Vol.35 No.4 APR‑JUN 2007

The 2006 season . Meet Terry Johnson . Renewable energy cargoes . Hands-free mooring system V O L U M E 3 5 N U M B E R 4 G LGREAT LAKER A P R I L – J U N E 2 0 0 7 The Interlake Steamship Company Interlake Corporate Center 4199 Kinross Lakes Parkway Richfield, Ohio 44286 Telephone: (330) 659-1400 FAX: (330) 659-1445 ISO Certified E-mail: sales@interlake-steamship.com WE CAN HANDLE IT! Moving Mountains? Whether it is a mountain you need to move, or it just seems like it, at Interlake Steamship we work closely with our customers to solve their raw materials delivery challenges. Our dedicated shore personnel and experienced vessel crews focus on achieving safe, reliable, on-time cargo delivery. Interlake Steamship’s versatile self-unloading vessels, with capacities ranging from 17,000 to 68,000 gross tons, are equipped to get the job done, even under the most challenging conditions the Great Lakes have to offer. Whether your mountain is taconite pellets, coal, limestone or grain, call Interlake Steamship. Our job is moving mountains. GREAT LAKES/SEAWAY REVIEW April-June, 2007 1 A R T I C L E S A P R I L – J U N E 2 0 0 7 The international transportation magazine of Midcontinent North America GREAT LAKES/SEAWAY REVIEW GREAT LAKER 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com www.greatlaker.com A searchable editorial archive is available at www.greatlakes-seawayreview.com D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 The Administrator’s Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Regional Shipyard Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 The 2006 season was the system’s busiest in 20 years, with records broken. Page 6. New cargo movement is seen in the growth of new energy sources. Page 33. American Steamship Company marks its centennial and focuses on the future. Page 53. The 2006 Season MOVING RIGHT ALONG . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 2006 season sees best overall tonnage since 1999. Technology MAXIMIZING THE SEAWAY’S POTENTIAL . . . . . . . . . . . . . . . . . . . 23 With technology, the present infrastructure can be leveraged for reliability, cost-effectiveness and to improve the system’s competitive position. Interview MEET TERRY JOHNSON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 New SLSDC Administrator is equipped to institute change. Cargoes RENEWABLE ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Growth in new energy sources fuels new cargo movement. Marine Community Day A PARTNERSHIP THAT WORKS . . . . . . . . . . . . . . . . 39 U.S. Coast Guard, industry gather for Admiral’s Dinner, Marine Community Day. Port Profile: Upstate New York FLOWING WITH CHANGE . . . . . . . . . . . . . 40 Upstate New York ports gain new leadership, new cargoes. Regional Economy THE VALUE OF GREAT LAKES MARINE TRANSPORTATION . . . . . . . . . . . . . . 47 Economic impact of system translates into almost 70,000 U.S. jobs. Ferries POISED TO LAUNCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 New freight ferries await HMT changes. Propulsion TURNING ADVERSITY INTO OPPORTUNITY . . . . . . . . . . . . . . . . . . . 51 Repowering the Algoville. Fleets FOCUSED ON THE FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 American Steamship Company marks its centennial. Maritime Heritage LIGHTS OF NORTHERN LAKE HURON . . . . . . . . . . . . . . . . 62 Michigan’s sunrise side is lighthouse lover’s delight. Marine Photography DAWN’S EARLY LIGHT . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Photography of Michigan’s sunrise side. Maritime Museums DON’T GIVE UP THE SHIP! . . . . . . . . . . . . . . . . . . . . . . . . .70 Toledo’s Willis B. Boyer museum sets a new course, campaign to raise private sector funds. Great Lakes People SIX GENERATIONS OF LAKES SAILORS . . . . . . . . . . . . . .72 166 years on fresh water for the Groh family—and counting. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Laker Lighthouse News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 G LGREAT LAKER P U B L I S H E D F O R 3 7 Y E A R S Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (231) 582-2814 (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com www.greatlaker.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor Rebecca Harris Art Director Lisa Liebgott Production Manager Tina Burch Business Manager David L. Knight Editorial Consultant Roger LeLievre Great Laker Editor Virginia Forrand Circulation Manager ADVERTISING DEPARTMENT Kathy Booth Account Manager James Fish Director of Sales William W. Wellman Senior Account Manager EDITORIAL ADVISORY BOARD John D. Baker, President, Great Lakes District Council, International Longshoremen’s Association; Gary L. Failor, Executive Director, Cleveland-Cuyahoga Co. Port Authority; James H. Hartung, President, Toledo-Lucas Co. Port Authority; Davis Helberg, Executive Director, Seaway Port Authority of Duluth – Retired; Anthony G. Ianello, Executive Director, Illinois International Port District; John Jamian, President, Seaway Great Lakes Trade Association; Peter Kakela, Ph.D., Professor, Department of Community, Agriculture, Recreation and Resource Studies, Michigan State University; Donald N. Morrison, President, Canadian Shipowners Assn.; Rep. James L. Oberstar, Member of Congress, Chair, House Transportation & Infrastructure Committee; John J. Peacock, Executive Vice-President, Fednav Limited; George Ryan, President, Lake Carriers’ Association – Retired; Daniel L. Smith, National Vice President-Great Lakes, American Maritime Officers; Rep. Bart Stupak, Member of Con gress, Energy & Commerce Committee; James H.I. Weakley, President, Lake Carriers’ Association, James K. Welsch, Jr., President & CEO, American Steamship Company. SUBSCRIPTIONS -(800) 491-1760 or www.greatlakes-seawayreview.com Published quarterly. One year $30.00; two years $50.00; three years $70.00. Foreign: One year $40.00; two years $65.00; three years $95.00. Payable in U.S. funds. Back issues available. Article reprints are also available. Reprints produced by others not authorized. ISSN 0037-0487 SRDS Classifications: 84, 115C, 148 Great Lakes/Seaway Review and Great Laker are published quarterly in March, June, September and December. Postmaster: Send address changes to Great Lakes/ Seaway Review, Great Laker, 221 Water Street, Boyne City, MI 49712 USA. © 2007 Harbor House Publishers, Inc., Boyne City, Michigan. All rights reserved. No article or portion of same may be reproduced without written permission of publisher. APRIL-JUNE, 2007 THE INTERNATIONAL TRANSPORTATION MAGAZINE O F M I D C O N T I N E N T N O R T H A M E R I C A VOLUME 35 NUMBER 4 Great Lakes/Seaway Review Cover: The Mesabi Miner moves into Duluth. Photo by Jerry Bielicki. Great Laker Cover: The Groh family celebrates six generations on the Lakes. Photo by Chris Winters. 2 www.greatlakes-seawayreview.com Combining the economy of Great Lakes shipping with flexibility for cargoes not suitable for traditional self-unloaders, the tug barge PERE MARQUETTE 41 offers a level of dependable service that translates into outstanding value. Let us help you evaluate how our new articulated tug barge system can benefit your company. Self-loading/unloading: hydraulic crane with grapple, clamshell or magnet; conveyor loading places material approximately 80′ from side of ship Stone, logs, pig iron, scrap metal, coils, slabs and over-dimensional pieces Conveyor unload materials up to 15 inch Articulated tug barge coupler technology U.S.