Vol.37 No.2 OCT‑DEC 2008

O C T O B E R – D E C E M B E R 2 0 0 8 Progress in ballast watermanagement  Can-do attitude at Toledo  Shipbuilding capacity tomeet demand V O L U M E 3 7 N U M B E R 2 G LGREAT LAKER The Interlake Steamship Company Interlake Corporate Center 4199 Kinross Lakes Parkway Richfield, Ohio 44286 Telephone: (330) 659-1400 FAX: (330) 659-1445 E-mail: sales@interlake-ISO Certified 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. GREAT LAKES/SEAWAY REVIEW October-December, 2008 1 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 Challenges and opportunities in shipbuilding and repair. Page 37. G L 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 8 Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administrator’s Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Ballast Water Management MAKING PROGRESS . . . . . . . . . . . . . . . . . . . . . . .7 Ballast water management symposium reviews, defines and forecasts ballast management in the Great Lakes. Interview MEET STEVE FISHER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 A personal conversation with the Executive Director of the American Great Lakes Ports Association Planning The Future CHARTING OUR COURSE . . . . . . . . . . . . . . . . . . . . . . . . 17 System stakeholders work together to discuss future opportunities. International THE FINNISH CONNECTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Great Lakes delegates tour the Baltic Sea and find many shared interests. Port Profile: Toledo CAN-DO ENTREPRENEURS . . . . . . . . . . . . . . . . . . . . . . . . 27 Port of Toledo’s partnerships begin with vision, prosper through persistence. Shipbuilding & Ship Repair ANALYSIS: AGENTS OF CHANGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 An examination of the challenges and opportunities Great Lakes maritime commerce faces in a rapidly changing world. INCREASING COMPETITIVENESS, BOOSTING TECHNOLOGICAL INNOVATION . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Manitowoc Marine Group to become Fincantieri Marine Group Holding, Inc. BALLAST-FREE SHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Testing shows potential fuel savings, in addition to solving NIS problem. CAPACITY TOMEET DEMAND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Great Lakes shipbuilding shows excess capacity; ship repair could see an increase. Alternative Fuels SHIPBOARD TESTING OF B20 . . . . . . . . . . . . . . . . . . . . . . . . 55 Initial results reviewed with testing ongoing. Alternative Energy ENERGY AS CARGO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Wind energy and biodiesel bring new cargo to system ports. Great Lakes People QUEEN OF THE NORTH . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Todd and Brad Reed publish a rare collection of Ludington State Park photos. Shipwrecks 50 YEARS OF REMEMBERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Carl D. Bradley’s sinking revisited by sole survivor. Marine Photography TWO HARBORS’ LIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . 74 Enjoying the lighthouse and pier light from land and sea at Two Harbors, Minnesota. Lake Boat&Lighthouse News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 GREAT LAKER D E P A R T M E N T S D E P A R T M E N T S Port of Toledo targets new projects, beyond cargo movement. Page 27. Remembering the Carl D. Bradley at 50 years. Page 69. 2 www.greatlakes-seawayreview.com P U B L I SHE 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 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; 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, Former National Executive Vice President, American Maritime Officers; Rep. Bart Stupak,Member of Congress, 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, Michigan 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. OCTOBER-DECEMBER, 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 37 NUMBER 2 Great Lakes/Seaway Review Cover: Perspective from the pilothouse aboard the Wilfred Sykes. Photo by Roger LeLievre. Great Laker Cover: Big Sable Lighthouse at Ludington, Michigan. Photo by Brad Reed. 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 Preparing a commemorative issue As the system prepares to celebrate the 50th anniversary of the opening of St. Lawrence Seaway, Great Lakes/Seaway Review is planning a special commemorative edition. The January-March, 2009 edition of Great Lakes/Seaway Review will be a collector’s item like few others, containing important historic information, a timeline of the system’s most significant moments and expert comments on the future and how to best maximize the system’s potential. . Great Lakes Compact becomes law President George W. Bush has signed theGreat Lakes-St. Lawrence River BasinWater Resources Compact into law. The compact is an eight-statewatermanagement pact that protects the Great Lakes from depletion and diversions. Together with companion laws in the Canadian provinces of Ontario and Quebec, the compact stresses conservation and establishes firstof- its-kind standards. Before winning approval from the U.S. House of Representatives in September and the U.S. Senate in August, the compact was approved by the legislatures of the Great Lakes states:Minnesota,Wisconsin, Illinois, Michigan, Indiana, Ohio, New York and Pennsylvania. Work on the compact began 10 years ago when the Great Lakes governors convened a bi-national task force and advisory committee to respond to the threat of water diversions to Asia. . Daniel McCormick passes Daniel C. McCormick, Great Lakes author and marine historian, diedOctober 29.Hewas 81.He coauthored, with Skip Gillam, the recently released book “Pre-Seaway Salties 1850-1958” and was named Historian of the Year by the Marine Historical Society of Detroit in 1981. Amemorial servicewas held recently at the Sacred Heart church on Main Street in Massena, New York for friends and family. . G R E A T L A K E S / S T . L A W R E N C E S E A W A Y GREAT LAKES/SEAWAY REVIEW October-December, 2008 3 Cleveland-Cliffs undergoes changes Cleveland-Cliffs has become Cliffs Natural Resources Inc. The name change was made to reflect the company’s evolving business plan and acquisition of other companies. In 2000, Cliffs’ began to diversify into other raw materials, including types of coal used in steel-making. To reflect the change, the company has a new corporate logo that suggests a cliff and its reflection in water. The international mining company’s ticker symbol will continue to be CLF. “Our company has entered a new era, characterized by global expansion and mineral diversification,” said Joseph A. Carrabba, Chairman, President and Chief Executive Officer. “Today, in addition to our North American mining ventures, we operate in Latin America and Australia, and sell into Asian and European markets. We believe the new corporate brand more accurately reflects the scope and diversity of our current operations and strategic direction while, at the