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It is 3:00 on a brisk and overcast Tuesday afternoon, and the sun is already low in the sky. I am sitting in the galley of a tugboat — state of the art, I am told. The tugboat has all the amenities any crew would need with five staterooms, a kitchen, a washer and dryer, and even a weight room. There is some tension on board, with a hurry-up-and-wait attitude, when the phone finally rings. The deck mechanic answers and the barge we are waiting on is finally loaded with 1,500 metric tons (MT) of soft white wheat. The motor hums to life, and we start moving, slowly, toward the grain elevator. It is growing dark as two grain barges are tethered together, and we begin downriver from Lewiston, Ida., headed to Portland, Ore. It will be a two-and-a-half-day journey first down the Snake River, connecting to the Columbia River and finally to the Willamette River, to reach our Portland export elevator destinations, about 360 miles.

This river, in general, is very handsome, except at the rapid, where it is risking both life and property to pass.” – From the Journal of Sgt. Patrick Gass, a member of the Lewis and Clark Expedition.

Michael Anderson is picture front, left with the crew of the tugboat crew.

We follow the same route that Lewis and Clark took as the “Corps of Discovery” traveled west. The rivers were different in 1805, untamed by today’s intricate system of dams and locks. The eight dams that we will pass through have made it possible to harness the rivers into a major artery carrying U.S. wheat bound for export from farm to port.

The boat rocks side to side on my first night. It is comfortable, but the unfamiliar feeling makes it hard to settle in. Suddenly the boat lurches, and the light outside gets brighter. The first lock, Lower Granite, comes into view from the deck. Two spotlights illuminate our way as we creep up to the lock. Slowly we approach the brightly lit lock and are guided in along a long concrete wall. The force of the shallow water beneath us is the only thing that keeps the tug and barges moving forward. With inches to spare on either side, we have entered the lock. Behind the boat, a gate rises from underneath the water; it is about three feet above the surface when suddenly the gate stops rising, and our boat starts sinking below the surface. It is a rapid movement, but it continues for a long time. The watermark rises above us as we descend below the surface, protected by thick concrete walls. Finally, we stop moving. We are now 100 feet below the level at which we entered the lock. I walk to the front of the boat just in time to see the gates in front, towering above us, start to open, revealing the river ahead, and slowly we make our way out of the lock and down the river.

As a crew member aboard a tug, your day is not a simple “9-to-5.” With one crew on and one off, the day is broken into shifts of six hours each, from 12 to 6 and 6 to 12. The environment shared by the crew is family-like, cooking meals together and watching TV. Only the person driving the boat, the captain or the pilot, is constantly on watch. The deck mechanics jump into action when the boat enters a lock or when we pick up another barge, and this journey is a four-barge tow, meaning four barges being pushed by one tugboat.

From the bridge, the captain has a sweeping view on all sides, and plenty of sophisticated equipment helps him navigate even when we are surrounded by fog, which in the Pacific Northwest is common. Another lock is just ahead. The boat only moves about nine miles per hour. We fit into the lock with precision, again with just a foot on each side to separate us from the massive concrete walls. Unlike the lock last night, this lock is too short to fit the whole tow in at once, but that is nothing out of the ordinary for this crew. Once the barges are tethered in place, the captain skillfully maneuvers the tugboat like a game of Tetris into a tiny space giving the back of the boat just enough room for the lock keeper to close us in. Again, a large iron gate rises from the water behind us, and like an elevator, we start moving down inch by inch. In front is what looks like a massive garage door. The lock opens, revealing the next stretch of the river ahead.

The mechanics of the lock are simple: we are moving down river with the flow of the water, so when we enter a lock, it is full of water. The lock seals behind us, and a valve is released to allow the water to rush out of the lock. The tow itself is being moved to the same level as the river we are moving down. Once the tow is at the same level as the water outside the lock, the valve is closed, and we wait for the massive concrete door ahead of us to open so the tow can move out. It is a similar procedure for ships going upriver against the flow, but instead of the valve releasing water, the valve fills the lock. It takes about 30 minutes to pass through each lock.

The Columbia Snake River System is a superhighway for moving wheat and other agricultural products from farm to market. The barges and rail lines that run on both banks of the Columbia River carry more than 55% of all U.S. wheat bound for export each year. Barges are the most efficient way to move large volumes of grain, making the river system a cost-effective and “green” logistical option. The Army Corps of Engineers maintains the lock system; its history goes back to the 1930s when President Franklin Roosevelt personally inaugurated Bonneville, the first of the eight dams and locks east of Portland.