- flag Great Lakes service PERE MARQUETTE SHIPPING COMPANY 701 Maritime Drive P.O. Box 708 Ludington, MI 49431 (231) 845-7846 Fax (231) 843-4558 www.pmship.com INTO YOUR IS OUR BUSINESS BARGING BUSINESS G R E A T L A K E S / S T . L A W R E N C E S E A W A Y GREAT LAKES/SEAWAY REVIEW April-June, 2007 3 Bill on HMT change gets through scoring HR 981, the Great Lakes Short Sea Shipping Enhancement Act of 2007, which provides an exemption to the Harbor Maintenance Tax for containerized cargo delivering in the system, has been given a favorable score by the Joint Committee on Taxation. The potential tax change was estimated to cost the federal government $500,000 in lost revenue over 10 years, showing that it will have a negligible impact on the federal treasury. “This is great news,” said Steve Fisher, Association of Great Lakes Ports Executive Director, “it’s a big milestone.” Currently, industry representatives are gathering support for the bill. . WRDA moves forward With Rep. James Oberstar (DMinn.) as primary sponsor of the Water Resources Development Act, HR 1495 was passed by the House in late April by a vote of 94 to 25. The House’s $15 billion water project act includes key provisions for shipping on the Great Lakes/St. Lawrence Seaway: • Approval and a $341 million authorization to build a second Poesized lock at the Soo Locks in Sault Ste. Marie, Michigan, while doing away with state cost-sharing. • An amendment to make overall tonnage a smaller determinate of what areas receive funds for dredging, meaning that ports handling fewer than one million tons a year will have a greater chance of being dredged. “I have been working since 1986 to pass legislation to add this second lock,” Oberstar said. “As chairman of the committee, I can now make sure this critical improvement is made. We have to make sure Great Lakes shippers can move their cargo cost-effectively.” The House bill authorizes federal agencies to build the lock, but separate legislation is needed to provide funding. Most recently, the Senate’s version of the bill, S 1248, passed May 16 by 91 to 4. The measure is now going into conference and will need President Bush’s signature to take effect. . Mark W. Barker named Interlake president The Board of Directors of Interlake Steamship Company has announced that Mark W. Barker has been elected President. He succeeds James R. Barker, who will remain as Chairman and Chief Executive Officer. Mark Barker has most recently been Interlake’s Vice President and Treasurer. He has also served as Interlake’s Director of Engineering, Assistant Vice President and Fleet Engineer. Previously, he held assistant engineer positions aboard several Interlake ships. A graduate of the State University of New York at Fort Schuyler, he received his M.B.A. from the Case Weatherhead School of Management in Cleveland, Ohio. . Port Weller re-opens as Seaway Marine & Industrial Upper Lakes Group Inc. has established a new marine and industrial business sector, known as Great Lakes Marine & Industrial, that involves reopening Port Weller Dry Docks. The company has acquired the liquidated assets of the former Canadian Shipbuilding and Engineering Ltd. (CSE), which closed the 60-year-old shipyard in St. Catharines in November. Now operating as Seaway Marine & Industrial Inc.—a company partnering with four others to become Upper Lakes Group’s new marine and industrial sector—the shipyard is employing about 30 union workers and plans to add employees as additional contracts are confirmed, according to John Dewar, Chief of Strategic Services for Great Lakes Marine & Industrial. “Initially, the dry dock will focus on ship repair, but we intend to aggressively rebuild the capability in the yard to include new ship construction and large-scale industrial fabrication as market opportunities evolve,” he said. Also involved in the recent sale are the shipyard facilities at Thunder Bay, Ontario, formerly Pascol Engineering and Lakehead Marine & Industrial. The other three independent companies in the sector are Allied Marine & Industrial (manufacturing, machining and machinery repair), Hamilton Marine & Industrial (steel fabrication) of Port Colborne, Ontario, and Canal Marine & Industrial (electrical/electronic services) of St. Catharines. . Camp named Great Lakes Legislator of the Year Rep. Dave Camp (left) receives his Great Lakes Legislator of the Year Award from the Great Lakes Maritime Task Force. He’s pictured with (left to right): Congresswoman Marcy Kaptur (D-Ohio); John D. Baker, Jr., Great Lakes District Council, ILA; Congressman Vern Ehlers (R-Mich); and Congressman James L. Oberstar (D-Minn). The award was presented May 2 during the Task Force’s Annual Briefing for the Great Lakes Delegation in Washington, D.C. SOURCE: LCA Mark W. Barker Minnesota Steel being acquired Essar Global of India, the holding company for the Ruia empire, has acquired Minnesota Steel. The acquisition, for an undisclosed amount, is being done through the holding company’s wholly-owned subsidiary Essar Steel Holdings. The group previously acquired Canadian company Algoma Steel for $1.58 billion. The privately-held Minnesota Steel controls iron ore resources of more than 1.4 billion metric tons. Essar plans to invest $1.65 billion to set up a steel plant in the current facilities. Plant construction is expected to begin in the third quarter and create a capacity of 2.5 million metric tons per annum (mtpa). The first of several construction phases is expected to start in 2009 and produce up to 1.5 million metric tons of steel slab per year. Early estimations show the new mill employing more than 700 workers. Minnesota’s Mesabi Range is one of the world’s largest iron ore mining regions. Essar Global, with Algoma’s acquisition, already has control over capacity of more than seven mtpa. With Minnesota’s proposed steel plant project, the combined capacity will approach the 10 mtpa. . DATELINE D A T E L I N E 4 www.greatlakes-seawayreview.com New Glarus brews up business for Milwaukee port With sales and national recognition on the rise, Glarus Brewing Company is continuing to use diverse ingredients— including malt barley from Wisconsin, hops from Germany and England, and yeast by way of a Belgian monastery—to create unique ales. The current expansion of the brewery is creating business for the Port of Milwaukee, which recently unloaded 14 German-made tanks from the vessel Julia. The tanks arrived in port April 29 and were delivered to New Glarus by truck. Seaway study nears completion The Great Lakes/St. Lawrence Seaway Study is in its homestretch, with findings being consolidated and prepared for presentation. The study has been assessing the operational maintenance and long-term investment needs of the system to ensure its security, efficiency and sustainability. The binational study could be released to the public by July. . MARAD, Vietnam sign maritime agreement U.S. maritime shippers, carriers and port operators will have far-reaching access to Vietnam’s rapidly expanding markets for transportation services, thanks to a new agreement signed by U.S. Maritime Administrator Sean T. Connaughton and Vuong Dinh Lam, Vietnam’s national maritime administration chairman. Under the terms of the new agreement, U.S. companies may acquire a controlling 51 percent share in joint venture enterprises. The agreement also allows U.S. companies to take a lead role in providing maritime services including cargo agency, cargo documentation, cargo management, ocean freight forwarding, storage and warehouse services, and