same time, honors our over 160-year heritage in service to the steelmaking industry.” Prior to the name change, Cliffs’ shareholders rejected an attempt by Harbinger Capital Partners to increase its 15 percent stake in Cliffs. As a result, Cliffs adopted a shareholder rights plan that protects against unwanted takeover bids. The plan gives shareholders the right to buy discounted shares when an investor acquires 10 percent or more of the stock. An investor that already owns at least 10 percent and increases its holdings will also trigger the plan. Cliffs Natural Resources Inc. will continue to be headquartered in Cleveland, Ohio and has moved its offices to 200 Public Square. The recent acquisition of Alpha Natural Resources brings the company’s employee total to about 8,900 worldwide. . Melford receives green light for construction Melford International Terminal Inc. (MITI) has been given the environmental approval that clears the way for construction of the container terminal, intermodal rail facility and logistics park at the Strait of Canso. “People in the global shipping and transportation industry understand the significance of this regulatory approval,” said Hugh B. Lynch, Chairman of MITI. “It shows that we have done our homework; it triggers an exciting next stage for this project and gives us tremendous momentum.” With regulatory approval in hand, MITI will formally purchase the land, secure a building permit and finalize operator and rail service agreements. At the same time, MITI will establish construction timelines, complete detailed design and continue the worldwide marketing campaign for the project. MITI CEO Robert Stevens said, “The Melford project is a private-sector initiative that is a modern reflection of the global trading economy and, while the current state of upheaval in world financial markets has created uncertainty, it has not changed the viability of the project. “The bottom line is that our partners and others in the industry agree this project makes sense now and in the years to come.” Today’s economic challenge reinforces that the shipping and transportation industry needs what Melford has to offer: reduced costs, greater efficiencies, enhanced security and reduced environmental impact in a container terminal operation. MITI is developing a 315- acre deep-water container terminal, intermodal rail facility and 1500-acre logistics park. Melford will be the closest North American deepwater mainland port to Europe, Asia and the Indian Subcontinent, via the Suez Canal. . A transformer, weighing nearly 294 tons was loaded onto a 114-tire trailer recently at the Port of Oswego. Four transformers came from a company called Arvea, which has its headquarters in Turkey. The units themselves were manufactured in Brazil and were transported to Oswego on the BBC Europe. Two of the transformers were destined for Entergy Nuclear in Lycoming and the other two were transported to New Hampshire. DATELINE 4 www.greatlakes-seawayreview.com D A T E L I N E STAR Center closes in Toledo The union representing licensed ship officers has closed its Toledo training center and moved all classes to a similar facility in Florida. October 4 was the last day of courses at the AmericanMaritime Officers’ Simulation, Training Assessment, and Research (STAR) Center in the union’s Great Lakes headquarters on the Maumee River. The STAR Center facility included a ship’s bridge simulator, engine room simulator, radar room, Global Marine Distress Safety System room and multipurpose classrooms. . Pulp mill plans floating dock on Lake Superior To accommodate pulp from its new Terrace Bay mill on Lake Superior—which is expected to be operating in the spring— Buchanan Forest Products plans to build a floating commercial dock on Lake Superior. The company took over the Terrace Bay mill from U.S.-based Neenah Paper two years ago. It plans to use the dock to transport pulp to U.S. customers along the Great Lakes. The mill produces about 1,000 metric tons of pulp a day and employs 420 people. The proposed floating dock needs approval by the U.S. Department of Fisheries and Oceans and Ontario’s Ministry of Natural Resources. Transporting the pulp by barge will save the company money on trucking costs. The company-owned barge can carry about 5,000 metric tons of pulp per load and is towed or pushed by a tug. The dock is the first phase of a two-part project that will include a breakwall. . Maritime Administration funds invasive species research The U.S. Department of Transportation’s Maritime Administration has awarded a $350,000 contract to the Northwest-Midwest Institute’s Great Ships Initiative to develop protocols for ballast water discharge sampling. Standardized ballast discharge sampling protocols are fundamental to verifying that ballast water treatment technology is effective aboard a working ship, as well as in the laboratory. The contract is for targeted, empirical, engineering and biological research to design and validate a ballast sampling method that is reliable, replicable and costeffective for both the ship owner and the regulatory community. The contract follows a cooperative program in Chesapeake Bay, for which the Maritime Administration provided vessels to test treatment technologies and previous support for the Great Ships Initiative to construct a ballast treatment testing facility in Duluth- Superior Harbor of Lake Superior. . February 25-26, 2009 InterContinental Suites Hotel CLEVELAND, OHIO INCLUDING REGISTER ONLINE AT WWW.MARINECOMMUNITYDAY.COM or contact: Great Lakes/Seaway Review 800-491-1760 • tburch@harborhouse.com Charting our Course Marine Community Day Upper Lakes dredging for 2009 The U.S. Army Corps of Engineers, Detroit District, plans in 2009 to award contracts for a dozen maintenance dredging projects for rivers and harbors inMichigan,Wisconsin and Minnesota. “The fiscal year 2009 dredging program represents a significant reduction from our efforts in fiscal year 2008. However, we still feel that we can maintain minimum functional channel requirements across the Great Lakes system,” saidWayne Schloop, Chief of Operations for the Detroit District. In 2008, the Detroit District awarded contracts to dredge 39 projects, with some a direct result of the Congressional Omnibus Appropriations Bill which provided for a more comprehensive dredging program. The Corps’ 2009 dredging projects for the Upper Great Lakes are: the Detroit River, Grand Haven, Holland, Ludington, Monroe, Ontonagon, Rouge River, Saginaw, and St. Joseph in Michigan; Duluth-Superior in Minnesota and Wisconsin; and Green Bay,Wisconsin. . REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW October-December, 2008 5 Essar Steel Algoma plans to double capacity Essar Steel Algoma is preparing to nearly double steel-making capacity by the end of next year,which includes building a newdockface to accommodate hundredsmore vessels. With the No. 6 blast furnace now running alongside No. 7, Essar has