After about 60 hours on board the tugboat, we arrive in Vancouver, Wash., on the north bank of the Columbia River. We drop off two barges at an export elevator and proceed west again, up the north-flowing Willamette River that bisects Portland. It is my third river in a week, and we are taking the last barge to an export elevator just across the river from the U.S. Wheat Associates (USW) West Coast Office. There is a vessel at berth waiting for the wheat we carry. The crew drops the barge, and me, at the elevator. I walk up a set of metal stairs connected to a hoist and hop off, touching land for the first time since Tuesday. I walk across the river on Portland’s Steel Bridge, under which the wheat from our tow will pass on its way overseas, to my office.A tugboat pushes a grain barges down the Snake River on its way from Lewiston, Idaho to Portland, Ore.

By Michael Anderson, USW Market Analyst

This story was originally published on October 21, 2019.

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The Columbia Snake River System is the network of federal dams and locks on the Columbia River and connected water bodies, including the Snake River. This system enables grain barges to carry wheat 360 miles from Lewiston, Idaho, to export elevators as far west as Longview, Wash.

In marketing years 2019/20 and 2020/21, more than 55% of all U.S. wheat exports* moved through the system by barge or rail. Of the more than 15.0 million metric tons (MMT) of U.S. wheat exported from Pacific Northwest (PNW) export elevators each of those years, an estimated 4.6 MMT arrived by barge.

In addition, an estimated 10% of total annual U.S. wheat exports each year passes through the four locks and dams on the Snake River between Lewiston, the most inland port in the nation, and its confluence with the Columbia River.

Chart shows the amount of U.S. wheat by class that is exported through the Columbia Snake River System

Four Classes of Wheat are exported from PNW export elevators after arriving through the Columbia Snake River System by barge and rail. Source: Federal Grain Inspection Service. 

Grain Superhighway

In October 2019, U.S. Wheat Associates (USW) Market Analyst Michael Anderson shared his experience aboard a four-tow barge moving wheat from Lewiston to western export elevators on the deep-water Columbia River. Eight locks on the system allow barges to safely navigate the nearly 222-meter drop in elevation over that distance.

“The Columbia Snake River System is a superhighway of sorts for moving wheat and other agricultural products from farm to market,” Anderson said. “The ability to move such a large volume of grain efficiently makes the river system a very cost-effective and “green” logistical option. The Army Corps of Engineers maintains the lock system. And its history goes back to the 1930s when President Franklin Roosevelt personally inaugurated Bonneville, the first of the eight dams and locks east of Portland.”

Barge loading on Snake River

From Way Up River. Wheat is loaded onto a barge tow on the Snake River, the eastern segment of the Columbia Snake River System, near the start of its journey to export.

Earlier in 2019, Anderson noted why barging represents an essential part of the Pacific Northwest (PNW) wheat export supply system, including rail and trucking.

Barge Efficiency

“The rivers can move more volume at once, with greater fuel efficiency,” he wrote. “One barge can carry the same amount of wheat as 35 rail cars or 134 trucks. A barge tow can carry more than one 100-unit train or 538 trucks. And one barge can move a ton of wheat 647 miles per gallon while a truck can only move a ton of wheat 145 miles per gallon.”

The Pacific Northwest Waterways Association (PNWA) also reports that barging is a very safe way to move cargo, with fewer injuries, fatalities and accidental spills than other transportation options.

Economic Value

This system transports four classes of U.S. wheat grown by dependable farmers in 11 states. In addition, some of that wheat and other crops for export markets are irrigated with water from the system. And the dams on the Columbia Snake River System generate 90% of the renewable electric power in the PNW.

Map of the Columbia Snake River System from Pacific Northwest Waterways Association

Eight Steps Down. Lock and dam systems on the Columbia Snake River System allow barges to efficiently and safely navigate the 222-meter elevation change from Lewiston, Idaho, to export elevators as far west as Longview, Wash.

A Necessary Link

The Columbia Snake River System and other major U.S. river systems truly connect the United States to its trading partners. The river system keeps U.S. wheat competitive by moving higher volumes more efficiently. USW, its state wheat commission members, wheat associations and supply chain stakeholders in the tri-state region of Idaho, Oregon and Washington all support the Columbia Snake River System and will work to see that it continues working for wheat buyers around the world.

