Vol.38 No.2 OCT‑DEC 2009

O C T O B E R – D E C E M B E R 2 0 0 9 Ballast water collaboration, solutions . New types of vessels . Fuel economy and emissions reductions V O L U M E 3 8 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 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 October-December, 2009 1 A R T I C L E S Air Emissions GREAT LAKES THROWN INTO THE MIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Shipping industry works for reasonable timeline in implementation of emissions standards. Ballast Water Management WORKING TOGETHER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Scientists, states, federal agencies, shipping experts discuss ballast water management. AN ALTERNATIVE STRATEGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Examination of a shore-based solution. Commodities FILLING SHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2009 grain harvest helps to supplement the season’s light tonnage. Interview INTERVIEWING THE INTERVIEWER . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Davis Helberg talks about what makes his world go ‘round. Propulsion FUEL ECONOMY STRATEGIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Pending emission standards bring fuel consumption, types, use to the forefront. Shipbuilding FINDING WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Federal grant money brings work into shipyards; diversification brings in contracts. A WIN-WIN FOR THE GREAT LAKES REGION . . . . . . . . . . . . . . . . . . . . . . . . . 37 Stimulus funding helps reduce emissions, increase fuel economy on two American Steamship Company vessels. A NEW KIND OF VESSEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Ballast-free module ship design ready for construction. DESIGNING A STEEL SLAB CARRIER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 University of Michigan team designs new ship for shift in Great Lakes cargo. Dredging PREPARING THE RIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Excavation begins to deepen St. Marys River for new Soo lock. Lakers WILFRED SYKES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Aboard the Lake Michigan Express. Great Lakes People SOLE SURVIVOR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Dennis Hale is still finding his peace. Marine Photography GREAT LAKES SEAWAY TRAIL . . . . . . . . . . . . . . . . . . . . . . 68 Taking a look at the eastern portion. Dateline: Great Lakes/St. Lawrence Seaway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Guardian of the Lakes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 D E P A R T M E N T S O C T O B E R – D E C E M B E R 2 0 0 9 The international transportation magazine of Midcontinent North America Grain harvest supplements 2009 season’s light tonnage. Page 19. Collaboration in working toward ballast water management solution. Page 11. Federal stimulus grants, diversification creates work for the region’s shipyards. Page 36. 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 Felton Business Manager Roger LeLievre Staff Writer/Special Projects 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; Bruce Bowie, President, Canadian Shipowners Association; Davis Helberg, Executive Director, Seaway Port Authority of Duluth – Retired; Anthony G. Ianello, Executive Director, Illinois International Port District; Ray Johnston, President, Chamber of Marine Commerce; Peter Kakela, Ph.D., Professor, Department of Community, Agriculture, Recreation and Resource Studies, Michigan State University; Rep. James L. Oberstar, Member of Congress, Chair, House Transportation & Infrastructure Committee; Mark Pathy, 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; John Vickerman, Founding Principal, Vickerman & Associates, LLC; James H.I. Weakley, President, Lake Carriers’ Association. 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 38 OCTOBER-DECEMBER, 2009 NUMBER 2 The salty Kaministiqua loads canola at Duluth. Photo by Jerry Bielicki. PORT OF Strategic transportation network and location Complete deep water port facilities 2544 Clinton St. P.O. Box 880 Buffalo, NY 14224 716-826-2890 716-826-1342 FAX info@portofbuffalo.com www.portofbuffalo.com Gateway Trade Center, Inc. Subsidiary of New Enterprise Stone & Lime Co., Inc. BUFFALO The Great Lakes Maritime Research Institute brings together the strengths of the two host universities, along with the research capabilities of other Great Lakes Universities. Established in 2004, the Institute has been designated by the U.S. Department of Transportation’s Maritime Administration as the National Maritime Enhancement Institute for the