THE IMPACTS OF WATERWAY USER FEES ON GRAIN TRANSPORTATION ON THE SNAKE-COLUMBIA RIVER1

ABSTRACT: Grain transportation is a major economic activity on the multiple use Snake-Columbia River System. Congress is currently considering increased transportation user fees aimed at recapturing federal expenditures for waterway operations and maintenance. Three types of fee structure and four levels of cost recovery are evaluated using a network program model. In each case traffic is diverted away from the river to other Puget Sound ports via truck and rail transport modes. Grain shippers in the region will be adversely affected by a higher transport bill. The Lower Columbia River port economic activities will be negatively affected; however, competitive uses of the river, recreation, and hydroelectric generation will likely benefit modestly.