* Source: Federal Grain Inspection Service

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In the Pacific Northwest (PNW), wheat can move by barge to export elevators from as far away as Idaho. That is because of the series of eight locks and dams that make safe, efficient navigation possible on one of the leading trade gateways in the United States — the Columbia Snake River System.

The Pacific Northwest Waterways Association (PNWA) notes that over 8.6 million tons of cargo are moved by barge on the inland portion of the system, feeding the deep draft lower Columbia River. The Columbia Snake River System is the top wheat export gateway in the nation.

Serving Asia, Latin America

Idaho exports more than half of its wheat crop each year. The Port of Lewiston on the Snake River, the most inland U.S. port, is uniquely positioned to source that wheat for the six major PNW export elevators serving Asian and Latin American wheat markets. All aspects of the river system are essential for transporting wheat from farm to market. However, barging through the lower Snake River is the most efficient, affordable, and environmentally friendly way to get that wheat to export locations. For context, one 4-barge tow on this river system moves as much cargo as 144 rail cars or 538 semi-trucks.

An estimated 10% of all U.S. wheat exported every year moves through the four locks and dams on the lower Snake River. The Idaho Wheat Commission and its partners recently shared the short video below that tells the story of how the Columbia Snake River System works for the world’s wheat importers, for the U.S. farmers who grow that wheat, and for the people of the Pacific Northwest.

U.S. Wheat Associates (USW) will share more information about the crucial role of the Columbia Snake River System in future Wheat Letter posts.

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Private grain companies in the U.S. wheat export system in the Pacific Northwest (PNW) overcome challenging logistics to deliver wheat that consistently meets contract specifications to buyers around the world. Grain sellers based in Gulf, Lakes and Atlantic ports operate very similar logistical systems to export wheat and other grains.

We are sharing a video and written look at how these successful companies do their work serving U.S. wheat farmers and overseas wheat buyers.

Sourcing Wheat From the Interior

An overseas buyer contracts with an exporter for wheat of specific class, grade, quality and price. It is then up to the exporter to source that wheat and get it loaded at the contracted price.

They do this reliably through a very efficient, system that moves the wheat to market using trucks, barges and rail to the vessel, often within a two-week shipping window.

U.S. wheat export system starts at country elevators.

U.S. wheat export system starts at interior elevators where wheat purchased from farmers is loaded onto train cars for delivery to export elevators.

In the U.S. wheat export system, grain sellers source U.S. wheat supplies from local elevators close to the farms.

Hard red spring (HRS) wheat comes mainly from the Dakotas and Montana. Hard red winter (HRW) wheat originates mostly in Montana, Wyoming, Nebraska and some from PNW states.

Those classes are loaded onto dedicated 110 car unit trains that haul the wheat over the Rocky Mountains and down the Columbia River Gorge to the export elevators.

Farmers deliver much of the soft white (SW) and white club wheat grown in Washington, Oregon and Idaho to grain facilities on the Snake, Columbia or Willamette Rivers where it is loaded onto barges or trains for the ports.

In the U.S. wheat export system, barge transportation is efficient and safe.

In the U.S. wheat export system, barges are the most cost-efficient transportation method. In the Pacific Northwest, wheat can move by barge to export elevators from as far away as Idaho because of the series of locks and dams that make safe, efficient navigation possible on the Columbia-Snake River System.

Because U.S. wheat is graded and segregated by class and quality at every step of the supply system, the export elevator knows they will receive the wheat they need to fill their customer’s contract.

Highly Automated Process

The receiving process at elevators in the U.S. wheat export system is highly automated. Numerous sensors and cameras allow only a few people to unload the wheat very quickly into temporary holding bins segregated by class, grade and quality.

Barges in this tributary can discharge 600 metric tons of wheat per hour. Unit train cars are opened and unloaded in less than 18 hours.

The export elevator’s shipping system is also automated. One person from a control room can select wheat from different storage bins and blend them together to be loaded onto the bulk vessel the buyer has chartered.

But, under U.S. law, that cannot happen until the wheat is inspected to certify that the quality loaded matches the customer’s specifications.