Great Lakes. Supporting Sustainable Maritime Commerce on the Great Lakes 291 Marshall W. Alworth Hall 1023 University Dr. Duluth, MN 55812 (218) 726-7446 A University of Wisconsin – Superior and University of Minnesota Duluth Consortium Research Institute Great Lakes Maritime Photo by Chris Benson Learn more about us at: www.glmri.org 2 www.greatlakes-seawayreview.com GREAT LAKES/SEAWAY REVIEW October-December, 2009 3 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 DATELINE Two inducted into Marine Hall of Fame Interlake Steamship Co. Vice President Robert Dorn and the late Interlake Vice President Dewey Ashton are the 2009 inductees into the Great Lakes Marine Hall of Fame. The annual dinner and induction ceremony was held September 18 in Sault Ste. Marie, Michigan. The Great Lakes Hall of Fame is dedicated to the memory of those explorers, inventors, shipbuilders, sailors and countless others who have made a significant contribution to the exploration and development of the Great Lakes through the eras of sail, steam and the present. The honorees’ plaques are all displayed on the Museum Ship Valley Camp in Sault Ste. Marie. New U.S. icebreaker authorized The Coast Guard Authorization Act of 2010 (H.R. 3619), which approves appropriations for the U.S. Coast Guard for fiscal year 2010, passed the U.S. House of Representatives in October. The legislation includes the Great Lakes Icebreaker Replacement Act, which authorizes appropriations for the design, acquisition and construction of a combined buoy tender-icebreaker. The act, sponsored by Rep. James Oberstar (D-Minn.), must now be approved by the U.S. Senate. Assuming the bill is passed, the new, $153 million vessel would be built along the lines of the 240-foot Mackinaw, which was launched in 2005 and is now stationed in Cheboygan, Michigan. . Toledo port welcomes new CEO The resignation of Michael Stolarczyk as President and CEO of the Toledo- Lucas County Port Authority has brought about the appointment of Paul Toth to the position. Toth served as Acting President while the board of directors searched for Jim Hartung’s replacement. He is a 22-year employee of the port authority who previously served as Vice President of Technical and Financing Services and Interim Airport Director. . New harbormaster at Windsor Peter J. Berry has been named Harbormaster at Windsor Port Authority. He replaced William Marshall, who recently retired after 11 years with the port authority. Berry is a graduate of the University of Windsor, where he received a Bachelor of Arts degree in Communications. His work experience includes more than 10 years with Revenue Canada—Customs Border Services and more recently as a business consultant working in marketing, management systems and security. . Melford creating landbased infrastructure The Melford International Terminals, Inc., in the Strait of Canso, Nova Scotia, is shovelready, according to Richie Mann, Vice President Marketing. Plans include beginning operations in early 2012. “Given the economic downturn the world faced, it saw us doing some things differently,” Mann said, noting that the recession has slowed the construction schedule. “We are putting partnerships in place and are working with a financial syndicate on the project.” Melford has been planned to have 100 percent private ownership. The project is expecting a large number of containers to arrive in port from countries such India, Malaysia and Vietnam via the Suez Canal. Initial construction will involve creating a road loop around the terminal site to connect to the existing public highway that currently passes through the middle of the terminal property. The loop will connect with Highway 344 on each side and will be turned over to the Department of Transportation upon completion. The three to four kilometer loop will cost between C$12-15 million, Mann said. The first construction will involve an intermodal rail facility to bring cargo inland by rail and a logistics park. The short sea shipping option for bringing containers inland will be developed at a later point. . HMT bills still being considered H.R. 3447, the Harbor Maintenance Trust Fund Reform Act, would mandate that money in the Harbor Maintenance Trust Fund be made available for dredging and deepening the country’s ports without further appropriation. The trust currently has a surplus of $4.6 billion. On Aug. 3, the act, sponsored by Rep. Laura Richardson (D-Calif.), was referred to the Subcommittee on Water Resources and Environment. H.R. 3486 would exempt cargoes carried by water between U.S. and Canadian ports from paying the Harbor Maintenance