container station and depot services. Prior to the agreement, U.S. companies were restricted to minority holdings in Vietnamese companies. . SLSDC develops ballast water website The Saint Lawrence Seaway Development Corporation has developed a new ballast water section on the binational Seaway website: www.greatlakes-seaway.com. Both Seaway corporations will regularly update the site to keep citizens informed about government, industry and academic organizations pursuing ballast water research. . Mosher moves to North American Stevedoring After more than four years as port director for the Port of Indiana-Burns Harbor, Steve Mosher has become General Manager of U.S. Operations for North American Stevedoring Company. The company is based at Iroquois Landing in Chicago, Illinois. The Ports of Indiana is currently conducting a search for a new Burns Harbor director. A timetable for hiring has yet to be set. . New website promotes industry The U.S. Maritime Administration (MARAD) has launched a new website, promoting its Marine Highway Initiative. The site, www.marad.dot.gov/MHI/index.asp, provides information on the initiative and services such as contact information for marine operators and potential shippers; recent reports, links and coming events; assistance to shippers in locating vessels; and updates on MARAD’s government-industry partnership (SCOOP).. 2201 Pinnacle Parkway • Twinsburg, OH 44087 330-963-6310 • FAX 330-963-6325 www.omnithruster.com REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW April-June, 2007 5 McKeil Marine sells assets to McNally International McKeil Marine has sold the grounds and buildings as well as the site of the large marine dock which it has in Tracy, Quebec to McNally International. The sale does not include the quays. The barges and small tug boats, which are useful for maritime construction, are also part of the deal. The majority of the McKeil employees, in Sorel, are being transferred to McNally. A McKeil subsidiary company, RBM (tug boats and Montreal barges) has also been sold, but to an unknown party. The former employees of RBM also go with the new owner. The tug Jerry Newberry, as well as the floating crane, were also sold to another unknown party. McKeil keeps its tug boats and barges and may also purchase other ships. McKeil will concentrate on transport. These changes were effective June 3. . Brazilian trade mission nearing A trade mission to Rio de Janeiro and Sao Paulo, Brazil is scheduled for October 12-20. The Saint Lawrence Seaway Development Corporation (SLSDC) and the St. Lawrence Seaway Management Corporation (SLSMC) are hosting the system’s third trade mission to Brazil, a country whose role as the largest supplier of iron ore, steel slabs, pig iron, steel coils and sugar indicate a growth in trade with the U.S. and Canada. Currently, Brazil ranks third for overall tonnage in the system, accounting for more than one million tons of cargo annually, according to SLSDC. . U.S. Great Lakes Shipping Association gets new leader The United States Great Lakes Shipping Association has appointment of Stuart H. Theis Executive Director. Theis, an attorney and business leader in the U. S. and Canadian Great Lakes/St. Lawrence Seaway industry for years, previously served in a variety of executive capacities with Cleveland-based M.A. Hanna Company and for Oglebay Norton Company. Most recently, Theis served in a private consulting capacity with oversight responsibility for a feasibility study for the Cleveland-Cuyahoga County Port Authority, examining the possibility of a Trans Lake Erie Freight/Passenger ferry service between Cleveland and Port Stanley, Ontario. . REGIONAL CALENDAR MAY 28-June 1International Association for Great Lakes Research (IAGLA) 2007 Conference University Park, Pennsylvania 07chairs@iagla.org 30-June 1Mari-Tech 2007 Annual Conference & Trade Show, The Sheraton Fallsview Niagara Falls, Ontario, (705) 730-9668 John Moriarty, jmoriaty@sympatico.ca JUNE 6-8 International Joint Commission Great Lakes Water Quality Conference Chicago, Illinois, www.ijc.org 19-20 2007 Maritime Economic Development Workshop American Association of Port Authorities Oxnard, California Aaron Ellis, (703) 684-5700 aellis@aapa-ports.org 29 Engineers’ Day at the Soo Locks Sault Ste. Marie, Michigan Steve Rose, (906) 635-3464 Steven.S.Rose@lre02.usace.army.mil JULY 11-13 Great Lakes & St. Lawrence Cities Initiative Conference Grand Amway Hotel, Grand Rapids, Michigan Jane Magniant, (616) 456-3168 jmagnian@grcity.us www.glslcities.org D A T E L I N E The Great Lakes Seaway and Ontario In the industrial heartland of Canada, the Province of Ontario offers a motherlode of riches for both importers and exporters. From Cornwall to Thunder Bay, Ontario ports provide excellent service and facilities for both crew and cargo. The Great Lakes Seaway allows continuous water passage to bring your products into a market place with over nine million consumers. The gold mine doesn’t run out there. Ontario is an El Dorado of goods for the voyage home. From steel to sewing machines, wheat to whatever, or from cars to computers, Ontario products can travel world-wide through the Great Lakes port system via the economical marine mode. Don’t let this golden opportunity slip by. Get to know more about the Great Lakes Seaway. Your Golden Opportunity URBAN & RURAL INFRASTRUCTURE POLICY BRANCH 2nd Floor, Building B, 1201 Wilson Ave. Downsview, ON M3M 1J8 Telephone: (416) 235-3670 Ministry of Transportation Ontario 6 www.greatlakes-seawayreview.com “There’s a lot of project cargo activity that is taking place,” Johnson said. “There is just no other mode of transportation to handle pieces of this size.” “Our marketing efforts, centered on the Hwy H2O campaign, brought in over 500,000 [metric] tons of new cargo movements over the course of 2006, adding over C$1.2 million in incremental revenue to our top line,” said Richard Corfe, President and CEO of SLSMC. “As these results represent an approximate 100 percent increase in the volume of new cargoes coming into our system, momentum is clearly on our side.” On the Lakes, U.S.-flag ships experienced a 1.9 percent increase in dry bulk cargoes over the year, an increase of six percent over the fleet’s five-year average, according to the Lake Carriers’ Association (LCA). Demand for iron ore and limestone pushed shipments above the previous 2005 levels, but coal cargoes dipped slightly based partially on high inventories. A combination of low lake levels and the lack of dredging affected Lakes deliveries as well. In the coal trade, the largest Lakes vessels carried nearly 64,397 metric tons each load between Lake Superior and ports in the lower Lakes in the mid-1990s. The top coal cargo carried through the Soo Locks in 2006 totaled 60,251 metric tons. By the season’s end, loads on Lake Superior fell to 90 percent of the designed carrying capacity, according to LCA. In the 2006 season, iron ore in the Lakes accounted for more than 44 million metric tons of cargo with coal adding nearly 23 million metric tons and limestone 26.8 million metric tons, with cement, salt, sand and grain rounding out the overall tonnage to 99.5 million metric tons, which tops the 2005 total by 1.9 million metric tons and the 2001-2005 average by more than 5.5 million metric tons. By season’s end, records were being set in several areas. A 180 percent increase in outbound coal products helped boost the 2006 shipping season for the Port of Buffalo, a season categorized as “very