This highly regulated, standardized process is conducted by the USDA’s Federal Grain Inspection Service, or a state inspection agency supervised by and subject to the same standards as FGIS.

FGIS inspection and certification is required by law in the U.S. wheat export system.

FGIS inspection makes  the U.S. wheat export system uniquely valuable. A random sample of every sub lot of wheat is broken down into specified quantities by FGIS officials and weighing, inspection and certification is standardized and objective. FGIS inspection data also yields information that buyers can use to get the most value from their tenders. 

In this process, a specific amount of wheat is sampled every 15 to 20 seconds as it flows from the elevator into designated shipping bins holding from 1,000 to 2,000 metric tons.

The sample is collected in the FGIS lab at the elevator and the shipping bins remain closed while FGIS inspects each sample.

When the inspectors certify that the sample meets the customer’s contract specifications, FGIS opens the shipping bins, allowing the elevator to load that wheat onto the vessel. If not, the wheat in the shipping bin is returned to the elevator to be re-blended.

Quality Assurance

FGIS saves sub-lot samples from each shipping bin for 90 days in case an issue comes up when the wheat arrives at its destination.

To give the buyer additional quality assurance, about 10 percent of all samples are sent to a national FGIS Board of Appeals and Review to be re-inspected for quality control monitoring.

Those inspections generate valuable data that customers can use to get even more value from their purchases of high-quality U.S. wheat. Your U.S. Wheat Associates (USW) representative can help you make good use of this information as you write your tenders.

In the U.S. wheat export system, grain companies move wheat from inland farms and elevators to deep water ports more efficiently and economically than any wheat supply system in the world.

In the U.S. wheat export system, grain companies move wheat from inland farms and elevators to deep water ports more efficiently and economically than any wheat supply system in the world.

It is very reassuring to wheat importers that U.S. grain handlers segregate wheat by class and quality, and maintain its wholesome character, while moving wheat from inland farms and elevators to deep water ports more efficiently and economically than any wheat supply system in the world.

Learn More

More information about the U.S. wheat export supply system is available from USW online or from your local representative, including an interactive map of the system, a section on “How to Buy U.S. Wheat” and other resources.

 

 

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A coalition of Pacific Northwest (PNW) agricultural and commercial organizations recently responded with serious concerns to a controversial dam breaching proposal that would tear out four dams on the Snake River.

The dam breaching proposal, presented by U.S. Representative Mike Simpson of Idaho, aims to restore fish populations on the river while compensating groups affected by removing the dams. However, in a letter to government officials, the coalition said the plan would decimate U.S. producers’ ability to move wheat and other products to overseas customers and be of questionable environmental benefit.

The National Association of Wheat Growers joined state wheat organizations in Idaho, Washington, Oregon and Montana in signing the letter.

No Dams, No Barges

U.S. Wheat Associates (USW) has shared stories about the sustainability and reliability of wheat transportation by barge. The Columbia and Snake Rivers are essential parts of a logistical system that moves more than half of all U.S. wheat exports every year to more than 20 Pacific Rim countries. Wheat loaded on the Snake River makes up 10% of all U.S. wheat exports.

Barge traffic on the Columbia-Snake River System is the most cost-efficient and sustainable connection between U.S. wheat farmers and their customers overseas. And more easily navigable, safe and efficient barge transportation depends on river locks at each of the targeted dams.

Uncertain Results

USW shares the opinion stated in the coalition letter that improving fish populations are important and admirable goals. Still, there is little certainty removing the dams will restore fish populations to a level that would satisfy environmental advocacy groups involved in litigation over the river’s management.

The river system’s current management strikes a balance between all river uses—providing renewable electricity, transportation, irrigation flood control, and recreation. The dam breaching proposal would eliminate nearly all these benefits of the river. It would also subject interior PNW communities to a wide range of environmental and economic impacts.

Barge Traffic Safe for Now

Fortunately, U.S. wheat importers should not worry that the dams are in imminent danger. Members of Congress have not yet written legislation on the dam breaching proposal and it has not attracted much political support.

Hopefully, the proactive and vocal nature of river stakeholders early in this process will highlight the shortcomings of the proposal’s fish recovery portion and the enormous costs for trade, the region and the U.S. Treasury.

By Dalton Henry, USW Vice President of Policy

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By Matthew Weaver. Reprinted from Capital Press with permission.