Tax (HMT), a federal tax collected from shippers based on the value of transported goods. The tax is not assessed on cargoes moved by truck or rail between ports. A coalition of maritime labor, shipping companies and port organizations has filed a statement with the House Ways and Means Committee, expressing strong support for the enactment of HMT legislation to encourage the development of a marine highway system. The 14-member coalition noted that an exemption from the HMT on the waterborne transportation of cargo between American ports “will promote the development of a marine highway system that can serve as a cost-effective, efficient and environmentally-sound way to supplement and complement the rail and truck traffic that is already pushed to capacity in most major transportation corridors. It will offer shippers an additional means to transport the ever-increasing volumes of imported cargo expected to move in interstate commerce between American ports in the coming years.” . Toledo museum ship director honored Paul C. LaMarre III’s decision, two years ago, to fight for the retired freighter Willis B. Boyer‘s future as a marine museum in Toledo, Ohio has won him the Association for Great Lakes Maritime History’s 2009 Award for Historic Preservation. The award recognizes “an individual who has made a major contribution, over many years, to the preservation of Great Lakes maritime history.” LaMarre is currently Director of the Boyer museum, which operates under the auspices of the Toledo-Lucas County Port Authority. . Wind turbines move through Burns Harbor Two shipments of wind turbine components were routed through the Port of Burns Harbor recently, including 94 blades, 60 hubs and 60 power generators. The Vestabuilt components, brought in from Europe, will be used in Phase I of the Meadow Lake Wind Farm, a 26,000 acre project in nearby White and Benton counties. When completed, the farm could have 600 turbines powering 250,000 homes. The first phase involves 121 turbines, owned by Horizon Wind Energy. . Paul Toth Peter J. Berry D A T E L I N E Industry leader, former columnist receive awards The Society of Naval Architects and Marine Engineers (SNAME) has recognized four individuals for their outstanding contributions to naval architecture and marine engineering. The society’s top award, the Vice Admiral “Jerry” Land Medal for outstanding accomplishment in the marine field, was presented to Robert D. Somerville, Chairman and Chief Executive officer of the American Bureau of Shipping (ABS). He has overseen a period of extraordinary growth in the organization’s activities, creating hundreds of new job opportunities for naval architects and marine engineers. The David W. Taylor Medal for notable achievement in naval architecture and/or marine engineering was presented to Joseph P. Fischer, President, Bay Engineering. Fischer has written the Naval Architecture & Engineering column for Great Lakes/Seaway Review for 10 years. In the next issue, the column will continue under the pen of Dr. Mike Parsons, a retired professor from University of Michigan’s Naval Architecture & Marine Engineering department. . U.S. Marshal auctions off Hannah Marine fleet Most of the Hannah Marine fleet has been sold and the ships delivered to new owners, according to shipbroker Marcon International, Inc. While some of the fleet was purchased back by creditors, other vessels were sold at auctions conducted by and before the U.S. Marshal. . Cliffs acquires Canadian mine, plans biomass plant Cliffs Natural Resources Inc. has acquired U.S. Steel Canada’s 44.6 percent interest and ArcelorMittal Dofasco’s 28.6 percent interest in the Canadian Wabush Mines joint venture. The $88 million acquisition increased Cliffs ownership stake of Wabush Mines to 100 percent. With Wabush Mines’ 5.5 million tons of rated capacity, acquisition of the 73.2 percent will increase Cliffs’ North American Iron Ore rated equity production capacity by about four million tons. Cliffs has been the managing partner of Wabush since operations began in 1965. There are about 770 employees at Wabush Mines. As of Dec. 31, 2008, Wabush Mines had 75 million tons of proven reserves (iron ore pellet equivalent) and over the previous five years has produced between 3.8 million and 5.2 million tons of iron ore pellets annually. It produced 4.2 million tons of pellets in 2008. Also, a subsidiary of Cliffs Natural Resources Inc., renewaFUEL, LLC, plans to construct and operate a biomass fuel production facility at the Telkite Technology Park near Marquette, Michigan. The company intends to move forward with a