Vol.37 No.4 APR‑JUN 2009

A P R I L – J U N E 2 0 0 9 Funding for Navigation Improvements . Ballast Water Management . The 2008 Season . Feeder Line Services V O L U M E 3 7 N U M B E R 4 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 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. GREAT LAKES/SEAWAY REVIEW April-June, 2009 1 A R T I C L E S System Funding CONGRESS APPROVES NAVIGATION INVESTMENTS . . . . . . . . . . . . . . . . . . . . 7 Enhanced funding for a number of programs includes port security, dredging, port development, freight ferries, shipyard improvements, infrastructure, technical research. SPECIAL TREATMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Harbor Maintenance Trust Fund Fairness Coalition presses to protect trust fund for maritime use. INFRASTRUCTURE MONEY FINALLY FLOWING . . . . . . . . . . . . . . . . . . . . . . . 13 Parliament institutes new financing initiatives, public-private partnerships. Interview GETTING READY FOR WHEN THINGS PICK UP . . . . . . . . . . . . . . . . . . 17 Richard Corfe discusses new technologies, customized service, marketing and a look to the future. Short Sea Shipping LAUNCHING SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Feeder lines services running between system ports, to East Coast. The 2008 Season UPS AND DOWNS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 2008 cargo shifts, tonnage totals vary system-wide. Networking MARINE COMMUNITY DAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Kicking off the season with new ideas and a look to the future. Ballast Water Management THE PERILS OF PATCHWORK REGULATION . . . 53 The tightest state legislation becomes defacto bi-national ballast water policy. Maritime Heritage PORT CITIES COLLABORATIVE . . . . . . . . . . . . . . . . . . . . . . . 58 Michigan communities look to maritime heritage to energize economy. Shipboard Operations CARGO SWEEPING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Regulating the discharge of dry cargo residues on the Great Lakes. Tugboats REVISITING THE JOHN PURVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Historic tugboat has become a centerpiece on the Sturgeon Bay waterfront. Shipbuilding THE MERCHANT MARINE ACT OF 2010 . . . . . . . . . . . . . . . . . . . . . . 69 It’s time to collectively address maritime transportation issues. Marine Photography LAKE ERIE COASTAL OHIO TRAIL . . . . . . . . . . . . . . . . . . . 72 Lighthouses, historical sites, natural areas and museums highlight this route. Navigation Services GATHERING INPUT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 National Oceanic Atmospheric Administration updates its strategic plan. Dateline: Great Lakes/St. Lawrence Seaway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Lake Boat & Lighthouse News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 D E P A R T M E N T S A P R I L – J U N E 2 0 0 9 The international transportation magazine of Midcontinent North America The 2008 season saw both ups and downs, cargo shifts. Page 30. Enhanced funding for navigation investments impacts system in U.S. and Canada. Page 7. Maritime heritage is a tool to energize the regional economy. Page 58. G LGREAT LAKER 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 Business and Editorial Office 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 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 Rex Cassidy 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; 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 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 www.greatlaker.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 for $7.50. Article reprints are also available. Reprints and scans 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. © 2009 Harbor House Publishers, Inc., Boyne City, Michigan. All rights reserved. No article or portion of same may be reproduced without written permission of publisher. 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 APRIL-JUNE, 2009 NUMBER 4 Joseph L. Block pulls into Two Harbors ore dock. 2 www.greatlakes-seawayreview.com Photo by Roger LeLievre. 2010 February 10-11 InterContinental Hotel & Conference Center Cleveland, Ohio www.marinecommunityday.com INCLUDING THE ADMIRAL’S DINNER SAVE THE DATE GREAT LAKES/SEAWAY REVIEW April-June, 2009 3 New CEO for Toledo Port Authority The Toledo-Lucas County Port Authority has named Michael J. Stolarczyk President and CEO. “Mike has an impeccable background and brings a new perspective and the cohesive management skills and expertise that our board sought in a new leader,” said William Carroll, port authority Chairman. Stolarczyk was most recently employed as SeniorDirector, Business Development-Americas at Exel Inc., a contract logistics provider in the Americas with more than 500 sites throughout the U.S., Canada and Latin America. He helped create client alliance solutions from warehousing through distribution. The bulk of his career was spent with the A.P. Moller Group (Maersk Shipping Lines), where he served in various positions in the U.S.and spent five years managing operations in Prague. . Higgins named Great Lakes Legislator of the Year Congressman Brian Higgins (D-New York) has been named Great Lakes Legislator of the Year by the Great Lakes Maritime Task Force (GLMTF). Higgins received the award at GLMTF’s 14th Annual Briefing for the Great Lakes Delegation in Washington April 2. . Niemiec said the lock could take eight years to construct, but the timeline will be dependent on annual federal appropriations. The project is estimated to cost $580 million, including what’s already been spent, and the current $17 million. Work for the next fiscal year is expected to include construction of guidewalls and upstream excavation. At least $100 million in work is already planned and will be executed as financing is approved. The Poe Lock will be undergoing upgrading as well over the next six years, part of the Saint Lawrence Seaway Development Corporation’s Asset Renewal Plan. Improvements will include replacement of the lock’s hydraulic system. . (Pictured (left to right): James H. I. Weakley, Lake Carriers’ Association; Kevin P. McMonagle, American Steamship Company; John D. Baker, Jr., Great Lakes District Council-ILA, AFL-CIO; Rep. Higgins; Donald Cree, American Maritime Officers, AFL-CIO and Toledo Port Council, MTD, AFL-CIO; and Noel L. Bassett, American Steamship Company. DATELINE Michael J. Stolarczyk 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 Corps’ Great Lakes stimulus allocation low Of the $4.6 billion in stimulus funding allotted for the U.S. Army Corps of Engineers, the Great Lakes region is receiving about two percent. None of the funding is being used for construction of the new large lock at Sault Ste. Marie, Michigan. “The Corps’ decision defies logic,” said James H.I. Weakley, 1st Vice President of Great Lakes Maritime Task Force and President of Lake Carriers’ Association. “The Great Lakes basin is home to 80 percent of the nation’s steelmaking capacity, 70 percent of its auto plants and 55 percent of all heavy manufacturing, yet we get two percent of the Corps’ stimulus dollars.” The eight Great Lakes states received $94 million as follows: • Illinois – $17.6 million • Indiana – less than $1 million • Michigan – $23 million • New York – $3.9 million • Ohio – $12 million • Wisconsin – $11 million • Pennsylvania and Minnesota received no stimulus funding. Money for the new lock would have come out of the Corps’ $2 billion in stimulus money tagged for construction projects. “The Corps is targeting more short-term projects,” said John Niemeic, Soo Replacement Lock Project Manager. “Even though we didn’t receive stimulus money at this time, if the projects that did receive funding fall behind and can’t make commitments to award contracts, headquarters will be looking for additional projects to fund.”