish for various research purposes.
Upgrading the locks would benefit tribal fisheries in several ways (see also "Public Safety and Science," above):
Improving fish passage facilities and equipment to moderate temperature/dissolved oxygen in the Ship
Canal to help ensure the future of salmon in the lake basin. This is a tribal priority.
Replacement of the Stoney Gate valve machinery would facilitate slower lockages to protect salmon
smolts that migrate to saltwater from the locks from mid- April through late June or early July.
Other Locks-Related Businesses
Many other businesses in the vicinity of the Ballard Locks do not rely specifically on vessels that transit the locks,
but are part of the "one-stop-shop" of marine services that contribute to the convenience and cost-savings of
locks users. These businesses include professional firms that specialize in areas such as marine insurance,
maritime law, maritime publications, naval architecture, and other services, including property management.
Some are represented by the two main trade associations in the area:
North Seattle Industrial Association NSIA represents 44 member entities, mainly maritime,
manufacturing and industrial support businesses and property owners in the area around the locks
(Lake Union, Fremont, Ballard and Interbay). NSIA is active mainly in policy, regulatory and community
planning issues relevant to its members.
Northwest Marine Trade Association NMTA represents 700 members, mostly support-services
businesses, and is the largest marine trade association in the U.S. Member businesses service everything
from paddleboards to yachts. In addition to working on policy and regulatory issues, NMTA coordinates
the Seattle Boat Show.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 33
Economic Impact Analysis
USACE periodically measures and
reports what it terms the "Value to the
Nation" (VTN) of the program as a whole
and each of its component sites. The
purpose of the VTN reports is to
summarize the economic contribution
of the overall Civil Works Program and
to help guide budget allocations among
the various locks, dams and other
facilities, Measurements are made in
terms of National Economic
Development (NED) benefits and
revenues to the U.S. Treasury.14 NED
Benefits measured by USACE typically Source: Port of Seattle.
include flood and environmental damage-prevention, transportation costs savings, and recreation values. These
valuations are all legitimate, but they do not account for the full economic contribution of a unique asset like
the Ballard Locks.
This report examines economic impacts of the Ballard Locks at several levels that are not addressed in the
federal methodology. Some of those levels are quantifiable with
The locks are our business. We built our existing data, for example vessel traffic, shipping tonnage, and
office building and marina upon the commercial fishing earnings. Some are identifiable but require
existence of the locks. Our property new data to quantify, for example business efficiencies and
would be worth a lot less if the locks did associated profits and taxes made possible by the locks. Finally,
not exist. some impacts, including the value of traditional and customary
tribal activities, public safety impacts, and quality-of-life impacts,
Maritime Supply Business
are beyond the scope of this analysis.
14 Value to the Nation of the U.S. Army Corps of Engineers Civil Works Programs, Estimates of National Economic Development (NED)
Benefits and Revenues to the U.S. Treasury for 2010. Institute for Water Resources, 2013-R-09, December 2013.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 34
Measuring the Value of Locks
The primary purpose of virtually all other U.S. locks systems besides the Ballard Locks is to move freight long
distances more efficiently than by truck or rail. For example, USACE has calculated that, on average, a gallon of
fuel moves a ton of cargo 155 miles by truck, 436 miles by rail, and 576 miles by barge.15 USACE applies the fuel
savings to the overall tonnage moved each year throughout the
nation by barge when it computes the economic contribution of The advantages [of the locks] are huge,
the overall locks system. It allocates those savings to individual mainly because all our facilities are at
locks on the basis of how much tonnage passes through each Fishermen's Terminal. We would not be
lock.16 here if not for the locks.
Maritime Supply Business
Fuel-cost savings are real, but they are far from the only
economic development benefit created by the Ballard Locks. The U.S. Federal Highway Administration, to
choose just one example, takes a broader view with respect to the value of highways. Its Toolbox for Regional
Policy Analysis Report, 2000 notes:
Economic development impacts may be measured through job creation, total or per-capita personal income,
business growth and attraction, business productivity, or other means. 17
The FHA goes on to list some of the primary determinants of economic benefits. In addition to the obvious
measure of expenditures on transportation, the FHA lists safety improvements and accessibility, for example the
travel time needed to reach suppliers, buyers, workers, etc. 18
The value of accessibility is key to the businesses that depend on
If the locks weren't available, it would
the Ballard Locks, as described throughout this report, especially
take 1,250 truck trips to accomplish what
access to highly skilled services and a large customer base. The
we can do in 10 loads with barges.
other key benefit to Ballard Locks users is the cost savings
Construction Supply Business
associated with freshwater/tide-free moorage. While these
benefits are much more challenging to measure than tonnage,
they are nonetheless significant, and would likewise be threatened in the event of a locks malfunction or closure.
