What does anybody think of this excerpt from this article? These figures are the figures I heard early on in the disaster. Robert? Eric? > The ports of South Louisiana and New Orleans, which run north and > south of the city, are as important today as at any point during the > history of the republic. On its own merit, the Port of South > Louisiana is the largest port in the United States by tonnage and the > fifth-largest in the world. It exports more than 52 million tons a > year, of which more than half are agricultural products -- corn, > soybeans and so on. A larger proportion of U.S. agriculture flows out > of the port. Almost as much cargo, nearly 57 million tons, comes in > through the port -- including not only crude oil, but chemicals and > fertilizers, coal, concrete and so on. > > > > > [Original Message] > > From: Andreas Ramos <andreas@xxxxxxxxxxx> > > To: Lit-Ideas <lit-ideas@xxxxxxxxxxxxx> > > Date: 9/8/2005 6:45:04 PM > > Subject: [lit-ideas] New Orleans... Just forget about it? > > > > Botching the Katrina catastrophe demonstrated that the Bushes had no idea > whatsoever how > > utterly key New Orleans is to America's economic well-being, and their > lack of action has > > huge implications to all of our futures. > > > > 1. There is no other way to get the American harvest out to the world, > > > > 2. No other way to get industrial raw materials in nor products out. > > > > 3. The skilled population needed to run the largest port in America is > out of town. > > > > 4. The region is uninhabitable. Homes are gone. The infrastructure to > keep a population > > alive is gone. > > > > > > New Orleans: A Geopolitical Prize > > By George Friedman > > http://www.stratfor.com/news/archive/050903-geopolitics_katrina.php > > > > September 01, 2005 22 30 GMT -- The American political system was > > founded in Philadelphia, but the American nation was built on the > > vast farmlands that stretch from the Alleghenies to the Rockies. That > > farmland produced the wealth that funded American industrialization: > > It permitted the formation of a class of small landholders who, > > amazingly, could produce more than they could consume. They could > > sell their excess crops in the east and in Europe and save that > > money, which eventually became the founding capital of American > > industry. > > > > But it was not the extraordinary land nor the farmers and ranchers > > who alone set the process in motion. Rather, it was geography -- the > > extraordinary system of rivers that flowed through the Midwest and > > allowed them to ship their surplus to the rest of the world. All of > > the rivers flowed into one -- the Mississippi -- and the Mississippi > > flowed to the ports in and around one city: New Orleans. It was in > > New Orleans that the barges from upstream were unloaded and their > > cargos stored, sold and reloaded on ocean-going vessels. Until last > > Sunday, New Orleans was, in many ways, the pivot of the American > > economy. > > > > For that reason, the Battle of New Orleans in January 1815 was a key > > moment in American history. Even though the battle occurred after the > > War of 1812 was over, had the British taken New Orleans, we suspect > > they wouldn't have given it back. Without New Orleans, the entire > > Louisiana Purchase would have been valueless to the United States. > > Or, to state it more precisely, the British would control the region > > because, at the end of the day, the value of the Purchase was the > > land and the rivers - which all converged on the Mississippi and the > > ultimate port of New Orleans. The hero of the battle was Andrew > > Jackson, and when he became president, his obsession with Texas had > > much to do with keeping the Mexicans away from New Orleans. > > > > During the Cold War, a macabre topic of discussion among bored > > graduate students who studied such things was this: If the Soviets > > could destroy one city with a large nuclear device, which would it > > be? The usual answers were Washington or New York. For me, the answer > > was simple: New Orleans. If the Mississippi River was shut to > > traffic, then the foundations of the economy would be shattered. The > > industrial minerals needed in the factories wouldn't come in, and the > > agricultural wealth wouldn't flow out. Alternative routes really > > weren't available. The Germans knew it too: A U-boat campaign > > occurred near the mouth of the Mississippi during World War II. Both > > the Germans and Stratfor have stood with Andy Jackson: New Orleans > > was the prize. > > > > Last Sunday, nature took out New Orleans almost as surely as a > > nuclear strike. Hurricane Katrina's geopolitical effect was not, in > > many ways, distinguishable from a mushroom cloud. The key exit from > > North America was closed. The petrochemical industry, which has > > become an added value to the region since Jackson's days, was at > > risk. The navigability of the Mississippi south of New Orleans was a > > question mark. New Orleans as a city and as a port complex had ceased > > to exist, and it was not clear that it could recover. > > > > The ports of South Louisiana and New Orleans, which run north and > > south of