Vol.36 No.2 OCT‑DEC 2007

O C T O B E R – D E C E M B E R 2 0 0 7 Navigation Study released . Ballast water management . Funding authorized for three system locks V O L U M E 3 6 N U M B E R 2 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 Special Delivery? WE CAN HANDLE IT! Even if it means navigating a challenging location or moving a difficult cargo, our customers depend on us to deliver their dry bulk cargoes safely and efficiently. In fact, Interlake Steamship’s versatile self-unloading vessels have been the first to load or unload at many of the Great Lakes’ most challenging ports. With vessel capacities ranging from 17,000 to 68,000 gross tons, you can trust Interlake to meet your raw material transportation needs. At Interlake Steamship, every delivery is a special delivery. GREAT LAKES/SEAWAY REVIEW October-December, 2007 1 A R T I C L E S O C T O B E R – D E C E M B E R 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 The Administrator’s Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Regional Shipyard Activity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Great Lakes St. Lawrence Seaway Study final report released. Page 7. Working to find solutions on the issue of ballast water management. Page 27. Brisk business in shipbuilding. Page 36. Great Lakes St. Lawrence Seaway Study DETAILED RESULTS . . . . . . . . .7 Great Lakes St. Lawrence Seaway Study ready for use. U.S. Legislation 20-YEAR BARRIER BROKEN . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 H.R. 1495 authorizes funding for three system locks. Canadian Legislation CHANGING TIDES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 New session hopes to create positive changes for marine industry. Seaway Trade Mission BOM DIAS (GOOD DAY) . . . . . . . . . . . . . . . . . . . . . . . 19 Bi-national trade mission establishes business realationships in Brazil. Interview: WORKING HARD AT WHAT HE LIKES TO DO . . . . . . . . . . . . . . . . . . 21 Richard D. Stewart: merchant mariner, academic, administrator, military officer, consultant, public speaker, writer, family man. Ballast Water Management A MEETING OF MINDS . . . . . . . . . . . . . . . . . . . . 27 Working together to find solutions to the issue of ballast water management. Shipbuilding FLOATING THEIR BOATS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Shipbuilders enjoy brisk business. Towing & Barging OPPORTUNITIES ABOUND . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Fleet expansion, new construction, conversions and new cargoes all point to a robust future for towing and barging. Lighthouses BETTER DAYS FOR A HARD LUCK LIGHT STATION . . . . . . . . . . . .60 Point Aux Barques light on Michigan’s Thumb celebrates Sesquicentennial and a renaissance. Maritime Heritage CELEBRATING OUR HERITAGE . . . . . . . . . . . . . . . . . . . . . . 62 Michigan’s keepers of maritime heritage focus on improving the visitor experience. Commodities MOVING ORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Escanaba docks have handled ore for more than 140 years. Marine Photography TOLEDO HARBOR LIGHTHOUSE . . . . . . . . . . . . . . . . . . . 66 Getting ready for public access. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 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 John H. Nikolai Account Manager EDITORIAL ADVISORY BOARD John D. Baker, President, Great Lakes District Council, International Longshoremen’s Association; 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 Executive Vice President, American Maritime Officers; Rep. Bart Stupak, Member of Con gress, Energy & Commerce Committee; James H.I. Weakley, President, Lake Carriers’ Association, Jerome 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 $45.00; 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. OCTOBER-DECEMBER, 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 36 NUMBER 2 Great Lakes/Seaway Review Cover: Thousand-footer enters Poe Lock at Sault Ste. Marie, Michigan. Great Laker Cover: Pointe Aux Barques light tower and keeper’s dwelling. Photo by Chris Winters. Learn more about us at: www.glmri.org The Great Lakes Maritime Research Institute brings together the strengths of the two host universities, along with the research capabilities of other Great Lakes Universities. Established in 2004, the Institute has been designated by the U.S. Department of Transportation’s Maritime Administration as the National Maritime Enhancement Institute for the Great Lakes. GLMRI, 291 Marshall W. Alworth Hall • 1023 University Dr., Duluth, MN 55812 • (218) 726-7446 Supporting Sustainable Maritime Commerce on the Great Lakes Great Lakes Maritime Research Institute A University of Wisconsin • Superior and University of Minnesota Duluth Consortium 2 www.greatlakes-seawayreview.com 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 One of two transformers, built in South Korea and shipped around the world and through the Great Lakes/St. Lawrence Seaway, are hoisted from the M.V. Jumbo Spirit’s hold at the Port of Toledo. The transformers, weighing 513 tons and 404 tons, were later rigged into a special heavy-duty railcar for movement to the Fermi 2 power plant in Frenchtown Township. Key management changes have occurred at four system ports: Indiana-Burns Harbor, Hamilton, Oswego and Montreal. Peter Laman has been named port director at the Port of Indiana- Burns Harbor. Laman has 25 years of management experience in port operations along the Gulf of Mexico and West Coast. He has held numerous positions within Continental Grain Company and its successor Cargill at some of the largest port facilities in the country. His recent duties with Cargill include managing maritime activities in Westwego and Reserve, Louisiana, as well as Tacoma, Washington, including management for ship, rail, barge and truck logistics. Laman graduated from Michigan State University with a degree in agricultural engineering and served as a sergeant in the U.S. Marine Corps. Peter and his wife Kristi have three grown children. After five years at the helm, President and CEO Keith Robson is retiring from the Hamilton Port Authority (HPA). “I’m very proud of what I have been able to accomplish at HPA over the last five years, but I have done what I was hired to do and it is time to pass the baton,” Robson said. Robson joined HPA in November 2002 with extensive experience as a corporate executive, primarily in the automotive and farm machinery industries in the U.K. and Canada. He left HPA in mid- December. “Under his leadership, the HPA defined its strategic vision and direction,” said Al Peckham, Chair Four ports experience leadership changes Water Resources Development Act passes with override On November 8, the Senate voted 79-14 and the House of Representatives voted 361-54 to override the President’s veto of the 23 billion Water Resources Development Act (WRDA) of 2007. It was the first override of President George W. Bush’s presidency. As a result of the override, WRDA has become law. The long awaited legislation authorizes more than 900 projects and progams and addresses a seven-year backlog of U.S. Army Corps of Engineers programs, including navigation projects, policies