. Breaking ground on the Soo replacement lock On June 30, history will be made in Sault Ste Marie, Michigan. After more than two decades of communicating the need for a second large lock, ground is being broken on the Soo Replacement Lock, as it’s currently being called. Construction will be launched by a $17 million federal appropriation for 2009. In the next few months, two contracts will be awarded: One contract is for $3-4 million to build the steel coffer dams to hold back the St. Marys River at each end of the Sabin Lock to enable water to be displaced. Some $7-8 million will cover dredging and rock removal to 32 feet downstream. The remainder of the money is being used for continued engineering and design, as well as contingencies. Major work is expected to begin following the 4th of July. The new lock is being placed where the Sabin Lock is currently located. Its 110-foot width requires that it be built into some of the 160 feet of earth that currently passes between the Sabin and Davis locks. The Davis Lock will eventually be filled in, according to John Niemiec, Soo Replacement Lock Project Manager for the U.S. Army Corps of Engineers. Neither of the smaller locks—built in 1914 (Davis) and 1919 (Sabin) are in use. For ships using the locks this summer, it will be business as usual, with the MacArthur and Poe locks continuing to be the thoroughfare through the river’s 21- foot drop. D A T E L I N E 4 www.greatlakes-seawayreview.com Innovation Fuels, a New York-based renewable energy company, has purchased a 310,000-barrel (43,000 metric tons) terminal located on 10 acres at the Port of Milwaukee. The facility will be used for the sale and distribution of biodiesel and other renewable fuels into and out of the Midwest. The terminal was originally built as Shell Oil’s Milwaukee headquarters in the 1950s. It includes a 20,000-square-foot warehouse, executive offices and a garage. The site features existing truck and rail infrastructure and international access through the Seaway for Innovation Fuels, which distributes globally. The terminal also has an idle connection to the Westshore petroleum pipeline, which could be used to bring in diesel and gasoline for blending with renewable fuels. . Biodiesel firm comes to Milwaukee port Bautch retires from Maritime Administration Doris J. Bautch, Director of the Maritime Administration’s (MARAD) Great Lakes Gateway Office, retired in April. As head of the Chicago- based office, she was the first woman to lead one of MARAD’s five regional offices. Previously, Bautch served as Chief of MARAD’s Division of Ports in Washington D.C., as well as being selected as the U.S. delegate to the Organization of American Inter-American Committee on Ports. She has directed training in security and management for more than 300 port personnel in the western hemisphere. Bautch joined MARAD in 1989. She was part of the design team that plans Marine Community Day, which is held annually in Cleveland, Ohio. . Doris J. Bautch Desgagnés adds three tankers to fleet Group Desgagnés has acquired three Canadian-flagged double-hull oil and chemical tankers. The ships have been chartered since 1998 from Ultramar by Petro-Nav, a Desgagnés subsidiary, and are operated by Rigel Shipping Canada. Transferring ownership and management of the Diamond Star, Emerald Star and Jade Star represents more than 100 permanent jobs. The vessels are expected to be used for petroleum transportation. The C$45 million transaction adds C$250 million in investments for the company. . Testing of high-tech locks continues Part of the 2009 season involves testing vessels’ ability to stop without using mooring lines in locks 1, 2, 3 and 4 and vessel self-spotting systems at Locks 1 and 2. Last season, the St. Lawrence Seaway Management Corporation (SLSMC) tested a Ed Margosian passes After 50 years with the Saint Lawrence Seaway Development Corporation (SLSDC), Ed Margosian passed away in December. Ed is a Messena native and graduate of Clarkson University in Pottsdam, New York. He served in the U.S. Army before pursuing a career in accounting and financial management. He joined the SLSDC in 1958. Prior to his death, Ed served as SLSDC’s Chief Financial Officer. Under his management, the SLSDC received 45 consecutive clean financial audits. Ed is missed by his peers and people from throughout the Great Lakes/St. Lawrence Seaway system. . REGIONAL CALENDAR REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW April-June, 2009 5 MAY 20-21 Green Tech 2009 Green Marine Annual Conference, Renaissance Toronto Airport Hotel Toronto, Ontario, www.Green-Marine.org JUNE 1-3 SecurePort® 2009 5th Annual Western Hemispheric Port Security Conference and Trade Exhibition The Atheneum Suite Hotel Detroit, Michigan www.secureportamericas.com Raymond Barberesi, (561) 333-3767 House passes icebreaker bill The House has passed the Great Lakes Icebreaker Replacement Act, a $153 million bill authorizing the design, acquisition and construction of a combined buoy tender-icebreaker for the Great Lakes. The vessel is expected to be a sister ship to the Mackinaw. H.R. 1747 was sponsored by Rep. James Oberstar (D-Minnesota) and introduced in March. It passed April 27 and is now before the Senate for consideration. . GLMRI releases annual report The Great Lakes Maritime Research Institute has released its 2008 annual report, including summaries of recent studies, with full access to research findings available on its website, www.glmri.org. The full-color report has been designed to provide broad communication of the institute’s findings. . hands-free mooring system installed at Lock 7 in the Welland Canal. Two critical components in determining future use of the Hands Free Mooring equipment are to test how well vessels can come into lock structures, stop at their final mooring position and hold position within one meter of the lock wall without using mooring lines. Testing began April 21 at Locks 1, 2, 3 and 4 in the Montreal-Lake Ontario Section and will be carried out in two