Economic Justification of Navigation Projects

There has been some controversy of late over the economic justification of navigation projects in the U. S. Army Corps of Engineers' civil works program. The Upper Mississippi Navigation Study and the Delaware River Deepening Project have generated considerable discussion of economic and environmental issues. This paper will discuss the current state of economic justification for navigation projects, the limitations of that analysis, and future implications for industry. The long-term benefits of navigation improvement projects are difficult to forecast. We can improve the economic analysis of major port construction projects. If developers identify the risks and assumptions up front, as well as the limitations of projections, it might result in fewer, but better projects.