made way to ship out four million tons of finished coil and slab by the close of 2009. That means bringing in that much more raw material. Essar currently imports 4.5 to 4.6 million tons of iron ore pellets a year and 1.6 to 1.7 million tons of coal. Next year’s capacity will increase that to about 5.7 million tons of iron ore and 2.3 million tons of coal. . Lake Carriers’ office relocates The new contact information for the Lake Carriers’ Association is: Lake Carriers’ Association, Suite 720, 20325 Center Ridge Road, Rocky River, OH 44116; with the telephone number being (440) 333-9996. . Canadian government funds short sea projects The Canadian government is investing $20.9 million in federal funding under the Asia Pacific Gateway and Corridor Initiative Transportation Infrastructure Fund for five short sea shipping projects and two road projects in British Columbia’s Lower Mainland. This funding is part of a potential $43.5 million joint investment with private sector transportation service providers and municipalities in the region. “By investing in short sea shipping infrastructure projects for the first time, the federal government is demonstrating its support for short sea shipping as a way of optimizing the use of the transportation system for the movement of goods,” said Lawrence Cannon, Minister of Transport, Infrastructure and Communities. “Better use of our waterways through short sea shipping can help alleviate congestion, facilitate trade, reduce greenhouse gas emissions and increase overall transportation efficiency.” . Raitt appointed Minister of Natural Resources Former President and CEO of the Toronto Port Authority, Lisa Raitt, has been elected to Parliament and appointed Minister of Natural Resources by Right Honorable Stephan Harper. She was also elected chair of the Association of Canadian Port Authorities recently. Raitt took unpaid leave from the port authority to seek public office in September. At that time, Alan Paul, VP&CFOof the Toronto Port Authority was appointed acting CEO. . DECEMBER 5 74th Grunt Club Annual Dinner Montreal Bonaventure Hilton Hotel Montreal, Quebec Daniel Dagenais, (514) 283-7026 or blanchettej@port-montreal.com 2009 JANUARY 14-16 2009 Industry Days, Holiday Inn Traverse City, Michigan Capt. Jack Cork, (906) 632-3891 15 Chamber ofMarine Commerce AnnualMeeting Royal York Hotel, Toronto, Ontario Linda Jeannotte, (613) 233-8779, ext. 4 or ljeannotte@cmc-ccm.com 27-28 Maritime & Port Security Conference & Expo Crystal Gateway, Arlington, Virginia (703) 920-3230 or marinelog.com FEBRUARY 24-25 Great Lakes Day, Washington, D.C. Tim Eder, teder@glc.org 25-26 Marine Community Day/Admiral’s Dinner InterContinental Hotel, Cleveland, Ohio Tina Burch, (800) 491-1760 or tburch@harborhouse.com www.marinecommunityday.com 26-27 Great Lakes/Great Rivers Section SNAME Winter Section, Cleveland, Ohio al.horsmon@gurit.us Say that three times fast. It may not roll off your tongue like wheeled cargo from a ro-ro vessel, but industry experts are talking about the super shipping city of Duluth, Minnesota. The Port of Duluth is the most westerly inland port on the Great Lakes and gateway to the North American heartland. We’re uniquely positioned to handle all of your shipping needs. Contact us today. Our advantages may leave you tongue-tied. “super shipping city super shipping city super shipping city…” 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 Lisa Raitt Clean Machine Continually seeking to leave as few ripples as possible, the Fednav Group is dedicated to promoting environmentally responsible shipping practices. www.fednav.com podium. Seiger, an attorney, shed light on federal efforts to minimize the risks of spreading invasive species through maritime activities. Oberstar chairs the Committee on Transportation and Infrastructure. “The International Maritime Organization’s (IMO) 2004 standards took Capitol Hill by surprise,” Seiger said, noting that it was remarkable that the world community could agree.Many inWashington, D.C. were startled when the proposed U.S. standards were more strict than the IMO’s and when California,Michigan andMinnesota crafted their own initiatives. Seiger reported that the difficulties regarding federal regulation of ballast water are twofold. First, ambiguity surrounds which agency should be responsible for enforcing the laws. The Environmental Protection Agency is accountable under the CleanWater Act, but the U.S. Coast Guard also has jurisdiction under the National Invasive Species Act. Second, some senators are concerned that caveats in the CleanWater Act could allow nonproductive lawsuits. The federal government wants to ensure that this loophole is closed. Nicole Dobroski, Environmental Scientist with the California State Lands Commission, said, “Ballast water exchange, although better than nothing, is not as effective as we might wish. However, in our evaluations, we found that out of 30 treatment systems, only one might meet state standards.” Dobroski suggested that more treatment systems might pass efficacy tests by the time the performance standards begin to be enforced in 2010. She noted that no systemreliably dealt with viruses. The revised California report became available in late November. Sarah Bailey, Research Scientist with Fisheries and Oceans Canada, made a data-rich presentation. Her research, which is soon to be published, focused on the spread of organisms through ballast water carried by the Great Lakes fleet. Of the 74 taxa that Bailey identified in ballast samples, seven were known invasive species; 90 percent of the ballast water samples examined contained at least one of these invaders. Lakersmove about 70millionmetric tons of ballast water among Great Lakes ports annually. The results of the three-year investigation generated some compelling arguments for lakers’ needs to keep improving ballasting practices. Noting that saltwater flushing, although not perfect, is reasonably effective, Bailey suggested that it is time to reevaluate the risk other vectors pose for aquatic invasive species introductions in the Great Lakes.U nique vessels. Jim Weakley, President of the Lake Carriers’ Association, emphasized that jobs are at risk and remarked that outfitting just one laker with ballast water treatment systems could cost up to $18 million due to vessel design issues. He gave a distilled version of B A L L A S T W A T E R M A N A G E M E N T DALE BERGERON Assistant Professor and Extension Educator Maritime Transportation Minnesota Sea Grant Program SHARON MOEN Science Writer Minnesota Sea Grant Program On a blustery day in October,more than 450 people gathered on the westernmost edge of the Great Lakes/St. Lawrence Seaway system in Duluth, Minnesota for a four-day Minnesota Invasive Species conference. The collection of politicians, scientists, citizens, special interest groups, industries and agency staff were awed by advances in common carp research and impressed—maybe even surprised—by