lease agreement for the use of two large aircraft hangars, which formerly housed B-52 aircraft when the facility was part of Sawyer Air Force Base. The lease is subject to the final approval of the Marquette County Board of Commissioners and the Federal Aviation Administration. Once begun, construction and renovation at the facility, a $19 million capital project, is expected to take about nine months. The plant is expected to employ 25 people and produce 150,000 tons of high-energy, low-emission biofuel cubes per year. The cubes are a composite of sustainably collected wood and agricultural feedstocks, which will be supplied from local farmers and loggers. . Parker Mellinghausen passes Founder of Central Marine Logistics and Central Shipping, Park Mellinghausen, died recently at the age of 73. Born January 15, 1936, Parker spent decades serving the commercial shipping industry from his office near Chicago, Illinois. Parker was a true icon of the Lakes. . 4 www.greatlakes-seawayreview.com Photo courtesy of Minnesota Power The Port of Duluth is a strategically located intermodal hub at the western end of the Great Lakes St. Lawrence Seaway. We move wind turbine components in and out of the nation’s heartland in the safest, most efficient, cost-effective way. Robust infrastructure. Value-added onsite services. Direct access to road /rail. Outstanding customer service. Duluth… a top 10 North American port for handling wind energy project cargo. WIND ENERGY HUB SEAMLESS TRANSPORT DULUTH, MINN. TOWERS • BLADES • NACELLES www.duluthport.com 218.727.8525 For info: rjohnson@duluthport.com REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW October-December, 2009 5 JANUARY 13-15 2010 Industry Days – 25th Anniversary Holiday Inn, Traverse City, Michigan Capt. Jack Cork, (906) 632-3891 14 Chamber of Marine Commerce Annual Meeting, Fairmont Royal York Hotel Toronto, Ontario Linda Jeannotte, (613) 233-8779, ext. 4 or ljeannotte@cmc-ccm.com FEBRUARY 10-11 Admiral’s Dinner/Marine Community Day InterContinental Hotel & Conference Center Cleveland, Ohio, Tina Felton, (800) 491-1760 www.marinecommunityday.com 11-12 Society of Naval Architects and Marine Engineers Great Lakes & Great Rivers Section InterContinental Hotel & Conference Center Cleveland, Ohio Richard Mueller, rmueller@netsco.us 22-24 Great Lakes Days Great Lakes Commission Semiannual Meeting, Washington, D.C. Hamilton Crowne Plaza register@glc.org Canadian shipbuilding tariff facing changes Canada’s 25 percent import duty on foreign- built vessels is one step closer to elimination. The Department of Finance has published an official notice in the Canada Gazette seeking to eliminate the tariff on certain types of vessels 129 meters (423 feet) or longer. Vessel types that would be cleared from the import fee include tankers, ferries, bulkers and other cargo vessels. Elimination of the 25 percent tariff is supported by groups such as the Canadian Shipowners’ Association, but opposed by shipbuilders. . Water Compact still not implemented More than a year after U.S. federal approval of the Great Lakes-St. Lawrence River Basin Water Resources Compact, there is still a need for the eight Great Lakes states and provinces of Ontario and Quebec to develop water conservation goals and implement water management programs. The compact protects the nation’s largest surface freshwater resource from depletion and diversions to other parts of the world. “The Compact will rise or fall on the choice of the states and provinces to uphold their end of the bargain by passing and enforcing groundbreaking water conservation laws,” said Ed Glatfelter, Director of Water Conservation for the Alliance for the Great Lakes. “Protecting the Great Lakes depends on state and provincial leaders tapping water policies that protect our Lakes, economy and way of life.” . Mather entrance covered for year ‘round access The Great Lakes Science Center in Cleveland, Ohio is now linked by a newlyconstructed, 400-foot connector to the William G. Mather ship museum. This is the first step to providing year-round access to the Mather and the stepping stone to a major redevelopment of exhibits aboard the steamship. “The Connector poises us to begin major redevelopment of exhibitions on either side of it, at the Steamship William G. Mather and Great Lakes Science Center,” said Jeanette Grasselli Brown, Chair, Board of Directors. The Mather combined with Great Lakes Science Center in 2006. Since that time, the center has integrated the Mather into its programming and camps program. The next step is to redevelop the cargo holds of the Mather, integrating more exhibits which will outline not only the history of Lake Erie shipping, but also the technology and industries that have and will lead Northeast Ohio. . 