Vol.36 No.4 APR‑JUN 2008

A solid season in 2007 . New iron ore technology . Working on funds for dredging . TWIC enrollment V O L U M E 3 6 N U M B E R 4 G L A P R I L – J U N E 2 0 0 8 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 Precious Cargo? WE CAN HANDLE IT! At Interlake Steamship we treat each and every shipment as if it were priceless. Whether it’s coal, grain, taconite pellets or limestone we know how important that cargo is to our customers… and to their customers. And, we know how important it is that it be delivered in a timely manner with the utmost care. With self-unloading vessel capacities ranging from 17,000 to 68,000 tons, you can trust Interlake Steamship with all your dry bulk cargo needs on the Great Lakes. Call Interlake Steamship – where all cargo is precious cargo. G L GREAT LAKES/SEAWAY REVIEW April-June, 2008 1 A R T I C L E S A P R I L – J U N E 2 0 0 8 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 The Administrator’s Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 The Port of Erie handled the system’s first export cargo of biodiesel. Page 40. The Great Lakes Seaway Trail provides an abundance of maritime heritage and interesting sites. Page 67. Dredging AMBASSADORS AT LARGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Industry representatives continue to join forces in urging lawmakers to provide dredging funds; Harbor Maintenance Trust Fund targeted. The 2007 Season A SOLID SEASON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 2007 finishes strong after a slow start. Commodities NEW VENTURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Iron ore technology, production changes with the latest industry shift. Maritime Security PRE-ENROLLMENT IS KEY . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Transportation Worker Identification Credential deadline extended to April 15. Port Profile: PORT OF ERIE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Pennsylvania’s Great Lakes connection with an annual $65 million impact. Interview: A PASSION FOR GREAT LAKES SHIPPING . . . . . . . . . . . . . . . . . . . . . 45 Adm. John Tanner has invested more than three decades into training mariners. The Environment ALTERNATIVE ENERGY TECHNOLOGY COMES TO DETROIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Mobile hydro unit to power Port of Detroit’s public dock. Propulsion CREATING SAVINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Final ship in Great Lakes Fleet receives 21st Century automation. Lake Levels THE RISE AND FALL OF THE GREAT LAKES . . . . . . . . . . . . . . . . . . 61 The science behind changes in lake levels. Maritime Heritage NAVIGATING THROUGH HISTORY . . . . . . . . . . . . . . . . . . . 67 The Great Lakes Seaway Trail traces development of lighthouse system, commercial shipping. Great Lakes Places FRANK LLOYD WRIGHT BOATHOUSE OPENS . . . . . . . . 71 Where Buffalo’s rowing tradition and architectural heritage join under one flat roof. Marine Photography FROM STORMY TO SERENE . . . . . . . . . . . . . . . . . . . . . . . 72 Gary Martin captures the many moods of Lake Michigan. Shipwrecks GHOSTS OF THE SHIPWRECK COAST . . . . . . . . . . . . . . . . . . . . . . .76 Underwater archaeological survey records shipwrecks off Whitefish Point. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Lake Boat & Lighthouse News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 GREAT LAKER D E P A R T M E N T S Total transits and tonnage were down slightly in 2007, but project cargo continued to diversify the cargo mix. Page 12. 2 www.greatlakes-seawayreview.com P U B L I S H E D F O R 3 8 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 John H. Nikolai Account Manager William W. Wellman Senior 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. © 2008 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, 2008 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 4 Great Lakes/Seaway Review Cover: American Century loading ore at Mesabi Iron Range and railroad ore dock, Duluth. Photo by Jerry Bielicki. Great Laker Cover: South Pier Lighthouse, Lake Michigan. Photo by Gary Martin.eeper’s dwelling. Photo by Chris Winters. Call for information on available property or current services (414) 286-8131, bnowak@milwaukee.gov • Two major railroads: Union Pacific Railroad Canadian Pacific Railway • Direct Interstate Highway • Seaway-depth berths for ocean vessels • Barge service to Illinois and Mississippi Rivers • Site & Terminal development for: Manufacturing Facilities Warehousing & Distribution Service Centers Material/Cargo Handling OFFERING: 2323 S. Lincoln Mem. Dr. Milwaukee, WI 53207 www.milwaukee.gov/port WHERE YOU ARE ALWAYS WELL CONNECTED 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 GREAT LAKES/SEAWAY REVIEW April-June, 2008 3 Dutch Runner sailing in the system After taking more than a year to conclude a deal on the German built, multi cargo Dutch Runner, Great Lakes Feeder Lines (GLFL) has finalized the deal in Bremen. The ship began operating in the Great Lakes/ St. Lawrence Seaway System in May. The Dutch Runner is a ro/rolo/ lo, double-skin, single-decker, fully-fitted container vessel with its own cranes and with a stern ramp leading to the weather deck. She is ice class 1D and has a deadweight capacity of 3,056 metric tons and a total container capacity of 221 TEUs. GLFL President Aldert van Nieuwkoop said: “There have been many obstacles beyond our control which delayed this day, but we never doubted it would come to pass and now look forward to raising the Canadian flag on her and operating this fine vessel in pursuit of the much talked about short sea shipping markets in Canada and the United States.” . DATELINE Great Lakes Feeder Lines is sailing Canada’s first dedicated, European-style modern short sea shipping vessel. in Maisonneuve at Cote-Sainte- Catherine lock and in Niagara at Lock 8) located at both ends of the lock. The equipment uses eye safe laser ranging technology to recognize the vessel’s hull and estimate its position in the lock. The vessel’s foremost portion of the hull will be interpreted and the vessel’s position will be updated dynamically and displayed on an LED panel located on the tie-up side of the lock as the vessel progresses to its final mooring position. In addition, automated audible spotting will also be available to the master/pilot on Channel 17 for upbound transit and 66A for downbound transit. . House passes Coast Guard bill The U.S. House of Representatives passed the Coast Guard Authorization Act April 24 (395-7), providing $8.4 billion for operations. The funding will allow for the Coast Guard to add 1,500 positions over the next year. “This bill helps train, prepare and equip the Coast Guard to protect our waterways and borders,” said Congressman Bart Stupak (D-Michigan). H.R. 2830 also includes provisions requiring ships to use ballast water treatment technology by December 31, 2013, to eliminate