separate phases. In addition to the Stop & Hold testing, the SLSMC is testing operation of newly-installed vessel self-spotting systems at locks 1 and 2. This equipment uses eye-safe laser ranging technology, located at both ends of the lock. Variable message display boards show a qualified vessel the distance between the stem and the stop position, once the vessel is less than 30 meters from its stop position. The lock leader is informing the vessel if it is qualified and if the self-spotting system is operational. . JUNE (CON’T.) 17-19 Great Lakes St. Lawrence Cities Initiative Annual Meeting Delta Hotel, Trois Rivieres, Quebec www.greatlakes-troisrivieres.com 26-27 SLSMC 50th Anniversary Celebration Cornwall, Niagara, Montreal www.greatlakes-seaway.com/ en/seaway50/events.html 30 Soo Replacement Lock Groundbreaking Sault Ste. Marie, Michigan 10 a.m. Open House JULY 9-12 SLSDC 50th Anniversary Celebration Massena, New York www.greatlakes-seaway.com/ en/seaway50/events.html SEPTEMBER 24-25 Great Lakes Maritime Research Institute Fall Meeting, Duluth-Superior www.glmri.org FEBRUARY 10-11 Marine Community Day InterContinental Hotel Cleveland, Ohio www.marinecommunityday.com Duluth-Superior truly became a world port when the St. Lawrence Seaway opened in 1959. This marine highway linked our inland port to the Atlantic Ocean, creating one of our nation’s key trade routes and a cornerstone of this region’s economy and culture. Since opening, the Seaway has moved more than 2.2 billion short tons of cargo – nearly 20 percent through our port alone. Today, we are the #1 port on the Great Lakes, the second largest dry bulk port in the U.S. and a thriving hub for global trade. A lot has changed in 50 years, yet the Great Lakes/St. Lawrence Seaway navigation system remains the safest, most efficient mode of transportation available for moving cargo in and out of North America’s heartland. CELEBRATING 50 YEARS OF SEAWAY SERVICE 218.727.8525 • www.duluthport.com 1200 Port Terminal Drive, Duluth • Minnesota 55802-2609 USA DIVERSITY – FOR US IT’S NATURAL www.lr.org/marine Sea star and golden sea squirt off Irian Jaya, Indonesia – one of the most biologically diverse coral reef systems in the world. Services are provided by members of the Lloyd’s Register Group. Lloyd’s Register is an exempt charity under the UK Charities Act 1993. OUR DIVERSE PORTFOLIO OF ENVIRONMENTAL SERVICES INCLUDES COATING, BALLAST WATER MANAGEMENT AND ANTI-FOULING TECHNOLOGIES. GREAT LAKES/SEAWAY REVIEW April-June, 2009 7 S Y S T E M F U N D I N G face the daunting challenge of distributing the funds quickly, responsibly and broadly to have the maximum positive impact. With all these resources available, how will the Great Lakes St. Lawrence Seaway system benefit? Beyond the obvious advantage of a revitalized economy, Congress has taken steps to specifically invest in the region. These investments will benefit the navigation community for decades to come. American Recovery &Reinvestment Act. The stimulus bill pumps new money into scores of federal programs; however, in response to public criticism, Congress refused to earmark stimulus funds for specific projects. Instead, federal agency managers have been given the task of distributing funds. Because some agencies have already announced grant recipients and others have not, the specific benefit to the Great Lakes region is still unfolding. The maritime industry will benefit from enhanced funding for a number of programs, including those listed below: • Port Security Grants: $150 million— Funds have been provided to the U.S. Department of Homeland Security (DHS) to supplement the Port Security Grant program, which was funded at a level of $388.6 million last year. Although the additional funds are welcome, Great Lakes ports have had difficulty competing for Port Security Grants because the DHS prioritizes large ports for grant assistance. • U.S. Corps of Engineers: $4.6 billion— Funds have been provided to the Corps of Engineers to advance projects such as maintenance dredging, breakwater repair, disposal facility operation, lock and dam maintenance, flood control, environmen- BY STEVE FISHER Executive Director American Great Lakes Ports Association Since the beginning of January, the U.S. Congress has approved almost $1.2 trillion to stimulate the American economy and limit the severity of the current economic recession. While some of this assistance will come in the form of tax relief, the majority—approximately $911 billion—is new spending. These funds were included in two key pieces of legislation, the American Recovery and Reinvestment Act (the stimulus bill), enacted on February 17 and the 2009 Omnibus Appropriations Act, enacted on March 11. Federal agencies, state and local governments now Congress approves navigation investments In 2009 coffer dams will be built at the Soo. Enhanced funding for a number of programs includes port security, dredging, port development, freight ferries, shipyard improvements, infrastructure, technical research 8 www.greatlakes-seawayreview.com Performing for the Future Michael Caliendo Vice President –Transportation Group (231) 728.2226, Ext. 243 Stanley Andrie President (231) 728.2226, Ext. 227 P.O. Box 1548, Muskegon, MI 49443 Fax 231.726.6747 www.andrie.com tal restoration, etc. Of the total amount provided by Congress, $2 billion is to be spent on construction projects and $2.07 billion on operation and maintenance projects at deep draft harbors. On April 28, the Corps announced that 27 Great Lakes navigation projects would receive a total of $72 million in operation and maintenance funds. These dollars will help reduce the $200 million dredging backlog in the Great Lakes. Of the $938 million directed to maintenance of navigation projects throughout the nation, the Great Lakes region received seven percent of the total. Industry leaders were dismayed to learn that the Corps committed no economic stimulus funds to begin construction on the new large lock at Sault Ste. Marie, Michigan. The lock project is “shovel ready” and would have provided badly needed jobs in the state with the highest unemployment in the nation. • Surface Transportation Discretionary Grants: $1.5 billion—Funds have been provided to the Secretary of Transportation to distribute, at his discretion, for a variety of transportation-related projects, including port development projects. The Secretary is to publish an application procedure within three months, receive applications within six months and award grants within one year. Grants may not be smaller than $20 million and no larger than $300 million. No non-federal cost sharing is required. • Ferry Boat Discretionary Program: $60 million—Funds have been provided to the Federal Highway Administration to supplement the Ferry Boat Discretionary Program. Created by Congress in 1991, the Ferry Boat Discretionary Program provides grants for up to 80 percent of costs associated with capital expenditures for the construction of ferry boats and ferry terminal facilities. This program has been beneficial to several Great Lakes ports in the past and can be utilized to help establish new freight ferry services. • Small Shipyard Assistance Program: $100 million—Funds have been provided to the Maritime Administration to supplement the Small Shipyards Grant Program. This program was created in 2008 to help fund shipyard capital improvements and technical training. The program was originally funded at a level of $10 million. Grants require a 25 percent non-federal cost share from the shipyard owner. The Maritime Administration has already solicited grant applications. 