Shipping resumes, casinos reopening on flooded Mississippi

MISSISSIPPI RIVER — There has been some recent good news from the flooding Mississippi River as ship traffic has resumed and another riverboat casino announced it was reopening.

Shipping already curtailed because of flooding that is plaguing the Mississippi River was halted for much of yesterday when officials closed the waterway north of New Orleans in the latest tough decision to try to reduce pressure on levees protecting cities and towns.

By late in the day, barges that haul coal, timber, iron, steel and more than half of America’s grain exports were allowed to pass, but at the slowest possible speed. Such interruptions could cost the U.S. economy hundreds of millions of dollars for each day the barges are idled, as the toll from the weeks-long flooding from Arkansas to Louisiana continues to mount.

Officials along a 15-mile stretch at Natchez, Miss., blocked vessels heading toward the Gulf of Mexico and others trying to return north after dropping off their freight. Had the channel remained closed, it could have brought traffic to a standstill on the river, a conduit for about 500 million tons of cargo each year.

Coast Guard officials said wakes generated by passing barge traffic could increase the strain on levees designed to hold back the river. Authorities were also concerned that barges could not operate safely in the flooded river, which has risen to the level of some docks and submerged others.

The Coast Guard did not have comprehensive figures on how many vessels were immediately affected, but the agency stopped at least 19 near Natchez.

In past closures, the numbers have grown quickly. In 2008, the agency halted 59 ships within a day of shutting down a stretch of the river near New Orleans because of a barge and tanker collision.

Shipping companies had hoped for a swift reopening.

On a typical day, 600 barges move up and down the river, according to Bob Anderson, spokesman for the Mississippi Valley Division of the Army Corps of Engineers. A single barge can carry as much cargo as 70 tractor-trailers or 17 rail cars.

Also yesterday, at least 10 freight terminals along the lower Mississippi between Baton Rouge and New Orleans suspended operations because of high water. Vessels scheduled to use the terminals will either have to wait out the high water or divert elsewhere. Delaying a vessel by even a single day often costs $20,000 to $40,000, port officials said.

Throughout the spring, the Mississippi is a highway for barges laden with corn, soybeans and other crops headed from the Midwest to ports near New Orleans, where they get loaded onto massive grain carriers for export around the world.

The closure helped push corn, wheat and soybean prices higher Tuesday.

Traders were already nervous about tight supplies of all three crops. Farmers are behind on their planting because of cold, wet weather. At the same time, global supplies have been depleted by rising demand from ethanol makers and livestock producers.

The price of corn jumped 22.75 cents to $7.20 a bushel, while soybeans rose 14.5 cents, to $13.41 a bushel. Wheat rose 27.5 cents to settle at $7.64 a bushel.

While prices might spike in the short-term, flooding and port closures along the Mississippi River probably will not affect crop prices for long, said John Sanow, an analyst with DTN Telvent.

Traders are more worried that flooded acreage won’t be replanted with corn, he said.

The crop exports most likely to be affected are corn and soybeans, said Jason Ward, analyst with Northstar Commodity in Minneapolis.

The Port of South Louisiana, the largest in terms of tonnage in the United States, handles 54 percent of the nation’s annual grain exports. It handles about 60,000 barges a year, along with 4,500 to 5,000 deep-draft vessels that carry grain and other bulk cargo such as steel.

The Mississippi also conveys most of New England’s home heating oil and gasoline, along with 20 percent of America’s coal, according to the American Waterways Operators, the trade group of the barge operators.

The closure was the third in a series of recent moves designed to protect homes and businesses behind levees and floodwalls along the river.

Over the weekend, the Army Corps opened the Morganza Spillway, choosing to flood rural areas with fewer homes to protect Baton Rouge and New Orleans. Another spillway near New Orleans was opened earlier, but it did not threaten homes.

The river is expected to crest Saturday in Natchez at 63 feet, down a half-foot than earlier predictions. But that level is still nearly five feet above a record set in 1937. It could take weeks for the water to recede.

Natchez Mayor Jake Middleton said if the city’s levees were damaged, it could endanger hospitals, a convention center and historic buildings both in Natchez and across the river in Louisiana.

The floodwaters have displaced more than 4,800 people in Mississippi.

In a separate flood-related item, The Gold Strike casino in Tunica County is reopening this morning and two others may do so as soon as tomorrow.

All but two of Mississippi’s river casinos have been closed due to flooding. The river has already crested at Tunica and is starting to recede.

Mississippi Gaming Commission director Larry Gregory said officials performed tests at the Gold Strike, Horseshoe and Roadhouse casinos.

Gregory said “they fared better than most of the other casinos.”

Gregory says the tests include ensuring that gambling machines and surveillance systems are working properly and that water is safe for drinking and cooking.

River casinos employ more than 13,000 people and generate $10 million in state and local taxes a month. Two casinos in Vicksburg have remained open.

Source: AP

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