invasive species from being carried in U.S. waters. In the interim, the bill would require that ships entering U.S. waters conduct ballast water exchanges at least 200 miles off the coast or use existing technologies to treat ballast water by the end of the year. The Coast Guard would be charged with creating a shipboard technology demonstration program for ballast water treatment technologies. The bill also extends, from 2008 to 2011, the time the Coast Guard has to promulgate regulations for the disposal of dry bulk cargo residue in the Great Lakes. The Senate’s version of the bill (S. 1892) is awaiting floor action. After the Senate passes its version, the House and Senate will meet in conference to iron out an identical version of the bill to send to the White House for signature. As the House version currently reads, the president has threatened to veto.. Ohio Congresswoman Stephanie Tubbs Jones receives the Great Lakes Legislator of the Year Award in Washington, D.C. from members of the Great Lakes Maritime Task Force. Pictured (from left) are Mark Barker, Interlake Steamship Company; Tubbs Jones; Pat O’Hern, 2008 President of GLMTF and Vice President of Bay Shipbuilding Company; Congresswoman Marcy Kaptur (D-Ohio) and Dan Smith, American Maritime Officers. New technology being tested in Lock 7 The St. Lawrence Seaway Management Corporation is continuing its testing of a new prototype piece of technology, the MoorMaster 200LS hands-free vacuum pad mooring system at Lock 7 (a deep lock). Two of the units have been installed with modifications made resulting from feedback during the initial testing at Lock 8. The system is designed to attach to the side of a vessel with a vacuum pad once it has stopped and is alongside the wall at its mooring position. The vacuum pads hold the vessel securely during the lock operation without the need for mooring wires. Testing and assessing the effectiveness of new units began in May and will continue throughout the season. If successful, this equipment will allow a safer and more efficient mooring process for most vessels. A vessel self spotting system has also been installed at Lock 7 and consists of a laser ranging device (similar to equipment tested 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 D A T E L I N E loaders through a joint venture. In addition, Algoma previously announced construction of five IMO II product tankers in China to be delivered in late 2010 and early 2011. As part of extending the life of two maximum seaway self-unloaders, Algobay and Algoport, Algoma is taking delivery of two forebodies that will be attached the ships’ refurbished and upgraded aft-ends. The Aloville has been renamed M/V Tim S. Dool honoring the company’s president and chief executive officer. Canada Steamship Lines has entered into an agreement with Fednav Ltd. of Montreal to purchase four of its ocean-going Handysize bulk carriers. The sister ships, currently sail as the Lake Michigan, Lake Erie, Lake Ontario and Lake Superior, each has a summer deadweight capacity of 35,630 metric tons and are designed for Seaway trade. The first of the vessels will be delivered in December, with the remainder arriving by December 2009. They will be reflagged Canadian, creating about 120 new jobs for Canadian seafarers. The Lake Ontario and Lake Superior will be assigned to a new contract recently signed by CSL with Rio Tinto Shipping to transport about three million metric tons a year of ilmenite ore from Havre St-Pierre to Sorel, Quebec, beginning in 2010. The other two vessels will be employed in domestic trade. . Essar releases plans for Minnesota Steel Essar Group will break ground this summer on the $1.65 billion mining, processing and steelmaking Minnesota Steel plant near Nashwauk, a project that will take about five years to become fully operational. “We are committed to moving as quickly as possible to bring steelmaking to the Iron Range,” said Ravi Ruia, Vice Chairman of the Indiabased Essar Group. “Minnesota Steel plays a key role in our North American steel strategy.” Minnesota Steel was sold to India-based Essar in 2007. The company said it planned to develop an operation to produce high-quality, low-cost steel through ore processing, direct- reduced iron production and steelmaking on one site. Estimated annual production from the plant is expected to be 2.5 million tons of steel product. Essar plans to internally finance the $1.65 billion price tag, including technical, managerial and financial resources. Essar Group has assets in steel, energy, power, communications shipping and logistics and construction. The project’s timeline includes about 30 months for construction of the mine, concentrator, pellet plant and tailings basin and another 29 months for construction of a direct-reduced iron plant and slab steel casting facility. . Two carriers build their fleets Algoma Central Corporation has entered into an agreement to purchase three oceangoing handy-sized bulk carriers from Viken Shipping in Norway. The $38 million deal involves sister ships built in eastern Europe in 1986 (Sandviken) and in 1987 (Daviken and Goviken). The maximum Seaway-sized vessels are fitted with four cranes and have a capacity of 34,000 metric tons. The ships are currently operating under long-term charter agreements with Fednav International, which Algoma will assume. The acquisition will support the Algoma’s recently-announced ocean shipping activities and could provide a competitive fleet renewal option for the Seaway Marine Transport (SMT) gearless bulk carrier fleet. Algoma intends to make the vessels available for use by SMT in Canadian-flag service when the Fednav commitments expire. Algoma owns two ocean-going self-unloaders through a wholly-owned subsidiary and an interest in five ocean-gong self un- 4 www.greatlakes-seawayreview.com REGIONAL CALENDAR Wind industry looks for continued federal subsidies In April, the U.S. Senate passed an amendment to a housing bill that includes a package of renewable energy tax incentives. The housing measure is now in the House for consideration. A series of Production Tax Credits (PTCs) was set to expire this year, putting many of the region’s wind and solar energy projects in jeopardy. The American Wind Energy Association (AWEA) estimates that about $19 billion in renewable energy investments will be at risk if the incentives are not renewed. The federal government has been subsidizing the wind and solar projects for more than 30 years. . Duluth chosen for new U.S. Coast Guard Center for Excellence The U.S. Coast Guard Commandant has selected Duluth to establish a Center for Excellence to train personnel to inspect the Great Lakes fleet. The center is part of a plan to improve continuity in services and is one of at least five specialty training centers being established nationwide. However, the Duluth center will be the only one training personnel on how to inspect