strong.” Approximately 816,300 metric tons traveled into and out of the port, compared with 657,575 metric tons handled in the 2005 season. The tonnage for Buffalo over the past five years has averaged 630,365 metric tons per season, with coal setting a tonnage record for the second consecutive year. New commodities, such as windmill blades, helped boost the port’s 2006 numbers. Traditional cargoes provided steady hauling for freighters, with coal compris- As the 2007 season gets underway, momentum from a nine percent increase and new cargoes in 2006 impact business decisions. The 47.2 million metric tons of cargo moved through the system during its 48th season—the highest amount since 1999—was a mixture of the system’s long-time staples as well as new and diversified cargo, such as wind turbines and mining-petroleum machinery destined for Canada’s Tar/Oil Sands Project in Alberta. The increase in cargo improves upon the previous season, consistent with increases shown in 2004, and the system’s second busiest season in 20 years. “A strong economy has been a contributing factor,” said Terry Johnson, Saint Lawrence Seaway Development Corporation (SLSDC) Administrator. “There are also increasing numbers of people who are looking at the Seaway as an alternative form of transportation.” Additional factors include lower prices on imported steel products, drought conditions in Australia’s agricultural region and increased land-based congestion in North America. Overall, the cargo was shipped by an increased number of transits—from 4,361 in 2005 to 4,613 in 2006. For the past two years, the increase in transits has been considered a positive indicator for the coming season as well as a reflection of low lake levels and diminished dredging, causing ships to travel at less than full capacity— making more trips to deliver the cargo—and the system’s longest season, 283 days, on record. A breakdown of tonnage for the season shows increases in every category: grain, iron ore, coal, other bulk and general cargo, with the greatest gain—1.765 million metric tons or an 18 percent increase—coming from grain, according to statistics maintained by The St. Lawrence Seaway Management Corporation (SLSMC). General cargo represents the second largest tonnage increase, topping the 2005 total by 1,301 metric tons, a 40 percent increase over the year. Iron ore and coal increased slightly, less than one percent each. Other bulk grew by 4.7 percent, or 736,000 metric tons. Much of the general cargo increase is being attributed to interest in short sea shipping to alleviate land-based congestion and greenhouse emissions. The gain is partly due to imports of manufactured iron, steel and steel slabs and the massive size of project cargo such as wind turbines and equipment being transported for the Tar/Oil Sands Project. THE 2006 SEASON A breakdown of tonnage for the season shows increases in every category: grain, iron ore, coal, other bulk and general cargo, with the greatest gain—1.765 million metric tons or an 18 percent increase—coming from grain. Moving right along 2006 season sees best overall tonnage since 1999 2006 Seaway Traffic Results (in thousands of metric tons) Traffic Montreal/Lake Ontario Welland Canal Combined Traffic 20052006 20052006 20052006 Total Cargo . . . . . . .31,27335,57334,150 . . . . . .37,42243,301 47,165 Grain . . . . . . . . . . . . .9,52511,339 9,39210,752 .9,77311,539 Iron Ore . . . . . . . . . .8,9759,571 .7,4197,220 .11,01011,038 Coal . . . . . . . . . . . . . . .727684 . . .3,6933,714 . .3,6933,714 Other Bulk . . . . . . . .8,7729,404 11,67612,577 15,54816,284 General Cargo . . . . .3,2584,546 .1,9693,144 . .3,2594,560 TOTAL TRANSITS . .2,6952,942 .3,4433,673 . .4,3614,613 Source: St. Lawrence Seaway Management Corporation GREAT LAKES/SEAWAY REVIEW April-June, 2007 7 The Port of Cleveland… More Than a Working Waterfront Stephen Pfeiffer spfeiffer@portofcleveland.com 216.241.8004 phone 216.241.8016 fax www.portofcleveland.com Businesses around the world rely on the Port of Cleveland to transport 13.1 million tons of cargo annually. You, too, can give your business a lift with the Port of Cleveland’s maritime services including: • 9 berths and 6,500 linear feet of dock space maintained at full seaway depth of 27 feet. • Heavy-lift crane capacity of 150 tons. • More than 350,000 square feet of warehouse space and one-million square feet of open storage. • Connectivity at the gate to all major interstates and direct access to two major railroads (CSX and Norfolk Southern). Contact us today for more information on how we can help your business boom. BOOMING at the Port of Cleveland Business is GREAT LAKES/SEAWAY REVIEW April-June, 2007 9 have been made to improve the entrance, access controls and security, including lighting, fencing and cameras. In addition, the port is aligning itself for business related to alternative fuels. The 2006 season was a step in the right direction for the Port of Cleveland, which enjoyed the high steel import tonnage experienced industry-wide, with steel up 29 ing 60 percent (519,711 metric tons) of the shipments—a 180 percent increase from the previous season. Limestone shipments constituted 33 percent (232,192 metric tons) of the shipping business, while salt comprised seven percent (54,420 metric tons) of the port’s annual cargo. In addition, heavy-lift cargo added 9,977 metric tons to the port’s annual total. In the coming season, crew using the Buffalo port will find facility improvements underway, with plans in place to upgrade ship loading systems and rail expansion, according to Port Director James Yamonaco. The port is also looking at wind power being installed nearby on Lake Erie’s waterfront as a potential energy source. In 2007, coal shipments are expected to increase steadily, with increased wind energy products, including blades, bases and generators, transiting the docks. Steel shipments contributed to a banner year for the Ports of Indiana Burns Harbor/ Portage, where Port Director Stephen Mosher classified 2006 as an “excellent year.” Total tonnage registered at 2,411,410 metric tons, up from 2,024,685 metric tons in 2005 and tallying nearly 16 percent over the port’s five-year average. Steel coils constitute the primary cargo, at 30 percent of total shipments. Limestone makes up 24 percent of the annual total. The continued increase in tonnage helped the port top record tonnage and revenue. Contributing to the positive numbers were competitive shipping rates and creation of an environment “that is conducive to growing shipping interest on the Lakes,” Mosher said. The previous season also brought some unique endeavors to the port, including a visit from the high-tech ship, Federal Welland. It carried the prototype OceanSaver® ballast treatment system, part of a proactive effort by Fednav and Great Lakes ports to develop new technologies for combating nuisance organisms. Also in 2006, the retired U.S. Coast Guard Cutter Acacia found a temporary home at the Burns Harbor/Portage port while the American Academy of Industry finalizes plans to turn the ship into a floating museum in downtown Chicago. Great Lakes/St. Lawrence Seaway 2006 Port Performance (in metric tons) 2005 2006 Buffalo . . . . . . . . . . . . .657,575 . . . . .816,300 Burns Harbor . . . . . .2,024,685 . . . .2,411,410 Chicago . . . . . . . . . . .2,121,225 . . . .3,042,640 Cleveland . . . . . . . . .12,516,600 . .13,695,700 Detroit . . . . . . . . . . . . . .397,645 . . . . .603,000 Duluth . . . . . . . . . . .45,945,382 . .47,234,449 Erie . . . . . . . . . . . . . . . .861,650 . . . .1,033,980 Green Bay . . . . . . . . .2,508,032 . . . .2,537,522 Hamilton . . . . . . . . .12,359,511 . .12,612,730 Lorain . . . . . . . . . . . .2,965,461 . . . .3,969,491 Milwaukee . . . . . . . . .3,416,951 . . . .3,473,533 Monroe . . . . . . . . . . .1,485,662 . . . .1,144,800 Ogdensburg . . . . . . . . .135,339 . . . . .163,303 Oshawa . . . . . . . . . . . . .337,505 . . . . .393,210 Oswego . . . . . . . . . . . .569,401 . . . . .907,000 Sept-Iles . . . . . . . . .22,447,957 . .23,485,684 Toronto . . . . . . . . . . .2,560,600 . . . .2,154,913 Trois-Rivieres . . . . . .2,507,000 . . . .2,741,000 Thunder Bay . . . . . . .8,200,674 . . . .8,466,460 Toledo . . . . . . . . . . . .9,729,620 . .10,331,587 Valleyfield . . . . . . . . . . .357,511 . . . . .475,087 Windsor . . . . . . . . . . .5,470,180 . . . .5,778,404 SOURCE: INDIVIDUAL PORTS THE 2006 SEASON Two years of continued growth is providing incentive for the Port of Chicago to seek out new opportunities in coming seasons and keep the momentum going. “Year-end numbers for 2006 were just as significant with its increases as 2005 was to 2004,” said Tony Ianello, executive director, noting that he hopes a similar increase will result from the current season. In 2006, Chicago’s port registered 3,042,640 in total metric tonnage, compared with 2,121,225 in 2005. The majority of cargoes included steel and steel products, 62 percent; grain accounted for 16 percent; and cement, 12 percent. The port’s average annual tonnage over the past three years is 2,018,738 metric tons. Other than specialty bulk sand, the majority of the port’s cargo was comprised of traditional shipments, including steel products (rods, bars, coils and plates), graphite, magnesite, cement, sugar, sand, rock, food oils, petroleum products and P.L. 480 cargo. “Because of our economic and logistical variables, cargo movements may come and go,” Ianello said. “We were fortunate enough to work with logistics companies and show the cost savings and benefits of utilizing the Seaway, the river and the port, with its central location for distribution to move their cargoes.” The season was a record-breaker for the port as well; the four largest stevedores at the port had either record shipments or record numbers of vessels or barges over the previous year, including Reserve Stevedoring, KinderMorgan, Dockside Marine and North American Stevedoring. As the port looks to future growth, plans Steel coils are part of the 29 percent increase in steel imported at the Port of Cleveland over 2005 numbers. Twenty-four wind turbine blades from Santos, Brazil pass through the Port of Buffalo for B.Q. Energy. 10 www.greatlakes-seawayreview.com percent to 529,688 metric tons over 2005. “U.S. consumption at 150 million tons is a strong indicator that U.S. manufacturing is not dead,” said Steve Pfeiffer, port vice president, maritime services. Over the past five years, steel has averaged 453,500 metric tons a year, including 2001’s record low at 308,380 metric tons. In all, Cleveland’s total 2006 tonnage came in at 13,695,700 metric tons, up from 12,516,600 metric tons in 2005. Cleveland’s numbers are due in part to the success of Mittal Steel on the bulk side, the lowest cost steel producer in the U.S. On the import side, local companies are becoming more competitive globally, which is impacting the shipping industry as a whole. The port set a record based on the changing dynamics of facility ownership. The Cleveland-Cuyahoga County Port Authority handled about 30 percent of the total tonnage in 2006—4,081,500 metric tons—vs. just five percent 20 years ago. “The port authority is being asked to shoulder a larger part of the need and will continue that trend as other facilities move towards other types of development,” Pfeiffer said, noting that industry-wide, capacity needs could begin outstripping new facility development. After averaging less than 300,000 metric tons for the past five years, the Port of Detroit processed 603,000 metric tons of cargo—mostly steel imports—in 2006, up from 397,645 metric tons in 2005. The public-private partnership between the Detroit/ Wayne County Port Authority and Nicholson Terminal & Dock Company fulfilled its first full year in 2006, which is believed to have boosted tonnage, according to Steven Olinek, port deputy director. Adding to the success, the port authority is planning several facility improvements for 2007. In an attempt to diversify cargo, the port authority is working to sign biodiesel producers as tenants/port users. In Duluth/Superior, several factors contributed to a solid 2006 season. Strong performance in western coal and iron ore shipments boosted port tonnage above last season’s level, despite reduced grain tonnage. 2006 was another record year for western coal from Superior, Wisconsin. Superior Midwest Energy Terminal loaded 21.3 million tons, an increase of 850,000 tons over 2005. The coal’s lower sulfur content is creating greater demand, while deliveries of eastern coal from Lake Erie fell to their lowest level in recent years. Total commerce for the port reached 47.2 million tons, a three percent increase from last season’s nearly 46 million tons, and the port’s highest tonnage since 1979. Primary cargoes were coal, representing 46 percent of the cargo, and iron ore at 40 percent of the overall total. Bulk cargo is a key component in Duluth’s successful season. Bulk cargo activity was highlighted by Midwest Energy Resources Company’s record-breaking year in low-sulfur coal shipments at its Superior facility, which moved 22 million tons, the highest level reached for the facility since it began operating in 1976, said Lisa Marciniak, the port’s promotion manager. Hallett Dock Terminal posted a 54 percent increase in international tonnage in 2006, earning it a SLSDC Pacesetter Award. Last season’s total tonnage compares with 45.9 million tons in 2005. Over the past five years, tonnage at the Duluth port has averaged 44.1 million tons per year. A unique shipment handled at the port in 2006 involved nine shipments of taconite pellets en route to Algeria. Major distribution and trans-loading activity developed within the pulp/paper and lumber indus- THE 2006 SEASON THE 2006 SEASON GREAT LAKES/SEAWAY REVIEW April-June, 2007 11 try. Duluth was also a major entry point for cargoes related to Canadian Tar/Oil Sands and Midwest wind farm developments. Also in 2006, the port handled numerous wind turbine components that will comprise the largest onshore turbines in the world to date and recorded the largest single piece of heavy-lift project machinery handled at the port by Lake Superior Warehousing—a “hydro cracker” reactor from Dubai. Facility upgrades at the port include breaking ground on the $3.5 million research and development center for the Great Ships Initiative. The center is designed to specifically focus on developing the technology necessary to prevent the introduction of aquatic nuisance species into the Great Lakes by ocean-going ships. The Erie-Western Pennsylvania Port Authority’s 2006 season grew with the help of the construction industry, according to William Krats, plant manager of O-N Minerals Erie Operation. “The construction business responded in 2006, resulting in one of our stronger years,” he said. In total, the Erie port handled 1,033,980 metric tons of cargo in 2006, up from 861,650 metric tons in 2005. Aggregates constitute 82 percent of the port’s shipments, sand products account for 14 