the progress being made on managing ballast water discharge. Adolph Ojard, Director of the Duluth Seaway Port Authority, led a four-hour discussion of ballast water management. Richard Stewart, Director of the University ofWisconsin-Superior Transportation and Logistics Research Center, agreed with Ojard’s assessment that North Americans must return to the water to keep freight moving in an era of fuel shortages, carbon footprint concerns and highway gridlock. He emphasized the Seaway’s binational status, reminding the audience that Canadian interests must help direct the strategies used tomanage the Great Lakes and could significantly increase maritime traffic as CanadianWestern and Eastern Transportation Gateway opportunities expand. BradMoore, Commissioner of theMinnesota Pollution Control Agency (MPCA), the entity responsible forMinnesota’s recent ballast water rulemaking, explained the state’s position, remarkable for including lakers in its regulations. “We didn’t want to do a paper exercise on a challenge that clearly requires action,”Moore said. “Lake Superior has only about onethird of the 125 non-native species found in the Great Lakes. Minnesota’s goal is to prevent the ship-mediated spread of invasive species to Lake Superior while supporting a viable shipping industry.We would like to see federal action in this area, but with the lack of this action, we felt we had to move forward as a state. The MPCA is working closely with other Great Lakes states, several of which are poised to enact similar ballast water regulations.” Federal regulation. Ryan Seiger, an envoy for Congressman Jim Oberstar (D-Minnesota) followed Moore at the The audience left with a better grasp of the complexity of the ballast water challenge and a glimpse of the significant efforts that are moving ballast water management and treatment strategies forward. Making progress Ballast water management symposium reviews, defines and forecasts ballast management in the Great Lakes his presentation in one slide: “Federal Legislation Stalled, States Frustrated; The battle to stop more introductions will be won or lost in the ballast tanks of ocean-going vessels.” U.S. lakers are unique vessels and require special consideration in ballast water regulations, Weakley said, noting the unique position of lakers at the center of a $100 billion energy, steel and manufacturing value chain. Weakley shared a timeline showing the continuous improvementsmade to the U.S. fleets’ ballast water management practices since 1993 to slow or stop the spread of AIS within the Great Lakes, with the most recent updatesmade in 2008 to address Viral Hemorrhagic Septicemia, VHS. The symposium concluded with information fromthe Great Ships Initiative (GSI). Allegra Cangelosi, with the Northeast-Midwest Institute and Co-Principal Investigator of the GSI, explained the project’s aims to incubate technology, monitor harbors for invasive species, help defray the enormous costs of putting ballast treatment technologies aboard ships and conduct post-installation studies. Euan Reavie, Research Associate at the University of Minnesota Duluth and GSI affiliate, followed with a question, “Are we killing the algae (and protists) in ballast water?” The answer: “We’re making progress.” The ballast water symposium was organized and facilitated by the staff from the University ofMinnesota Sea Grant Program. The goals were to review, define and forecast themanagement of ballast water in the Great Lakes. The audience left with a better grasp of the complexity of the ballast water challenge and a glimpse of the significant efforts that aremoving ballast water management and treatment forward.  Ballast water rulemaking U.S. Coast Guard completes final-draft requirements During 2008, a flurry of activity concerning ballast water regulation has occurred at both the state and federal levels. The U.S. Coast Guard (USCG), tasked to propose specific standards and rules for ballast water treatment within U.S. waters, has completed its final-draft rulemaking requiring vessels to treat ballast water. The document has been passed to the U.S. Department of Homeland Security for clearance. Part I sets a specific goal or treatment standard and addresses which vessels will be required to maintain the standard. It also specifies a “schedule” for implementation of ballast water treatment options by type, size and age of vessels. Part II addresses ballast water treatment system vendors (those supplying commercial systems to the marketplace). Vessel owners will only be allowed to purchase “approved” ballast water treatment systems, and this section defines those criteria. The rulemaking proposal from the USCG began in 2003. In the process, the USCG was required to complete two complex supporting documents prior to submitting the rulemaking proposal. First, the USCG wrote a detailed evaluation of the potential environmental impacts of the proposed treatment standard. Second, it evaluated the potential costs to the general public for implementation of the rule as proposed. While the rest of the U.S. waits for the final rulemaking to occur, the Great Lakes/St. Lawrence Seaway System is in an enviable situation due to new Seaway-specific regulations concerning ballast water management and exchange. “In concert with the Great Lakes states and the maritime industry, the U.S. Coast Guard strongly endorses the need for adoption of a uniform federal ballast water standard,” said Rear Admiral Peter Neffenger, of the 9th District. “Since 2006, unmanaged ballast water has not entered the Great Lakes system. Before entering the Seaway, all vessels are inspected by a joint U.S. and Canadian team to ensure ballast tank water has been exchanged or flushed with ocean saltwater to expel or kill freshwater organisms that may be present. “Any vessel that fails inspection is ordered out to sea to perform a ballast water exchange; or ballast tanks are sealed for the entire time they are in the Great Lakes. A growing body of science-based evidence indicates that saltwater ballast exchange significantly reduces the risk of freshwater aquatic nuisance species introduction,” he said. The future of ballast water regulation is complicated by rulemakings pending through the International Maritime Organization, the federal legislature, the judicial system, the U.S. Coast Guard, EPA and individual states. Planning for the future remains frustrating for both regulators and vessel owners. However, Neffenger said progress is being made. “Although it appears there will not be a federal ballast water bill this year, the Coast Guard, under existing authority, has completed a draft rule and supporting environmental and economic impact evaluations that are under final review within the federal government,” he said. B A L L A S T W A T E R M A N A G E M E N T From left: Ryan Seiger, Brad Moore, Richard Stewart and Adolph Ojard answer questions at the Ballast Water Symposium held in conjunction