steam-powered and vintage vessels, according to Erich Doll, a reservist who has spearheaded location selection for U.S. Coast Guard, District 9 Prevention. “As people retire, the institutional memory is lost,” he said, noting that the age of Lakes vessels requires training beyond what inspectors would otherwise receive. The new center will not require physical construction, but rather is a process that involves collecting and transferring materials to Duluth, adding positions to the Coast Guard team there and partnering with companies and other groups to provide spot training at various locations. When operational, the center will consist of a four- or five-member team that will train Coast Guard personnel, as well as industry employees as requested. Technology will enable materials to be used in classrooms throughout the Lakes. The center will launch in October with full implementation scheduled through fiscal year 2011, Doll said, with inspectors assigned to the Lakes required to undergo the training to ensure that inspections on the Lakes are more consistent. . JUNE 19-23 51st Annual Conference on Great Lakes Research, Trent University Peterborough, Ontario Chris Metcalfe, (705) 748-1011, x7272 www.iaglr.org/conference 24-26 World Wind Energy Conference Kingston, Ontario www.wwindea.org JULY 16-18 2008 Great Lakes St. Lawrence Cities Initiative Conference Sheraton Centre, Toronto, Ontario www.toronto.ca/greatlakes-st.lawrence/ SEPTEMBER 7-12 Great Lakes Maritime Research Institute Shipbuilding & Maritime Operations Tour in Finland, Stacey Carlson (715) 394-8364, www.glmri.org Duluth Seaway Port Authority 1200 Port Terminal Drive / Duluth, MN USA 55802 Phone: (218) 727-8525 / (800) 232-0703 / Fax: (218) 727-6888 E-mail: admin@duluthport.com Say that three times fast. Short sea shipping is a tongue twister, but its benefits can be articulated clearly. Moving domestic cargo through the Great Lakes and St. Lawrence Seaway is an efficient, cost-effective, and environmentally sound alternative to road and rail transportation. The Port of Duluth is ready for your business. We have the capacity to handle your all of your cargo needs. Contact us today. Our advantages may leave you tongue-tied. “short sea shipping short sea shipping short sea shipping…” GREAT LAKES/SEAWAY REVIEW April-June, 2008 5 REGIONAL CALENDAR D A T E L I N E 15-17 2008 Ohio Conference on Freight Toledo, Ohio, Warren Henry (419) 241-9155, x129, henry@tmacog.org OCTOBER 14-16 Breakbulk New Orleans, New Orleans, LA Renee Jacobs, (760) 294-5563 rjacob@joc.com NOVEMBER 14-22 Seaway Trade Mission Italy and Turkey, (800) 785-2779 Rebecca.McGill@sls.dot.gov Ambassadors at large 6 www.greatlakes-seawayreview.com D R E D G I N G The largest iron ore producer in North America and the largest integrated steelmaker in America are speaking out. “The dredging crisis is directly affecting Cliffs’ ability to meet its customers’ requirements efficiently,” said Joseph Carrabba, President and Chief Executive Officer of Cleveland-Cliffs Inc. “Although U.S.-flag vessel operators on the Lakes have ships that can carry 7,000 tons of iron ore or more each trip, full loads are a distant memory.” “We rely on Lakes shipping to deliver or ship over 14 million tons per year,” said Dan Cornillie, Manager, Marine & Raw Material Logistics for ArcelorMittal USA-Indiana Harbor. “Despite the fact that we have been paying into the Harbor Maintenance Trust Fund for the past 20 years, Indiana Harbor has not been dredged in that entire period, in fact, not since the early 1970s.” Cleveland-Cliffs’ 4,200 employees can annually produce about 37 million tons of iron ore pellets when the North American steel industry is operating at high levels. The majority of the pellets are delivered to customers in U.S.- and Canadian-flag Great Lakes vessels. Low lake levels and inadequate dredging are causing the company to use six laker-trips to haul what could otherwise be moved in five. A 1,000-foot vessel capable of hauling 71,120 tons recently left Superior, Wisconsin with less than 59,000 tons of pellets onboard. “It’s the cumulative impact that really tells the story,” he said. “A 1,000-footer will carry about 50 cargoes a year. If the vessel that light-loaded by 12,000 tons is limited to that degree all year, 600,000 tons of pellets will remain in stockpile. Few of our steel mill customers have the ability to receive iron ore by train and even if the railroads had enough rolling stock, the delivered cost would be significantly higher.” “Iron ore pellets account for 100 percent of our business and 96 percent of the pellets produced last year moved in Great Lakes vessels,” Carrabba added. “Those percentages are unlikely to change. Great Lakes shipping will always be the most cost-effective way to deliver iron ore to our customers.” Whether iron ore, coal or grain, the story remains the same. Lightloading is becoming commonplace on the Great Lakes—for reasons that many believe are unfounded. “Twenty years ago, our time-chartered Joseph L. Block was carrying summertime loads of approximately 41,000 net tons,” Cornillie said, who is part of a company that has about 21,000 employees and produces more than 27 million tons of steel annually. More than half of the company’s U.S.-based jobs are in facilities adjacent to the Great Lakes. “Last summer, on the same runs, she carried less than 35,000. She has to make six trips to deliver what she did in five. This math is being repeated across the U.S.-flag Lakes fleet.” The U.S. Army Corps of Engineers estimates that there are more GREAT LAKES/SEAWAY REVIEW April-June, 2008 7 D R E D G I N G than 18 million cubic yards of sediment that must be removed from ports and waterways to bring the Great Lakes/St. Lawrence Seaway system back to project dimensions. It has estimated that the backlog could be cleared for about $250 million. The Port of Dunkirk exemplifies the forced change the region is experiencing due to sediment build-up. The French Port of Dunkirk reported a 20 percent year-on-year increase in cargo during April to 5.3 million metric tons. In the first four months of 2008, the port handled 19 million metric tons, up three percent compared to a year ago. Meanwhile, the Port of Dunkirk in New York has not received cargo since November 2006 because of the dredging crisis. The right funding source. The Lake Carriers’ Association and Great Lakes Maritime Task Force (GLMTF) recently joined a national coalition consisting of representatives from the marine industry from four coasts: east, west, Gulf and the Great Lakes. The Realize America’s Maritime Promise (RAMP): the Harbor Maintenance Trust Fund Fairness Coalition’s purpose is to free up more money, eventually all the money, in the Harbor Maintenance Trust Fund (HMTF) to pay for the needed maintenance, clearing backlog sediment and infrastructure work. The HMTF, which is funded by a user tax to fund the federal government’s costs to