and procedures that are necessary to keep pace with trade. “America’s ports depend upon a regular, biennial cycle of new project authorizations to improve federal navigation channels to accommodate the modern world fleet of deep-draft ships, but it’s been seven years since the last WRDA bill was approved,” said American Association of Port Authorities President and CEO Kurt Nagle. “This bill is vital to maintaining America’s position as a dominant world trading partner and to keep our ports working as engines of the nation’s economic growth.” Numerous projects and provisions in WRDA 2007 will help address port waterside infrastructure needs. Included are projects for navigation channel deepening, dredged material disposal and storage facilities, and policy provisions to improve the Corps of Engineers project implementation process. With the Act, Congress authorized construction of a second Poesized Lock at Sault Ste. Marie, Michigan—at full federal expense. The lock will ensure that vital cargoes continue to move uninterrupted on the Great Lakes. “A second Poe-sized Lock to connect Lake Superior to the lower four Great Lakes and the St. Lawrence Seaway has been one of the greatest needs on the Lakes for decades,” said John D. Baker, President of the Great Lakes Maritime Task Force. “If there had been a lengthy failure of the Poe Lock, the iron ore, coal and export grain trades on the Great Lakes would have slowed to a trickle and threatened the livelihood of hundreds of thousands of American workers.” The second Poe-sized Lock was first authorized in 1986, but was stalled by a requirement that a local sponsor fund a portion of the project. “By authorizing full federal funding, Congress has recognized that a second Poe-sized Lock is an infrastructure improvement that benefits not just the Great Lakes region, but the entire nation,” Baker said. Authorization is the first step in building the second Poe-sized Lock, a project that could take 10 years to complete. Congress must next appropriate the $341 million needed to construct the lock. . of the Board of Directors. “He came in at a time when the Port Authority was a new entity, and he helped to build a strong future.” The Board of Directors will appoint an interim CEO while launching a formal recruitment process. Jonathan Daniels has been appointed Executive Director at the Port of Oswego. Daniels assumed the position occupied most recently by Tom McAuslan, who passed away last fall after serving as Director of the port for 12 years. Daniels comes to the Port of Oswego from the Eastern Maine Development Corporation where he served as President and Chief Executive Officer. As the CEO of the sixcounty economic development district, he was responsible for the administrative oversight of all economic, business and community development functions with an annual budget of $6 million. Daniels has extensive experience in port management and international trade as he served as the Managing Director of the Greater Baton Rouge Port Commission. He also was the port director of the Port of Eastport, Maine where he oversaw the development of the $20 million Estes Head Cargo Terminal. Patrice Pelletier, past President of L-3 Communications Spar Aerospace Ltd. and a former Senior Executive with Bombardier Inc. and SNC-Lavalin Group Inc., has been named President and CEO of the Montreal Port Authority. Pelletier succeeds Dominic Taddeo, who will retire after 33 years at the port authority. Pelletier joined the port in October. . DATELINE Peter Laman Keith Robson Jonathan Daniels Patrice Pelletier Dominic Taddeo GREAT LAKES/SEAWAY REVIEW October-December, 2007 3 D A T E L I N E U.S. Steel buying Stelco U.S. Steel Corp. has agreed to acquire Stelco Inc. for $36.61 a share, or $1.1 billion, a move that is expected to strengthen U.S. Steel’s business with the automotive industry and benefit the company’s Great Lakes Works plant in Ecorse and River Rouge. U.S. Steel is a premier supplier of flatrolled steel products to the North American market. Stelco’s Lake Erie Works is among the most modern integrated steel plants in North America. In 2006, Stelco produced 2.6 billion tons of steel for the nine month period ending December 31. After the acquisition, U.S. Steel will have annual raw steel capability of approximately 33 million tons. The deal is expected to close by the end of this year. . Carmeuse acquires Oglebay Norton Carmeuse North America, a wholly-owned subsidiary of Carmeuse Group, is acquiring the outstanding shares of Oglebay Norton for $36 per share in cash. The transaction, which is expected to close by the end of the year, is subject to, among other things, the expiration or termination of the Hart-Scott-Rodino Act waiting period and approval by Oglebay Norton shareholders. “This acquisition provides a high level of market diversity for Carmeuse,” said Thomas Buck, President and Chief Executive Officer of Carmeuse North America. “In particular, Oglebay Norton’s considerable limestone business provides us with added resources to serve the rapidly growing Flue Gas Desulfurization (FGD) market, in which Carmeuse has a high level of technical expertise.” . Natural gas terminal approved near Quebec City A liquefied natural gas terminal will soon be constructed near Quebec City. Known as the Rabaska project, construction of the LNG terminal will begin in 2008, said Rabaska President Glenn Kelly. The terminal will be in operation at the end of 2011. “We can now take our place internationally and attract the LNG supply to Quebec,” Kelly said. The company is negotiating with Russian gas exporter Gazprom to supply liquefied natural gas in huge bulk tankers at the terminal, which will be built across the St. Lawrence River from Quebec City in Lévis. The $840 million facility will have a maximum output of 16.6 million cubic meters (500 million cubic feet) of natural gas a day, or half of Quebec’s daily consumption during peak winter demand. . Helberg named to Hall of Fame Retired Duluth Port Director Davis Helberg has been inducted into the Great Lakes Marine Hall of Fame at Sault Ste. Marie, Michigan. A plaque with Helberg’s image and biographical information has been placed in the Museum Ship Valley Camp near the Soo Locks. Selections to the Hall of Fame are made by LeSault Historic Sites and the Soo Locks Visitor Center Association. Helberg, who retired from the Duluth Seaway Port Authority in 2003 after 24 years as executive director, has been involved in Great Lakes shipping since 1958. He held office in several international maritime organizations and continues to write for various regional publications. . Davis Helberg GREAT LAKES MARINE COMMUNITY DAY The Admiral’s Dinner February 20-21, 2008 Crowne Plaza, Cleveland, Ohio GREAT LAKES ST. LAWRENCE SEAWAY SHIPPING Traditional Strengths, New Opportunities 6TH ANNUAL REGISTER ONLINE AT WWW.GREATLAKES-SEAWAYREVIEW.COM or contact: Great Lakes/Seaway Review 800-491-1760 • tburch@harborhouse.com 4 www.greatlakes-seawayreview.com REGIONAL CALENDAR REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW October-December, 2007 5 New executive for Lloyd’s marine business in Americas Tim Protheroe has been