percent of the cargo and miscellaneous products make up the remaining four percent. Late in the 2006 shipping season, Krats said the industry faced a challenge. “A high demand for boats on the Great Lakes hampered our ability to move material in the second half of 2006,” he said. Future shipping seasons should be aided at the Erie port by expanded outdoor storage, which will improve versatility. Krats expects the 2007 season to be “equal or better than” 2006. “We have been approached by several Great Lakes and off-lakes [companies] about the possibility of doing more for them,” he said. “We are currently evaluating these projects and will select the ones we feel are most appropriate for our operation.” After seeing two years of significant increases in tonnage, the Port of Green Bay reported another year of growth for 2006. Port Manager Dean Haen said, “Any increase in tonnage from 2005 is remarkable, considering Wisconsin Public Service Corporation was able to bring in all their western coal by train.” Tracks that had been damaged and unusable were repaired and once again operational; however, the shipping industry remained strong in Green Bay. During the 2006 season, the port shipped 2,537,522 metric tons of cargo, an increase of one percent over 2005 figures. The modest increase comes on the heels of double-digit increases in 2004 and 2003. Total port tonnage has soared 51 percent since 2000. “This is the highest three-year total port tonnage since 1978 to 1980,” Haen said. “The increase in tonnage is directly attributable to the health of our local manufacturing and construction economy and its demand for raw materials such as coal, limestone, cement, salt and forest products.” Along with those commodities, other key products shipped through the port include liquid asphalt, liquid bulk and pig iron. The largest domestic increases in tonnage were in limestone and cement, up 11 percent. The largest foreign increases in tonnage were in fuel oil, up 748 percent; salt, up 146 percent; and pig iron, up 23 percent. Cargo diversification is resulting in the higher annual tonnages, Haen said, noting that consideration of harbor improvements may add to the port’s economic, business THE 2006 SEASON 12 www.greatlakes-seawayreview.com averaged 12.01 million metric tons. Several records were broken at Hamilton in 2006, including potash imports, which recorded the highest tonnage since 1992. Liquid imports reached the highest levels in 25 years, with a 19 percent increase over 2005. Salt, steel and dry bulk products also saw a record tonnage year, with steel imports up 19.5 percent over 2005. “The Port of Hamilton remains an important breakbulk port,” said port President/ CEO Keith Robson. “Project cargo received great attention in 2006, with the arrival of eight vessels carrying wind power blades and component pieces.” Last season was the first year such cargoes were received in the port. New projects—redevelopment of piers and properties and additions to land holdings— are setting the stage for further developments at the port in 2007 and have provided increased storage and handling areas. An 80,000-square-foot warehouse under construction will be used for steel storage and other cargo. A recently purchased 103-acre parcel will see Pier 22 developed into a multi-use pier, where a new 1,000-foot-long wharf will be constructed. Also in 2006, McKeil Marine celebrated its 50th anniversary, Agrico celebrated 75 years in business and Steelcare Increceived its Gold LEEDS certificate as the Great Lakes’ most advanced steel handling facility. One of the port’s tenants, BIOX, has constructed the first biodiesel plant in Canada and the port is continuing to evaluate proposals for a port location for the company. Shipments of coke and limestone, including ships from several countries in South America and China, helped boost tonnage for the Port of Lorain. Tonnage was up 33 percent over 2005, from 2,965,461 metric tons to 3,969,491. Over the past three years, the port’s annual average was 3,255,785 metric tons. Of the shipments out of the Lorain port, iron ore constituted 42.7 percent of cargoes, with limestone the next highest, at 27 and transportation importance in the future. During the 2006 season, the port completed construction of a $3.6 million dock wall for Georgia-Pacific Corporation, which is part of why expectations for 2007 are high. Positive gains in total tonnage and vessel calls helped shape a sound shipping season in Hamilton. Total tonnage at the port rose by two percent, with vessel calls up 4.8 percent. Key cargo sectors have held solidly at Hamilton, notably in agri-products and steel, with tonnage reaching 829,579 metric tons and 1.14 million metric tons, respectively. Traditional bulk commodities remained solid as well, with coal and iron ore for steel production at Dofasco and Stelco, gypsum from the east coast of Canada destined for area plants manufacturing drywall, plus salt and sand all showing numbers at or better than the previous year. In total, Hamilton handled 12.61 million metric tons of cargo in 2006, up slightly from 12.36 million in 2005. Primary cargoes were ore (41.9 percent) and coal (21.1 percent), with secondary cargoes of steel (9.1 percent) and slag (4.9 percent). Total tonnage over the past five years has The Port of Green Bay has had a busy year moving heavy electrical generation equipment, paper-making machines and yankee dryers. GREAT LAKES/SEAWAY REVIEW April-June, 2007 13 THE 2006 SEASON percent, according to Executive Director Richard Novak. Other consistent commodities at the port include gypsum, sand and gravel, potash and mill scale. Contributing to the changing atmosphere at the Lorain port also is an influx of foreign vessels, with Novak noting a greater number than the port has seen in the last 20 years. Novak expects tonnage to continue to grow at a steady pace, with some growth being attributed to the receipt of coke from foreign countries. Improvements include Jonick Dock & Terminal pursuing plans to lengthen and improve its dock facility. Many like to refer to the Port of Milwaukee’s hey days as during the 1970s and early 1980s, when the rail carferries, the Milwaukee Clipper and container ships called at the port. Statistics indicate 1970 as the best year for the port with 3.9 million net tons of cargo. The 2006 season neared that record. “2006 had undoubtedly one of the highest tonnage figures on record,” said Port Director Eric Reinelt. Total cargo for the year registered at 3,473,533 metric tons, compared to 3,416,951 metric tons in 2005 (tonnage includes waterborne and landborne shipments). Over the past five years, the port has averaged an annual tonnage of 3,044,260. Grain experienced a nearly 85 percent increase—up to 519,472 metric tons in 2006. Wisconsin experienced excellent harvests two years in a row and the demand for crops contributed to the 85 percent increase. The port’s major cargo type, dry bulk, decreased by eight percent from 2005 (2,665,470 metric tons) to 2006 (2,451,218 metric tons). The decrease is at least partially due to a salt mine strike early in the year, impacting the flow of dry bulk into the port. General cargo and liquid bulk cargo were up, nearly seven percent each from 2005 to 2006. Throughout the season, the port was busy with power equipment shipments, Reinelt noted, including wind energy components and equipment related to construction of a large coal plant nearby. The cargo generated additional ocean vessel, inland- river barge and rail traffic. Port