Water Resources Development Act (WRDA)
As a sign of support to the Craney Island Eastward Expansion project, Congressional negotiators approved $356.1 million in Federal funds to expand the Craney Island site to accommodate the construction of a state of the art marine terminal.
The authorization is part of the $21 billion Water Resources Development Act (WRDA), a law that provides authorization and funding for marine-related projects, such as shoreline and aquatic ecosystem restoration. Apart from the eastward expansion of Craney Island, the bill will fund projects to restore the hurricane damaged Louisiana coastline and the Florida Everglades.
Originally, the Craney Island Eastward Expansion Feasibility Report recommended a 4% Federal cost share for the project, which amounted to around $31.2 million in Federal funds. This recommendation was based solely on the dredging benefits resulting from the expansion, which was only 1 percent of the overall Federal benefits related to the project.
However, over 99 percent of the benefits incurred through the expansion of Craney Island and the construction of a marine terminal are transportation related, as more goods will move through the Port of Virginia.
The eastward expansion of CIDMMA, combined with the development of the marine terminal will generate $6 billion in National Economic Development (NED) benefits.
In the current version of WRDA, the Federal government will share 50% of the cost in developing the dikes for the eastward expansion project. This level of Federal cost share is indicative of a clear recognition within Congress of the enormous benefits gained from the project at the National level.
The Craney Island Eastward Expansion is positioned as a vital project that will represent significant economic benefits for the Nation and the region. Regional benefits will be derived from three primary sources marine terminal design and construction, terminal related transportation operations, and distribution center operations. Over $5 billion in state and regional economic activity will be seen annually, with 54,000 jobs emerging from port related activity.
The Water Resources Development Act has a few more steps before it is finally approved. At press time, both houses of Congress were expected to vote on the measure, by the end of the week and offer it to the President for signature into law.
The significance of the Craney Island Eastward Expansion goes beyond Hampton Roads and the region. Senator John Warner, who has been a champion of the Eastward Expansion notes, “The importance of Craney Island’s expansion to Hampton Roads cannot be overstated”.
-July 30, 2007 |