Editor’s Note: The image at the top of this story shows the Columbia-Snake River System with wheat export loading facilities on the rivers. Blue color indicates areas of soft white wheat production, Gold color indicates hard red spring production area, and Green color indicates hard red winter production area. View this interactive U.S. Wheat Export Supply System map produced by U.S. Wheat Associates (USW) here.

U.S. Rep. Mike Simpson says his plan to end all salmon litigation and remove four Snake River dams would offer agriculture unprecedented legal protection, but industry stakeholders say it’s a nonstarter.

Simpson, R-Idaho, has not proposed legislation, but on Feb. 7 released a $33.5 billion concept for salmon recovery, which includes removing the Lower Granite, Little Goose, Lower Monumental and Ice Harbor dams on the lower Snake River in 2030 and 2031.

“It’s such a different approach,” said a Simpson representative, speaking on background. “We’re not saying, ‘Take the dams out and save salmon.’ We’re saying, ‘Save agriculture, replace everything and then save salmon.’” If the dams are removed, each interest group would need sufficient resources to replace the benefits they currently receive, the representative said.

Replacement power generation would have to be built and online by 2030, prior to breaching the dams.

The concept includes an automatic 35-year extension of licensing for all remaining public and private dams generating more than 5 megawatts in the Columbia River Basin. This would “lock in” the dams and eliminate the “slippery slope” argument of, “If you allow them to remove these four dams they will go after the other main-stem Columbia River dams and others,” the representative said. Under the concept, if the dams are removed, any litigation related to anadromous fish within the Columbia River system under the Endangered Species Act, National Environmental Policy Act or the Clean Water Act would be immediately halted and stayed for 35 years.

The plan combines many different elements that are not necessarily related, including fish recovery, energy generation and electricity rates, said Kristin Meira, executive director of the Pacific Northwest Waterways Association.

Each element requires its own intense inquiry and study, she said.

“Unfortunately, the idea of Snake River dam breaching is a non-starter when it comes for how we move cargo and ultimately for our energy portfolio,” she said. Taking out the dams would make that stretch of the Snake River impassable for barge traffic.

Ice Harbor Dam and navigation lock near Burbank, Wash., on the Lower Snake River

The Ice Harbor Dam and navigation lock near Burbank, Wash., on the Lower Snake River provides navigation, hydroelectric generation, and incidental irrigation. iStock photo.

Stakeholders also say breaching the dams won’t achieve salmon recovery, pointing to fish declines along the West Coast due to ocean temperatures, runoff and other factors.

Four of 13 endangered salmon populations listed traverse the Snake River dams, said Glen Squires, CEO of the Washington Grain Commission.

“Everybody knows salmon are not doing well regardless of the rivers that have dams, don’t have dams,” Squires said.

Removal of the dams and the navigation system would affect reliability and timeliness of wheat delivery to customers overseas, Squires said.

“When we visit with overseas buyers, very seldom, if ever, do they ask about what’s going on with the barge system,” he said. “What they ask about is, what’s going on with the rail system?”

Transportation costs to get wheat to West Coast ports would increase by 50% to 100%, said Michelle Hennings, Washington Association of Wheat Growers executive director.

Barging is the most carbon-friendly mode of transportation, Hennings said. Switching to trucks and trains would likely increase carbon dioxide and other harmful emissions by over 1.25 million tons per year.

“This is not a plan that gets us on a greener path when it comes to cargo movement,” Meira said.

Read additional information about this issue at the following links:

https://www.wawg.org

https://www.owgl.org/p/resources/latest-news

IGPA Press Release

https://www.pnwa.net/wp-content/uploads/20210204-Simpson-plan.pdf

https://nwriverpartners.org/wp-content/uploads/2021/02/2021-NWRP-Simpson-Plan-PressStatement.pdf

https://www.tri-cityherald.com/news/local/article248998910.html 

https://simpson.house.gov/salmon/

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By Matthew Weaver. Reprinted with permission from Capital Press, www.capitalpress.com, Dec. 2, 2019

[Editor’s Note: The locks and dams on the Columbia-Snake River System are an essential infrastructure for the efficient transportation of U.S. wheat from the interior to vital export elevators serving buyers in Asia and Latin America. This article examines the effort to tell the complete story of how the river system serves a broad range of people and interests. On behalf of the farmers we represent and their export customers, U.S. Wheat Associates (USW) strongly supports keeping the system, in its present form, whole.]

