Economic Impact If Chicago River, O'brien Locks Close, Asian Carp Invasion!

Asian Carp volatility continued. There is currently a Silver Asian Carp terrorism alert for the Great Lakes. They are those crazy jumping fish that are in the Mississippi River that disrupt the food chain and knock people out on boats. If they invade the Great Lakes they'd affect the $7 Billion recreational and commercial fishing industry. The US Army Corps of Engineers are deciding whether they should close the Chicago River and O'brien Lock on a part-time basis to control the migration, but that would disrupt $1.5 Billion worth of Chicago freight and jobs. Interesting debates are going on between Illinois, Michigan and those affected. John Taylor of Wayne State University studied the economic impact of closing the locks and compared lock freight traffic to rail and truck. Here is what he presented to the US Supreme Court.  It was part of Michigan Attorney General's case to the Supreme Court to close the locks.
  • Barge traffic in Chicago has been declining for many years.
  • More than seven million tons of freight shipped through the locks in Chicago are low-value bulk commodities like sand, stone and scrap metal.
  • Seven million tons of this low-value cargo is the equivalent of only two loaded freight trains per day in a region that has an average load of approximately 500 freight trains per day.
  • Extra transportation and handling costs associated with lock closure are less than $70 million per year or less than thirteen-one thousandths of one percent of Chicago's annual GDP.  [Source:  Wayne.edu]

So do you buy or sell CDS on the Asian Carp invasion?  I found news clips from December 2009 when one Asian Carp was found in the Chicago Sanitary and Ship Canal.  Also provided is John Taylor's speech and recent news.








Recent links:
Asian Carp Hunt Comes Up With Empty Nets (MichiganPublicRadio, 3-15-2010)
Wendella: Closing Chicago River would not keep out Asian carp (MarinaCityOnline, 3-10-2010)
Michigan Attorney General speaks on Asian Carp Issue (UpNorthLive, 3-6-2010)
Mayor Daley: Chicago shouldn't bear full cost of Asian carp (CSM.com, 3-5-2010)
Carp Solution Could Provide Financial Benefits (NYT, 3-5-2010)
Camp urges closure of Chicago locks to prevent Asian carp invasion of Great Lakes (mLive, 3-5-2010)
No Timeline for Decision on Closing Chicago Waterways (ChicagoPublicRadio, 3-3-2010)
Fight back on carp without shutting Chicago locks (DetroitFreePress, 3-21-2010)
Asian carp: Michigan report disputes cost of closing canal locks (CSM.com, 2-18/2010)
Indiana Attorney General to file brief supporting Asian carp suit (BusinessWeek, 2-18-2010)
Feds may close locks to stop Asian carp (ChicagoBreakingNews, 2-8-2010)
What discovery of Asian carp DNA in Lake Michigan means (mLive, infographic 1-21-2010)
Asian carp DNA found in Lake Michigan (ChicagoBreakingNews, 1-19-2010)

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