the city, are as important today as at any point during the > > history of the republic. On its own merit, the Port of South > > Louisiana is the largest port in the United States by tonnage and the > > fifth-largest in the world. It exports more than 52 million tons a > > year, of which more than half are agricultural products -- corn, > > soybeans and so on. A larger proportion of U.S. agriculture flows out > > of the port. Almost as much cargo, nearly 57 million tons, comes in > > through the port -- including not only crude oil, but chemicals and > > fertilizers, coal, concrete and so on. > > > > A simple way to think about the New Orleans port complex is that it > > is where the bulk commodities of agriculture go out to the world and > > the bulk commodities of industrialism come in. The commodity chain of > > the global food industry starts here, as does that of American > > industrialism. If these facilities are gone, more than the price of > > goods shifts: The very physical structure of the global economy would > > have to be reshaped. Consider the impact to the U.S. auto industry if > > steel doesn't come up the river, or the effect on global food > > supplies if U.S. corn and soybeans don't get to the markets. > > > > The problem is that there are no good shipping alternatives. River > > transport is cheap, and most of the commodities we are discussing > > have low value-to-weight ratios. The U.S. transport system was built > > on the assumption that these commodities would travel to and from New > > Orleans by barge, where they would be loaded on ships or offloaded. > > Apart from port capacity elsewhere in the United States, there aren't > > enough trucks or rail cars to handle the long-distance hauling of > > these enormous quantities -- assuming for the moment that the > > economics could be managed, which they can't be. > > > > The focus in the media has been on the oil industry in Louisiana and > > Mississippi. This is not a trivial question, but in a certain sense, > > it is dwarfed by the shipping issue. First, Louisiana is the source > > of about 15 percent of U.S.-produced petroleum, much of it from the > > Gulf. The local refineries are critical to American infrastructure. > > Were all of these facilities to be lost, the effect on the price of > > oil worldwide would be extraordinarily painful. If the river itself > > became unnavigable or if the ports are no longer functioning, > > however, the impact to the wider economy would be significantly more > > severe. In a sense, there is more flexibility in oil than in the > > physical transport of these other commodities. > > > > There is clearly good news as information comes in. By all accounts, > > the Louisiana Offshore Oil Port, which services supertankers in the > > Gulf, is intact. Port Fourchon, which is the center of extraction > > operations in the Gulf, has sustained damage but is recoverable. The > > status of the oil platforms is unclear and it is not known what the > > underwater systems look like, but on the surface, the damage - though > > not trivial -- is manageable. > > > > The news on the river is also far better than would have been > > expected on Sunday. The river has not changed its course. No major > > levees containing the river have burst. The Mississippi apparently > > has not silted up to such an extent that massive dredging would be > > required to render it navigable. Even the port facilities, although > > apparently damaged in many places and destroyed in few, are still > > there. The river, as transport corridor, has not been lost. > > > > What has been lost is the city of New Orleans and many of the > > residential suburban areas around it. The population has fled, > > leaving behind a relatively small number of people in desperate > > straits. Some are dead, others are dying, and the magnitude of the > > situation dwarfs the resources required to ameliorate their > > condition. But it is not the population that is trapped in New > > Orleans that is of geopolitical significance: It is the population > > that has left and has nowhere to return to. > > > > The oil fields, pipelines and ports required a skilled workforce in > > order to operate. That workforce requires homes. They require stores > > to buy food and other supplies. Hospitals and doctors. Schools for > > their children. In other words, in order to operate the facilities > > critical to the United States, you need a workforce to do it -- and > > that workforce is gone. Unlike in other disasters, that workforce > > cannot return to the region because they have no place to live. New > > Orleans is gone, and the metropolitan area surrounding New Orleans is > > either gone or so badly damaged that it will not be inhabitable for a > > long time. > > > > It is possible to jury-rig around this problem for a short time. But > > the fact is that those who have left the area have gone to live with > > relatives and friends. Those who had the ability to leave also had > > networks of relationships and resources to manage their exile. But > > those resources are not infinite -- and as it becomes apparent that > > these people will not be returning to New Orleans any time soon, they > > will be enrolling their children in new schools, finding new jobs, > > finding new accommodations. If they have any insurance money coming, > > they will collect it. If they have none, then -- whatever emotional > > connections they may have to their home -- their economic connection > > to it has been severed. In a very short time, these people will be > > making decisions that will start to reshape population and workforce > > patterns in the region. > > > > A city is a complex and ongoing process - one that requires physical > > infrastructure to support the people who live in it and people to > > operate that physical infrastructure. We don't simply mean power > > plants or sewage treatment facilities, although they are critical. > > Someone has to be able to sell a bottle of milk or a new shirt. > > Someone has to be able to repair a car or do surgery. And the people > > who do those things, along with the infrastructure that supports > > them, are gone -- and they are not coming back anytime soon. > > > > It is in this sense, then, that it seems almost as if a nuclear > > weapon went off in New Orleans. The people mostly have fled rather > > than died, but they are gone. Not all of the facilities are > > destroyed, but most are. It appears to us that New Orleans and its > > environs have passed the point of recoverability. The area can > > recover, to be sure, but only with the commitment of massive > > resources from outside -- and those resources would always be at risk > > to another Katrina. > > > > The displacement of population is the crisis that New Orleans faces. > > It is also a national crisis, because the largest port in the United > > States cannot function without a city around it. The physical and > > business processes of a port cannot occur in a ghost town, and right > > now, that is what New Orleans is. It is not about the facilities, and > > it is not about the oil. It is about the loss of a city's population > > and the paralysis of the largest port in the United States. > > > > Let's go back to the beginning. The United States historically has > > depended on the Mississippi and its tributaries for transport. Barges > > navigate the river. Ships go on the ocean. The barges must offload to > > the ships and vice versa. There must be a facility to empower this > > exchange. It is also the facility where goods are stored in transit. > > Without this port, the river can't be used. Protecting that port has > > been, from the time of the Louisiana Purchase, a fundamental national > > security issue for the United States. > > > > Katrina has taken out the port -- not by destroying the facilities, > > but by rendering the area uninhabited and potentially uninhabitable. > > That means that even if the Mississippi remains navigable, the > > absence of a port near the mouth of the river makes the Mississippi > > enormously less useful than it was. For these reasons, the United > > States has lost not only its biggest port complex, but also the > > utility of its river transport system -- the foundation of the entire > > American transport system. There are some substitutes, but none with > > sufficient capacity to solve the problem. > > > > It follows from this that the port will have to be revived and, one > > would assume, the city as well. The ports around New Orleans are > > located as far north as they can be and still be accessed by ocean- > > going vessels. The need for ships to be able to pass each other in > > the waterways, which narrow to the north, adds to the problem. > > Besides, the Highway 190 bridge in Baton Rouge blocks the river going > > north. New Orleans is where it is for a reason: The United States > > needs a city right there. > > > > New Orleans is not optional for the United States' commercial > > infrastructure. It is a terrible place for a city to be located, but > > exactly the place where a city must exist. With that as a given, a > > city will return there because the alternatives are too devastating. > > The harvest is coming, and that means that the port will have to be > > opened soon. As in Iraq, premiums will be paid to people prepared to > > endure the hardships of working in New Orleans. But in the end, the > > city will return because it has to. > > > > Geopolitics is the stuff of permanent geographical realities and the > > way they interact with political life. Geopolitics created New > > Orleans. Geopolitics caused American presidents to obsess over its > > safety. And geopolitics will force the city's resurrection, even if > > it is in the worst imaginable place. > > > > > > ------------------------------------------------------------------ > > To change your Lit-Ideas settings (subscribe/unsub, vacation on/off, > > digest on/off), visit www.andreas.com/faq-lit-ideas.html > > > ------------------------------------------------------------------ > To change your Lit-Ideas settings (subscribe/unsub, vacation on/off, > digest on/off), visit www.andreas.com/faq-lit-ideas.html ------------------------------------------------------------------ To change your Lit-Ideas settings (subscribe/unsub, vacation on/off, digest on/off), visit www.andreas.com/faq-lit-ideas.html