2009 Omnibus Appropriations Act. Although we applaud Congress for making the previously described funds available to the marine transportation sector, the tangible benefit to our region is still unfolding. Federal agencies will exercise broad discretion in distributing funds and regional interests will have to compete with others from across the U.S. This is not the case with regard to funding contained in the 2009 Omnibus Appropriations Act. Despite considerable criticism, Congress included more than 8,000 specific earmarks in the legislation. These include funding for a number of Great Lakes priorities, including: • Harbor Dredging & System Maintenance: $72.8 million—Funds have been provided to the Army Corps of Engineers for maintenance dredging of 37 commercial harbors in the Great Lakes region, dredging of Great Lakes connecting channels, repair of breakwaters and construction of confined disposal facilities. • Soo Lock Complex: $47 million—By far, the most significant accomplishment for the navigation community in the 2009 budget is Congress’ investment in the Soo S Y S T E M F U N D I N G GREAT LAKES/SEAWAY REVIEW April-June, 2009 9 Lock complex at Sault Ste. Marie, Michigan. The Omnibus Appropriations Act includes $30 million for operation and maintenance of this gateway connecting Lake Superior to the Lower Lakes. Of this amount, $11 million will be utilized for on ongoing project to rehabilitate the Poe and MacArthur Locks. Last September, the Poe Lock failed for several hours, highlighting the consequences of inaction. Equally important, Congress took the critical step of providing $17 million in first-year funding to initiate construction of a new large lock at Sault Ste Marie. This $341 million project represents the first major reinvestment in the Great Lakes navigation system since the late 1960s. • Great Ships Initiative: $950,000—Funds have been provided to the University of Wisconsin-Superior in support of ballast water treatment technology research and testing at the Great Ships Initiative (GSI). Launched in 2006, GSI is a collaboration between the maritime industry, academia, environmental organizations, as well as federal, state and local governments. The project is managed by the Northeast Midwest Institute. GSI operates the only freshwater ballast treatment test facility in the world, located in Duluth-Superior Harbor. Congressman Dave Obey (D-Wisconsin) was influential in the funding approval through his support of the Great Ships Initiative and efforts to resolve the aquatic nuisance species problem. • Great Lakes Maritime Research Institute: $950,000—Funds have been provided to continue the work of the Great Lakes Maritime Research Institute (GLMRI). The Institute is a consortium of the University of Wisconsin-Superior and the University of Minnesota Duluth. Creation of the GLMRI was mandated by Congress in 2004 as a means of stimulating commerce and addressing technical and environmental challenges. Since its creation, GLMRI has collaborated with 10 other universities throughout the Great Lakes region to execute more than 40 projects. • Seaway Asset Renewal Program: $17.5 million—Funds have been provided within the Saint Lawrence Seaway Development Corporation’s budget for the first year of a 10-year project to modernize the infrastructure of the U.S. portion of the St. Lawrence Seaway. Congress authorized rehabilitation of the U.S. portions of the Seaway in the Water Resources Development Act of 2007. The 10-year effort will include 50 separate projects to help ensure the system’s reliability and safety. These investments demonstrate a continued commitment to the Great Lakes navigation system from the U.S. federal government. They are the consequence of strong advocacy from our Congressional delegation. Most important, they are a reflection of the good work being done by system stakeholders to clearly and effectively articulate our needs. . S Y S T E M F U N D I N G With the March signing of the omnibus appropriations bill to fund the federal government for the remainder of 2009, implementation of the Saint Lawrence Seaway Development Corporation’s (SLSDC) Asset Renewal Plan (ARP) is underway. The bill includes $31.8 million for the Seaway, just over $17 million of which is allocated for 17 projects in the ARP. Funding at this level is unprecedented in the 49-year history of the Seaway. The ARP calls for renewing the infrastructure so that when the program is complete, the transportation assets entrusted to the SLSDC will be as good as new. It also supports the engineering consideration included in the bi-national Great Lakes St. Lawrence Seaway Study, published in late 2007. “After 50 years of continuous use, the U.S. Seaway infrastructure needs significant capital investment,” said SLSDC Administrator Collister “Terry” Johnson, Jr. “By enacting this law, President Obama and the U.S. Congress have recognized the vital importance of the St. Lawrence Seaway to the North American continent.” The ARP is a 10-year, $165 million project that consists of 50 infrastructure improvements that range from upgrading operation of the two U.S. locks to modernizing the Seaway’s trucks, fences, buildings and roads. The following projects are funded in the 2009 omnibus appropriations: • Snell Lock – replacing fendering downstream of the guidewall extension, $300,000 • Both U.S. locks – Rehabilitate downstream of the miter gates, $1.5 million – Rehabilitate mooring buttons, pins and concrete along guidewalls and guardwalls, $250,000 – Culvert valve machinery, upgrade to hydraulic operation, $2 million – Rehabilitate and insulate winter maintenance lock covers, $250,000 – Culvert valves, replace with singe skin valves, $600,000 – Upgrade power supply infrastructure from Moses-Saunders Dam to both locks and adjacent facilities, $75,000 • Seaway system – Upgrade GPS/AIS/TMS technologies, $100,000 • Navigational dredging – Dredge U.S. sectors to maintain design grade and dispose of sediments, $5 million • Seaway International Bridge – Perform structural rehabilitation and corrosion prevention, $2 million • Floating navigational aids – Replace, $60,000 • Corporation equipment – Replace heavy and light equipment, maintenance vehicles and ship equipment, $1.75 million – Upgrade/replace floating