improvements included the completion of Pier Wisconsin and the new downtown cruise ship berth. The port’s original offices were demolished and a facility constructed that combines port offices with education classes for the schooner Denis Sullivan. In 2007, construction continued on the Mooring Basin rail track, which was previously unable to handle newer, heavier rail cars. Pier 5, the liquid cargo pier, is being refurbished to handle more modern vessels. Milwaukee Intermodal Terminals is expecting to build a new warehouse for fumigating lumber and logs for export. And the port is looking to buy a used crane to accommodate the growth in heavy breakbulk cargoes. Michigan’s Port of Monroe reports a steady 2006 season, with numbers slightly DETROIT/WAYNE COUNTY PORT AUTHORITY PROMOTING TRADE AND ECONOMIC GROWTH •Worldwide leader in automotive manufacturing and supplies. • Largest foreign trade zone in the United States. • Located on the border of United States and Canada. •Worldwide direct-water port with complete cargo handling and stevedoring services. • Global transportation system. • Assisting with waterfront access. • Financing of infrastructure improvements. • Public/private partnerships. 8109 E. Jefferson Avenue, Detroit, Michigan 48214 Phone: (313) 331-3842 Fax: (313) 331-5457 www.portdetroit.com Road salt piles high as it comes off a self-unloader at the Port of Milwaukee. 14 www.greatlakes-seawayreview.com below 2005 figures. For the year, the port’s shipments totaled 1,144,800 metric tons, compared with 1,485,662 metric tons in 2005, both of which surpass the port’s five-year average of 1,074,790 metric tons. The port’s main commodity continues to be coal, making up 90 percent of the cargo, for Detroit Edison Company, with asphalt the remaining 10 percent. Monroe Recycling, a new port tenant is developing 15 acres along the river channel. Rail is being extended to the property along with water and sewer. The project is expected to help the port recapture the commerce of the 1950s and 1960s, when coal and manufactured goods traveled through Monroe regularly. The port also recently welcomed PreBesto Homes as a tenant, a manufacturer of factory-built housing. Talks are under way to attract a large lumber operation to the site. New rail transloading operations are being handled by the Port of Ogdensburg, including cotton seed, glass millet, latex resin and miscellaneous chemicals, contributing to steady tonnage numbers in the 2006 season. The rail business principally serves local industries. The port’s waterborne shipments remained average, with rail traffic up 10 percent, said John Rishe, director of commercial and industrial development. By year’s end, the port had imported 159,478 metric tons of road salt (compared to 131,515 metric tons in 2005) and exported 3,825 metric tons of corn gluten to Ireland (compared to 3,824 metric tons in 2005). Road salt remains the major cargo at the port, at 97 percent, with corn gluten making up the remaining three percent. The two previous seasons both top the five-year average of 144,975 metric tons of road salt and 3,750 metric tons of corn gluten. The Oshawa Harbour Commission reports an excellent 2006 season, with emphasis on steel imports and record breaking liquid asphalt tonnages. Total tonnage for the year was 393,210 metric tons, up from 337,505 in 2005, according to CEO and Port Manager Donna Taylor. Comprising the bulk of the cargoes is steel, with shipments up nearly 40,000 metric tons in 2006. Asphalt remains the second highest commodity, followed by calcium chloride, salt, potash/fertilizer and project cargo. In the coming year, the commission plans to build a rail spur to the east wharf. An application currently is under consideration by the Canadian Transportation Agency. A windmill cargo offloading project in 2005 that continued through 2006 contributed to increased revenues and employment at the Port of Oswego. As a result, 2006 remained a solid year, benefiting local longshoremen and positively impacting the regional economy. In 2006, the port handled more than 907,000 metric tons of cargo, exceeding 2005 numbers by nearly 226,750 metric tons, according to Operations Manager Jim Cloonan. Longtime staple products include aluminum, asphalt, calcium chloride, cement, fertilizer, rock salt and fuel oil. The port began storing and exporting soybeans in 2005, a program that continues to grow. Ogdensburg is amid an expansion program that includes cargo handling equipment as well as outside and inside storage and berthing capacity. HEAD OFFICE Plac Rodla 8, 70-419 Szczecin, Poland tel. (+48 91) 359 43 33, 359 40 81 fax (+48 91) 359 42 88 email: pzmmanagement@polsteam.com.pl www.polsteam.com.pl 16 www.greatlakes-seawayreview.com FULL SEAWAY DEPTH Specialists in: Heavy Lifts • Project Cargoes • Bulk Handling • Industrial land for port-related industries • Acres for open storage • Covered bulk storage • Customs clearance • Bonded warehousing • Equipment to suit all needs • Direct access to Highway 401 One call provides full services, including stevedoring, storage, distribution and inland transportation. Contact: Port Manager, Oshawa Harbour Commission Phone: (905) 576-0400 • FAX: (905) 576-5701 E-MAIL: portoshawa@bellnet.ca • www.portofoshawa.ca GREAT LAKES/SEAWAY REVIEW April-June, 2007 17 Revenue for 2006 is expected to exceed $2.8 million, also an increase over 2005. For future endeavors, the port is engaged with MarineLink, Inc., and plans are in the works with the Hamilton Port Authority to establish a ferry service. The rapidly-changing energy industry is expected to impact the port as well, with cargoes of major energy- related equipment and partnerships with new businesses and organizations anticipated. The Sept-Îles Port Authority’s cargo handling soared by more than one million metric tons in 2006, from 22,447,957 metric tons in 2005 to 23,485,574 metric tons in 2006. Eighty-six percent of the tonnage came in the form of iron ore with five percent as aluminium. The port again topped its five-year tonnage average of 21,486,728 metric tons per year. During the year when the La Relance port terminal celebrated its 20th anniversary, it saw the biggest increase for the second consecutive year, with volume increasing by 23 percent to reach 1,913,000 metric tons. Figures show a 69 percent increase in aluminium, up to 468,201 metric tons. In the mining sector, 2006 saw 20,271,000 metric tons handled compared to 19,482,000 metric tons in 2005, an increase of four percent. “We are extremely happy with these figures, which show La Relance port terminal’s growing impact on the port’s activities and the steady rate of iron ore exports,” said Sept-Îles Port Authority CEO Pierre D. Gagnon. “Iron ore exports in the fourth quarter are largely responsible for our best fourth quarter in a decade.” The season also brought the first use of the Iron Ore Company of Canada’s new railcar ferry terminal, in July and November. In the coming months, Wharf 41 (Terminal La Relance) will continue to be expanded at a total cost of C$8.6 million, paid for by combined federal, provincial and port funding. Improvements include extending the railcar ferry dock and deepening the channel in order to accommodate larger ships. Expected completion is fall 2007. THE 2006 SEASON The 2007 season should be as stellar as 2006. “We are anticipating a record year with 25 million metric tons of merchandise manipulated at our port,” Gagnon said. Thunder Bay Port Authority officials categorized the 2006 