maintain the national waterways, currently has a surplus of about $4.1 billion. Annually, users pay about $1.4 billion into the fund, with about $700,000 being used to cover maintenance, according Jim Weakley, President of the Lake Carriers’ Association and Second Vice President of the GLMTF. “All we’re asking for is to put the trust back in the trust fund and spend the money for what it’s being collected for,” Weakley said, noting that a resolution has been drafted requesting the release of the trust fund’s excess for the maintenance work that has been left undone. “As a cargo shipper, Cleveland-Cliffs pays into the Harbor Maintenance Trust Funds that provides operations and maintenance dredging of deep-draft ports and waterways,” Carrabba said. “This is not a case of a lack of funds. It’s a lack of understanding the vital role Great Lakes shipping plays in our nation’s economy and a flawed system for allocating those monies that are released from the Harbor Maintenance Trust Fund. “The federal government has tax-generated money to solve this problem. It’s up to us to convince Washington that the investment will be repaid many times over with economic growth and security.” “We’re trying to erect a fence around the money that comes in through the HMT,” Weakley said. The Dredge Contractors of America are focusing on the same effort, according to Ted Smith, President of Marine Tech, LLC. “It’s a waste of time trying to get the money that we haven’t got- Industry representatives continue to join forces in urging lawmakers to provide dredging funds Harbor Maintenance Trust Fund targeted Flexibility Profitability Maintenance Fatigue Volatile markets Efficiency Trust matters Safety regulations Timing Reliability Tradition Reputation LIFE MATTERS Life is about getting to the top. Our teams can help bulk carrier owners and operators beat fatigue, assisting in the design, build and maintenance of safer, more robust ships. We’ll help pull you through regulatory and market change. You can rely on our strength, because in business, trust matters. www.lr.org Services are provided by members of the Lloyd’s Register Group. Lloyd’s Register is an exempt charity under the UK Charities Act 1993. GREAT LAKES/SEAWAY REVIEW April-June, 2008 9 D R E D G I N G ten,” he said. “It’s not there. But we want the money that the tax is intended for.” Annual appropriations. The federal budget process is “a mess,” said Weakley, noting that each fiscal year is an individual fight that revolves around the President releasing his proposed budget, system representatives scrambling to communicate a real need for increased funding to the House and Senate and then rallying local sponsors to fill out the appropriate paperwork—two or three forms for each project—to request official mark-ups. “In some ways, we’re our own worst enemy,” said Weakley, describing several situations in the Great Lakes where local people agreed with the cause but stated they did not want to get involved. At one point, a staffer on the Hill called local people and told them that if they wanted the money, they would have fill out the form. They declined. “There are too many people within the system who are willing to let others do the work or are willing to depend on the federal government to do the right thing without their input,” Weakley said. “That attitude of letting the federal government do the right thing is how we ended up where we are now.” The mark-ups are added to the President’s budget and may become part of the final budget, cleared for appropriation. For FY2008, the Corps received nearly $140 million, an additional $6.5 million over the President’s proposed budget for Great Lakes dredging. The mark-ups are being attributed to the efforts of the Great Lakes Maritime Task Force, which has held meetings to inform its members on who to effectively communicate its funding needs in order to modify the President’s budget into the final appropriation each fiscal year. “2008 was the first time in eight years that we’ll dredge more than is deposited,” said Brigadier General Bruce Berwick, Division Engineer for the Corps. “It was a huge victory.” In 2008, about one million cubic yards of backlog sediment is being removed. According to Mike O’Bryan, Great Lakes Naviga- Great Lakes Maritime Task Force FY 2009 Summary of Navigation System Appropriations (x 000) SOURCE: GREAT LAKES MARITIME TASK FORCE NAVIGATION PROPOSED UNFUNDED MAINTENANCE FEDERAL NEED NEED BUDGET Great Lakes Region Navigation Improvements . . . . . . . . . . . . . . . . . . . . . . . . .$10,000 . . . . . . . .- . . . .$10,000 ILLINOIS Calumet Harbor and River . . . . . . . . . . . . . . . . .7,800 . . . .4,780 . . . . . .3,020 Chicago Harbor . . . . . . . . . . . . . . . . . . . . . . . .12,370 . . . .2,015 . . . . .10,355 Lake Michigan Diversion . . . . . . . . . . . . . . . . . . . .860 . . . . . .860 . . . . . . . . . .- Project Condition Surveys . . . . . . . . . . . . . . . . . . .104 . . . . . .104 . . . . . . . . . .- Waukegan . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,839 . . . .1,099 . . . . . .1,740 State Subtotal . . . . . . . . . . . . . . . . . . . . .$24,448 . . .$9,333 . . . .$15,115 INDIANA Burns Waterway Harbor . . . . . . . . . . . . . . . . . .2,530 . . . . . .160 . . . . . .2,370 Indiana Harbor . . . . . . . . . . . . . . . . . . . . . . . . .3,138 . . . .3,138 . . . . . . . . . .- Indiana Harbor CDF . . . . . . . . . . . . . . . . . . . . .18,735 . . . .8,385 . . . . .10,350 Project Condition Surveys . . . . . . . . . . . . . . . . . . .185 . . . . . .185 . . . . . . . . . .- State Subtotal . . . . . . . . . . . . . . . . . . . . .$24,588 . .$11,868 . . . .$12,720 MICHIGAN Channels in Lake St. Clair . . . . . . . . . . . . . . . . .1,151 . . . . . .156 . . . . . . . .995 Charlevoix Harbor . . . . . . . . . . . . . . . . . . . . . . . . .197 . . . . . .197 . . . . . . . . . .- Detroit River . . . . . . . . . . . . . . . . . . . . . . . . . . .6,770 . . . .5,260 . . . . . .1,510 Frankfort Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .700 . . . . . . . .- . . . . . . . .700 Grand Haven Harbor . . . . . . . . . . . . . . . . . . . . .2,092 . . . .1,312 . . . . . . . .780 Grays Reef Passage . . . . . . . . . . . . . . . . . . . . . . .230 . . . . . .180 . . . . . . . . .50 Holland Harbor . . . . . . . . . . . . . . . . . . . . . . . . .1,564 . . . . . .588 . . . . . . . .976 Keweenaw Waterway . . . . . . . . . . . . . . . . . . . .2,167 . . . . . . . .- . . . . . .2,167 Ludington Harbor . . . . . . . . . . . . . . . . . . . . . . .1,172 . . . . . .442 . . . . . . . .730 Marquette Harbor . . . . . . . . . . . . . . . . . . . . . . . . .326 . . . . . . . .- . . . . . . . .326 Monroe Harbor . . . . . . . . . . . . . . . . . . . . . . . . .1,018 . . . .1,018 . . . . . . . . . .