Northwest agricultural transportation advocates are backing a new advertising campaign to combat environmentalists’ “simplistic messages” about removing four dams on the Snake River.

“Snake River Faces,” sponsored by the Pacific Northwest Waterways Association, tells the story of several people who have personal connections to the river, including a wheat farmer, a family winery and a port director who welcomes commercial tour boats and kayaks on the river in her free time.

Environmental groups have for years called for the removal of the Ice Harbor, Lower Monumental, Little Goose and Lower Granite dams, citing their impacts on federally protected salmon and, more recently, orcas.

“There’s a lot of misinformation and lack of understanding about the river and all of the different, amazing things it delivers to our region and to the nation,” said Kristin Meira, executive director of the association.

Ads are running in magazines throughout Washington state and on Facebook.

Meira said the campaign will run through early January.

The abundance of misinformation is “really unfortunate,” she said.

“It ends up doing a disservice to the very species we’re all interested in helping, whether it’s salmon or orca,” she said. “The idea you can do one action in one area and have those species recover is unfortunately just not how it works. But unfortunately, those very simplistic messages are being delivered all around the region, including to our decision makers.”

The association relies on information from federal agencies, particularly NOAA Fisheries, on species recovery and to highlight the impact of the dams.

Meira said a colleague put out a call for information about the number of jobs the dams provide over the summer.

d Pacific Northwest wheat farmers like Marci Green of Fairfield, Wash., rely on the Columbia-Snake River System and its locks and dams to efficiently move wheat to export elevators.

Fairfield, Wash., wheat farmer Marci Green is featured in the campaign.

“Just like every farmer in Eastern Washington, most of our wheat is exported,” Green said. “The most fuel-efficient and cost-effective way for us to get our crops to the ports in Portland and Vancouver is by truck and barge on the Snake and Columbia River.”

Barges using locks at the Snake River dams move nearly 10 percent of all U.S. wheat exports to international markets most years.

“Anything we can do as the agricultural industry to get the word out and communicate why the river system is important to our industry and to the economy of the whole state and the Pacific Northwest, we need to do,” Green said.

The association also asks residents to provide comments to an online questionnaire offered by consultants hired by the office of Washington Gov. Jay Inslee to gather and summarize the effects of retaining or removing the four dams. Responses will go into a report to Inslee.

Meira said it’s too early to tell whether efforts to combat the misinformation are making a dent.

“We’re hopeful these will be eye-opening pieces that will help better connect people to parts of the region where they may have heard a little bit, but don’t really understand (or) don’t know the connection that all of us have,” she said.

Green hopes to get the public to consider science and not respond solely to emotion. She isn’t sure how to measure the effectiveness of agriculture’s messaging.

“I have to hope that we’re making some kind of an impact,” she said. “It’s one of those things that always comes up, it’s one of those issues that we are constantly up against. I don’t see the issue going away any time soon. It’s going to take a lot of perseverance and telling our side of the story over and over and over again.”

For more information, visit: “Faces of the Snake River” at https://www.snakeriverfaces.com/; and “Riding with the Wheat on Its Way to Export” at https://bit.ly/2BrZ1BY.

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Early in 2019, I attended a presentation given by the Executive Director of the Pacific Northwest Waterways Association (PNWA), Kristin Meira. In the audience were farmers eager to hear how U.S. legislators shared their interests regarding the ongoing navigability of the Columbia Snake River System. Open waterways are a crucial and efficient source for U.S. farmers to export their products to international markets.

The Columbia Snake River System is the leading gateway for wheat exports. The Columbia Rive alone barges 53% of U.S. wheat destined for export. The rivers can move more volume at once, with greater fuel efficiency, making them more effective for moving grain to market than by rail or truck. One barge can carry the same amount as 35 rail cars or 134 18-wheelers. A barge tow can carry more than one 100-unit train or 538 trucks. One barge can move a ton of wheat 647 miles per gallon while a truck can only move a ton of wheat 145 miles per gallon

A Voice for the River System

The PNWA is an active voice in promoting the benefits of keeping the river systems open for navigation. In their own words, the PNWA is a collaboration of ports, businesses, public agencies and individuals who combine their economic and political strength in support of navigation, energy, trade and economic development throughout the Pacific Northwest (PNW). The organization’s history dates back to the projects of the New Deal in 1934. The group, known then as the Inland Empire Waterways Association, petitioned President Roosevelt to fund a navigation lock along the Columbia River just east of Portland, Ore.