The next section of this chapter discusses and, where data is available, estimates a range of economic impacts
attributable in whole or in part to the Ballard Locks. The last section recommends an expanded VTN method
more appropriate for the unique role of the Ballard Locks.
15 Inland Waterway Navigation, Value to the Nation, USACE, 2009. These figures are provided as examples. More recent estimates may be
available in other USACE publications.
16 The USACE methodology includes a provision to prevent double counting the cost savings of freight that passes through more than one
lock. That provision appears to under-value the Ballard Locks because none of the Ballard Locks cargo passes through any other locks.
17 https://www.fhwa.dot.gov/planning/processes/tools/toolbox/methodologies/economic_overview.cfm
18 Ibid
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 35
Ballard Locks Business Contribution
Dependent Businesses
Table 5. Impact of
Safe, efficient, and reliable operations of the locks Locks-Dependent Businesses, 2015
directly supports a large number of businesses located Impacts
along Salmon Bay, Lake Union, Lake Washington and Direct sales $615 million
the waterways connecting them. Interviews with a core Indirect impacts $133 million
group of 50 key businesses, coupled with other Direct payroll $120 million
Direct employment 3,000 jobs
research, indicates they represent approximately $615
Note: Excludes commercial fishing vessel earnings.
million in business sales (exclusive of commercial
Source: McDowell Group estimates.
fishing vessel earnings) with some connection to the
locks. This includes $482 million that is directly dependent on safe and reliable locks operations, plus $133 in
other related economic impact.
The study was able to identify approximately $120 million in annual payroll directly tied to the locks, with a fulltime
equivalent employment impact of approximately 3,000 jobs. As profiled elsewhere in this report, key locksdependent
businesses include freight and passenger transportation providers, shipyards and other vesselsupport
services, and construction-related firms, along with a variety of other businesses.
Not included in these figures is the approximately $545 million in commercial seafood harvests by fishermen
who rely to varying degrees on the transportation infrastructure provided by the locks (addressed in more detail
below). Nor does the total include spending associated with recreational boat ownership and operations,
estimated at perhaps $50 million based on the assumptions
discussed under "Yacht Moorage and Sales" earlier in the report. One of the main advantages is access to
To some extent, that spending is captured in the revenue of the freshwater, this allows our vessels to
core group of marine services businesses. Finally, the total does layup for a week and get a break from
not include the value of interstate barge shipments by tugboats the saltwater. It's a maintenance
that rely on the locks for moorage and services. advantage. The locks also give us access
to a unique terminal; for example, we
Profits and Tax Revenues
have direct access to rail.
As noted throughout this report, the Ballard Locks creates Seafood Company
greater profits and tax revenues in part by lowering
transportation costs for the more than 1 million tons of freight that move through the locks annually. A greater
contribution comes, however, from two factors unique to the Ballard Locks among other locks in the nation,
namely that it provides access by hundreds of commercial vessels and thousands of pleasure boats to:
A full range of repair, maintenance, equipment, provisioning, and other marine products and
services in a single location, and
A less corrosive and tide-free freshwater environment that reduces hull and equipment
maintenance and extends vessels' working lives.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 36
Measuring these two contributions is challenging
Table 6. Estimated Federal Tax Revenues
because of the diverse ways they support and enhance (excluding commercial fish revenues)
commercial and industrial activity. One basic approach Impacts
is to consider federal tax revenue generated by locks- Annual profits of locks-
$48 million
dependent businesses. Based on a hypothetical average dependent businesses
pre-tax profit rate of 10 percent of gross revenues Average USACE tax rate 23.6 percent
Federal tax revenue $11 million
(across all sectors), there are $48 million in annual
Note: Excludes commercial fishing vessel earnings.
profits associated with the businesses that are closely
Source: McDowell Group estimates.
connected to the locks. Applying the average individual
and business tax rate of 23.6 percent that USACE uses
in its own value calculations, those profits generate $11
The locks allow us to operate a marine company.
million in annual federal tax revenues.19
They are the lifeline for the company. There are
not many dock spaces in Puget Sound; the locks
afford us docks and maintenance that would be
COMMERCIAL FISHING INDUSTRY otherwise difficult to find.
