A cost-benefit analysis of the deep-draft dredging of coal ports on the East and Gulf coasts of the United States

TLDR: In this article, a total-system perspective with regard to costs and benefits of coal-port development is presented, assuming that society will both pay the costs and receive the benefits from coal port development.

Abstract: This study deals with the question of whether US society as a whole should invest in large-scale coal-port development. The analysis takes a total-system perspective with regard to costs and benefits. The analysis does not try to attribute the costs or benefits of dredging to the various parties involved in the coal trade. Rather, the analysis assumes that society, as a whole, will both pay the costs and receive the benefits from dredging. The study lends support to those recommending caution in approaching coal-port development. There was no justification for dredging all deep-draft options simultaneously. In fact, what is very clear is that the concurrent dredging of more than one port is unwise unless one supports the most-optimistic projections for coal-export demand or relatively low real interest rates over the long run. Moreover, under no condition examined does it make sense to dredge either of the Gulf ports - Mobile or New Orleans - before dredging Hampton Roads or Baltimore. 35 references, 30 tables.