A study on the infrastructure costs associated with the potential export of Powder River Basin coal to Asia via the Pacific Northwest projects an expense of as much as USD 5 billion.
The authors of the study argued "the brunt" of these costs would be borne by state and local governments that "will likely be required to spend hundreds of millions of dollars in related mitigation, litigation, debt and other costs associated with the necessary improvements to accommodate export coal traffic levels."
The study, commissioned by the Western Organization of Resource Councils, of which the anti coal Powder River Basin Resource Council is a part, shows the investment should be worth it for some. Projections show coal movement will rise from 75 million tons per year in 2017 to 170 million tons per year by 2022, generating "billions of dollars in annual revenues for railroad, coal and terminal companies." This is under the operating assumption that all proposed export terminals and those currently in operation will be running at capacity by 2022.
The coal terminals would serve to feed the coal-hungry Asian markets, which pay top dollar for PRB coal. Currently, most PRB coal bound for Asia leaves from Canada, leaving coal producers to deal with a double export.
Some may argue the upgrades and additional coal represent money and jobs injected into the economy. According to a BNSF release, US Department of Commerce economic data indicates that every dollar invested in freight railroads yields USD 3 in economic output. A Department of Commerce economic model also shows one freight rail job supports another 4.5 jobs somewhere else in the economy.
A representative from BNSF, the rail company likely to dominate new shipping from the PRB if the hotly contested export terminals come online, was not available for immediate comment.
Communities all along rail routes have voiced their concern for adding capacity to the rail lines, including the health effects of coal dust. Recent coal-train crashes have only served to highlight naysayers more.
Mr David Strohmaier a city councilman in Missoula, Mont said that "At the end of the day, and from my vantage point as a local elected official, I want to make sure that those responsible for mining and shipping coal through Montana bear the burden of mitigating any adverse impacts that they might cause be they environmental, economic or social.”
Source - www.wyomingbusinessreport.com
(www.coalguru.com)