plant, $2 million • Corporation facilities – Replace roofs, $50,000 – Replace paving and drainage infrastructure, $950,000 • Fixed navigational aides – Rehabilitate, $100,000 • Eisenhower Lock – Rehabilitate the highway tunnel, $250,000 For 2009, the full funding for the above projects was granted. And prior to passage, the staff was involved in educating legislatures and the new administration on the system’s value and needs. “It’s a leap to go from about $2 million a year to eight times that,” Johnson said. “We’ve been spending quite a bit of time planning the steps that can now be taken.” This is the first time in the Seaway’s history that a coordinated effort to repair and modernize the U.S. Seaway infrastructure has taken place. It is complementing the technological upgrades that are being made in the Canadian portion of system. The ARP is kicking off on the system’s 50th Anniversary and has been designed to prepare the Seaway for its next 50 years of operation. . Improving infrastructure Coordinated repair and modernization of U.S. Seaway underway Funds have been provided to the Army Corps of Engineers for maintenance dredging of 37 commercial harbors in the Great Lakes region, dredging of Great Lakes connecting channels, repair of breakwaters and construction of confined disposal facilities. 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 GREAT LAKES/SEAWAY REVIEW April-June, 2009 11 S Y S T E M F U N D I N G annually released for the intended purpose. In a typical recent year, the trust fund collects about $1.3 billion but spends between $700 and $800 million. RAMP is a coalition of maritime companies formed to seek a legislative fix to the maintenance dredging crisis facing the nation’s ports and waterways. In the year since its founding, RAMP has garnered nationwide membership and is making its presence known in Washington, D.C. It’s actively educating members of Congress and has succeeded in getting 16 senators to sign a letter for Barbara Boxer and James M. Inhofe, Chairman and Ranking Member of the Committee on Environment & Public Works, asking for protection and proper distribution of the funds. The letter states, “The funds accumulated in the HMTF are to be used for maintenance dredging, dredged material disposal areas, jetties and breakwaters. “Beginning in 2003, funds appropriated for harbor and channel maintenance have been significantly below annual HMT collections. Currently, there is approximately $4.7 billion in the HMTF; yet these funds are not being used for these important navigational needs. This surplus has resulted in a considerable backlog of harbor maintenance work throughout the country. To ensure that backlogs do not continue to grow, we urge the committee to require that expenditures from the HMTF in the future equal the amount of money received into the HMTF.” “In meeting with the staff on the Hill, both the senators and congressmen see the reasonableness of this,” said Barry Holliday, Chairman of RAMP. “We’re just Momentum is building behind the saying “put the trust back in the Harbor Maintenance Trust Fund.” The phrase has been used throughout the Great Lakes/St. Lawrence Seaway system and is being heard nationally as the HMT Funding Fairness Coalition, also known as RAMP or Restoring America’s Maritime Promise, presses to protect the money being collected by the federal government under the Harbor Maintenance Trust Fund. “Our sole function is to put a fence around the trust fund,” said Jim Weakley, President of Lake Carriers’ Association and First Vice President of the Great Lakes Maritime Task Force. “We want to see legislation or an executive order require that the federal government spend the money for what it was intended on an annual basis.” The Harbor Maintenance Tax is charged at 0.125 percent of the value of imports and domestic cargo arriving at federally-maintained U.S. ports and deposited into the Harbor Maintenance Trust Fund. The funds are paid by the cargo owner. According to the Water Resources Development Act of 1986, the funds are to be used for maritime maintenance. Every year, hundreds of millions of dollars are collected and about half are In a typical recent year, the trust fund collects about $1.3 billion but spends between $700 and $800 million. Special treatment Harbor Maintenance Trust Fund Fairness Coalition presses to protect trust fund for maritime use 12 www.greatlakes-seawayreview.com Rolls-Royce Commercial Marine, Inc., Miramer, Florida USA Tel. 1-954-436-7100 Fax: 1-954-436-7101 • www.rolls-royce.com Expertise in hydrodynamics places Rolls-Royce in the unique position as supplier of the world’s most comprehensive range of marine propulsion and motion control systems. The solutions we offer are derived from our vast experience and ability to respond promptly to the needs of our customers. The results are optimized solutions for long-term reliability, functionality and maximum profitability. The widest range of products from a single supplier Diesel & Gas Engines Reduction Gears CP & FP Propellers Tunnel Thrusters Waterjets Steering Gear & Rudders Automation & Control Systems …and more asking for what was authorized in 1986.” Importance of maritime infrastructure. With a federal tax being collected to pay for maintenance dredging and the U.S. Army Corps of Engineers underfunded to maintain shipping channels at the proper depth and width, RAMP exists to emphasize and remind Congress about the importance of the maritime infrastructure to the U.S. economy and seeks legislation to make sure shipping channels are maintained as intended. “Given the fact that a taxing mechanism and revenue stream already exist, our plan is to mobilize the U.S. maritime community to make sure that these tax collections are spent as they were intended,” Holliday said. “In today’s economy, if you can’t fully load a ship, it taxes your profits to the point that, from a global perspective, the U.S. economy is jeopardized.” The amount of money allocated for dredging at federally-maintained U.S. ports is determined annually through the budget cycle. Each year tends to be a scramble to communicate the system’s needs and then a dash to mark up funding after the President’s budget is released and before the budget is finalized by congress. Sheltering the HMTF and getting full distribution annually would provide stability to funding dredging long-term. “The fund has a balance of about $5 billion. We fully recognize that we’ll probably never see that money,” Weakley said. “It’s been spent on other things and exists only on paper. Pragmatists will write off that amount and focus on what we’re doing now to put the trust back in the Harbor Maintenance Trust Fund.” Currently, members continue to join RAMP while it presses for legislation to require the funds be distributed in full annually. RAMP is looking for the right bill to partner the language with and growing bipartisan support in Washington, D.C. “With the current budget