season as “encouraging,” with overall tonnage up three percent due to higher grain shipments. Grain itself was up 10 percent and surpassed the six million metric ton mark for the first time since 2001. In total, the port’s 2006 tonnage was 8,446,460 metric tons, up from 8,200,674 in 2005. Grain constituted 77 percent of shipments, with coal at 14 percent, followed by potash at five percent, and bulk and general cargo at 4.1 percent. The average five-year tonnage is 8,382,292 metric tons. An abundant harvest in 2005 combined with strong wheat prices impacted the higher grain shipments, said CEO Tim Heney. For the first time in five years, wind turbines were handled at Keefer Terminal. The port authority’s 45-ton Taylor Toplifter handled more than 60 percent of the cargo load. Looking ahead, the authority purchased a 10-acre intermodal yard serviced by area railways, adjacent to Keefer Terminal. The addition is expected to help spur a strong season in 2007, with harvests expected to equal 2006 numbers. The Port of Toledo’s grain terminals enjoyed one of the busiest years in recent history in 2006, with more than 1.9 million metric tons of grain transported on both Lakes trading and saltwater vessels. In all, the port processed 10,331,587 metric tons of cargo in 2006, up from 9,729,620 metric tons in 2005—a 6.19 percent increase. Coal remains the leading cargo, though shipments were down 13 percent in 2006, to nearly 2,630,300 metric tons. Iron ore, grain and dry bulk constitute other major commodities, with petroleum and general and miscellaneous cargo adding to the totals. The greatest individual gain came with grain, which increased 56.41 percent over 2005, with petroleum increasing 26 percent and dry bulk 23 percent over 2005 numbers. There was also a large increase in international traffic, from 48 vessels in 2005 to 81 ships in 2006, most of which were seeking grain backhauls to destinations in Europe and Asia. “In the future we look forward to handling even more agricultural product through the port as the Cargill facility, damaged by a fire in July 2005, is now back to full capacity,” said port authority Seaport Director Warren McCrimmon. Other opportunities for growth are expected from distillers’ dry grains, the feed grade byproduct of ethanol production and biodiesel products. Short sea shipping opportunities for new cargoes via Highway H2O include project cargo, goods for the automotive and energy industries, and containerized bulk products and manufactured goods. The cargo is being pursued through joint marketing efforts between the port and its terminal operators. The Federal Danube offloads alumina at the Port of Sept-Iles. The Thunder Bay Port Authority purchased this 45-metric ton toplifter to handle containers and windmill blades. THE 2006 SEASON 18 www.greatlakes-seawayreview.com “Sugar, aggregate, stone and asphalt tonnages were behind last year but still over the nine-year average for each commodity. Highland Transport’s intermodal business was down as was our warehousing and container services due to market conditions,” said Lisa Raitt, president and CEO. “We were successful in winning new business in steel and in our high value project cargo. Our 2007 business is off to a solid start and we anticipate a return to traditional tonnage levels for a number of commodities. The construction of the new Toronto Hydro facility in the portlands will generate significant activity.” Construction of the new facilities for improved access to the Toronto Port Authority’s Toronto City Centre Airport (TCCA) were completed in the fall of 2006. This C$15 million project included a new 100- passenger and 15-vehicle ferry, new docking ramps and slips, with a Ferry Passenger Transfer Facility on each side of the Western Channel. Overall, 2006 was a “very good year” for the Trois-Rivieres (Three Rivers) Port Authority, according to Jacques Paquin, vice president of marketing and business development. Stabilization of various cargoes contributed to a solid season. Total tonnage was up nine percent in 2006, from 2,507,000 metric tons in 2005 to 2,741,000 metric tons, boosting the average five-year tonnage figure to 2,370,000. The new tonnage set a 20-year record high. The increase comes mainly from gener- “It is an exciting time to be in the port business, as we are witnessing non-traditional Seaway commodities come across the dock in Toledo,” said Joe Cappel, manager of business development. The Port of Toronto’s 2006 tonnage totaled 2,154,913 metric tons, the third consecutive year the port handled more than two million tons of cargo. Total domestic bulk was 1,311,728 metric tons with salt leading the way with an increase of 22 percent to 587,101 metric tons. Cement increased six percent to 433,175 metric tons. Aggregates totaled 153,342 metric tons while asphalt accounted for 30,599 metric tons and overseas bulk sugar 499,796 metric tons. Total bulk weighed in at 1,811,524 metric tons. In general cargo, the port handled 3,989 metric tons of project cargo, including special items such as the import of wind turbines and transformers as well as the export of locomotives bound for Europe. Other new business, steel coils and steel pipe, accounted for 24,165 metric tons. Intermodal tonnage (Highland Transport) totaled 292,834 metric tons while warehousing and container services added 22,402 metric tons. As part of a three-year contract, 76,000 metric tons of pipe have been shipped from the Port of Valleyfield. The pipe was manufactured by Hyprescon, a St. Eustache Quebecbased company, for use in the Dominican Republic. 100 Main Street • Thunder Bay, Ontario • Canada P7B 6R9 P (807) 345-6400 • F (807) 345-9058 • tbport@tbaytel.net www.portofthunderbay.ca Space available suitable for distribution, manufacturing and warehousing • Heavy-lift capability • 15 acres of outside laydown space • Intermodal Facility with Toplifter capable of handling project/dimensional cargoes & containers • Indoor & dockside rail • Service by CP/CN • Direct access to TransCanada Highway • Marine berths directly linked to rail & truck • Short & long-term rates available Erie, PA Your Port of Call on the Great Lakes Visit our website at: www.porterie.org Erie Shipbuilding, LLC 220 East Bayfront Parkway Erie, PA 16507 Phone: (814) 455-6442 Fax: (814) 455-8121 O-N Minerals Erie Company 2 East Bay Drive, Erie, PA 16507 Phone: (814) 453-6721 Fax: (814) 453-5138 Erie-Western Pennsylvania Port Authority 208 East Bayfront Parkway Suite 201 • Erie, PA 16507 Phone: (814) 455-7557 Fax: (814) 455-8070 • Safe, clean harbor in a center city location • Up to 27 foot draft • 300 ton Stiff Leg Crane • 1,200 foot Dry Dock THE 2006 SEASON GREAT LAKES/SEAWAY REVIEW April-June, 2007 19 al cargo, which more than doubled (183,000 to 370,000 metric tons) over the year. Solid bulk, excluding grains, and liquid bulk remained relatively stable at 1.5 and half-a-million metric tons, respectively. Grain rose 26 percent from 285,000 to 359,000 metric tons, owing to the improved availability of ships during autumn deliveries. “The port’s performance testifies to its competitiveness and its capacity to serve the regional industry, particularly with respect to short sea shipping,” said Pierre Ducharme, president of the port’s board of directors. International traffic accounted for 70 percent (1.9 million metric tons) of the port’s cargo in 2006, with the primary cargo, alumina, at 19 percent and grain at 13 percent. Helping spur 2006 numbers was an improvement in short

Maritime Editorial