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: maintained at full seaway depth of 27 feet. feet of open storage. Contact us today for more information on how we can help your business boom. BOOMING at the Port of Cleveland Business is The Port of Cleveland… More Than a Working Waterfront Stephen Pfeiffer spfeiffer@portofcleveland.com 216.241.8004 phone 216.241.8016 fax www.portofcleveland.com 5 St. Lawrence Seaway The Port of Cleveland Congratulates the on its th Anniversary GREAT LAKES/SEAWAY REVIEW October-December, 2009 7 the increased cost of the fuel. Category 3 diesel ships could apply for the waiver. • The EPA will evaluate the economic impact for the final rule on Great Lakes carriers and issue a report within six months. “This compromise will allow EPA to go ahead with a new clean air rule without sinking the Great Lakes fleet-and all the jobs it creates in the region,” said Obey, Chair of the House Appropriations Committee, which oversees the EPA budget. “The goals of clean air and a strong economy are not mutually exclusive. This deal allows economic recovery to continue on Minnesota’s Iron Range by ensuring that Great Lakes shipping is not unfairly disadvantaged by new EPA rules.” The rider is anticipated to give U.S. and Canadian shipowners time to plan for modifications and renewal programs that will introduce new engines and technologies, similar to what has been done in the past A I R E M I S S I O N S With more stringent air emission standards on the horizon, the shipping industry is looking for ways to improve its performance while keeping its fleet active. Research and preparation for the recent U.S. Environmental Protection Agency’s (EPA) regulation focused on addressing air emission standards on all U.S. coasts. However, the Great Lakes region was added at the end of the process, creating a stir throughout the system. As presented, the regulation limits sulfur emissions from ships within 200 nautical miles of U.S. coasts, calling those zones emission control areas (ECA). Because of the size and configuration of the system, it would essentially become an ECA in its entirety, with bunker fuel not allowed to be burned in Category 3 engines, starting in 2012. The operation of 26 U.S.-flag lakers would be adversely impacted, 13 because steamships cannot safely burn the higher-class fuel and 13 would be endangered by significantly increased fuel costs. “The cost for intermediate fuel would go up $1 per gallon,” said Glen Nekvasil, Vice President-Corporate Communications for Lake Carriers’ Association. Prior to passing Congress, however, wording was added at the crafting of Rep. Dave Obey (D-Wis.) and Rep. James Oberstar (D-Minn.) that will encourage passage of the bill with the following three-part compromise: • Great Lakes steamships will be exempted from the new regulations. The steamships cannot burn low-sulfur fuel without being at risk of an engine explosion. • The final rule issued by the EPA will include a waiver provision to address either the inadequate supply of low-sulfur fuel or the serious economic hardship caused by Great Lakes thrown into the mix Shipping industry works for reasonable timeline in implementation of emissions standards 1970: Congress passes the first major Clean Air Act, requiring a 90 percent reduction in emissions from new automobiles by 1975. Congress establishes the U.S. Environmental Protection Agency (EPA) for regulating motor vehicle pollution. 1971: New cars must meet evaporative emission standards for the first time. 1972: Exhaust gas recirculation valves are developed as automakers strive to meet nitrogen oxide standards. 1974: Congress delays the hydrocarbon and carbon monoxide (CO) standards until 1978 and sets interim standards. Congress adopts the Energy Policy Conservation Act, setting the first fuel economy goals. The Corporate Average Fuel Economy program establishes a phase-in of more stringent fuel economy standards beginning with 1975 model vehicles. 1975: The first-generation catalytic converters are built. Unleaded gasoline is introduced, resulting in dramatic reductions in ambient lead levels. 1977: Congress amends the Clean Air Act. At the request of automakers, the hydrocarbon standard is delayed again, this time until 1980. Carbon monoxide and nitrogen oxides standards are relaxed and delayed until 1981. 1981: New cars meet the amended Clean Air Act standards for the first time. Sophisticated three-way catalysts help optimize the efficiency of the catalytic converter. 