process, we’re losing ground,” Holliday said. “If we could have access to the full tax revenues, the Corps could develop a management plan and start the process of honing down the long list of unmaintained projects.” Looking for an exemption. In addition to funding, stakeholders throughout the system are pressing for an HMT exemption for some cargo, specifically, the development of container business. Multiple bills have been introduced with the intent of exempting containers from the tax, which is a major hindrance to bringing boxes through the system. There is also wording in at least one of the bills that redefines the Great Lakes to include Nova Scotia and the large container terminals either operating or planned to open there. “We hope to see a bill go through this year,” said Collister “Terry” Johnson, Jr., Administrator of the Saint Lawrence Seaway Development Corporation. “There was a lot of support for it last year, and we hope it goes through with the expanded definition that includes Nova Scotia to capture the Melford Terminal.” The American Great Lakes Ports Association has passed a resolution calling for passage of the HMT exemption. The association represents 12 public port authorities and states that maritime movement of containerized cargo into and out of the Great Lakes is a goal that has been long sought by the Great Lakes region and will have numerous positive and far-reaching economic, environmental and congestion-mitigation effects. The resolution states that at least six of its member ports are pursuing partnerships with Melford International Terminal and the 1.5 million containers it’s expected to receive by 2015. The sheer mass of business and associations combining efforts to represent the system’s needs is expected to create a more diverse group of support in Congress, which could ultimately be influential protecting HMT funds and gaining the exemption needed to launch container shipping. Janenne Irene Pung . GREAT LAKES/SEAWAY REVIEW April-June, 2009 13 STEPHEN J. BROOKS Vice President Chamber of Marine Commerce Initial government announcements and media headlines on infrastructure spending certainly boast a lot of dollar signs. But for Canadians now used to balanced federal budgets and electing fiscally conservative governments, it sounds strange hearing about C$33 billion for the Building Canada Plan, government deficit financing of C$86 billion over two years, C$12 billion in infrastructure spending in budget 2009, and many more new government spending initiatives. But looking beyond the shock and awe of this new government largesse, a lot of people remain skeptical on whether large sums of public money is actually making its way into the real economy. And how do companies, especially companies in the marine industry, actually tap into these dollars? Announced in the 2007 federal budget, the Building Canada Plan was trumpeted as the largest economic incentive plan ever launched by any government in Canada. And on the surface, at $33 billion, it certainly looked impressive. As far as marine industry projects go, there were and still are some interesting opportunities in Building Canada. One funding envelope, called the Gateways and Border Crossings Fund (C$2.1 billion), could hold promise for major ports and any multimodal projects that can demonstrate external benefits. That is, benefits for a number of stakeholders and the general public in projects that improve access to a facility and increase the integration of different transportation modes. This funding program builds on the successful model of the Asia-Pacific Gateway and Corridor Initiative. As was done for the Asia-Pacific Gateway, the federal and provincial governments are working together to develop Gateway Strategies for the Ontario-Que- S Y S T E M F U N D I N G The main problem, though, is that almost every eligible funding envelope under Building Canada requires cost-sharing between the applicant, the federal government, respective provincial governments and possibly even individual municipal governments. Infrastructure money finally flowing Parliament institutes new financing initiatives, public-private partnerships 14 www.greatlakes-seawayreview.com cial governments and possibly even individual municipal governments. Moreover, most of the funding programs under Building Canada emphasize provincial and municipal priorities for infrastructure investments which will also contribute to the broad federal objectives of economic growth, a cleaner environment and strong and prosperous communities. As a result, the practical side of this is usually that applicants must not only sell the federal government and their municipal or provincial government on the merits of prioritizing their project, they must convince them all to dole out matching funds. The applicant then has to bring their own skin to the game by coming up with their own share of cash, often an amount at least equal to the federal and provincial/ municipal amounts. Luckily, the whole process was made a little easier through framework agreements that the federal government had to negotiate beforehand with the provinces—a process that took the better part of last year to complete. But while these agreements with the provinces will now expedite the application and approval process, it nonetheless represented a huge hurdle and ultimately delayed the whole system’s ability to get funding out the door. Finally, another obstacle under Building Canada is that the applicant has to figure out what eligible funding category their project fits into, which really becomes a frustrating exercise in sculpting the square peg of a project so that it somehow fits into one of many roundish holes to which the government says it must conform. Specifically, under the Building Canada Fund (C$8.8 billion, allocated on a per capita basis) and the Provincial Territorial Base Funding (C$2.275 billion, allocated equally per jurisdiction) most marine industry applications are limited in eligibility to short sea shipping infrastructure, including marine terminal or trans-shipment facilities, loading/unloading equipment and technology and equipment used to improve the interface between and/or within transportation modes. Looking beyond the gates of a marine facility, projects that improve access by road and rail might also be eligible, particularly if a province or a municipality is willing to prioritize the project. What also bodes well for marine is that these programs finally seem to be promoting short sea shipping. In the British Columbia Lower Mainland, the federal government has committed up to C$20.9 million in 2008 to five short sea shipping bec Continental Gateway and Trade Corridor and the Atlantic Gateway. As such, new gateway and trade corridor projects within these regions should be strongly encouraged to participate in these processes. Another funding envelope that should attract marine stakeholders is the Public- Private