The profit and federal tax estimates are distributed Seafood Company
across a broad range of industry sectors, but do not
include the commercial fishing industry. Numerous
commercial fishing vessel owners homeport their Table 7. Estimated Federal Tax Revenues
Related to Commercial Fishing
vessels inside the locks, and many others use the locks
Impacts
because service providers based inside can offer higher Gross revenues $545 million
quality or lower cost service than can service providers Pre-tax net with locks $81.8 million
outside the locks. Pre-tax net without locks $65.4 million
Difference $16.4 million
The vessels in the commercial fishing fleet that use the
Difference in federal tax
$3.9 million
locks generate approximately $545 million annually in revenue
gross revenues. While the connections between the Source: McDowell Group estimates.
locks and the financial performance of the fishing fleet
are complex, it is clear from interviews and the behavior of the fleet that the concentration of services and
freshwater environment result in lower costs than would otherwise be the case. In practice, some of the cost
advantage may accrue as profit for the companies, while some may be distributed in the form of higher property
rents or other expenses. Regardless of how the cost savings is distributed, however, the full value of the savings
and associated taxes may be considered a national benefit
Freshwater is great, it's better to store created by the locks.
the boats on freshwater. But primarily it's
the facilities available at fishermen's A broad estimate of the federal tax benefits from the locks can
terminal: repair docks, storage off- be derived by assuming that within the fleet that uses the locks,
season, expediting vehicles, and shops. pretax profits would be lower in the absence of access to the
facilities and services made available by the locks. For example,
Commercial Fishing Company
19 Federal tax rate taken from Institute for Water Resources, 2013-R-09.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 37
where pre-tax profits might be 15 percent20 of gross revenues with the efficiencies and cost savings from locks
access, a 12 percent pre-tax profit rate might be expected in the absence of the locks. The federal tax revenue
implication of that shift is about $4 million annually.
These calculations are intended to illustrate the relationship
between safe and efficient locks operations and the federal Quite frankly, if we didn't have the facility
treasury. Given the complexity of the economic connections inside the locks, there are not many
between the locks and the wide range of industrial activity the options to do business in the Seattle
locks support, it is only possible to provide order-of-magnitude area.
estimates, within the scope of this study. Nevertheless, it is Construction Company
evident the locks add substantial value in terms of tax revenue,
in addition to the thousands of jobs and millions of dollars in payroll that are connected with the locks, and that
methods to incorporate this value into USACE's VTN calculations are warranted.
20 This higher profit rate than other sectors reflects the risk premium inherent in commercial fishing.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 38
Total Locks-Related Business Activity
Total gross sales among businesses dependent on the Ballard Locks is estimated at $1.19 billion for 2015. The
largest components by business type include commercial fishing at $545.0 million, shipyards/marine services at
$162.9 million, yacht/boat sales at $150.0 million, and freight/shipping at $108.8 million.
Revenues dependent on the existence of the locks are estimated at $482.4 million, while payroll dependent on
the locks is estimated at $119.8 million.
Table 8. Ballard Locks Business Impacts, 2015 (Millions$)
Direct Lock- Direct Lock-
Dependent Dependent
Sector Gross Revenues Revenue Payroll
Commercial Fishing $545.0
Shipyards/Marine Services $162.9 $114.5 $51.8
Yacht/Boat Sales $150.0 $150.0 $15.0
Freight/Shipping Services $108.8 $49.0 $10.4
Passenger Services $83.0 $62.7 $21.2
Construction $50.0 $30.2 $4.1
Marinas* $32.2 $32.2 $6.4
All Other $58.7 $43.9 $10.9
Total $1,190.5 $482.4 $119.8
Locks-Related Profit (@ 10%) $48.2
Locks-Related Federal Tax Revenue (@ 23.5%) $11.4
Source: McDowell Group estimates.
* Marina revenue estimate is based on the average cost of moorage. It does not include other sources of marina revenue,
such as pump-outs, electricity, and other boating services.
Table 9 summarizes overall revenues, payroll, jobs and tax revenues associated with the Ballard Locks based on
the information gathered for this report. Estimates for individual revenue components are based on a variety of
sources and, in some cases, incomplete data, and some revenue is counted more than once. For example,
revenue from commercial fishing pays for a significant portion of the revenue for shipyards and marine services.