- Muskegon Harbor . . . . . . . . . . . . . . . . . . . . . . . . .549 . . . . . .350 . . . . . . . .199 Ontonagon Harbor . . . . . . . . . . . . . . . . . . . . . . .1,247 . . . . . .655 . . . . . . . .592 Presque Isle Harbor . . . . . . . . . . . . . . . . . . . . . . .331 . . . . . .312 . . . . . . . . .19 Project Condition Surveys . . . . . . . . . . . . . . . . . . .276 . . . . . .276 . . . . . . . . . .- Rouge River . . . . . . . . . . . . . . . . . . . . . . . . . . .1,447 . . . .1,321 . . . . . . . .126 Saginaw River . . . . . . . . . . . . . . . . . . . . . . . . . .7,093 . . . .3,798 . . . . . .3,295 St. Clair River . . . . . . . . . . . . . . . . . . . . . . . . . .2,041 . . . .1,791 . . . . . . . .250 St. Joseph Harbor . . . . . . . . . . . . . . . . . . . . . . .1,993 . . . . . .595 . . . . . .1,398 St. Mary’s River . . . . . . . . . . . . . . . . . . . . . . . .28,773 . . .16,658 . . . . .12,115 State Subtotal . . . . . . . . . . . . . . . . . . . . .$61,137 . .$34,909 . . . .$26,228 NAVIGATION PROPOSED UNFUNDED MAINTENANCE FEDERAL NEED NEED BUDGET MINNESOTA Duluth-Superior Harbor . . . . . . . . . . . . . . . . . . .6,430 . . . .4,510 . . . . . .1,920 Project Conditions Surveys . . . . . . . . . . . . . . . . . . .72 . . . . . . .72 . . . . . . . . . .- Two Harbors . . . . . . . . . . . . . . . . . . . . . . . . . . . .320 . . . . . .300 . . . . . . . . .20 State Subtotal . . . . . . . . . . . . . . . . . . . . . .$6,822 . . .$4,882 . . . . .$1,940 NEW YORK Black Rock Channel & Tonawanda Harbor . . . . .3,325 . . . .1,175 . . . . . .2,150 Buffalo Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .3,075 . . . . . . .50 . . . . . .3,025 Dunkirk Harbor . . . . . . . . . . . . . . . . . . . . . . . . . . .820 . . . . . . . .- . . . . . . . .820 Oswego Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .300 . . . . . . . .- . . . . . . . .300 Project Condition Surveys . . . . . . . . . . . . . . . . . . .370 . . . . . .370 . . . . . . . . . .- Rochester Harbor . . . . . . . . . . . . . . . . . . . . . . .1,755 . . . .1,595 . . . . . . . .160 State Subtotal . . . . . . . . . . . . . . . . . . . . . .$9,645 . . . .$3,190 . . . .$6,455 OHIO Ashtabula Harbor . . . . . . . . . . . . . . . . . . . . . .12,047 . . . .1,850 . . . . .10,197 Cleveland Harbor . . . . . . . . . . . . . . . . . . . . . . .16,810 . . . .6,710 . . . . .10,100 Conneaut Harbor . . . . . . . . . . . . . . . . . . . . . . . .1,760 . . . . . .350 . . . . . .1,410 Fairport Harbor . . . . . . . . . . . . . . . . . . . . . . . . .2,816 . . . .2,026 . . . . . . . .790 Huron Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .1,780 . . . .1,530 . . . . . . . .250 Lorain Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .3,893 . . . .2,423 . . . . . .1,470 Project Condition Surveys . . . . . . . . . . . . . . . . . . .295 . . . . . .295 . . . . . . . . . .- Sandusky Harbor . . . . . . . . . . . . . . . . . . . . . . . .2,885 . . . . . . . .- . . . . . .2,885 Toledo Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .8,356 . . . .4,701 . . . . . .3,655 State Subtotal . . . . . . . . . . . . . . . . . . . . .$50,642 . .$19,885 . . . .$30,757 PENNSYLVANIA Erie Harbor . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,925 . . . . . . . .- . . . . . .1,925 Project Condition Surveys . . . . . . . . . . . . . . . . . . . .70 . . . . . . .70 . . . . . . . . . .- State Subtotal . . . . . . . . . . . . . . . . . . . . . .$1,995 . . . . . .$70 . . . . .$1,925 WISCONSIN Ashland Harbor . . . . . . . . . . . . . . . . . . . . . . . . . .865 . . . . . . . .- . . . . . . . .865 Green Bay Harbor . . . . . . . . . . . . . . . . . . . . . . .6,603 . . . .4,344 . . . . . .2,259 Manitowoc Harbor . . . . . . . . . . . . . . . . . . . . . . . .937 . . . . . . . .- . . . . . . . .937 Milwaukee Harbor . . . . . . . . . . . . . . . . . . . . . . .5,388 . . . . . .650 . . . . . .4,738 Project Condition Surveys . . . . . . . . . . . . . . . . . . .155 . . . . . .155 . . . . . . . . . .- Sturgeon Bay Harbor & Lake MI Ship Canal . . . . .5,357 . . . . . . . . .- . . . . . .5,357 State Subtotal . . . . . . . . . . . . . . . . . . . . .$19,305 . . .$5,149 . . . .$14,156 Total – O&M . . . . . . . . . . . . . . . . . . . . . .$208,582 . .$89,286 . . .$119,296 10 www.greatlakes-seawayreview.com D R E D G I N G future budgets,” Weakley said. “Unless we are funding the Great Lakes marine transportation system with $170 million a year, we are contributing to its decay and putting American manufacturers and power producers at a competitive disadvantage.” “Our highways and rail lines are already struggling to handle existing cargo volumes,” said John Baker, Third Vice President of GLMTF and President of ILA’s Great Lakes District Council. “Not giving the Lakes enough dredging funds is like pulling the plug on the American economy.” Janenne Irene Pung . tion Business Line Manager for the Corps, about 3.3 million cubic yards of sediment settles in the system annually, meaning that not continuing or increasing from the 2008 funding levels will continue to contribute to the backlog. For FY2009, the President’s budget of $89.3 million shows a shortfall of $49 million, or 35.5 percent, from the 2008 final budget. The reduction comes on the heels of record and nearrecord low water levels. The Corps has said it needs $215 million— less than the cost to build a freeway intersection—to clear the backlog of dredging projects throughout the Great Lakes navigation system. “Any reduction in the Corps’ dredging budget for the Lakes would be a double whammy of the worst kind,” said Patrick O’Hern, GLMTF President and Vice President and General Manager of Bay Shipbuilding Company. “The Lakes are already suffering with extreme low water levels. An adequately-funded maintenance program doesn’t solve the problem, but it certainly helps offset the impacts of falling water levels. Now is absolutely the worst imaginable time for any reduction in Great Lakes dredging funds.” Looking ahead. While GLMTF is still watching for the final 2009 budget to be released, it’s also working ahead on what could potentially happen in 2010. According to Weakley, there are indications that the system that determines dredging priorities could drastically change. Rather than favor ports that ship more than one million tons of cargo a year, the amount could jump to 10 million tons a year, which would negatively impact most of the ports in the Great Lakes (see the tonnage chart on page 13). “Instead of cutting dredging funds, the administration must establish a Great Lakes Navigation Improvement Fund in this and FY 2007 Great Lakes Maintenance Dredging Projects EST. PROJECT DISTRICTCUBIC YARDS Alpena Harbor, MI . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .38,113 Burns Harbor, IN . . . . . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . . . .98,695 Burns NIPSCO, IN . . . . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . . .228,000 Cleveland, OH . . . . . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . . .225,000 Calumet Harbor, IL . . . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . . . .90,100 Detroit River, MI . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .159,416 Duluth-Superior Harbor, MN & WI . . . . . . . . . . . .Detroit . . . . . . . . . . .120,000 Grand Haven Harbor, MI . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .42,849 Green Bay Harbor, WI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .124,000 Holland Harbor, MI . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .38,728 Manistee Harbor, MI . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .80,300 Manitowoc, WI . . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . . 32,565 Maumee Bay, Toledo, OH . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . . .600,000 Maumee River, Toledo, OH . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . . .115,000 Milwaukee, WI . . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .72,000 Monroe, MI . . . . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .74,000 Ontonagon, MI . . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .36,128 Saginaw River, MI . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .400,000 St. Joseph Harbor, MI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .35,565 Waukegan Harbor, IL . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . . . .20,000 Contract Totals . . . . . . . . . . . . . . . . . . . . . . .Cubic Yards . .Contract Costs 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2,459,918 . . . .$11,818,238 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,859,061 . . . .$15,966,172 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1,948,732 . . . .$13,822,593 SOURCE: U.S. ARMY CORPS OF ENGINEERS FY 2008 Great Lakes Maintenance Dredging Projects EST. PROJECT DISTRICT CUBIC YARDS Arcadia Harbor, MI . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .4,000 AuSable Harbor, MI . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .29,700 Big Bay Harbor, MI . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .20,000 Bolles Harbor, MI . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .19,000 Buffalo Harbor, NY . . . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . .100,000 Burns Harbor, IN . . . . . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . .150,000 Burns NIPSCO, IN . . . . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . .150,000 Calumet, IL . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . . .47,000 Cleveland Harbor, OH . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . .225,000 Clinton River, MI . . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .36,000 Conneaut Harbor, OH . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . .100,000 Cornucopia Harbor, WI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .9,000 Detroit River, MI . . . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . .232,000 Duluth-Superior Harbor, MN & WI . . . . . . . . . . . .Detroit . . . . . . . . . .150,000 Grand Haven Harbor, MI . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .30,000 Grand Marais Harbor, MN . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .34,000 Green Bay Harbor, WI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . .200,000 Holland Harbor, MI . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .35,000 Huron, OH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . . .40,000 Irondequoit, NY . . . . . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . . .20,000 Leland Harbor, MI . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .26,400 Lexington, Harbor, MI . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .22,000 Little Lake Harbor, MI . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .66,000 Lorain Harbor, OH . . . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . . .80,000 Manistee Harbor, MI . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .50,000 Michigan City Harbor, IN . . . . . . . . . . . . . . . . . . .Chicago . . . . . . . . . .40,000 Milwaukee Harbor, WI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .50,000 Muskegon Harbor, MI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . .133,000 New Buffalo Harbor, MI . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . . .6,500 Ontonagon Harbor, MI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .56,000 Pentwater Harbor, MI . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .19,000 Portage Lake Harbor, MI . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .24,000 Port Sanilac Harbor, MI . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .17,000 Port Wing Harbor, WI . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .18,000 Rochester, NY . . . . . . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . .300,000 Saginaw River, MI . . . . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . .200,000 Sandusky Harbor, OH . . . . . . . . . . . . . . . . . . . . . .Buffalo . . . . . . . . . .200,000 Saugatuck Harbor, MI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .34,000 St Joseph Harbor, MI (Inner) . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . .125,000 St Joseph Harbor, MI (Outer) . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .24,000 Sebewaing Harbor, MI . . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .25,000 South Haven Harbor, MI . . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .26,000 Sturgeon Bay Harbor, WI . . . . . . . . . . . . . . . . . . .Detroit . . . . . . . . . . .53,000 SOURCE: U.S. ARMY CORPS OF ENGINEERS GREAT LAKES/SEAWAY REVIEW April-June, 2008 11 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 T H E 2 0 0 7 S E A S O N Although 2007s’ total transits and tonnage were down slightly from 2006 highs, project cargo continued to diversify the cargo mix. Wind turbine traffic increased about 30 percent system-wide over 2006 while also being exported from Duluth for the first time, heading to Spain. Another first, a shipment of 1.5 million gallons of biodiesel fuel was exported from the Port of Erie to Rotterdam, Netherlands in December. “While the season started slowly, we enjoyed a strong resurgence in cargo volumes by mid-summer,” said Richard Corfe, St. Lawrence Seaway Management Corporation (SLSMC) President and CEO, “and this trend continued through the fall. We are particularly optimistic that the momentum in project cargoes that we observed this year will carry forward into the future. Shipments of specialty cargo such as wind turbine components, destined for various green energy projects throughout Eastern North America have A solid season 2007 finishes strong after a slow start SOURCE: PORT OF TOLEDO 12 www.greatlakes-seawayreview.com become a hallmark of the Seaway’s drive to diversify its cargo base.” The 283-day season marks the second consecutive year the Great Lakes/St. Lawrence Seaway has had record-length seasons. In 2007, 43,010,191 metric tons of cargo moved through the system, with bulk cargo remaining the staple cargo type at 27,016,397 metric