Transportation is the link between supply and demand. However, the U.S. transportation infrastructure requires investment to repair, maintain and improve the system. One mode of transportation that is in critical need of funding is inland waterways; specifically, aging locks and dams.
On the American Society of Civil Engineers’ most recent report card on America’s infrastructure, inland waterways received the lowest grade of all transportation types. Without major investment, shipping soybeans and other commodities will become much more expensive for farmers.
With an issue as large and far-reaching as national transportation system improvements, it is going to take partnerships at all levels to pool the resources needed to affect change. The soy checkoff is prioritizing this issue in its Long-Range Strategic Plan by focusing on building partnerships both inside and outside the soy family to communicate with transportation influencers about why improvements to the infrastructure are needed.
As Jeff Lynn, soybean farmers from Oakford, Illinois, and Illinois Soybean Association (ISA) board member puts it, “America was built on working together to achieve our goals. Working together in times of crisis is what defines us as Americans, and right now our outdated locks and dams are a crisis.”
Meeting funding challenges through P3s
The soy checkoff is partnering with the Soy Transportation Coalition (STC) and ISA on a pilot project to improve locks and dams on the Illinois River. The checkoff selected this waterway because of its aging locks and dams and because that infrastructure system is entirely within the political jurisdiction of one state.
Specifically, the pilot project will use a public-private partnership, or P3, approach. P3s leverage multiple groups to gather funding and support. One reason they are an attractive option is because the amount of funding available through public sources is not sufficient.
“Our transportation challenges are so pronounced, and given the scarcity of public funding to address them, STC and a wide range of transportation advocates have examined the potential for greater private sector funding and engagement,” says Mike Steenhoek, STC executive director. “P3s are not the panacea to all our transportation problems, but they are an option that should be increasingly considered and utilized.”
A model to use on other waterways
P3s not only allow for new sources of funding, but they also provide several other benefits from private sector involvement, such as faster project delivery, bringing operational efficiencies that reduce the cost of projects. Involving both public and private partners also helps in allocating the risks associated with projects.
P3s have a demonstrated track record of success in improving transportation infrastructure in both the United States and other countries to build and enhance roads, airports, bridges and ports.
Click here to see more...