appointed Senior Vice President-Americas Marine Business for Lloyd’s Register Americas, Inc. He has responsibility for marine activities in the Americas and for implementing Lloyd’s Register’s global marine strategies in the region. Peter Brock, former President of Lloyd’s Register North America, retired at the end of August after 35 years of service. . MS Columbus not visiting Lakes in ‘08 Hapag-Lloyd Cruises, a German company, has pulled the Columbus from the Great Lakes for next year, at least. The luxury ship has capacity for 423 passengers and has become a regular sight across the Lakes from spring to fall since the late 1990s. Hapag-Lloyd has said that declining water levels in the Great Lakes contributed to the company’s decision to remove the ship, at least temporarily. This season, Hapag-Lloyd dropped Sault Ste. Marie on the St. Marys River from the ship’s ports of call because of low water levels. Earlier news releases also indicated that the ship was going into drydock for renovations. The company will decide next year whether and when the Columbus will return to the Great Lakes. . Construction of new steel plant moves forward A $1.6 billion steel slab plant proposed on Minnesota’s Iron Range is cleared for construction. Essar Steel plans to oversee the construction of the plant, which will be the first mine-to-metal facility in North America and will produce and ship about 2.5 million metric tons of steel slabs a year for products such as automobiles and appliances. Construction will create about 2,000 jobs. Because mining and steel production would be done at the same site, Minnesota Steel officials say the plant would produce steel at a lower cost than any steelmaker in the nation. The plant will be built near the site of the former Butler Taconite mine, west of Nashwauk. At $1.6 billion, the steel plant would be the state’s largest industrial project. . 31- International Ship Masters’ Convention Feb. 2 Holiday Inn French Quarter Perrysberg, Ohio Carrie Philbin-Lanz, (419) 690-1712 FEBRUARY 10-12 71st Annual IJC of Canadian Shipowner Association and Lake Carriers’ Association Saddlebrook Resort Palm Beach Gardens, Florida (613) 232-3539 or dagenais@shipowners.ca www.ijc.org/home/main_accueil.htm JANUARY 15-18 2008 Industry Days Traverse City, Michigan Capt. Jack Cork, (906) 632-3891 16 IAGLP/AGLP Joint Winter Meeting Royal York Hotel, Toronto, Ontario President Steve Fisher, (202) 625-2102 28-29 Maritime & Port Security 2008 Conference & Expo, Crystal Gateway Marriott, Arlington, Virginia (703) 920-3230 or marinelog.com 20-21 Admiral’s Dinner/Marine Community Day Crowne Plaza Cleveland (800) 491-1760 or www.greatlakes-seawayreview.com 26-28 Great Lakes Commission Semiannual Meeting/Great Lakes Day, Washington, D.C. (734) 971-9135 or teder@glc.org MARCH 10-13 Seatrade Cruise Shipping Convention Miami Beach Convention Center Miami Beach, Florida www.cruisingshipping.net Centerpointe Corporate Park • 500 Essjay Road • Williamsville, NY 14221• 716-635-0222• ascinfo@gatx.com• www.americansteamship.com 100 years of experience – positioned for the next century Performance Based Service Oriented Customer Focused American Steamship Company On the verge of the Great Lakes/St. Lawrence Seaway’s 50th anniversary, a four-year bi-national study has been completed that is expected to serve as a master plan on how—and where—to best invest in a system that impacts global trade. Since its opening in 1959, the system has handled more than 2.3 billion metric tons of cargo with an estimated value of $400 billion. In the past decades, the system has carried an average of more than 260 metric tons of cargo each year. The study’s final report includes commodity forecasts that show slow, but steady growth, and analyses showing the system’s competitive cost structure and opportunities for new cargoes— such as container and neobulk traffic— that would augment the system’s bulk business. According to the study, marine transportation saves shippers $2.7 billion annually over landbased transportation options. As the Gross Domestic Product in the region grows from today’s $6 to a forecasted $14 trillion, container traffic, having to move into the region by all transportation modes, is expected to double, from about 35 million to 70 million FEU. “For the Great Lakes/St. Lawrence Seaway to sustain and optimize its contribution for future movement of goods, it needs a strategy for addressing its aging infrastructure,” according to the report. “Principally this includes its lock systems, but it should also adopt a more holistic view of the ports it serves and their evolving linkages to other modes of transportation. “Study partners look to a future in which a modern waterway capitalizes on its inherent advantages to meet the projected doubling of freight traffic and trade activity in North America’s ports by 2020.” The U.S. share of the total study costs amounted to approximately $8 million over the four year study period. The bi-national study came about as a result of a Memorandum of Cooperation signed between Transport Canada and the U.S. Department of Transportation in 2003. The recently-released, 118-page report— with numerous supplemental details— GREAT LAKES/SEAWAY REVIEW October-December, 2007 7 GREAT LAKES ST. LAWRENCE SEAWAY S T U D Y is the culmination of the study, which was divided into three areas of emphasis: environmental aspects, preserving the valuable ecosystem; engineering, maintaining the infrastructure; and economic, supporting economic activity. A team of experts has researched each of those areas as they relate to the system—with an emphasis on its infrastructure that includes 16 lock sites—and the industry’s dependence on the bi-national route. “It’s been a challenge to work with seven different agencies that each has its own way of doing business and processes in both the U.S. and Canada,” said Dave Wright, U.S. Project Manager from the U.S. Army Corps of Engineers. “It’s been most rewarding as well. We approached this study on a system-wide basis, not on an individual parochial basis.” “It’s been a marathon, but this study is the first of its kind,” said Dick Corfe, President and CEO of the St. Lawrence Seaway Management Corporation. “It has to be considered a major success. It provides an overall understanding of the system and was written to target an audience who is, maybe, coming at the topic with little understanding.” “This is designed to be a 50-year blueprint for the Seaway,” said Collister “Terry” Johnson, Administrator for the Saint Lawrence Seaway Development Corporation. “It is valuable in emphasizing the economic importance of the Seaway system. Industries have been built up around the system and depend greatly on it operating in a reliable way.” Environmental considerations. Highlights from the environmental review show a mix of positives and negatives when looking at the impacts of commercial navigation. Areas of concern include both non-navigational “stressors” (such as climate change, development and land use, and water-based recreation and tourism), as well as navigational stressors (channel and port maintenance, ice breaking, land-based support such as