Since then, the PNWA has been a leader in securing Congressional authorization for the necessary funds to build another seven locks and dams along both the Snake and Columbia River. The PNWA also works hard to maintain and improve navigability. They advocate for deepening the draft and improving the jetties that allow safe passage into the Columbia River.

Conflicting Interests

The importance of the river system is not lost on the farming community. However, balancing the interests of environmental groups is difficult. Save Our Wild Salmon, an organization with the goal of increasing PNW wild salmon and steelhead populations, advocates for the removal of dams on the Snake River and expanded spillways on the remaining dams. They also want to modernize the Columbia River Treaty with Canada. These changes would include the river’s health as an equal portion of the treaty, which currently only governs energy production and flood management.

Many groups do not place value on the beneficial role that the dams have regarding grain transportation and clean renewable energy. The four dams on the Snake River power up to 800,000 homes while producing zero carbon emissions. Instead, environmental groups focus their argument on enhancing the railroad as a replacement for barge grain transportation. This tactic would take billions of dollars in infrastructure upgrades and would not be as efficient or as environmentally friendly

A Necessary Link

The value of the Columbia Snake River System as a transport hub from farm to market is the link necessary to connect the United States to its trading partners. The river system keeps U.S. wheat competitive by moving higher volumes at more efficient prices. The wheat associations that make up the tri-state region of Idaho, Oregon and Washington all support, through their PNWA membership and resolutions,  the ongoing navigability of the rivers system. There will continue to be controversy surrounding the river system and the rich ecosystem that they sustain. The shared interest between farmers, sportsmen, environmentalists, scientists and commerce are diverse. An organization like PNWA, which has spent more than 80 years advocating for an open river system, is the key to keeping it open for decades to come.

By Michael Anderson, U.S. Wheat Associates (USW) Assistant Director, West Coast Office

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By Steve Wirsching, USW Vice President and West Coast Office Director

This winter the Pacific Northwest (PNW) has seen snowstorms and record rainfall that reduced vessel loading and inbound rail service. A slowing of rail service for just a few weeks manifested itself into long vessel lineups and loading delays of up to three to four weeks. Normally there are 12 to 15 vessels in the Columbia River waiting to load. However, the Daily Grain Bulletin, published by the Portland Grain Exchange, reported 38 grain vessels waiting to load a few days ago.

Almost every sort of natural disaster imaginable has interrupted rail service to the PNW. The Burlington Northern Santa Fe (BNSF) railroad applied additional resources to restore full service as soon as humanly possible. Last week there was a break in the weather, which allowed the rail service to partially recuperate. This marginal improvement raised train velocities and increased the number of unit-trains arriving in Portland daily.

Export elevators are also struggling with the weather because they cannot load when it is raining. Reports are that vessel loading efficiency is down 25 percent due to the heavy rainfall. Portland set a record in the month of February when over 10 inches of rain fell in 28 days, the most precipitation since 1996. When it rains this hard, exporters must close the hatches to protect the grain from excess moisture. Some facilities have special hatch covers where some grain can be blown through a small hole, but the loading speed is dramatically reduced.

Further complicating the weather delays are the planned repairs of the Columbia Snake River System. The U.S. Army Corp of Engineers closed the river system on Dec. 12 for necessary long-term maintenance, putting additional pressure on the rail system, now the sole mode of transportation to move grain to market. An ice storm in the Columbia River gorge stopped construction for several days, delaying repairs with possible impact on the planned reopening date of March 20. The Army Corp of Engineers is doing everything in its power which includes working on the weekends and adding labor to complete the repairs on time, but there is only so much they can do when fighting mother nature.

The grain trade is working its way out of this backlog and all expectations are that by April the Columbia River will be back to normal. Currently vessels entering the river are waiting two to three weeks to load. Loading delays and higher basis levels will potentially crowd out spot market demand limiting sales for the next year. However, most wheat buyers heeded the advice of USW early last year, when told to purchase wheat ahead of the river closure. Wheat sales and shipments are ahead of last year’s pace, a clear indication that buyers responded to USW’s recommendations. Grain (wheat, corn and soybean) exports are as much as 21 percent higher this year, the best year in the last 10 on a calendar year basis.