1982: EPA again lowers the limit on the amount of lead allowed in gasoline. 1983: Inspection and Maintenance (I/M) programs require passenger vehicles to undergo testing for malfunctioning emission control systems. 1985: EPA adopts stringent emission standards for dieselpowered trucks and buses, to take effect in 1991 and 1994. 1986: The phase-out of leaded gasoline is completed. 1989: EPA sets fuel volatility limits aimed at reducing evaporative emissions. U.S. Air Emissions Milestones continued 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 October-December, 2009 9 And, trucks have a much shorter lifespangenerally about one-fifth-that of lakers. According to the U.S. Maritime Administration, expanding the use of the country’s commercial waterways can help reduce landside congestion, GHG emissions, energy use and highway infrastructure dollars spent on construction and maintenance. It has calculated that congestion of the landbased transportation system costs the U.S. an estimated $200 billion a year and wastes 2.9 billion gallons of fuels because of time spent idling. Without adequate time to prepare for the changing regulations, vessel owners from both sides of the bi-national border are concerned that the sudden increase in maritime transportation costs will cause shippers to choose more landbased transportation options, which would actually increase emissions similar to when automobile buyers shifted from regular-size cars equipped with catalytic converters to large SUVs, which had yet to implement the technology. CSA studies indicate that, as a direct result of a 15 percent modal shift due to lost competitiveness and lost production, greenhouse gas emissions associated with CSA’s current traffic will increase by more than 60 percent, NOx will increase by more than 10 percent, VOCs will increase by close to 30 percent and CO by more than 70 percent. Shipping associations from both countries estimate that 10-20 percent of the waterway’s cargo could be shifted from ships to land-based modes if passed without further thought and planning. “The environment needs Great Lakes shipping, too,” Nekvasil said. “Ships burn less fuel and produce fewer emissions than trains and trucks. The 13 vessels that currently are powered with Category 3 diesel engines using intermediate fuel hauled 29 million tons of cargo in 2008. It would take 1.1 million trucks or 290,000 railcars to replace their carrying capacity. We all win when we keep these cargoes on vessels working the Great Lakes.” “The adverse environmental impacts of shifting marine traffic onto rail and already overcrowded roads are so negatively staggering that there is an obvious need for the U.S. EPA to take a step back and do a full and complete analysis prior to moving forward with any rulemaking on marine air emissions in the Great Lakes/St. Lawrence,” Bowie said. “The effect of the proposed rulemaking is so environmentally negative that to do otherwise would be indefensible.” Janenne Irene Pung . for the automobile, rail and trucking industries. “We appreciate the effort of the Great Lakes Congressional delegation and Administration officials who crafted a solution that extends the useful lives of the 13 U.S.- flag steamships to 2020, when the .5 percent sulfur standard is implemented worldwide,” Nekvasil said. “It’s not a question of moving to cleaner fuels. We plan to bring in new ships to improve efficiencies and a better environmental performance,” said Bruce Bowie, President of the Canadian Shipowners Association (CSA). “Air emissions from marine transportation in the Great Lakes/St. Lawrence waterway must be reduced in a way that allows marine transportation to remain competitive with other modes and to continue to serve the public interest.” Great Lakes vessels have a useful life of 40 to 50 years, or more. A solution that forces older-technology ships out of service in two to three years, or doubling the fuel prices for more modern diesel ships could have an opposite effect on a nationwide effort to maximize the use of the nation’s marine highways. When EPA instituted emissions regulations for the trucking industry, it was given 10 years to phase in fuel standards. A I R E M I S S I O N S Source: U.S. Environmental Protection Agency 1990: EPA imposes limits on diesel fuel sulfur content to help buses and trucks meet the 1985 emission standards. Congress amends the Clean Air Act to require further reductions in hydrocarbons, CO, NOx and particulate emissions. For the first time, EPA is given authority to regulate emissions from non-road vehicles. 