tons. A more detailed breakdown includes mine products at 21,804,609 metric tons, agricultural products at 10,418,590 metric tons and processed products (iron, steel, petroleum and chemicals) at 10,761,370, according to the bi-national St. Lawrence Seaway Traffic Report. The 2007 tonnage is comparable with the system’s five-year average of 43,759,200 metric tons. Factors attributed to the decrease from last season include market and economic conditions and, more specifically, a reduction in the quality of steel imports due to high domestic inventories and slowing industrial production. With charter rates for ocean vessels remaining near all-time highs, ship operators were less inclined to enter the system. With fewer ocean vessels bringing steel into the system, there were fewer ships available to transport grain back out to international destinations. The season was built on 4,450 total Seaway transits, with upbound vessels numbering 2,220 and downbound vessels totaling 2,230. The upbound transits represent 41.4 percent and the downbound transits represent 58.6 percent of the system’s annual tonnage. The season was successful for more reasons than tonnage. Major milestones were met, catapulting the system toward the anniversary of the opening the Snell and Eisenhower locks in 2008 and the 50th anniversary of the system’s opening and dedication in 2009. “The Seaway’s accomplishments were significant in 2007,” said Saint Lawrence Seaway Development Corporation (SLSDC) Administrator Collister “Terry” Johnson, noting many of the following highlights: • SLSDC launched a 10-year Asset Renewal Program & Capital Investment Plan. President George W. Bush requested $31.8 million for the program in 2009 alone. • The bi-national Great Lakes St. Lawrence Seaway Study was completed and released, providing a 50-year roadmap for a Great Lakes/St. Lawrence Seaway 2007 Port Performance (In metric tons) Buffalo 595,855 Burns Harbor 1,480,000 Chicago 3,354,620 Cleveland 10,909,088 Detroit 698,842 Duluth 43,416,575 Green Bay 2,329,493 Hamilton 11,800,000 Milwaukee 3,934,000 Montreal 26,000,000 Oshawa 238,773 Oswego 1,000,000 Sept-Iles 21,367,839 Thunder Bay 8,490,000 Toledo 11,126,811 Toronto 2,068,338 Trois-Rivieres 2,500,000 Valleyfield 428,641 Windsor 5,125,442 SOURCE: AS REPORTED BY INDIVIDUAL PORTS SOURCE: PORT OF HAMILTON GREAT LAKES/SEAWAY REVIEW April-June, 2008 13 T H E 2 0 0 7 S E A S O N The 283-day season marks the second consecutive year the Great Lakes/St. Lawrence Seaway has had record-length seasons. 14 www.greatlakes-seawayreview.com Project is expected to increase shipment of commercial grade steel pipes to move gas, crude and synthetic oil and light oil to a growing energy market. The flow of one million barrels a day from the Canadian project is expected to increase to 2.6 million barrels a day by 2015. The Enbridge pipeline also generated cargo in 2007, with an additional 10 shipments expected to move through the Port of Toledo in the next two seasons. • Passage of the Water Resources Development Act of 2007 authorized construction of second Poe-sized lock at Sault Ste. Marie, Michigan, at full federal funding. The lock is expected to take 10 years to build and Congress must now appropriate the funds to begin construction. In the Lakes, U.S.-flag lakers moved 104 million net tons in 2007, a decrease of 5.2 percent from 2006. Iron ore slipped 3.6 percent while limestone fell by 12 percent. Coal was off its 2006 total by 160,000 tons, according to the Lake Carriers’ Association. While lower steel production and a sluggish construction market account for some of the decrease, the biggest problem facing U.S.-flag carriers was the ongoing dredging crisis. For example, by year’s end, vessels that have carried more than 72,000 tons of iron ore in a single trip saw their payloads shrink to 60,000 tons or less. “Even though the Great Lakes delegation in Washington got our dredging budget increased to nearly $140 million in FY08, the crisis will continue for years,” said Jim Weakley, President of Lake Carriers’ Association. “In fact, the administration’s proposed budget for FY09 is a step backwards. It slashes $50 million from the Lakes dredging appropriation. The Great Lakes maritime community will have to keep working together to restore the system to project dimensions.” Similar to system-wide factors, economic conditions were reflected in the decline of steel production and a slowdown in the construction industry, which reduced the demand for aggregate. Weather delays also affected shipments in the final two months of the season. While the system’s overall numbers were down, many ports experienced tonnage increases and are undergoing infrastructure upgrades. While there was an increase in wind turbine components in 2007, the Gateway Trade Center in Buffalo saw a decrease in overall tonnage—topped out at 595,855 metric tons, down from the 2006 total of 628,180 metric tons. In 2007, the season flowed similar to the 2006 season, with about 59 percent of the tonnage coming in modernized, sustainable system. • SLSMC continued its efforts to update and automate its locks. • Progress was made on setting governmental standards to protect the system from invasive species. • Additional wind energy projects and interest in increasing oil production in Alberta created—and continues to create— cargo for the system. The wind turbine components have been coming into the system for several seasons while the Tar Sands T H E 2 0 0 7 S E A S O N In the Lakes, U.S.-flag lakers moved 104 million net tons in 2007, a decrease of 5.2 percent from 2006. WHATEVER IT TAKES TO MEET YOUR COAL TRANSPORTATION REQUIREMENTS • Coal Sourcing • Rail Transportation • Dock Services • Blending • Trucking • Vessel Transportation A DTE Energy Company For more information visit our website at www.midwestenergy.com or call 715.392.9807 Midwest Energy Resources GREAT LAKES/SEAWAY REVIEW April-June, 2008 15 the form of coal and 35 percent in limestone. With the port functioning within 10,000 metric tons of its five-year average, it’s expecting the current shipping season to be similar to 2007, according to James Pfohl, Port Director. With an average tonnage of 1.98 million metric tons over the past five years, the Port of Indiana-Burns Harbor is looking for sustained levels of cargo shipments in 2008. Steel production in the area has remained consistent in 2007 and gains are being seen in fertilizer and limestone shipments, according to Port Director Peter Laman. “The fact that the St. Lawrence Seaway Management Corporation has frozen tariff rates until 2011 is welcomed news for Great Lakes ports such as ours,” Laman said. In 2007, the port completed a major repaving project of the main roadway through the port, costing $767,000. The new surface will help support the 300,000 trucks traveling through the port annually. The port also welcomed Metro International as a new tenant. Metro, a