Admonitory Provisions
This appendix presents the economic analysis for proposed modifications to the Sabine-Neches Waterway (SNWW). The SNWW project area and the general boundaries of its channel reaches are shown in Figure 1. The existing project is defined by a 40-foot project depth from the Gulf of Mexico offshore entrance channel to Port Arthur and Beaumont and a 30-foot project depth to the Port of Orange. Project alternatives were evaluated based on reductions in transportation costs generated from more-efficient vessel loading and from reductions in vessel delays due to channel deepening and widening. The benefits were calculated for a 2019–2069 period of analysis using Fiscal Year (FY) 2009 Federal Discount rate of 4.375 percent and the deep-draft vessel operating costs contained in the unpublished update to Economic Guidance Memorandum (EGM 08-04). The deepening benefits were calculated using a Microsoft Excel spreadsheet model.
Statement of Purpose
This appendix presents the economic analysis for proposed modifications to the Sabine-Neches Waterway (SNWW). The SNWW project area and the general boundaries of its channel reaches are shown in Figure 1. The existing project is defined by a 40-foot project depth from the Gulf of Mexico offshore entrance channel to Port Arthur and Beaumont and a 30-foot project depth to the Port of Orange. Project alternatives were evaluated based on reductions in transportation costs generated from more-efficient vessel loading and from reductions in vessel delays due to channel deepening and widening. The benefits were calculated for a 2019–2069 period of analysis using Fiscal Year (FY) 2009 Federal Discount rate of 4.375 percent and the deep-draft vessel operating costs contained in the unpublished update to Economic Guidance Memorandum (EGM 08-04). The deepening benefits were calculated using a Microsoft Excel spreadsheet model.
When abatement authorized
The anchorages would be used to facilitate vessel passing. During the initial screening, extensive and intermittent widening was evaluated for the channel reaches from Sabine Pass Channel inland through the Neches River Channel. Widening of the Neches River was eliminated from consideration based on comparison of anticipated reductions in vessel delay costs and initial project construction cost estimates, and from the outputs of the Engineer Research and Development Center (ERDC) ship simulation modeling. Widening of the Neches River reach was found not be a cost-effective alternative due to the costs associated with dock relocations and extensive dredging.