with the Minnesota Invasive Species Conference in Duluth. While the rest of the U.S. waits for the final rulemaking to occur, the Great Lakes/St. Lawrence Seaway system is in an enviable situation due to new Seaway-specific regulations concerning ballast water management and exchange. The Port of Cleveland… More Than aWorkingWaterfront 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, 2008 11 I N T E R V I E W Great Lakes/Seaway Review: You went to college at… Fisher: Ball State University. Actually, I first went to Indiana University, but during my freshman year I decided I wanted to study architecture. Ball State was the only state school in Indiana that offered architecture and my parents weren’t prepared to pay for a private school, so I transferred there. I was there for five years and got two degrees, one in urban planning and one in architecture. Great Lakes/Seaway Review: That’s worked out well, hasn’t it? Fisher: Oh, yeah. The day I graduated, I told my mom and dad, “I’m moving to Washington to get into politics.” I can’t tell you how alarmed they were. For my mother, talking with her friends, it had become, “My son, the architect.” So after they had just spent a fortune on my education, it threw them for a loop. Imoved to D.C. and slept on a fraternity brother’s sofa for eight months and did odd jobs while I looked for work. Being from Indiana, I tried to get a job in one of the Indiana legislator’s offices. I eventually landed as an intern, a volunteer position, with Senator Dan Quayle. Great Lakes/Seaway Review:What year was that? Fisher: 1984. Reagan was running for his second term. The economy was doing well, we had just come out of a recession, there were public concerts all over the city, flags waving fromevery building, bands marching. I rememberWashington as being very starspangled. Coming there new and fresh, it was all exciting. One of my jobs was to play chauffeur for Dan and Marilyn Quayle for the inaugural balls in January 1985. It was a non-paying job, so I was also working for a catering company, passing around hors d’oeuvres at all these fancy balls. I didn’t know much about anything, but it was thrilling. My strategy as an intern was to show up every day, be responsible, get my foot in the door. And it worked.When someone left a paid position on Quayle’s staff in ‘85, they offered me the job. I Great Lakes/Seaway Review: You were raised in Indiana, right? Fisher: I was born in Chicago, butmy parents moved to Indiana when I was five— Munster, Indiana, about 35 miles southeast of Chicago and a traditional American suburb, solidlymiddle class. It was the ‘70s, back when you could have a job in a steel mill or inmanufacturing andmake a good life. A lot of our neighbors were steelworkers. It seemed nearly everybody had boats on trailers and little lake cottages downstate. Great Lakes/Seaway Review: But you were really part of greater Chicago. Fisher: Very much so. When you wanted to do something on weekends—a jazz club, for example—you went to Chicago, only a half-hour to downtown. Great Lakes/Seaway Review: What did your father and mother do? Fisher:My father is amechanical engineer. We moved to Indiana when he got a job designing rail cars for a company thatmanufactured them. He later worked for other companies and then became president of a firm that made baling machines, the kind that crushes waste products into cubes. I worked there summers when I was in college, running a drill press. My mother was a homemaker in the traditional sense until one day in the mid-’70s when she came home and announced she had discovered women’s lib. She lined us all up (my two brothers, my dad and me) and said, “I’m done cooking for you, I’m done cleaning for you, I’m done doing your laundry—you’re on your own.” We didn’t know anything about washing clothes or cooking, so for awhile our whites turned pink and blue and we were eating TV dinners. I remember a lot of boxes filled with frozen chicken you’d heat up in the oven. But slowly we learned to fend for ourselves. Mymombecame active in civil rights. She eventually took a job in the neighboring city of Hammond, running the human rights commission. Later, though, she left that job and became assistant to the president of a private hospital in South Chicago until she and my dad retired about 10 years ago. Meet Steve Fisher A personal conversation with the Executive Director of the American Great Lakes Ports Association After 15 years as executive director of the American Great Lakes Ports Association (AGLP), Steve Fisher’s name is widely known. He’s often quoted in regional newspapers and the trade press, he’s a frequent speaker at U.S. and Canadianmaritime events and he’s on a first-name basis with many Great Lakes political leaders inWashington, D.C. But because his role as either advocate or opponent directs the spotlight away from himself onto the issue of the day, relatively little is known about Steve Fisher or just what it is he does inWashington, D.C. In a recent conversation with retired Duluth Port Director Davis Helberg, Fisher talked about his formative years and about his job as spokesman for the U.S. Great Lakes ports. Steve Fisher, Executive Director of the American Great Lakes Ports Association men’s Association]. They were trying to get some U.S.-flag cargo preference for Burns Harbor. I dived in, started learning and tried to help as best I could. Great Lakes/Seaway Review: So you stayed with Quayle until… Fisher: Until ‘88, through the vice presidency. That was the experience where I grew up the most. Dan Quayle was a nice guy and a competent senator, but he was fairly unknown and his selection by George [H.W.] Bush came out of the blue during the Republican Convention in New Orleans. The announcement came at about 2:30 p.m. one day with only a handful of us in the office because the rest of the staff was at the convention. Within an hour, we had an army of reporters fromevery corner of the world demanding, begging for, anything we could give them. It was mayhem and chaos.We couldn’t reach our bosses in New Orleans because they were going through the same thing. The Capitol Police had to try to keep the mob from storming our offices. We left the office at about 10:30 p.m., drained and bedraggled, and we went to a restaurant and just sat there, leaning, nobody saying a word.We looked like we’d just been trampled down.We couldn’t believe what had just happened. From then on, it was frustrating as we watched Quayle just get eviscerated by the media. But they won and Quayle went to theWhite House and I thought, “Boy, what an opportunity has just fallen intomy lap.” But then, except for a few secretaries, none of our staff was allowed to come to the White House, and that’s when I grew up. I remember this feeling of tremendous betrayal. We were all put out into the street, so to speak, adrift. Then, by coincidence, Senator [Richard] Lugar, the other senator from Indiana, had someone leave whose job was