The purpose of this analysis is to demonstrate the economic importance of the locks to a broad range of
industries.
Table 9. Summary of Locks-Related Business Impacts
Impacts
Total annual gross revenues connected to the locks $1.19 billion
Direct locks-dependent gross revenue $482.4 million
Gross earnings of the locks-supported fishing fleet $545 million
Direct locks-dependent annual payroll $119.8 million
Direct locks-dependent jobs 3,000
Locks-related annual Federal tax revenues $15.2 million
Source: McDowell Group estimates.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 39
Visitor Spending Impacts
As noted, USACE includes in its Value to the Table 10. Visitor Industry Impacts of Ballard Locks
Nation NED calculations an estimate of visitor Impacts
spending associated with civil works projects. The Direct Impacts
USACE method is primarily designed to address Visitor spending $38.2 million
the lakes that form behind large dams, however, it Business sales $15.7 million
Employment 248 jobs
is reasonably applicable to the Ballard Locks.
Labor income $6.1 million
In 2013, USACE estimated that as a visitor Total (Direct plus Indirect) Impacts
attraction with such uses as sightseeing, boating, Total sales $23.1 million
fishing, etc., the Ballard Locks generated $38.2 Total employment 310 jobs
Total labor income $8.3 million
million in visitor spending, $15.7 million in
Total value-added (wages, benefits,
business sales, and 248 jobs and $6.1 million in $14.3 million
profits, rents, indirect taxes)
labor income. Including economic multiplier Source: USACE.
effects, USACE estimated impacts including $23.1
million in total sales, 310 total jobs, $8.3 million in labor income, and $14.3 million in value added (wages and
salaries, payroll benefits, profits, rents, and indirect business taxes).
There likely is some overlap between these visitor impacts and other business impacts calculated for this report,
above. For example, we would expect the recreation impacts to include the ticket value paid by visitors who
take sightseeing cruises through the locks, which is also included in "Passenger Services" in Table 8. For the
most part, however, the USACE visitor spending impacts may be considered in addition to the other impacts
described here.
Ballard Locks Non-Business Impacts
As described above, the Ballard Locks creates important benefits that are more difficult to quantify, including
contributions to traditional and customary tribal activities, public safety impacts, and quality-of-life impacts. For
example, one indicator of quality of life impacts might be a
The locks are critical to our research portion of the real estate value of waterfront and near-shore
because they provide access to open residences on the lakes and waterways within the locks.
water while providing a safe, convenient
With respect to the locks' impacts on Native American tribes, the
area for scientists to operate and prepare
value of tribal fishing at the locks and of the locks spillway as a
their research operations.
salmon management tool are discussed in this report. Some have
Maritime Research Operations
argued that the original construction of the locks had a
fundamentally negative impact on traditional tribal quality of life.
Whether such an impact occurred or persists, however, is beyond the scope of this report and of most commonly
used economic valuation methodologies.
Finally, the impacts of the Ballard Locks on public safety and public infrastructure is discussed in the subsequent
chapter addressing locks closures and failures.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 40
Washington's Maritime Industry Cluster
As described throughout this report, the Ballard Locks play an integral role in the maritime economy of Puget
Sound and, by extension, Washington State. The scale of this economic sector is immense: according to a
2013 report, the maritime industry in Washington State had the following impacts in 2012:
$30 billion in direct, indirect, and induced revenues
148,000 workers
2,090 maritime businesses
Average annual wages of $70,000 (compared with statewide median of $51,000)
Direct wages of $4 billion21
The Ballard Locks are essential infrastructure supporting the national and global competitiveness of
Washington's maritime services sector.
Suggested Value to the Nation Method
This report examines the value of the Ballard Locks from many perspectives to identify improvements to the
current methodology for calculating Value to the Nation/Net Economic Development benefits. USACE's current
valuation is primarily a combination of transportation cost savings and recreation values. Analysis for this report
suggests the following factors should also be considered:
Estimation of net economic gains created by the locks should include the cost savings for commercial
and recreational vessels from access to centralized services and to freshwater moorage. Both of these
gains would cease if, hypothetically, the locks did not exist.
