Economic effects of the temporary Juliana Canal blockage
The Juliana Canal is part of the Maasroute, an important shipping route to ports in Belgium, Germany and the Netherlands. Rijkswaterstaat (RWS) is committed to making the Maasroute future-proof and wants to make the Juliana Canal suitable for so-called two-barge push ships (class Vb ships). This requires widening and deepening (part of) the canal. Ecorys is studying the economic effects of the temporary blockage for users of the waterway.
Background
The Juliana Canal starts north of Maastricht as a branch of the Meuse and ends at Maasbracht, where the water flows back into the Meuse. The waterway will be made suitable for class Vb shipping between Ternaaien and Weurt. These are ships 190 m long, 11.4 m wide and with a maximum draught of 3.5 m. The route between Born lock and the bridge at Berg remains. Until now, this work has been carried out using a construction pit to allow shipping to continue. To ensure safety, Rijkswaterstaat has decided to completely block the Julianakanaal canal between Born and the bridge at Berg for several months.
The temporary closure of the Julianakanaal will affect shipping (commercial and recreational) and the businesses that depend on it in terms of the supply and removal of goods. Ecorys has conducted an analysis that provides insight into:
- The volume of goods normally transported on this section of the canal and affected by the temporary closure.
- Alternative transport options via other waterways, road or rail, including additional costs and effects on transport capacity.
- Economic consequences for businesses using the waterway.
- Mitigation measures, including actions for the shipping and transport industry, and measures taken by Rijkswaterstaat as waterway manager.
Key findings
- The additional costs due to rerouting are estimated at about €5.1 million per month.
- In addition to the diversion costs, we have provided insight into a number of other cost effects, such as the additional cost of shipping dues when ships have to divert via Belgian waterways, additional costs of increasing waiting times and passing times at locks. This has been estimated at several hundred thousand euros per month.
- Discussions with waterway users have clearly revealed that rerouting is actually the only realistic option at the time the Juliana Canal is blocked. It is then crucial that the diversion routes remain available at all times.
- The waterway users’ main recommendation is that the period of the blockage should be prepared extremely carefully and coordinated with other planned works and implementing organisations, especially also in Belgium.
- An uncertain factor is when ships become trapped in the situation where the Limmel floodgate closes for several days. The likelihood of this is not high but also not inconceivable. The monthly costs could then quickly increase if, due to insufficient supply, production processes come to a standstill.
- The availability of a ‘quick response team’ and sufficient stock of replacement parts for locks during the stoppage period is a useful measure, so that a failure in, for instance, a lock can be repaired with priority and diversion routes remain available.
Want to know more? Then read our full report (in Dutch).
24 October 2024
3 minute read
Sectors
Key Experts
Jeroen Bozuwa
Senior Consultant