infrastructure development and facility maintenance, and those impacts associated with ship operation such as non-indigenous invasive species, wakes, air emissions). However, waterborne commerce generates less greenhouse gas emissions and presents a lower risk of accidents and spills. Many of the navigational impacts described in the report have already occurred and cannot be easily reversed. Where impacts continue, the study suggests regulations be imposed to provide guidelines. Over the past 20 years, the industries that use the system have taken up the role of environmental stewardship, according to the report. The inter-agency collaboration between groups such as Environment Canada, the U.S. Fish and Wildlife Service and the regulatory and operational agencies of the system needs to be continued and fostered. Through continued diligence in this area, society can capitalize on the environmental benefits offered by marine transportation within the system, while reducing the environmental impacts of navigation. Maintaining the infrastructure. The system infrastructure involves an array of components that should be managed with the whole in mind, including locks, shipping channels, ports, bridges and tunnels, control and communication systems. 2005 9.5 9.0 0.7 3.0 9.0 31.3 9.4 7.4 3.7 1.9 11.8 34.2 9.6 42.7 21.7 4.1 3.6 81.6 2010 9.8 9.6 0.4 3.5 9.0 32.3 10.7 6.4 3.9 2.8 10.6 34.3 12.5 46.1 24.2 5.5 1.2 89.5 2020 11.8 10.1 0.5 5.9 9.3 37.6 11.5 5.9 3.8 4.3 12.7 38.2 12.5 41.7 29.7 6.5 1.3 91.8 2030 12.0 11.1 0.7 6.1 9.5 39.5 12.6 5.9 3.7 4.3 13.6 40.1 12.5 39.1 33.5 7.6 1.3 94.0 2040 12.1 11.6 0.7 6.7 9.6 40.8 12.5 5.9 3.6 4.4 14.9 41.3 12.5 39.1 40.7 8.6 1.4 102.3 2050 12.2 11.8 0.7 7.0 10.4 42.1 12.4 5.9 3.5 4.5 16.2 42.4 12.5 39.1 44.7 9.6 1.4 107.3 Detailed results Great Lakes St. Lawrence Seaway Study ready for use Guide wall damage at U.S. locks on the Montreal-Lake Ontario Section of the St. Lawrence Seaway. Grain Iron Ore Coal Steel All Other Total Grain Iron Ore Coal Steel All Other Total Grain Iron Ore Coal Steel All Other Total MLO Section Welland Canal Soo Locks Commodity Forecasts through 2050 (millions of tons) PHOTOS AND GRAPHS SOURCE: U.S. ARMY CORPS OF ENGINEERS GREAT LAKES/SEAWAY REVIEW October-December, 2007 9 have some surface deterioration, which is addressed by regular maintenance, but no major structural issues. At the Soo, only two of four locks are in operation, with only the Poe Lock capable of handling large freighters. The approach walls are deteriorating at the underlying rock ledge, which is being accelerated by ships maneuvering with bow thrusters. The locks’ original gates are still in operation and in relatively good condition. Machinery and controls at the Soo are all original and there are no spare parts available. The equipment is in need of upgrading. The MacArthur control panel operates at 480 volts, which is considered dangerous. “At the Soo Locks, the most critical infrastructure relates to structural wall components such as headrace dikes for the power canal and approach walls,” according to the report. “The Poe Lock’s upper miter gates and the MacArthur Lock’s electrical controls also rank as critical components.” About C$175 million was spent updating locks at the Welland Canal between 1985 and 1992. The upgrades included removing and replacing backfill behind lock walls to reduce earth pressure, anchoring lock walls weakened by earth pressure and refacing the lock walls that had deteriorated from freeze-thaw action. Currently, the locks’ walls need refacing in the area previously not done—about 10 percent. The timber pile tie-up walls, meant to be temporary when built more than four decades ago, will need to be replaced by a concrete deck and supporting steel piles in the next 10 years. The original gates are still operable and the machinery and controls, driven by electric motors, are being upgraded to programmable logic controllers. The most critical infrastructure needs at the Welland are those associated with moving lift bridges and approach walls, which are being addressed by ongoing rehabilitation. The Montreal-Lake Ontario section of the locks under U.S. management consists of the Snell and Eisenhower Locks. The most critical areas associated with these locks is the advanced concrete degradation on the walls of the Eisenhower Lock, the condition of the lower miter gates at both locks, the south span of the Seaway International Bridge and the Eisenhower Lock highway tunnel. Grouting has been used repeatedly, but only as a temporary fix. The approach walls and guide walls at both locks are showing wear and tear from ship impacts. Regular maintenance is required for them to maintain their integrity. Programmable logic controllers are used to control both locks. The Montreal-Lake Ontario section of the locks under Canadian management are suffering from long-term concrete degradation caused by Alkaline-Aggregate Reaction (AAR), which results in gradual expansion, deterioration, cracking, porosity and loss of concrete integrity. According to the report, AAR is resulting in as much as 2.5 centimeters of lock narrowing every five years. If lock width shrinks below 70 feet, six inches, then larger vessels will not be able to pass in December or March or special operational procedures will have to be implemented. Based on forecasts by the engineering team, the St. Lambert Lock will meet this critical width before 2015. AAR is also causing alignment The condition of the infrastructure is a primary focus of the study, with the engineering group utilizing reliability modeling to determine potential failure rates of many of the most critical components. On-site inspections by the team have found the majority of the infrastructure to be showing signs of age. Even though much of the system can be maintained through annual upkeep and periodic repairs, the likelihood of failure is increasing. The engineering portion of the study shows which of the system’s components would have the greatest potential impact on the system’s reliability should they fail. The following is a summary of those findings: • The condition of about 160 system components were examined, including locks, approach walls, water-level control structures, bridges and tunnels. • Most of the components have been kept in good operating condition and remain serviceable. A criticality index was developed to identify the highest priority infrastructure, based on age, current condition, availability of replacement parts and the potential impact of failure. • The majority of the highest priority components are associated with the locks, which were found to be similar in condition throughout the system. • The age of the infrastructure and several site-specific conditions have resulted in a critical need for capital investment. Although some of this investment is being made, the need is projected to increase significantly. “The economic benefits of having the system are going to outweigh the costs of maintaining it for 30 or 40 years in the future,” Corfe said, noting that this was one outcome of the study that was awaited by those on the Canadian side of the system, with officials knowing