exactly the same asmine, and they asked if I’d be willing to come over there. I knew all the players and I knew the job (and I also had to pay my bills), so I made a completely horizontalmove. I really enjoyed working there and stayed for six years, from1988 to 1994. Great Lakes/Seaway Review: You got acquainted with a lot of Great Lakes people during those years and you were hired by the American Great Lakes Ports in 1994 when Lew Gulick retired. Now, after all this time representing the AGLP, do you feel you’re representing the ports or the Great Lakes maritime industry? Fisher: I represent the ports. This industry has so many players, and they’re all so concerned about expressing their own views, I’ve learned to be very careful about that. 12 www.greatlakes-seawayreview.com Great Lakes/Seaway Review:How far did you go in Senator Quayle’s office? Fisher: I went one step higher, legislative assistant. It’s really the main body of staff in any congressional office and you’re sort of a policy analyst assigned to a topic or group of topics. I was assigned to transportation and environment, to replace the person who had left. My first week in that role, the first two guys in the door were Jim Hartung, then the Port Director in Burns Harbor, and Ray Sierra of the ILA [International Longshorewas a legislative correspondent, essentially answering the mail. The good thing about that job was I learned how to write. One of my greatest criticisms of a college education has been that people graduate without knowing how to write.My degree said I knew how to design a building, but I couldn’t write a letter. My immediate boss was an absolute stickler for sentence structure, punctuation, grammar, spelling, and she patiently taught me. It’s one of the most valuable skills I’ve learned. I N T E R V I E W Polsteam USA Inc. 17 Battery Place, Suite 907 New York, NY 10004 Phone: 212 422 0182 E-mail: polsteamusa@polsteamusa.com Polska Zegluga Morska P O L S T E A M In Bulk Cargo Transportation since 1951 WWW.POLSTEAM.COM.PL I’ll go even further: I don’t represent the ports, I represent the public port authorities. There are about 75 harbors on the U.S. side of the Great Lakes and we have 12 members in our group.Within each of our ports, there are other actors who are often quick to point out that they speak for themselves. In fact, most of the port authorities own ormanage only a fraction of the property within their ports. Great Lakes/Seaway Reveiw: That’s an interesting distinction. Don’t the port authorities serve as the public voices for each port? Fisher: In some cases, yes, in others, no. In spirit, when I talk to congressional or committee staff, I represent a view that would be good for the ports. If we’re working on more funding for dredging—and you can look at the position papers on our website [www.greatlakesports.org]—we say we need more dredging funds and here’s a list of the harbors where the need is particularly acute. There are a number of non- AGLP ports listed.Why? Because we’re an integrated shipping system and the reality is that we’re going to advocate for the system. So when people ask, I’m clear about who I represent but in spirit, our work— whether it’s dredging money or environmental issues or short sea shipping, whatever—is intended for the greater good. Great Lakes/Seaway Review: It’s always surprising, and disappointing, to realize how many people don’t understand that this is a binational system. How do you work with the Canadian side? Fisher:We have different structures. In the U.S., the ports are organized and the lake carriers are organized in terms of public policy advocacy. Sometimes the maritime unions also speak up on systemissues, but they focus mainly on union issues.We also have the Great Lakes Maritime Task Force, but it’s a non-staffed coalition so Jim Weakley and Glen Nekvasil [Lake Carrier’s Association President and Vice President Communications] spend time on it, I spend time on it and so do others. On the Canadian side, the Chamber of Maritime Commerce has the leadership role as an umbrella group for the ports, carriers, grain companies, steel companies, shipyards and so on. It’s well-staffed and works closely with the Canadian Shipowners’ Association and is the voice in Ottawa. I’m on the phone all the time with Ray Johnston [CMC President].We coordinate very closely. That’s how we advance issues on both sides. Great Lakes/Seaway Review:Howmuch of your time is spent with elected officials compared with the various federal agencies? Fisher: There’s a third component and that’s the other stakeholders, other interest groups: the Lake Carriers’, the Great Lakes Maritime Task Force, the CMC, the American Association of Port Authorities, the new Green Marine alliance, etc. A lot of time is spent coordinating positions with others to try to build commonality and clout. There’s strength in numbers and you don’t want to purse something alone if you have allies out there. I’d say interacting with legislators is maybe 40 percent of my time, federal agency people another 30 percent and then 30 percent with other organizations. Great Lakes/Seaway Review: And then separately, you have your individualmembers to look after. Fisher: Yes, of course, briefing themembers, getting their input, preparing agendas, showing the flag in the ports. And there’s the usual office work: tax filings, the website, correspondence.We’re a one-man “group” so someone’s got to do it. Great Lakes/Seaway Review: Could somebody do your job if that person were not an optimist? Fisher: I’m actually a pessimist by nature. Great Lakes/Seaway Review: So what gets you up every day? Fisher: I like this stuff. And it’s the people. This industry. There’s a sense of community. I don’t know if it’s true of the maritime industry nationally, but the Lakes area a very specific community. And we’ve all known each other for a long time. You go to a maritime event in Toronto or Cleveland, for example, and there’s a lot of, “Hey, how are you doing?” Even the new people get pulled in. It’s collegial. I like that, I like interacting with everybody.  I’d say interacting with legislators is maybe 40 percent of my time, federal agency people another 30 percent and then 30 percent with other organizations. 