In addition, while some percentage of yacht sales and services could relocate if, again hypothetically,
there were no Ballard Locks, some would be entirely lost because the unique juxtaposition of yacht
buyers, convenient moorage, and access to Puget Sound would be irreplaceable. The value of that loss
should also be included in estimates of net economic gains.
Unfortunately, measuring these other factors would be challenging, especially on an annual basis, because of
the vast number of assumptions that would need to be made about how the City of Seattle might (or might
not) be different without the Ballard Locks. It is therefore useful to revisit the purpose of the VTN calculation,
which, as noted above, is first to measure the overall benefit of the USACE Civil Works Program in relation to its
cost, and second to rank locks in relation to one another as a guide to budget allocations among projects.
The issue at hand is that the Ballard Locks have performed a number of critical functions for 100 years and will
need to continue to perform them for at least another 100 years. This issue does not require rethinking the
21 Washington State Maritime Cluster Economic Impact Study, conducted by Community Attributes for Economic Development Council of
Seattle and King County and the Workforce Development Council of Seattle-King County, November 2013.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 41
entire VTN methodology. It only requires the flexibility to incorporate other measures of value for this particular
situation, which all agree is unique.
As a proxy for more complex methods, the study team recommends using some methodology for estimating
locks-related profit and locks-related taxes for businesses identified as closely dependent on continuous,
reliable locks operations. The calculations above were performed under the limitations of this study. They are
not precise, but offer a guide to the general magnitude of the benefits in question. If USACE were to incorporate
this approach into its assessment of the Ballard Locks, further refinement of the estimates would be possible.
There is one more set of benefits that is even harder to quantify, but potentially much larger than any so far
considered. The study team has no recommendation for how to incorporate this last set into a specific valuation
methodology. However, their implications for locks repair and upgrading should not be ignored. The last section
of the report discusses some of the potential impacts of an extended closure or failure of the Ballard Locks.
Here again, the economics of what is at stake are likely much greater than for many other locks systems.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 42
Potential Impacts of Locks Closures or Failures
Cost of Service Disruption
Because the Ballard Locks serve a variety of stakeholder groups, closures of the locks result in a range of negative
impacts. The vast majority are due to unscheduled closures. Virtually all the locks users interviewed said that
adjusting to brief, scheduled maintenance or repair closures was not a problem. If they were faced with an
unscheduled closure of several days to a week, some businesses, for example those in construction and ship
repair, might be forced to cut back operations with an associated
reduction in revenue and employment hours, if a customer were If the locks were to close before the fleet
unable to access their facility when expected. could leave for the season, it would cost
a whole season. Some vessels wouldn't
A long closure would be much more serious. When asked what
be able to make payments.
they would do if there was an unplanned, three-month closure
Fishing Association
of the locks, most local businesses said they would need to
severely curtail or stop operations, and a few said they would be
forced to close permanently. Implications for the fleets of commercial fishing and towing vessels would depend
on the timing of the closure. Vessels prevented from returning to the Ship Canal by a closure likely could find
temporary moorage and services outside the locks that would allow them to continue working. Commercial
vessels trapped on the freshwater side of the locks, however, could be forced to forego critical fishing, towing,
and other work opportunities. Depending on the timing and duration of a closure, losses could reach tens of
millions of dollars.
Probability of an Unplanned Closure
The major components of the locks and spillway are approaching 100 years of age. These include key valve
machinery needed to raise and lower the locks water level and the critical miter gates that keep the water
contained in the locks compartments and within the lakes, themselves. For most of the past century,
maintenance has been conducted according to a schedule established by the original designers. As more
extensive repairs have become necessary, budget
limitations have extended the time between
The locks are vital to the business. For example,
maintenance activities and restricted purchase and
the locks have been closed since Monday for
installation of new parts. Rather than following the
repairs, and they normally have 2-3 jobs a day,
mechanic's adage "repair before failure," the guiding
but have only had one since the locks closed.
principal has become "wait until it breaks," according to
Business Owner
individuals familiar with locks operations.
It is reasonable to conclude that less maintenance increases the likelihood and potential duration of an
unplanned closure, and many local businesses and organizations, including USACE, have expressed this concern.