that maintenance costs would only increase as the system continues to age. “We have to be clear in our own understanding that the benefits are going to supersede the costs.” According to the findings, the Soo Locks GREAT LAKES ST. LAWRENCE SEAWAY S T U D Y Concrete damage at Lock #3 on the Welland Canal. Structural Maintenance Costs Base Operations Costs MILLIONS $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 2010 2020 2030 2040 2050 Structural Maintenance Costs Base Operations Costs MILLIONS $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 2010 2030 2040 2050 2020 $80.0 Welland Canal Projected Operation and Maintenance Costs to Ensure Continued System Reliability U.S. Montreal-Lake Ontario Section Projected Operation and Maintenance Costs to Ensure Continued System Reliability 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 GREAT LAKES/SEAWAY REVIEW October-December, 2007 11 problems with lock gates. Repairs/maintenance and the bottom line. Investments have been made in maintaining the system’s infrastructure for years. However, reliability modeling showed proactive maintenance to be the best strategy for system reliability, a necessity found to be the study’s No. 1 conclusion. “That means adopting an operational and maintenance strategy that anticipates and addresses potential problems before they interrupt traffic flows,” according to the report. “In today’s fast-paced economy, there is no room for unanticipated interruptions. Forward planning must ensure that the system’s capacity remains fluid and responsive within a stable policy framework and investment climate that can support strategic and timely investment in system capacity, while improving service levels and reliability. Furthermore, it must do so in a manner that satisfies concerns about environmental stewardship and that raises challenges for the shipping industry.” In Canada, the St. Lawrence Seaway Management Corporation (SLSMC) has a five-year Asset Renewal Plan that involves risk-based inspections and funding. The current plan covers the five-year period between 2003/04 to 2007/08 and allocates spending of C$170 million for major maintenance and capital expenditures on the Canadian portion of the Montreal- Lake Ontario section of the Seaway and the Welland Canal. In the U.S., the Saint Lawrence Seaway Development Corporation and the U.S. Army Corps of Engineers both depend on Congressional appropriations for infrastructure renewal. This can make it difficult to plan for long-term investment in maintenance. Although the U.S. sections of the system are not as old as the Canadian portions, and there is no AAR to address, increased funding will be needed to maintain operations as the components age. Throughout the system, there are numerous High Scenario Most Likely Scenario Low Scenario 2005 2015 2025 2035 2045 2055 0 2 4 6 8 10 12 14 16 18 GDP (in trillion 2000 USD) Rail/Marine Truck 2050: 70M FEU 2007: 35M FEU 92% 8% 98% 2% GREAT LAKES ST. LAWRENCE SEAWAY S T U D Y Monitoring concrete monolith cracking as a result of AAR at the St. Lambert Lock. single-lock chamber sites, creating a single point of failure situation that can result in a disruption in navigation given component failure. Maintenance also includes the system’s ongoing dredging needs. Of the maintenance costs calculated, the largest single cost is associated with addressing the AAR condition that exists at four of the five lock chambers in the Canadian SLSMC Montreal-Lake Ontario region. From 2013 through 2029, about $20 million in annual repairs are estimated for vertical face resurfacing at the four sites, $80 million total. A secondary problem at these locks is wall resurfacing, needing an additional $1 million annually on average. (See a further breakdown of the system’s projected O&M costs in the figures on pages nine and eleven.) Looking to the future. With shippers saving $2.7 million annually by using the system and the capacity for increased cargo, the system will play a larger role in getting goods into and out of eastern North America. The study recognizes the importance of investing in the system infrastructure’s surface links to enable short sea shipping to grow. In addition, with intersystem traffic, shippers are changing their trade patterns to work around the continent’s West Coast cargo congestion. The Pacific Ocean and Suez Canal is being eyed as a new primary route between Asia and North American for bulk and container traffic. The dual purpose will provide an essential service to North America’s resource, manufacturing and service sectors. With the system only currently handling 50 percnt of its historic peak tonnages, the three-fold approach of the study will help guide the industry through well-established and new transportation opportunities. The study’s conclusions are now on record and will need to be implemented through continued cooperation between the U.S. and Canadian governments, as well as agencies, organizations, industries and stakeholders from throughout the region. “Only if a balance is struck among these three differing sets of imperatives will it be possible to maintain truly sustainable commercial navigation in the Great Lakes Basin and St. Lawrence River,” according to the report, “and leave a lasting positive legacy to future generations.” For a full copy of the report, go to www.glsls-study.com Janenne Irene Pung . Structural Maintenance Costs Base Operations Costs MILLIONS $60.0 $70.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 2010 2020 2030 2040 2050 Canadian Montreal-Lake Ontario Section Projected Operation and Maintenance Costs to Ensure Continued System Reliability Regional GDP Forecast Present/Projected Share of Container Traffic GREAT LAKES/SEAWAY REVIEW October-December, 2007 13 20-year barrier broken H.R. 1495 authorizes funding for three system locks proved bill (S. 1751) contains $110.3 million for the Great Lakes ($100 million for commercial harbors). This represents a $17.2 million increase over the amount requested for the Great Lakes in the President’s budget. Many thanks go to Rep. Peter Visclosky (D-Ind.) and Senator Carl Levin (D-Mich.) for their continued advocacy in securing these funds. While money is important, so are regulations. Legislation to regulate ships’ ballast water has been the focus of considerable effort on Capitol Hill during the last year. Few issues have consumed the Great Lakes region like the problem of aquatic nuisance species (ANS). The maritime industry is committed to minimizing the introduction of new ANS via ships’ ballast water and welcomes federal regulations to accomplish that goal. Such regulations were approved by the House Transportation Committee in September and included in H.R. 2830, the Coast Guard Authorization Act of 2007. The bill directs the Coast Guard to establish a new regulatory program to require the treatment of ships’ ballast water. The bill stipulates a water quality standard for all ballast discharges and a deadline by which the standard has to be met. The Senate Commerce Committee approved similar legislation the same month (S. 1578) over the objections of Senator Barbara Boxer (D-Calif.). Senator Boxer believes that