With a healthy dose of perseverance, the grain trade, railroads, barge lines, growers and overseas buyers will work through these logistical challenges and overcome the delays. Traditional U.S. folk lore says March weather “comes in like a lion and out like a lamb.” There are hundreds of people here in the PNW, and among many of our customers, we are waiting anxiously for the lamb to arrive!

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The Pacific Northwest (PNW) grain chain and U.S. wheat importers are aware that the Columbia Snake River System (CSRS) will close for extended maintenance beginning Dec. 12, 2016, and ending March 20, 2017. This will allow the U.S. Army Corps of Engineers to make essential renovations to all the navigation locks on the Columbia River and the Snake River. No barge traffic will be able to pass during this time.

U.S. Wheat Associate (USW) welcomes this investment as a critical part of our country’s long-term position as the world’s most reliable supplier to our customers. USW and supply chain participants take any customer concerns about supply, cost impact and logistical options seriously and is working with customers to help them minimize any possible impact before, during, and after the river system closure.

Such extended closures are unusual but, as our overseas customers learned during the last extended closure in 2010/11, the entire PNW system is fully capable of ensuring an uninterrupted supply of wheat to export terminals.

USW believes the industry will consider every logistical option to keep wheat, especially soft white (SW) wheat, flowing to export elevators. Significant changes will help make this closure more manageable. For example, total export terminal storage capacity on the Columbia River has grown substantially since 2011. The addition of an entirely new terminal, plus the construction of new storage at several others, has increased storage capacity from 564,000 metric tons (MT) to 866,000 MT today. The PNW’s total up-country grain storage capacity has also grown to 17.3 million MT from 16.4 MMT.

Rail shipments made up 54 percent of SW sourced by rail during the outage in 2010/11. Rail shipping will likely make up most of the barge capacity shortfall during this closure as well. An estimated 80 percent of hard red winter and 90 percent of hard red spring exported from the PNW are already sourced by rail. For SW to move west, rail sourcing will have to increase as much as 25 percent (see chart below). Fortunately, railroads have been investing in capacity and there are now four shuttle train loading terminals in eastern Washington, compared to two that were operational in 2010/11. The system is even better prepared to meet demand in 2016/17.

Knowing the CSRS will be closed during the upgrade, exporters, grain originators, barge operators, railroads, and trucking lines are already planning to minimize interruptions and costs. Alternatives include:

  • Pre-positioning the maximum number of barges to load SW before the closing (the Bonneville Lock and Dam should re-open after 8 weeks, which would open facilities up river to The Dalles, about 307 km east of Portland);
  • Moving more rail cars and locomotives into the region to handle increased demand from rail-loading interior elevators;
  • Coordinating truck and rail delivery from the Willamette Valley, south of Portland.
  • Buyers can help themselves by preparing for the maintenance period. USW believes there will be sufficient volume of all U.S. wheat classes normally available from the PNW. Buyers can also help lower the risk of interruption and minimize potential costs by taking a longer view of their purchase needs.

USW is advising its customers to consider:

  • Consulting with PNW exporters as early as possible to help give exporters more time to respond to your needs and to manage their logistical challenges.
  • Scheduling a meeting soon with the local USW representative to identify buying strategies that fit specific needs and capabilities;
  • Analyzing inventory needs and logistical capabilities;
  • Increasing SW wheat and/or flour storage;
  • Increasing SW purchase cadence in the harvest and immediate post-harvest period (July – November) before the closure;
  • Deferring as an offset some hard red winter (HRW) and hard red spring (HRS) shipments from the immediate post-harvest period into the maintenance period.

As an objective voice for U.S. wheat producers, USW greatly values the trust customers have in its products and service and remains fixed on helping buyers, millers, and wheat food processors learn how to grow their enterprises using U.S. wheat. The organization believes that, working together, the industry and customers will see wheat trade continue to flow.

About the Columbia Snake River System. The CSRS is a vital transportation link for wheat producers in the states of Idaho, Montana, Oregon, and Washington. The economies of these four states rely heavily on the commerce that flows up and down this system. The CSRS is the #1 U.S. wheat export gateway. The deep draft channel supports 46 million tons of cargo each year, valued at $20 billion. The inland system supports more than 9 million tons of cargo.

For more information, visit the Pacific Northwest Waterways Association online at www.pnwa.net.