1991: EPA establishes lower tailpipe standards for hydrocarbons and NOx as required by the 1990 Clean Air Act, taking affect beginning with 1994 models. 1992: Standards setting emission limits for CO at cold temperatures are established. Oxygenated gasoline is introduced in cities with high carbon monoxide levels. 1992-1993: A wintertime oxygenated fuel program begins. 1993: The Partnership for a New Generation of Vehicles is established to develop new automotive technology to help reduce air pollution. Limits on sulfur content of diesel fuel take effect. 1994: Phase-in begins for cleaner vehicle standards and technologies required by the 1990 Clean Air Act. 1995: The Reformulated Gasoline program, authorized by the Clean Air Act Amendments, begins targeting 10 metropolitan areas with severe smog problems. The program requires refiners to blend fuels with oxygenates and reduce gasoline components that contribute to toxic air emissions and ozone formation. 1996: EPA issues regulations that aim to produce cleaner technology and better engine performance in marine engines. Controlling exhaust emissions from new gasoline spark-ignition engines will reduce hydrocarbon emissions from these engines by 75 percent by 2025. 1997: EPA finalizes emission standards for NOx, hydrocarbons, CO, particulate matter and smoke for newly-manufactured and remanufactured diesel-powered locomotive engines. 1998: EPA issues new emissions standards for diesel engines used in non-road construction, agricultural and industrial equipment, as well as in certain marine applications. 1999: While the number of passenger cars sold each year in the United States decreases since 1980, the number of light trucks sold more than triples, resulting in more total fuel usage and emissions. EPA announces new tailpipe emissions standards for SUVs and other light-duty trucks. EPA issues a final rule to reduce NOx and particulate matter emissions from new, large marine diesel engines and announces lower standards for sulfur in gasoline. Standards for hydrocarbons, NOx, CO, and particulate matter are phased in between 1999 and 2008. 2000: EPA adopts final rule for non-road, small spark-ignition handheld engines (e.g., trimmers, brush cutters, and chainsaws) and develops a comprehensive national control program to regulate the heavy-duty vehicle and its fuel as a single system. These new standards will apply to model year 2007. EPA announces plans to reduce sulfur in on-road diesel fuel by 97 percent by mid-2006. EPA issues final rule to address emissions of hazardous pollutants from mobile sources. The rule identifies 21 mobile source air toxics and sets new gasoline emission performance standards. 2001: Japanese electric-gasoline hybrid cars hit the market. 2004: New computer software helps reduce NOx emissions. 2009: Today’s emission regulation discussion. 11 Adifficulty in the ballast water management discussion has been the perception that state regulations were formed to harm the commercial shipping industry or that the industry was not interested in making changes. These perceptions were nullified when 52 stakeholders from various interest groups met to discuss aquatic invasive species and the science behind them. “There was a sincere effort by everyone to come together and discuss interim measures and exchange information,” said Collister Terry Johnson, Administrator of the U.S. Saint Lawrence Seaway Development Corporation (SLSDC). “It was a hopeful sign that people were willing to come together and talk,” said Craig Middlebrook, SLSDC Deputy Administrator. “There are no villains in this story,” said Scott Smith, Acting Chief of the Ecology Section, Western Fisheries Research Center for the U.S. Geological Survey. The Great Lakes Regulatory Forum on Ballast Water Action meeting was held recently in Detroit to provide an opportunity for representatives from the eight Great Lakes states, federal agencies and departments, scientists and commercial shipping to meet and exchange information in the hopes of working together to resolve the highly-contentious issue of aquatic invasive species (AIS). The meeting’s primary goals were to: provide sound information to various groups that had never gathered in one place to jointly identify the best approaches for reducing the level of risk for primary and secondary AIS vectors in the Great Lakes and to explore physical and operational issues affecting the implementation of ballast water standards. “The meeting was exceptionally good because it brought people together who would not normally be together,” said George Robichon, Senior