ships’ ballast water should be regulated under the federal Clean Water Act by the Environmental Protection Agency, rather than the Coast Guard. While it is uncertain how this issue will be resolved, it is apparent that ballast water legislation will not be completed until 2008, at the earliest. Just as important as money and regulations, federal tax policy impacts maritime commerce. During the last year, legislation was championed by Rep. Stephanie Tubbs Jones (D-Ohio) and Rep. Phil English (R-Penn.) to provide a narrow exemption from the Harbor Maintenance Tax for certain non-bulk cargo moved between U.S. ports on the Great Lakes, or from a Canadian port to a U.S. port on the Great Lakes. The “Short Sea Shipping Enhancement Act” (H.R. 981) is intended to remove the Harbor Maintenance Tax as an impediment to the establishment of several new freight ferry services currently under development in the Great Lakes. Companion legislation (S. 1683) has been introduced in the U.S. Senate by Sen. Debbie Stabenow (D-Mich.), Carl Levin (D-Mich.), and Senator George Voinovich (R-Ohio). The Senate version of this legislation has been approved by the Senate Finance Committee. The second session of the 110th Congress will begin in February. At that time, work on several of these initiatives will continue. With strong involvement from industry and support from our legislators, additional legislative victories are well within reach. . The bill directs the Corps to begin work on the $341 million Soo Lock project at full federal expense. H.R. 1495 authorizes $134 million for the rehabilitation of the Eisenhower and Snell locks on the St. Lawrence Seaway. BY STEVE FISHER Executive Director American Great Lakes Ports Association As we approach the end of the first session of the 110th Congress, the Great Lakes maritime industry can celebrate a number of legislative victories. In most every case, these can be attributed to Great Lakes legislators moving into key positions of power. Unlike any time in recent memory, Great Lakes legislators are in control of Congressional committees that impact our industry. These include Rep. Jim Oberstar (D-Minn.), Chairman of the House Transportation & Infrastructure Committee; Rep. David Obey (D-Wisc.), Chairman of the House Appropriations Committee; and Rep. Peter Visclosky (D-Ind.), Chairman of the House Appropriations Subcommittee on Energy & Water. In a bold move, Chairman Oberstar advanced legislation to replace or reconstruct all navigation infrastructures on the United States side of the Great Lakes. Approved in early November, the Water Resources Development Act of 2007 (H.R. 1495) includes provisions that will allow the long-delayed lock project at Sault Ste. Marie, Michigan to move forward. The new Soo lock was originally authorized by Congress in 1986, but soon stalled due to uncertainty over the source of local cost sharing. The project has also been delayed as the Corps of Engineers studied and re-studied the project, trying to determine if the new lock was justified. After 20 years of delay, H.R. 1495 eliminates both of these questions. The bill directs the Corps to begin work on the $341 million project at full federal expense. Equally important, H.R. 1495 authorizes $134 million for the rehabilitation of the Eisenhower and Snell locks on the St. Lawrence Seaway. With regard to infrastructure renewal, Congress has clearly demonstrated its willingness to reinvest in the Great Lakes navigation system. Although Congress has not yet completed work on the federal budget for fiscal year 2008, Great Lakes navigation stakeholders have been lobbying aggressively for funding to “whittle down” the $230 million backlog of dredging projects in the region. Although it is difficult to predict the final outcome, both the House of Representatives and the U.S. Senate approved considerable increases for Great Lakes dredging. The House version of the Energy & Water Appropriations Bill (H.R. 2641) includes $123.3 million for Great Lakes harbors, compared to the Administration’s proposed $93.1 million. This represents a $30.2 million increase over the amount requested for the Great Lakes in the President’s budget. The majority of these funds are for dredging and disposal activities; $6.5 million is for recreational harbors. The Senate ap- U . S . L E G I S L A T I O N GREAT LAKES/SEAWAY REVIEW October-December, 2007 15 as a small step in the right direction. Indeed, such small steps proved as progressive as the government could be as all opposition parties quickly came out opposing the bill. In a fragile minority government, such opposition might be disconcerting, even though a defeat of a non-money bill like this would typically not bring down the government. But with growing wind in their sails, the government will likely bring back the same or similar bill in spite of opposition in hopes it can hammer out enough support to pass it through committee and backroom negotiations. The marine industry will certainly want to watch this one in hopes the government proceeds accordingly. On a similar note, although the commercial marine industry has stuck its oar in the water seeking an end to the import duty of 25 percent on new and used foreign-built, Canadian-flagged vessels, it’s not a change that is currently being warmly received by many in the opposition. Even the federal Industry department, which is responsible for the current policy, signaled its strong preference last spring for the marine industry to lay low on this issue. Yet if the political arm of government continues to remain buoyed by poll numbers in key regions of the country, the time may be ripe for the industry to seriously come forward with a practical win-win solution on this file. Another barrier to trade and prosperity on which the industry is making progress with the government—and may be in a position to finally see results—is the Canadian Coast Guard (CCG) marine user fees. The Chamber of Marine Commerce has been assured by both Coast Guard Commissioner George Da Pont and Fisheries and Oceans Minister Loyola Hearn that if a workable solution can be reached to eliminate these burdensome fees, it would be brought to federal Cabinet. In keeping with this offer, a departmental committee has been struck to meet with industry to work out and refine the proposals. That committee, led by the Chamber’s Ray Johnston, is now in the process of finalizing what’s being referred BY STEPHEN BROOKS Vice President Government Affairs Chamber of Marine Commerce On October 16, the House of Commons returned with a new session of Parliament under heavy opposition threats that Prime Minister Stephen Harper’s minority Conservative government could be toppled, thereby forcing a federal election. And yet while all three opposition party leaders augment the tenor and tone of their tough talk, neither the New Democrats nor separatist Bloc Québecois has enough votes to bring down the government without the support of the Liberals, who appear to be in rough seas under new leader Stéphane Dion. In fact, while the Liberals have opposed all major government initiatives to date, they nonetheless have officially abstained from voting