However, there is currently not enough data to calculate the mathematical probability of a locks closure from
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 43
equipment or age-related failure. Additional information may become available when the USACE risk
assessment team completes its analysis of the locks in fall
2017 (see below). A long closure would absolutely affect us. We
would have to lay off approximately 30 percent
Repair Priorities
of our employees, and it would also affect our
A USACE study in 2010 identified nine high-priority areas revenue by up to 40 percent since a majority of
for repair. Two years later, one of those priority our business relies upon the locks.
components, the large pumps used to empty the locks for Tug and Barge Company
periodic maintenance, were determined to be unsafe due
to corrosion and were permanently shut down.22 The portable pumps now in use require 30 hours to empty the
large lock, compared to eight hours with the original pumps. A more critical system for which renewal is
underway and due to completed in 2017, contingent on funding, is the Lock Emergency Closure System, which
consists of a crane and a set of steel "logs" to be used to block an uncontrolled release of water, should a major
failure of the locks occur.
A third high-priority repair is the diffuser well, which
Honestly, we could not afford a three-month protects freshwater habitat upstream of the locks from
closure. I don't think it would be viable. We are excessive saltwater intrusion, a condition highly
providing a critical interstate transportation detrimental to breeding salmon, among other wildlife. A
service that would no longer exist. temporary screen is in place to prevent migrating salmon
Tug and Barge Company from becoming trapped in the well until more permanent
repairs are performed.23
Finally, additional safety provisions could reduce the potential for accidents among the large number of visitors
to the locks each year. Although railings and safety procedures have been added over the years, additional steps
could be taken during a major refurbishment to ensure visitor safety.
The most likely causes of an extended closure, according to USACE personnel, are the following:
A vessel collision that damages or dislodges one or more of the miter gates (six gates in the large lock,
four in the small lock).
A mechanical failure of multiple Stoney gate valves. (There are 12 valves altogether in both locks. The
large locks can function with up to four out of
service, but significantly more slowly.) Closure impacts would be significant, with
massive layoffs. We would be responsible with
A flooding event in which rapid water drainage
finding ways to get to customers' vessels. There
from the lakes (due to extremely high rainfall or
would not be a drydock capability.
snow-melt) overpowers and damages or
dislodges the miter gates. Shipyard Owner
22 Christopher Dunagan, Encyclopedia of Puget Sound, Puget Sound Institute, University of Washington, 2015.
23 Lake Washington Ship Canal Major Project Status and Fish Passage Improvement Update for WRIA8 Salmon Recovery Council Meeting,
USACE, March 17, 2016.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 44
An earthquake. Earthquakes are considered the gravest threat to the integrity of the locks and spillway.
This is the major focus of an analysis now underway by a USACE risk assessment team.
Scheduled and Unscheduled Closures
The data on locks closures over the past decade suggests that the locks are remarkably reliable for 100-yearold
infrastructure, but also that unplanned closures happen at the rate of roughly 80 per year, and that extended
closures due to malfunction are possible.
During the ten-year period from January 1, 2007 through December 31, 2016, the locks experienced 2,600
events that interrupted operations for periods of between a few minutes and, on one occasion, 18 days. Seventy
percent of the interruption events were planned maintenance or, occasionally, due to staff being occupied with
other duties. The longest service interruption due to
hardware or equipment malfunction was 3.4 days. A three-month closure would mean laying off
Service was also interrupted as a result of 11 accidents half of our workforce. Any longer, we would go
or collisions within the locks, with a maximum resulting out of business.
closure of three days. All told, the total time for
Shipyard Owner
unplanned closures averaged 7.6 days per year. (See
Appendix 2.)
Deferred Maintenance and the Cost of an Error
Regardless of how well designed and constructed the Ballard Locks may be, it is almost certainly less expensive
to fix them before they fail than to wait until afterward because of the potential for additional damage during
an unplanned or uncontrolled incident. According to USACE personnel, the reason the locks function as well as
they do is that the principle of "fix before failure" has been followed until recent years. Budget cuts have
restricted the amount and types of preventive maintenance performed at the locks, however.
Deferred maintenance is particularly risky when, as with the Ballard Locks, the cost of an error is high. Interviews
indicate that short, controlled closures of the Ballard Locks are not a significant problem. A long, unplanned
closure would be extremely damaging to the range of businesses and organizations that depend on the locks.
A major failure of the locks or spillway could be a public disaster.