trade services company and an industry leader in warehousing, distribution and logistics, is operating a 640,000-square-foot warehouse at the port within the Foreign Trade Zone. The company’s presence is expected to increase cargo volumes and diversity in 2008. After record-setting years in 2005 and 2006, the port returned to the solid performance of past years with 98 vessels calls in 2007. Port businesses remained strong although the delivery of cargo by waterborne vessels dropped significantly from the record years. The weak dollar against the strength of the euro caused a decline in steel imports, according to Laman, while also opening the door for a steel export shipment in June. Total tonnage shipped through the port via the Seaway and Inland Waterway System in 2007 was 1.48 million metric tons, verses 2.41 million metric tons in 2006. Steel, grain, fertilizer, salt, coke, limestone, dry bulk and liquid bulk were the primary cargoes handled in 2007. Limestone tonnage— 31.75 percent of the 2007 cargo— remained fairly consistent with steady demand for limestone used in the smokestack scrubbing process. Fertilizer demand held consistent as prices increased due to anticipated record corn planting in the coming season. Business at the Port of Chicago remained steady over the year, with tonnage remaining well above the five-year average of 2,431,352. The total tonnage measured 2,987,326 metric tons, down about 5 per- T H E 2 0 0 7 S E A S O N At the Port of Toledo, the 2007 season was a continuation of its upward trend in cargo shipments since the 2004 season. Although grain shipments were down from the especially robust 2006 season, rebounding coal and iron ore volumes more than made up for the difference. 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, 2008 17 cent from 2006. The bulk of the port’s cargo was steel products and cement, according to Tony Ianello, Executive Director of the Illinois International Port District. “Individual port tenants may have had increases in their tonnage, but all-time record highs for any particular commodity did not occur,” Ianello said, noting that there is great interest from new commercial users that may attract new products, new cargoes and added volumes for 2008. “We are confident that ‘08 will be a good year, solid with the commodities we have in place, and we’re optimistic that new arrivals will only add to increases in tonnage levels.” Cleveland is experiencing an upswing in interlake barge movement, which is expected to grow from nearly zero in 2007 to up to 200,000 metric tons in 2008, according to Steve Pfeiffer, Cleveland-Cuyahoga County Port Authority Vice President of Maritime Services. The new movement— being attributed to an increased understanding of the benefits of waterborne transportation over road and rail—should increase overall tonnage, which dropped from 13,520,871 metric tons in 2007 to 10,909,088 metric tons in 2007. With expectations for a robust year with interlake trade and stable international trade, the port is making plans to receive wind turbine components in 2008. At the Port of Detroit, an increase in steel plates marked the 2007 season, with steel slabs, coils and plates representing much of the port’s cargo. During 2007, the port moved 698,842 metric tons, an increase from 603,000 metric tons in 2006. The increase has boosted the port’s five-year average to 400,000 metric tons. “Given the downturn in overall Seaway tonnage and Michigan’s bleak economy, the Port of Detroit did very well,” said Steven Olinek, Port Deputy Director. The public-private partnership between the Detroit/Wayne County Port Authority and Nicholson Terminal & Dock Company has concluded its second year, continuing to prove a beneficial joint venture. In 2008, minor facility improvements are planned, as port officials expect tonnage to be comparable with 2007. Duluth experienced a tonnage increase T H E 2 0 0 7 S E A S O N U.S.-Flag Dry-Bulk Cargo Carriage Calendar Years 2002-2007 and 5-Year Average (net tons) Average Commodity 2002 2003 2004 2005 2006 2007 2002-2006 IRON ORE Direct Shipments 45,861,075 41,343,509 48,265,018 43,884,572 45,850,298 45,049,721 45,040,894 Transshipments* 2,334,252 1,672,776 2,936,493 2,687,547 3,121,814 2,156,662 2,550,576 TOTAL – Iron Ore 48,195,327 43,016,285 51,201,511 46,572,119 48,972,112 47,206,383 47,591,471 COAL (By lake of loading) Lake Superior 13,874,872 14,238,033 15,459,399 17,429,479 17,180,114 16,692,347 15,636,379 Lake Michigan 2,239,657 2,771,065 3,734,928 3,760,477 3,134,804 2,718,874 3,128,186 Lake Erie 5,629,3024,870,3285,222,022 6,017,3945,018,1955,759,408 5,351,448 TOTAL – Coal 21,743,831 21,879,426 24,416,349 27,207,350 25,333,113 25,170,629 24,116,014 Limestone 26,554,243 24,239,110 29,861,141 27,935,513 29,489,410 25,966,057 27,615,883 Cement 3,817,911 3,851,487 3,965,401 3,892,822 4,024,703 3,602,488 3,910,465 Salt 587,090 945,355 1,032,109 1,187,777 1,126,862 1,241,297 975,839 Sand 230,950 500,456 489,355 461,813 429,411 449,474 422,397 Grain 329,471 312,316 367,785 403,055 357,143 404,873 353,954 TOTAL 101,458,823 94,744,435 111,333,651 107,660,449 109,732,754 104,041,201 104,986,022 SOURCE: LAKE CARRIERS’ ASSOCIATION * Iron ore transshipments are cargoes destined for ArcelorMittal Steel’s Cleveland Works. The mill is at the end of the navigable section of the Cuyahoga River. The narrow, twisting river cannot accommodate the largest vessels in the fleet, so iron ore is first unloaded at Cleveland. SOURCE: PORT OF SEPT-ILES 18 www.greatlakes-seawayreview.com both jobs and wealth for the entire region,” said Port Director Adolph Ojard. The 2007 season differed from past seasons in that the wind turbine components flowing through the port tripled over 2006, with five shiploads of blades being exported from a plant in North Dakota to Spain— a system first for the reversal of a cargo that’s been coming into the system. “Several were reloaded on ships that brought Spanish wind turbines into the port, en route to southern Minnesota and Iowa,” of more than 728,000 metric tons, from 42,688,373 in 2006 to 43,416,575 in 2007, which nearly mirrors the port’s annual increase in grain exports. The upturn is the fourth consecutive annual increase for the port, with about 84 percent of the cargo representing coal, 43 percent, and iron ore, 41 percent. In the past four years, port tonnage has increased 24 percent. “Our port’s outstanding ability to efficiently handle specialty cargoes and essential bulk commodities continues to produce T H E 2 0 0 7 S E A S O N Ojard said, “not blades, but components.” Other highlights of the season include: • Poor wheat crops in other areas of the world led to a surge in wheat exports, beginning in August. Grain shipments increased by 42 percent, topping out at 2,887,659 metric tons. • Minnesota iron ore was exported to Algeria and China. • Project cargo included specialty mechanical components for

Maritime Editorial