14 www.greatlakes-seawayreview.com GREAT LAKES/SEAWAY REVIEW October-December, 2008 15 T H E A D M I N I S T R A T O R ’ S O U T L O O K There have been a number of articles appearing in various publications over the last severalmonths advocating closure of the St. Lawrence Seaway to oceangoing ships as the answer to protecting the Great Lakes against further introduction of ship vectored aquatic invasive species (AIS). This line of reasoning is not only frivolous, but also displays a stunning lack of appreciation for the implications of such a course of action. In order to traverse the Great Lakes Seaway System, ships must pass through a series of 15 locks. Thirteen of these locks are owned by the Government of Canada; two are owned by the U.S. Government. If the U.S. were to use its two locks as instruments to prevent ships from transiting the Seaway, it would essentially be blocking Canadian ships from accessing Canadian ports and transiting Canadian waters. Think about that for amoment. The U.S. would be forcibly depriving a sovereign nation access to its vital transportation assets and in the process destroying the value of billion of dollars of Canadian investment. This would amount to more than just an economic blockade; it would violate the treaties we have with Canada and could irreparably harm or sever our relationship with our friend, ally and largest trading partner. Some would say it would be nothing less than an act of war. Needless to say, taking an action that would undoubtedly sever our relationship with Canada in order to protect the Great Lakes against AIS is beyond rational comprehension. In fact, it is just plain frivolous and absurd. Those who advocate closure of the Seaway have no idea of the implications of their argument, but choose to advance the argument anyway, regardless of how inane the consequences. There is ample evidence in the public realm to dispel the notion that closing the Seaway to traffic is an effective or worthwhile idea. Yet, when rigorous, independently reviewed studies are published that A FAULTY ARGUMENT Closing the Seaway would violate treaties with Canada tank of every oceangoing ship for inspection and salinity level testing in Montreal, before the ships even enter the Seaway and the Great Lakes. It is now a proven fact: for oceangoing vessels entering the Seaway there is nomore uninspected, unmanaged, or untreated ballast water or ballast tanks. Saltwater acts as a natural biocide against freshwater organisms found in ballast water, the kind of organisms that would naturally colonize in the freshwater environment of the Great Lakes. A recent study led by the National Oceanic and Atmospheric Administration and the University ofMichigan examined sediment and residual ballast water contained in ballast tanks that had been flushed with full strength sea water. The study found that this practice is a “highly effective” method for eradicating potential AIS. We can debate how we got to this point, but we cannot do anything about the past, and through new inspections, procedures, regulations and research we are protecting the Great Lakes against invasives. The days of easy introduction of AIS into the Great Lakes through ballast water and ballast tanks of oceangoing vessels are over. The maritime industry is proactively working to find solutions and procedures for protecting the Great Lakes against ship vectored AIS. Suggesting closure of the Seaway is an unhelpful distraction, not only because it is frivolous and impossible to achieve, but also because it suggests to the uninitiated that there is a quick fix for a very complicated problem.  support this fact, those seeking to promote closing the Seaway either ignore such findings, at best, or mischaracterize them at worst. Within the last year, two such studies were published. “The Great Lakes St. Lawrence Seaway Study,” released in November 2007, found that the Great Lakes Seaway System provided shippers over $2.7 billion (U.S.) in annual transportation cost savings. Additionally, the National Academy of Sciences report published in July entitled “Great Lakes Shipping, Trade, and Aquatic Invasive Species,” concluded that closing the Seaway to transoceanic shipping would be a high-risk, low-return endeavor—an “impractical and unsatisfactory compromise.” The response to these two multiyear, multi-million dollar binational studies from organizations advocating Seaway closure is deafening silence. Instead, Seaway closure advocates often cite the “estimate” of $200 million in annual economic harm due to invasives. This socalled “estimate” is based on a seriously flawed analysis and to continue to refer to it as an authoritative finding is shockingly irresponsible. In short, closure will not happen, so it is time to move on to more productive conversation. Those who want to protect the Great Lakes against AIS should focus their attention on the extensive measures that are currently being implemented to do just that. For example, since 2006 it has been a mandatory requirement under Canadian law for all oceangoing ships entering the Seaway bound for Canadian ports to conduct open-ocean saltwater flushing of all their ballast tanks before entering the Seaway. At the start of the 2008 shipping season, the U.S. enacted the same requirement for oceangoing ships bound for U.S. ports. Inspectors from the U.S. and Canadian Seaway Corporations, in partnership with the U.S. Coast Guard, target every COLLISTER “TERRY” JOHNSON, JR. Administrator Saint Lawrence Seaway Development Corporation Those who sail the Great Lakes/St. Lawrence Seaway— and those who are part of moving cargo into and out of America’s heartland—have been using charts for centuries to guide their way. On the eve of the system’s 50th Anniversary, a new kind of chart is being constructed— a mechanism that will serve as a map to the future. As part of the planning process, the second of a series of Visioning Sessions was held in Toledo, Ohio in September—co-hosted by the Toledo-Lucas County Port Authority and Great Lakes/Seaway Review. The attendees used zero-based thinking to guide a brainstorming session addressing change, potential cargo,marketing and green opportunities such as alternative fuels. These topics followed discussion of shipbuilding and ship repair capability, short sea shipping and establishing feeder services from the group’s initial visioning session in June. “We’re looking down at the system from 50,000 feet,” said session facilitator John Vickerman, Founding Principal of Vickerman & Associates, general consulting firm for the Melford International Terminal, among others. “Each of us sees and specializes on a different piece of the elephant. Our job today is to see the elephant in total.” The system’s need to grow is about farmore than its direct users. Transportation facts and projects show that waterborne transportation is a key solution to the land-based congestion occurring in urban areas. For example: • Between 1983 and 2003, total vehicle miles traveled in the U.S. increased by nearly 90 percent. • The U.S. interstate highway system, which comprises just over one percent of the nation’s total miles of roadway, carries nearly 25 percent of all traffic. • In the 10 most congested urban areas, each rush hour traveler “pays” an annual virtual congestion tax of between $850 and $1,600 in lost time and fuel and spends the equivalent of almost eight work days each year stuck in traffic. • International trade will at least double by 2020 and existing landside infrastructure cannot support growth projections. • The U.S. ships only two percent of its domestic freight by water while Europe and China ship 44 and 61 