For example, in 2015, 40 percent of  St. Lawrence Seaway traffic, as measured by tonnage moved, consisted  of cargos shipped between Canadian ports. The U.S. Seaway Corporation is  located within the U.S. Department of Transportation and has  approximately 140 employees. The Army Corps. Between 2001 and 2016, domestic Great  Lakes tonnage of iron ore declined by 14 percent, from about 45  million to about 39 million tons (see fig. Selected Stakeholders Identified Various Challenges to Using the Great Lakes- Seaway, but the U.S. Seaway Corporation Has Not Fully Assessed Risks

		Traditional and Emerging Great-Lakes Seaway Uses Face a Range of Challenges, according to Stakeholders

Stakeholders we met with identified a range of challenges to using the  Great Lakes-Seaway and noted that these challenges pose risks to the  future use of the system. The U.S. Seaway Corporation and the Army Corps Have Made Progress on Lock Asset Renewal Efforts, but the Army Corps Lacks Associated Goals and Measures

		Both Agencies Have Made Progress on Lock Asset Renewal Efforts, but the Army Corps Has Yet to Start Work on a Project Identified as Critical in 2007

The Army Corps and the U.S. Seaway Corporation developed asset  renewal plans, in fiscal year 2007 and 2009 respectively, which were  originally intended to cover approximately 10 years and focused on  modernizing, rehabilitating, or replacing existing lock components to avoid  unexpected lock closures. According to the  Army Corps’ estimates, it has about $257 million in remaining and  ongoing work through 2035. Meanwhile, the U.S. Seaway Corporation  estimates it has almost $144 million in remaining and ongoing work  through 2023. The U.S. Seaway Corporation Has Established Goals and Measures for Asset Renewal Efforts but the Army Corps Lacks Goals and Measures for the Soo Locks

The U.S. Seaway Corporation has a lock performance goal and measure  that officials use to monitor its asset renewal efforts, in accordance with  government internal control standards, but the Army Corps does not have  such a goal specific to the Soo locks. The U.S. Seaway Corporation’s mission to improve the  system’s utilization and reliability provides it with a unique vantage point  for assessing the cumulative risks that these challenges pose on the  system’s current and future utilization. Recommendations for Executive Action

We are making the following two recommendations:  The Administrator of the U.S. Seaway Corporation should establish a  process to identify, analyze, and monitor risks to the system’s use to  inform future actions to address those risks. (Recommendation 1)
The Army Corps Director of Civil Works should, in coordination with the  Commanders of the Great Lakes and Ohio River Division and the Detroit  District, develop and adopt goals and measures to assess the  performance of the Soo Locks and assess outcomes of asset renewal  efforts. In comments,  reproduced in appendixes III and IV, the Departments of Transportation  and Defense concurred with our recommendations. All three departments  also provided technical comments, which we incorporated as appropriate. GAO staff who made key contributions to this  report are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

This report examines (1) how Great Lakes-St. Lawrence Seaway (Great  Lakes-Seaway) shipping trends have changed since 1980 and what  factors have shaped recent trends, (2) selected stakeholders’  perspectives on challenges to using the Great Lakes-Seaway, and (3) to  what extent the U.S. Army Corps of Engineers (Army Corps) and the  Saint Lawrence Seaway Development Corporation (U.S. Seaway  Corporation) have made progress on lock infrastructure renewal efforts  and how the agencies measure performance of these efforts. To understand factors affecting recent trends and challenges to using the  system, we interviewed 24 stakeholders representing a range of  traditional and emerging system users and experts.
Why GAO Did This Study

The Great Lakes-Seaway system extends 2,300 miles and serves more than 100 ports in the United States and Canada. Four of the 17 locks that enable navigation are managed by the Army Corps (within the Department of Defense) and U.S. Seaway Corporation (within the Department of Transportation). The rest are managed by Canada. A 2007 U.S.-Canada study noted the system could absorb additional traffic and led to U.S. asset renewal plans to improve lock infrastructure condition.
GAO was asked to review efforts to modernize the Great Lakes-Seaway. This report examines (1) shipping trends since 1980 and factors affecting recent trends, (2) stakeholder views on challenges to use, and (3) the extent to which the Army Corps and the U.S. Seaway Corporation have made progress on and measure performance of lock renewal efforts. GAO analyzed Seaway and Army Corps shipping data from 1980 through 2016, the agencies' asset renewal plans, and interviewed 24 stakeholders, including port and shipper representatives, selected to represent a range of perspectives.

What GAO Found

The tons of cargo moved by domestic Great Lakes and St. Lawrence Seaway traffic have declined since 1980—by 32 and 48 percent, respectively, according to U.S. Army Corps of Engineers (Army Corps) and Saint Lawrence Seaway Development Corporation (U.S. Seaway Corporation) data. Stakeholders identified various factors for this decrease such as the U.S. economy's shift away from manufacturing. Traffic on the Great Lakes-St. Lawrence Seaway (Great Lakes-Seaway) is traditionally dominated by bulk commodities like iron ore, although stakeholders noted emerging uses like containerized cargo and cruises.
Stakeholders identified a range of challenges to using the Great Lakes- Seaway—such as inadequate portside infrastructure for intermodal transfers of shipping containers—that together pose risks for both traditional bulk cargos and emerging uses. Although the U.S. Seaway Corporation's mission is to improve the system's utilization and reliability, the Corporation has not fully assessed the risks that challenges pose to the system's users. Establishing a process to assess and monitor risks, in accordance with federal internal control standards, would help inform future actions to address identified and emerging challenges.
The U.S. Seaway Corporation and the Army Corps have made progress on lock asset renewal efforts, but the Army Corps lacks goals and measures to assess performance and outcomes of these efforts. According to estimates provided by the Army Corps, it has completed 18 projects totaling about $53 million to date, and has about $257 million in remaining and ongoing work through 2035. Meanwhile, the U.S. Seaway Corporation has completed 16 projects totaling $45 million and has almost $144 million in remaining and ongoing work through 2023. The Army Corps has not developed goals and measures to assess its asset renewal results, as the U.S. Seaway Corporation has done. As a result, the Army Corps lacks tools to assess the outcomes of these efforts and demonstrate the extent to which its asset renewal efforts have improved operational performance of the Soo Locks.

What GAO Recommends

GAO recommends that (1) the U.S. Seaway Corporation establish a process to identify, analyze, and monitor risks to the system's use to inform future actions, and (2) the Army Corps develop and adopt goals and measures to assess the performance of the Soo Locks and assess of asset renewal outcomes. The Departments of Transportation and Defense concurred with our recommendations and provided technical comments which we incorporated as appropriate.