Potential Economic Losses from Closure
One of the clearest examples of the economic losses that could result from an extended, unplanned locks
closure is the fishing fleets. The timing of fishing activities is critical and follows year-round cycles determined
by fish movements, spawning habits, weather, and a host
If the locks were closed, it would significantly of regulatory requirements. If a locks closure prevents a
impact our budget. There would be an initial fleet from being properly maintained and outfitted,
increase of millions to build a facility on the fishing time potentially worth millions of dollars could be
saltwater side, as well as an additional $250,000 lost. If fishing vessels are trapped inside the locks and
per year for staffing to run the facility in addition prevented from fishing at all, losses could be in the tens
to our lake-side facility. of millions of dollars or more. As noted earlier, fishing
Business Owner
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 45
vessels that use the locks earned in excess of $500 million in 2015.
The ocean transport companies typically have vessels in multiple locations and therefore have some flexibility
to interchange them in the event of an extended closure. However, they would also face large losses if vessels
became trapped to the extent delivery contracts could not be fulfilled, as would cruise companies forced to
cancel scheduled cruises.
Among local businesses, any long closure of the locks
A long-term closure would be astronomical for
would force construction/building materials firms to
us. A lot of the work we do needs to happen in
close, at least temporarily. Shipyards, yacht sales, marine
our yard, and we would have to go to an outside
services, and local transport companies would
yard that would cost money that wasn't planned.
experience varying impacts. There would be little effect
Contracts would be lost. All of the shipyards
on shipbuilding and repair projects already underway,
would shut down. We would have to lay off
but work for vessels not already inside the locks would
workers.
be postponed. Yacht sales would likely decline, and local
Tug and Barge Company
transport through the locks would, of course, halt.24
Public Safety and Potential Loss of Life
The locks are a key component of public safety response for several local agencies, as described earlier in the
report. Further, the fact that the locks regulate water levels in Lake Union and Lake Washington means a
reduction in flood risk and potentially lower insurance costs for shoreline property. Assessment of the potential
for loss of life from a failure of the locks itself is beyond the scope of this study. The possibility is real, however,
and is currently being analyzed by a USACE team that specializes in such risk assessments.
The USACE team is examining the potential impacts of
The locks are critical for marine firefighting and
seismic, mechanical, and other possible failures of the
emergency response. We transit the locks for
Ballard Locks and its spillway. The analysis will focus
training and for drills, or if the Lake Union boat is
primarily on the potential for loss of life and will examine
out of service. We also may transit the locks
to a more limited extent potential economic impacts. At
under non-emergency conditions for planned
the time of this study, the dam assessment team had
events. Without the locks, it would significantly
reached no conclusions about either the probability or
impact marine operations for firefighting.
likely impacts of a major locks failure. The team's report
Seattle Fire Department
is expected in fall of 2017.25
24 This information was collected in individual interviews with more than 50 business representatives.
25 Meeting with the assessment team, January 24, 2017.
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 46
Appendix 1 Interviews
The study team conducted telephone interviews with representatives of the companies and organizations
below. Multiple interviews were conducted with USACE personnel.
Alaska Bering Sea Crabbers Aleutian Spray Fisheries
Anchor Bay Charters Argosy Cruises
Bio-Marine Enterprises CalPortland
Coastal Transportation Coastal Alaska Premier Seafoods
Crow's Nest Yachts Covich-Williams
Ferguson Terminal CSR Marine
Freezer Longline Coalition Foss Maritime Company (Shipyard Operations)
Groundfish Forum Fremont Tugboat Company
Icicle Seafoods Hatton Marine
Island Tug and Barge Irwin Yacht Sales
Kirby Corporation King County Police
Lake Washington/Cedar/Sammamish Steering Lake Union Drydock
Committee (WRIA 8)
LeClercq Marine Construction Lakeside Industries
Markey Machinery Manson Construction
Muckleshoot Tribe MER Equipment
North Seattle Industrial Association Nautical Landing Marina
Northwest Marine Trade Association Northlake Shipyard, Inc.
Port of Seattle Fishermen's Terminal Ocean Peace, Inc.