against such initiatives for fear of forcing an election for which they are not ready. So at this stage, it appears the only way the government might fall is if the Liberals get tired of abstaining on measures they actually oppose or if the governing Conservatives decide to take advantage of the weak opposition and engineer their own defeat, forcing Canadians to the polls with expectations they will be rewarded with a majority government. In the meantime, though, opposition disarray combined with minority Conservative government confidence means that the Conservatives are able to govern as de facto majority. This could bode well on a number of marine industry files. The pilotage issue may be a good example. Since its introduction in the 1970s, the main elements have never been materially amended, despite obvious need and industry clamour for changes. Finally, just before the end of the last session of Parliament, the government introduced bill C-64, an act to amend the Pilotage Act. In a letter to the government sent from the Chamber of Marine Commerce with signatures from a coalition of 14 leading industry associations, including the Canadian Chamber of Commerce, the Mining Association of Canada, the Forest Products Association of Canada, and others, the industry clearly signaled its support for the government’s pilotage reform There are signs the government may finally reintroduce amendments to the Canada Marine Act (CMA). The Transport department and officials in the Minister’s office confirm that legislative drafting is well underway which could see a more industry-friendly round of CMA amendments than those introduced by the last government. Changing tides New session hopes to create positive changes for marine industry C A N A D I A N L E G I S L A T I O N 16 www.greatlakes-seawayreview.com to as the Green Incentive Plan, which would see the existing $40 million a year in CCG industry user fees potentially rebated back to companies that are successful in raising environmental standards beyond currently regulated levels. Although not a straightforward elimination of the fee, many industry leaders see this plan, nonetheless, as money in the bank since tougher environmental regulations are just around the corner anyway. As Johnston puts it, “companies are going to have to make those investments very soon anyway, this way they get their investment back.” There are signs the government may finally re-introduce amendments to the Canada Marine Act (CMA). The Transport department and officials in the Minister’s office confirm that legislative drafting is well underway which could see a more industry- friendly round of CMA amendments than those introduced by the last government, amendments that were never ultimately enacted. One such change, apparently long ago drafted, would see Canadian Port Authorities finally receiving the financing flexibility many desperately seek in order to engage in more capital-intensive investments. Although it appears the Transport Minister is fully behind such amendments, officials in the central Finance and Treasury Board departments are reportedly somewhat less enthusiastic until full legal and fiscal accountability issues can be satisfied. When and if it is finally introduced, we are assured another industry sweetener in the new bill will be a new framework for port infrastructure funding. Yet despite the clouds of bureaucracy and checks and balances that seem to forestall such positive changes for the commercial marine industry, Minister Cannon’s office is confident that pilotage, along with CMA amendments much more in line with CMA Review Panel recommendations, will be tabled in the House before Christmas, provided they are not pre-empted by a sudden election. Problem is, if Harper proceeds as expected and sails full speed ahead governing as if he has a majority, experience shows its only a matter of time before the opposition sets the government aground, which ironically may be exactly where Harper wants to go. . Although the commercial marine industry has stuck its oar in the water seeking an end to the import duty of 25 percent on new and used foreignbuilt, Canadian-flagged vessels, it’s not a change that is currently being warmly received by many in the opposition. C A N A D I A N L E G I S L A T I O N GREAT LAKES/SEAWAY REVIEW October-December, 2007 17 G U E S T E D I T O R I A L The Great Lakes Seaway had an exceptional year in 2006. Tonnage was up for almost all commodities and new cargo through the system was 1.2 million metric tons, a new benchmark. The 2007 season has presented us with different market conditions, influenced primarily by changing global trading patterns. The shift is driven by a number of factors such as the demand for commodities, freight rates and, ultimately, commodity prices. It would be easy to justify this by saying that these factors are beyond our control, however this accomplishes little. What these changes point to is that it is even more important for us to continue our efforts to diversify the cargo and carrier mix through our system. Our strength lies in our members and stakeholders working together to maximize the synergies we create. Hwy H2O continues to provide a uniform and balanced approach to this effort. We continue to strive to make our gateway and system competitive on a global stage to attract new cargoes and vessels. This is no easy task, but one we take on with great enthusiasm. Hwy H2O has had a busy year. We have continued with our promotion and awareness campaigns with a number of changes to our advertising content and target audiences. Our Water Wings advertising campaign has been simplified, with a fresher look, along with our new slogan “Hwy H2O Delivers.” These ads stress the reliability, peace of mind and the availability of tons of capacity that our system offers. We have supplemented our traditional avenues of advertising in trade journals to include advertising in industry publications, which are directed to cargo owners and cargo shippers. We continue to receive positive feedback and numerous enquiries as a result of this change. We continue to look for new and innovative ways to convey our message, as our brand evolves and gains wider acceptance within North American and global markets. Our environmental awareness cam- Hwy H2O DELIVERS Campaign stresses system reliability, capacity, works to maximize synergies ergies as we move forward. Hwy H2O membership continues to grow. Over the last 12 months, we have expanded our membership beyond port partners to include carriers, agents, trucking companies, terminals and stevedoring companies. Our membership is now up to 44. A number of our new members are involved in the intermodal movement of cargoes, which is a segment of traffic we are targeting for growth, so this is positive news. We also have a number of cities and municipalities who have become members, as they realize this will strengthen their economic development efforts for their region. We hope to see more members from this sector join our efforts, as we feel that great synergies exist with our Hwy H2O goals for both business development and the environmental sustainability. Along