Partnerships Fund (P3s, C$1.25 billion), which, although announced over a year ago has just recently appointed a president to oversee the program. As the name suggests, this program is set up to target development of public-private cost-shared business relationships in larger infrastructure projects, including short sea shipping and marine port projects. Federal officials say the structure is now in place to begin accepting proposals under this program. Such P3 projects will also be eligible for funding through the Gateways and Border Crossings Fund and the Building Canada Fund. Matching funds required. So, there certainly appears to be a lot of infrastructure funding opportunities within the Building Canada program. The main problem, though, is that almost every eligible funding envelope under Building Canada requires cost-sharing between the applicant, the federal government, respective provin- S Y S T E M F U N D I N G Main Terminal & General Offices: 4600 East 15th Avenue • Gary, Indiana 46403 219-938-7020 • 800-426-1827 • Fax: 219-938-6866 Lakes and Rivers Transfer, experts within the entire spectrum of bulk cargo handling. Lakes and Rivers Transfer a division of Jack Gray Transport, Inc. 115 Steel Dr., Portage, IN 46368 219-787-9280 fax: 219-787-8511 Located at The Port of Indiana • Burns International Harbor www.jackgray.com GREAT LAKES/SEAWAY REVIEW April-June, 2009 15 projects under the Asia-Pacific Gateway and Corridor Initiative. This represented a potential C$43.5 million joint investment with private sector transportation service providers and municipalities in the region aiming to establish a network of complementary short sea shipping services for more efficient movement of international trade. In the Great Lakes and St. Lawrence Seaway, the federal, provincial and municipal governments committed C$39.2 million for 2009, including a federal contribution of C$11.6 million from the Building Canada Fund, to a wharf reing Canada Fund, allocated on a percapita basis for cost-shared projects. Under the Infrastructure Stimulus Fund, ports of all sizes will be eligible for funding and, for the first time, so will passenger-only cruise ship infrastructure projects. And like most other infrastructure funding announced in the latest budget, in an effort to respond to the recession as well as to critics who decry the slow pace of federal funding, a major criterion is whether the projects are ready to go—referred to as shovel-ready projects—and, again, whether the money can be spent within two years. The only hitch is that the Infrastructure Stimulus Fund will also emphasize provincial and municipal priorities. So once again, a significant part of the approval process is to convince the province and municipality of the merits of prioritizing the project. Another potentially viable envelope of infrastructure money will be in the Communities Adjustment Fund, allocating C$1 billion over five years for economic diversification initiatives. This funding has been earmarked for distribution by federal regional development agencies like Western Economic Diversification, FedNor, Canadian Economic Development for the Regions of Quebec, Atlantic Canada Opportunities Agency, etc., and boasts extremely broad eligibility. In addition to ‘building things,’ this fund is also about ‘doing things,’ an entrepreneurial twist which might include short sea shipping ventures, tourism initiatives, investments in developing and testing new technologies, and any number of innovative business habilitation project at the Port of Prescott—a project I was personally involved in—which will support the short sea shipping of road salt from Southwestern Ontario. While these aren‘t necessarily grandiose amounts, most agree it’s nice to finally see governments putting dollars behind short sea shipping. That’s a general indication of how major infrastructure programming was looking in Canada up until about the end of last year. Then, not long after the Conservative government narrowly escaped defeat, it came forward with a new federal budget boasting even more, new unprecedented stimulus and infrastructure spending. It also implemented a number of changes to the existing infrastructure programs to simplify the requirements for project proposals and to accelerate the process for assessments and approvals. A refreshing difference between programming in this latest budget and past funding programs is that the most important criteria for the new funding is the need to get the C$12 billion in infrastructure money out the door fast, within two years! New funding options. The latest budget has certainly identified a number of infrastructure envelopes that look promising for the marine industry. Specifically, the Infrastructure Stimulus Fund offers C$4 billion over two years and is, like the Buildideas that will employ Canadians and can be shown to be economically viable. Of special interest to the Great Lakes/St. Lawrence Seaway, an extra C$1 billion over five years is to be added to this fund (with C$15 million dedicated specifically to Eastern Ontario), which will be distributed by a new regional development agency for Southern Ontario. So, the latest federal budget has tried to bypass some important obstacles in previous infrastructure programs by reducing red tape, broadening eligibility and promising quick allocation of dollars. But ultimately tapping into some of the waves of infrastructure cash that governments are making available—from Building Canada, Budget 2009, or from any of the hundreds of other programs governments have available—can still be a frustrating process. The good news is that, while there may appear to be insurmountable obstacles between a vision for a project and the necessary funding to make it a reality, prospective applicants should not be daunted. Regardless of the company, the package, the categories, the structure of the fund, the size or location or nature of the proposed project, the bottom line remains that projects that credibly propose positive economic results, substantiated by solid business plans endorsed by other businesspeople, bureaucrats and, yes, politicians, are the ones that will continue to find their way to ultimately being approved, regardless of the mode, the economic climate or the government of the day. . The ARP calls for renewing the infrastructure so that when the program is complete, the transportation assets entrusted to the SLSDC will be as good as new. The Bluebill locks down at Eisenhower. S Y S T E M F U N D I N G 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 GREAT LAKES/SEAWAY REVIEW April-June, 2009 17 I N T E R V I E W Getting ready for when things pick up Richard Corfe was the logical choice in 2003 to succeed the retiring Guy Verroneau as President and CEO of The St. Lawrence Seaway Management Corporation. He had served the Seaway with distinction for 20 years, was fully familiar with the system’s issues and key players, was both