Purse Seine Vessel Owners' Association Premier Yachts
Salmon Bay Yacht Sales Salmon Bay Sand and Gravel
Seattle Police Department (Harbor Patrol) Seattle Fire Department
Seattle Public Utilities Signature Yacht Sales
Spirit of 76 Stabbert Maritime
Un-Cruise Adventures U.S. Army Corps of Engineers (Seattle District)
United States Coast Guard (Puget Sound Sector) University of Washington Marine Operations
Vigor Industrial (Kvichak Shipyard) Washington Department of Fish & Wildlife
Washington State Department of Transportation Washington Trollers Association
Westar Marine Services Western Towboat Company
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 47
Appendix 2 Locks Closure Data
G3 STALL ANALYSIS REPORT LPMS: 4
Lock Code 01 LAKE WASHINGTON SHIP CANAL Run Date: 01/19/2017 15:20
HIRAM M CHITTENDEN LOCKS
01/01/2007 thru 01/01/2017
STOPPAGE EVENTS STALL EVENTS
Reason Code Number Percent Number Total Percent of Average Time Minimum Time Maximum Time Number Percent of
Code Description of of Scheduled Time Total Stopped Stopped Stopped of Total
Events Events (Min) Time (Min) (Min) (Min) Events Stall/Stoppages
A Fog 4 0.20% 3 1,376.00 0.20% 344 30 1,181.00 0 0.00%
AA Accident or collision in lock 11 0.40% 1 12,586.00 2.30% 1,144.20 135 4,355.00 0 0.00%
B Rain 0 0.00% 0 0.00% 0 0.00%
BB Closed ( unmanned shift) 0 0.00% 0 0.00% 0 0.00%
C Sleet or Hail 0 0.00% 0 0.00% 0 0.00%
CC Grounding 0 0.00% 0 0.00% 0 0.00%
D Snow 0 0.00% 0 0.00% 0 0.00%
Environmental (i.e. fish, animals, oil spills,
DD hydrilla) 17 0.70% 14 4,009.00 0.70% 235.8 24 360 0 0.00%
E Wind 0 0.00% 0 0.00% 0 0.00%
EE Repairing lock or lock hardware 50 1.90% 30 9,242.00 1.70% 184.8 15 1,195.00 0 0.00%
F Lightning 10 0.40% 4 629 0.10% 62.9 15 150 0 0.00%
Lock Ok; unused for other reason (i.e. CG river
FF closing etc) 1 0.00% 1 59 0.00% 59 59 59 0 0.00%
G Low Water 0 0.00% 0 0.00% 0 0.00%
GG Bye Time 0 0.00% 0 0.00% 0 0.00%
H on or around towIce 0 0.00% 0 0.00% 0 0.00%
I River current or Outdraft condition 0 0.00% 0 0.00% 0 0.00%
J Flood 0 0.00% 0 0.00% 0 0.00%
K Interference by other vessel(s) 3 0.10% 0 74 0.00% 24.7 14 37 0 0.00%
L Tow malfunction or breakdown 3 0.10% 0 81 0.00% 27 18 38 1 0.00%
M Tow staff occupied with other duties 3 0.10% 0 94 0.00% 31.3 24 46 0 0.00%
Operations (runspilldivert water, flush seals
N reserve etc) 0 0.00% 0 0.00% 0 0.00%
O Debris 1 0.00% 0 50 0.00% 50 50 50 0 0.00%
P Tow accident or collision 0 0.00% 0 0.00% 0 0.00%
Q Debris in lock recess or lock chamber 6 0.20% 4 1,552.00 0.30% 258.7 19 500 0 0.00%
R Lock hardware or equipment malfunction 77 3.00% 5 44,923.00 8.10% 583.4 10 4,929.00 0 0.00%
S Lock staff occupied with other duties 246 9.40% 4 12,223.00 2.20% 49.7 1 285 0 0.00%
T Maintaining lock or lock equipment 1945 74.70% 1719 450,472.00 81.50% 231.6 0 26,055.00 1 0.00%
U on lock or lock equipmentIce 0 0.00% 0 0.00% 0 0.00%
V Tow detained by Coast Guard or Corps 0 0.00% 0 0.00% 0 0.00%
Collision or Accident (not tow or not in lock;
W see P, AA) 0 0.00% 0 0.00% 0 0.00%
Bridge or other structure (i.e railway, pontoon,
X swing etc.) 167 6.40% 8 3,640.00 0.70% 21.8 3 160 1 0.00%
Y Inspection or testing lock 41 1.60% 35 9,109.00 1.60% 222.2 15 2,723.00 0 0.00%
Z Other 19 0.70% 7 2,854.00 0.50% 150.2 21 500 0 0.00%
T O T A L S 2604 100.00% 1835 552,973.00 100.00% 3 0.10%
Economic Impacts of the Hiram M. Chittenden Locks McDowell Group, Inc. Page 48
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