with our membership expansion, we have seen the ongoing evolution of short sea shipping into the Great Lakes. One of our members, Great Lakes Feeder Lines Inc., is pressing ahead with efforts to bring a feeder service into the Lakes. We are told they are optimistic about a service start-up in the near future. Our new cargo volumes are down from last year as outlined previously. This is not all bad news, as the volume of wind turbine projects transiting our system is up 29 pecent and all indications are that the volume next year will be even stronger. Our marketing efforts are paying dividends! Hwy H2O is continuing to spread the good news story of the Great Lakes/St. Lawrence Seaway system and seeing results for the efforts. . paigns “Blue is Green” in Ontario and “Transporter Eautrement” in Quebec were launched in May and ran through to mid- October. These campaigns are designed to increase awareness of our system and the benefits it provides from an environmental standpoint. We highlight that moving cargo on our system results in greater energy efficiency, less road congestion and an overall decrease in greenhouse gas. In May, we launched Blue is Green with TV closed captioning ads in Ontario and radio spots in Quebec. This was followed by an extensive billboard campaign in Ontario and Quebec. The feedback we have received has been extremely positive. Planning is underway for the next stage of our ongoing environmental awareness campaign. Our team has attended a number of trade shows over the last year, in New Orleans, Antwerp and Munich. These have been great opportunities to promote our system and continue to increase awareness of the many benefits of Hwy H2O. A number of our members and stakeholders traveled to Brazil on a trade mission in October to meet with shippers and carriers. We are continually complimented on our efforts to market the system and how effectively our members work together. This reinforces our belief that it is critical that we continue to work together to take advantage of our syn- These campaigns are designed to increase awareness of our system and the benefits it provides from an environmental standpoint. BRUCE HODGSON Director, Market Development St. Lawrence Seaway Management Corporation As Director of Market Development, Bruce Hodgson is responsible for attracting more traffic, including both traditional and new cargoes, into the Great Lakes/St. Lawrence Seaway and positioning Hwy H2O as a key component of the North American intermodal transportation system. 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 October-December, 2007 19 BY DEMETRIUS TSAFARIDIS President Carego Holdings, Inc. Welcome to Rio de Janeiro. Our group arrives sporadically on a sunny Saturday, October 13 from various parts of Ontario, Quebec, Minnesota, Ohio and Washington, D.C. We assemble at the Porto Bay Rio International hotel on the world famous Copacabana beach. This is my third trade mission and my initial response is: somebody either finally got it right with respect to our lodging or I mistakenly arrived at the wrong place. The trade mission begins Sunday morning with a tour day of the both sides of the city, old and new. Over the next two days, the delegates visited the Port of Itaguai, a medium-sized port that boasts steel and container terminals. The interesting features were not the port infrastructure, as they are quite archaic, but rather the fact that the property contains the ability to go from iron ore mining through to slab casting to vessel loading. We also met with the U.S. and Canadian Consul Officers to Brazil who traveled with us to our site visits. Tuesday afternoon we met with AMCHAM (the American- Brazilian Chamber of Commerce) as well as the Brazil-Canada Chamber of Commerce, and the message was pretty clear from both groups. Brazil is a great place to do business if you’re willing to navigate through a level of corruption woven into the fabric of three levels of government. The country has thrived under the leadership of President Lula Da Silva who is well accepted as a member of the people. The former steelworker’s rise to power and continuing social programs have won favour with the masses. On Wednesday, we flew up to Sao Paulo, the economic power of Brazil. Our meetings over the next two days were mainly at the hotel with companies from the ethanol, pulp, paper and trade associations. We visited the Sao Paulo State Industry Federation (FIESP) and had a reception at the Sao Paulo Chamber of Commerce. Our delegation was well received everywhere as we exchanged the benefits of trade between Brazil and the Great Lakes/St. Lawrence Seaway. An interesting statistic that surprised most Brazilian business people, especially the politicians, was the fact that Brazil is the third highest trading partner using the Seaway System, accounting for a million tons of cargo annually. The country is the world’s largest supplier of steel slabs, pig iron, steel coils and sugar. The final tour of the trip included the Termag fertilizer terminal at the Port of Santos. The trip to the port had highlighted some of what Brazil is suffering from— aging infrastructure. The roads are in rough shape and the rail infrastructure is also poor. The ports are burdened with the rapid growth of exports, leaving them congested. Unlike the delegation trip to China the previous year, Brazil’s ports need a lot of work. They have some container-truck backlogs that can extend up to 200 kilometers long. Regardless of the need for upgrades, Brazil is a fascinating place to visit and to do business. The country is experiencing huge growth, both domestically and in exporting commodities. The country is selfsufficient in oil, yet the majority of its cars run on ethanol produced from sugar cane. Brazil is at least 10 years more advanced in its ethanol development for vehicles than the U.S. and Canada. The delegation departed Brazil on October 20 with solid leads for continuing partnerships that will foster traffic between the system and Brazilian ports. . Delegates who represented the Great Lakes/ St. Lawrence Seaway in Brazil were: Adolph Ojard, Port of Duluth Ronald Johnson, Port of Duluth Jason Lowery, Midwest Terminals of Toledo International Warren McCrimmon, Port of Toledo Collister “Terry” Johnson, Jr., Saint Lawrence Seaway Development Corporation Rebecca McGill, Saint Lawrence Seaway Development Corporation Richard Corfe, St. Lawrence Seaway Management Corporation Bruce Hodgson, St. Lawrence Seaway Management Corporation Peter Burgess, St. Lawrence Seaway Management Corporation Rejean Leclerc, Transport Quebec Paulo Pessoa, McKeil Marine Ltd. Robert Armstrong, Armstrong Trade & Logistics Advisory Services Delfina Duarté, Port of Hamilton Keith Robson, Port of Hamilton Al Peckham, Port of Hamilton Robert Matthews, Shipping & Trade Consultants, Hamilton, Ontario Demetrius Tsafaridis, Carego Holdings Inc. Richard Koroscil, Hamilton International Airport Pierre Denis Gagnon, Port of Sept-Îles Adam Wasserman, Port of Cleveland Bom dias (good day) Bi-national trade mission establishes business relationships in Brazil Above: SLSDC Administrator Terry Johnson and SLSMC

Maritime Editorial