percent, respectively. “We need to start building the future today withmarine highways,” said James Pugh, Director, Marine Highways&Passenger Services Intermodal Systemand Development for the U.S. Maritime Administration (MARAD), noting that between 1983 and 2003, vehicle miles traveled in the U.S. increased nearly 90 percent. “Congestion is costing the U.S. economy $200 billion a year.We can’t expand the infrastructure tomeet the growing congestion. It takes too long, costs toomuch and we haven’tmaintained what we have.” As a result, MARAD has developed a 2008 Marine Highways Program to: • Designate marine highway corridors • Designate marine highway projects • Identify incentives, impediments and solutions to the marine system • Conduct research • Connect shippers with federal funding for vessels in marine highway trade “Marine representatives need to develop better partnerships with the U.S. Department of Transportation, states and municipal governments,” Pugh said. “There are funds available for distribution that you may not know about.” He suggested out-of-the-box thinking regarding freight ferry services, noting the Harbor Maintenance Tax doesn’t automatically make these services uneconomical. Because of growing fuel costs, shippers are beginning to take bids for short sea shipping endeavors that, for years, were automatically shipped on rail or by truck. Increased vessel activity is the element that could increase government attention, which, in turn, could gain the attention of the 14 dif- Vision Statement From the springboard of the Great Lakes/St. Lawrence Seaway system’s 50th Anniversary, stakeholders will envision the next 50 years of sustainably connecting the system’s ports to its future international and domestic markets, tapping the system’s underutilized capacity and unrealized potential for the enhancement of the system, all of its partners and for the benefit of future generations. The creative thinking utilized in this process will not be based upon past successes or failures; there are no limits, only possibilities.  P L A N N I N G T H E F U T U R E GREAT LAKES/SEAWAY REVIEW October-December, 2008 17 This logo has been specially designed to represent the planning process. Charting our course System stakeholders work together to discuss future opportunities 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 ferent federal agencies involved in funding decisions, according to Pugh. “Why can’t wemake a case for a lotmore for a lot less,” said Steve Pfeiffer, Vice President ofMaritime Services for the Cleveland- Cuyahoga County Port Authority, noting that short sea shipping is becomingmore cost-effective as evidenced by recent short-distance shipments of steel aboard barges. Environmentally-friendly progress. In addition to increasing system traffic, topics covered during the session included the growing impact of renewable energy sources on the industry, union’s willingness to evolve with technology and cargo changes and the potential of private-public partnerships. “Ethanol and its alternative fuel cousins are creating dislocation and relocation, new cargoes, routing and markets, new acreage values, new millionaires, new farming and new byproducts,” said JimMcKinstray, General Manager Grain, The Andersons Inc. “Maritime transportation is both a sharply growing user of the fuels and an efficient facilitator of the new markets.” Over the past 10 years, about 100National Oceanic and Atmospheric Administration vessels have been converted to use B100 biodiesel fuel. Of those ships, not one has returned to petroleum-based fuel, according to Dennis Donahue, Marine Superintendent, NOAA Great Lakes Research Laboratory, noting that similar fuel uses should be seen in the shipping industry soon. The alternative fuel costs average about $1 less per gallon than petroleum-based diesel. Biodiesel fuel is currently being tested on cargo vessels for more widespread use. Another transportation improvement being studied is hydraulic hybrid technology for trucks. So far, the cost of the new technology is paying for itself by making the trucks 70 percentmore fuel efficient than the non-hydraulic components. Because of this, the hybrids pay for themselves over time, said Trish Koman, Clean Ports USA Program Manager for the U.S. Environmental Protection Agency’s office of Transportation and Air Quality. Preparing formore boxes. Other examples of the kind of innovation that ismoving the system into its future is ballast-free ship design and the industry’s reception to container cargo, both of which are making the systemadditionally valuable toMidcontinent North America. “We are on the cusp of the development of container shipping on the Great Lakes that will use short sea shipping services to move large volumes of goods to America’s heartland,” said TimDowney, International Trade Specialist for the Saint Lawrence Seaway Development Corporation. “The container revolution started in the 1950s and kicked into gear in the 1970s. We need to be forward looking. The future of the Great Lakes is container shipping. It won’t come overnight, but with persistent attention to working out public- private partnerships, it can happen.” The expansion at Halifax, Prince Rupert and construction of Melford’s new container terminal at the Strait of Canso, among other coastal projects, show themass of containers that are flooding the country. And although container shipping has not been a main cargo type in the system, the method by which goods are being shipped hasmany in the system considering its adoption. Pugh suggested carriers do the research to find out what commodities willmove economically and offer sustainable routes, noting that container traffic is well established in other parts of the world. Great Lakes Feeder Lines is fully invested in its belief that short sea shipping, including port-to-port container service, is an important part of the Seaway’s future. The company has brought the newbuild, Dutch Runner, into the system. The ship has both roll-on/roll-off, lift-on/lift-off capabilities, with container capacity of 221 TEUs and 30 reefer plugs. Great Lakes Feeder Lines plans to expand its fleet to five multi-purpose ships, with future ships able to carry up to 500 TEUs. The focus of the company to date has been to establish a container cargo feeder service between Halifax, Montreal and Toronto. At this time, it is providing unscheduled cargo service between Halifax, Newfoundland and St.-Pierre-Mequelon. Its cargo has ranged from project to container to breakbulk Strategies for growth. Overall strategies for cargo initiatives included continue promotion of the system such as Hwy H2O, trade missions and trade exhibitions; container creativity on tolls, such as the new business incentive in place for the current season by the St. Lawrence Seaway Management Corporation (SLSMC); expanding the definition of domestic cargo and the tolls freeze that’s in place through 2010. “W

Maritime Editorial