a professional engineer and a certified management accountant, and is fluent in English and French. So now, six years later, it’s hardly surprising that carriers, shippers and Great Lakes/Seaway service providers have high praise for the job he and his management team are doing. But where was Richard Corfe and what did he do prior to joining the then-St. Lawrence Seaway Authority in 1983? The published record in both the conventional press and the Internet is mostly silent. “Yes,” he said when an impertinent interviewer asked if he might have been incarcerated. “I’m in the Witness Protection Program.” Kidding aside, however, his early years prepared him well for the challenges of the Seaway, even though he readily acknowledges that he did not anticipate getting into the maritime industry. In a conversation with Davis Helberg, Corfe outlined his unconventional career path and then talked about the Seaway’s past, present and future. Born in London, England, Corfe earned a degree in mechanical engineering at City University London in 1969. After graduation, he joined Dunlop Tires and worked in Birmingham and County Durham, England. Then, for three years, he ran a Dunlop testing lab in Le Bourget, France, just north of Paris. He returned to the United Kingdom in 1975 as maintenance manager for a Dunlop plant near Glasgow. In 1978, he accepted an offer from General Tire & Rubber to move to Barry, Ontario, north of Toronto, where he was in charge of maintenance for “an old plant held together with chewing gum and baling wire.” The job routinely included nights and weekends, devouring some 70 or 80 hours a week. He began taking courses in management accounting and, meanwhile, kept an eye out for other opportunities. An ad in the Toronto Globe & Mail drew him to the Seaway in 1983. Corfe: They [the Seaway Authority] were looking for someone to come in and build a maintenance plan. If you think about Seaway history, there was a boom in the late 1970s and then in the early ‘80s, the bottom fell out—the recession, the U.S. embargo on Soviet Union grain, the steel industry slump. As a result, the Seaway had moved from looking at how to expand to “how do we maintain what we’ve got.” With my engineering and accounting and my French and English, it was a good fit. Great Lakes/Seaway Review: With all those years of maintenance, management and engineering plus the exposure to different situations and cultures, it’s almost as if you were being groomed for the job. Corfe: Yes. I tell people I was lucky to be in the right place at the right time, but looking back, I had the opportunity of working in a variety of environments and building a set of skills that positioned me well. I just sort of fell over backwards into the job. Great Lakes/Seaway Review: With the Valleyfield Bridge incident in 1984 [a shaft ruptured on the bridge south of Montreal in November, closing traffic for 19 days] and the Lock 7 wall collapse in 1985 [a Welland Canal failure in October, closing traffic for a record 24 days], you seem to have had a baptism in fire. Corfe: Valleyfield and Lock 7 solidified Richard Corfe discusses new technologies, customized service, marketing and a look to the future Richard Corfe, President and CEO The St. Lawrence Seaway Management Corporation We have a system built on grain out/iron ore in, and we’ve struggled over the last couple of decades trying to define the next big cargo. And it’s been a struggle, so we’re taking the approach that we have to diversify, get more users into the system and remove some of the barriers. 18 www.greatlakes-seawayreview.com I N T E R V I E W the importance of what I was brought in to do—to build maintenance value. My whole section had just been created. Bill O’Neil was Authority President at the time and the Seaway’s thought process was changing. It was similar to where we are now when we look to the future: If we want to maintain what we have, then we’ve got to have good knowledge of the infrastructure condition and make sure we don’t get caught with surprises. We couldn’t afford then and we can’t afford now to have the system shut down because of something we should have known beforehand. Some of the things we put in place back then have borne fruit and produced good results on the maintenance side, the reliability side, through the last 20 or 25 years. Great Lakes/Seaway Review: Those two calamities, Valleyfield and Lock 7, sparked the first collaborative trade missions between Canada and the U.S. Corfe: I wasn’t directly involved at the time, but yes, we had taken a big hit to our reputation. Rebuilding confidence, selling ourselves on the world market, was critical. It’s still important today. We continue to do outreach programs and trade missions on an annual basis. We’re going to Sweden and Poland this year. We’re continuing to build relations with China and we’re looking at what’s happening in South America. Everyone’s having a bad time right now, but we need to use this year to position ourselves and come out of it stronger. Great Lakes/Seaway Review: What’s the status of the new technologies you’ve been working on? Corfe: We have a system built on grain out/iron ore in, and we’ve struggled over the last couple of decades trying to define the next big cargo. And it’s been a struggle, so we’re taking the approach that we have to diversify, get more users into the system and remove some of the barriers. We went through a list of the barriers and also looked at things we can do ourselves, knowing we’re part of a bigger system. We’re trying to address the bigger system with our partners through initiatives like Highway H2O and marketing, etc. On the technical side, we identified some issues we can address through new technology. We’ve done a complete conversion of the mechanical equipment on the Welland Canal—the gates, the valves, the ship arrestors— to modern hydraulics. It was about a C$60 million job over the last five years. Our objective was to do things that would: (A) improve the reliability and (B) allow us to extend the season. Now we’ll be looking at when we need to carry out the same conversion on the Montreal to Lake Ontario sector. Another concept we’re working on is hands-free lockage, getting ships through the locks without having to touch them. Great Lakes/Seaway Review: Similar to the Panama Canal? Corfe: To some degree, but they’ve used locomotives and they’re looking at different things with their new expansion. Part of our concept is self-spotting, technology that automatically tells the vessel where it is in the lock and where it needs to stop, as opposed to having someone walking along with a radio saying, “10 meters…5 meters… 3 meters…stop.” We’ve done our prototype and we’re into the production version. This year we will begin rolling it out so that by sometime next year, we’ll have self-spotting at every lock on the system. Great Lakes/Seaway Review: All 15? 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