Sault Ste. Marie, Michigan, September 15, 2025
News Summary
The U.S. Army Corps of Engineers revised the certified cost estimate for the new Soo Locks large lock from nearly $3.0 billion to about $2.62 billion after awarding all contract options and removing contingency tied to unawarded sub‑phases, trimming roughly $250 million of project risk. Construction remains on track for a scheduled summer completion. Reported federal funding totals vary above $2.2 billion, and managers cite a near‑term need of about $103 million to keep work moving. Phase three work is under way with bedrock excavation, monolith placement and three tall tower cranes on site.
Soo Locks new-lock cost falls to about $2.62 billion; construction still on track for summer 2030
The latest certified estimate for the new lock at the Soo Locks in Sault Ste. Marie was revised down from nearly $3.0 billion to roughly $2.62 billion, a decline of nearly 13 percent. The U.S. Army Corps of Engineers announced the update during a stakeholder briefing and said the project remains on schedule for completion in the summer of 2030.
Why the price dropped and what it means now
The cost reduction comes mainly from removing contingency amounts that were tied to several contract sub‑phases now that the contracts have been awarded. With all nine contract options issued on time, the Corps estimated it could eliminate about $250 million of program risk previously held in contingency. That adjustment produced the lower certified cost estimate.
Funding and near‑term needs
Reported funding to date varies among newer reports, with figures showing both $2.321 billion and $2.231 billion already provided to the project. The federal budget proposal for fiscal 2026 included $176 million for the new lock, and Army Corps planners expect to need about $103 million to continue construction in fiscal 2027. The Corps says it is preparing a formal cost estimate for Congress as part of reauthorization discussions.
Project status and schedule
Construction began in 2020. The work is now in its third phase, which focuses on building the new lock chamber and rehabilitating downstream approach walls. The third phase contract was awarded in July at about $1.068 billion. Phase duration estimates vary in reports, with one source indicating the third phase could take roughly six years and another saying around seven years. Despite those differences, the Corps maintains the overall project remains on budget within the current authorization level and is on track for a summer 2030 finish.
Size and purpose of the new lock
The plan calls for a new lock roughly 1,200 feet long and 110 feet wide to match the existing Poe Lock. The Poe Lock is the only chamber now able to handle the largest Great Lakes freighters and moves about 88 percent of the tonnage between Lakes Superior and Huron. Building a second Poe‑sized chamber is intended to provide redundancy so iron ore can keep flowing to steel mills if a Poe Lock outage occurs.
Economic importance and risks
The Soo Locks complex is critical to the U.S. steel supply chain because iron ore from Lake Superior is shipped through the locks to mills on the lower Great Lakes. Government studies have warned that an unplanned six‑month closure of the Poe Lock could produce massive national effects, with estimates showing potential losses on the order of $1.1 trillion to U.S. economic output and as many as 11 million jobs affected in that period.
Progress and recent milestones
Reports show different tallies for work completed to date. One account lists just over $630 million of work finished, while another cites an estimated $543 million completed through the end of February 2025. Completed items include downstream approach walls, a new bridge to the existing power plant completed in January, and installation of a new pump. Demolition of the century‑old Sabin Lock and filling the Davis Lock footprint were completed in July. Blasting operations for bedrock excavation began in February 2025.
What crews are building and how
Bedrock excavation has been a major focus. Contractors use hydraulic breaking equipment called “hoe rams” to break up rock that will serve as the foundation for the new lock walls. The walls are being built as a series of concrete monoliths—compared to giant Lego blocks. The plan calls for 81 monoliths along the north and south sides; just over 50 monoliths have been started and one is reported finished. The concrete mix is very stiff and uses heavy 2‑ to 3‑inch aggregate; workers sometimes wear snow shoes to walk on top of newly placed concrete.
Cranes, ship modeling and safety features
Three tower cranes now stand on the site; each is about 240 to 270 feet tall and are among the tallest structures in the region. A ship‑simulation study done at a remote facility virtually navigated vessels into the new lock design. That work led to lengthening the north upstream approach wall and adding massive timber fenders—large wooden bumpers—on the south upstream approach wall. The new lock will also include hands‑free mooring technology, a system likened to giant suction cups to hold ships as water levels change and reduce line‑handling hazards.
Authorization, funding history and political context
The project was first authorized in 1986 and was reauthorized after an updated feasibility review in 2018 under federal water legislation. Cost estimates rose after 2018, pushed by labor shortages, supply chain problems and higher material prices. Reauthorization in late 2022 set an authorized ceiling of $3.219 billion. Federal funding sources include infrastructure and budgetary packages that together have provided several hundred million dollars, and state contributions helped jump‑start early work.
Challenges ahead
Constraining factors include market conditions that affect materials and labor, the region’s cold climate that shortens workable months each year, and the need to stage work across active navigation channels alongside two operating locks. Lawmakers and industry stakeholders note the project’s high public value but also say maintaining funding and oversight will be important to meet schedule and budget commitments.
Frequently Asked Questions
What is the updated total cost estimate for the new Soo Lock?
The latest certified figure is about $2.62 billion, reduced from a near‑$3.0 billion estimate after removing contingency tied to awarded contract options.
When is the new lock expected to be finished?
The Army Corps projects completion in the summer of 2030, with the third phase now underway to build the new lock chamber.
How much federal funding has the project received so far?
Reported funding totals differ among recent updates, showing both $2.321 billion and $2.231 billion provided to date.
Why was the cost estimate lowered?
Contingency money tied to sub‑phase risks was removed after all nine contract options were awarded, allowing the Corps to cut about $250 million from the risk reserve.
How big will the new lock be and why does size matter?
The new chamber is planned at about 1,200 by 110 feet, matching the Poe Lock so the largest freighters can pass. Size matters because most iron ore shipments rely on a Poe‑sized chamber.
What work has been completed so far?
Major achievements include deepening the upstream channel, building downstream approach walls, a new bridge to the power plant, a new pump, Sabin Lock demolition, Davis Lock fill, and multiple tower cranes. Completed work estimates vary between about $543 million and $630 million depending on the accounting cited.
What are the main risks to schedule and budget?
Market conditions for materials and labor, supply chain disruptions, cold weather that limits construction months, and funding gaps could affect both schedule and budget.
Key project facts at a glance
| Item | Detail |
|---|---|
| Latest certified cost | Approximately $2.62 billion |
| Funding reported to date | $2.321 billion (alternate report: $2.231 billion) |
| Completion target | Summer 2030 |
| Phase | Phase 3 — new lock chamber and downstream wall rehab |
| Phase 3 contract | $1.068 billion (awarded in July) |
| New lock size | 1,200 ft × 110 ft |
| Work completed to date | Between $543M and $630M (varied reporting) |
| Monoliths planned | 81 total; just over 50 started; 1 completed |
| Near-term funding need | About $103 million for FY2027 |
| Economic risk of Poe outage | Estimated up to $1.1 trillion and 11 million jobs lost over six months |
Deeper Dive: News & Info About This Topic
Additional Resources
- The Detroit News — Army Corps: New Soo Locks cost estimate drops (Sep 14, 2025)
- Wikipedia: Soo Locks
- MLive — Soo Locks rebuild project cost balloons (May 2022)
- Google Search: Soo Locks construction project
- SooLeader — Then and now: transformation of the Soo Locks since 2020
- Google Scholar: Soo Locks project
- Detroit Free Press — Soo Locks construction costs and inflation (Jun 2023)
- Encyclopedia Britannica: Soo Locks
- gCaptain — Soo Locks upgrade reauthorized at $3.2B
- Google News: Soo Locks
Author: Construction TX News
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