Vice-President, General Counsel and Secretary, Fednav. “We all have a frame of reference that we come from,” said Dale Bergeron, Assistant Professor and Extension Educator for Minnesota Sea Grant, who organized the The Federal Welland takes on bentonite at Hallett 5 dock at Duluth. B A L L A S T W A T E R M A N A G E M E N T Working together Scientists, states, federal agencies, shipping experts discuss ballast water management The Great Lakes Regulatory Forum on Ballast Water Action meeting was held recently in Detroit to provide an opportunity for representatives from the eight Great Lakes states, federal agencies and departments, scientists and commercial shipping to meet and exchange information in the hopes of working together to resolve the highly-contentious issue of aquatic invasive species (AIS). 12 www.greatlakes-seawayreview.com The science panel included reports from Dr. David Reid, National Oceanic and Atmospheric Administration (NOAA), Great Lakes Environmental Research Laboratory; Dr. Sarah Bailey, Fisheries and Oceans Canada; Allegra Cangelosi, Northeast-Midwest Institute and Great Ships Initiative; Dr. Richard Everett, U.S. Coast Guard, Environmental Standards Division; Dr. Barnaby Watten, U.S. Geological Survey; and Chris Wiley, Transport Canada and Fisheries and Oceans Canada. “It was a who’s who of the latest and greatest science on the Great Lakes regarding ballast water and invasive species,” Johnson said, noting that, for him, this was the most beneficial session. “With the Seaway insisting on ballast water flushing and implementing 100 percent inspection, the risk of further invasion through ships for aquatic invasive species is negligible. This is science talking. It was quite eye-opening.” According to scientific testing and research, there has not been a new introduction of ANS in the system since at least 2006. Dr. David Reid, Director of NOAA’s National Center for Research on Aquatic Invasive Species and Senior Research Scientist for the Great Lakes Environmental Research Laboratory, heads the scientific community’s documenting of new invasive species through the Great Lakes Aquatic Nonindigenous Species Information System. Inconsistent state regulations. Representatives from Indiana, Michigan, Minnesota, New York, Ohio and Pennsylvania attended the meeting through the financial support of the International Joint Commission (IJC), while representatives from Indiana and Wisconsin were unable to attend. Well-known to everyone in the room were the inconsistent regulations that have been passed by state legislatures regarding AIS. “The states are very interested in finding a solution to slowing the spread of invasive species,” said Jeff Stollenwerk, Water Quality Permit Supervisor for the Minnesota Pollution Control Agency. “The states’ involvement is a natural extension of our work in regulating water policy. There is a public expectation that is hard to define, but is manifested in the fact that we have long had regulatory staff and the public expects us to take action in these areas.” The action taken by the Great Lakes states to implement invasive species controls has been achieved through the Clean Water Act, a federal act designed to protect the nation’s resources with programs implemented at the state level. “The industry is more efficiently regulated at the federal level, but the states need to comply with the Clean Water Act,” Stollenwerk said. “Most states, certainly Minnesota, would prefer a strong regulatory program be in place. We would greatly reduce our regulations once a strong federal program is in place. We all see that it is going to take a lot of work to get to the point where we have a strong federal regulatory program. “We did what we thought was best, but we did make some mistakes,” he said. “We would like to collaboratively work with meeting, along with Middlebrook. “When we have a challenge and it crosses many boundaries, we have to be creative to find solutions.” Discussions and breakout sessions addressed issues such as “Defining Steps for Cooperative Interim Ballast Water Management Strategies,” “International Ballast Water Developments” and “U.S. Coast Guard and U.S. Environmental Protection Agency Working Collaboratively on Vessel General Permit Enforcement.” B A L L A S T W A T E R M A N A G E M E N T InterContinental Hotel & Conference Center CLEVELAND, OHIO Marine Community Day February 10-11, 2010 A new shade of green for a brighter tomorrow www.marinecommunityday.com Including the Admiral’s Dinner GREAT LAKES/SEAWAY REVIEW October-December, 2009 13 the shippers on a ballast water treatment proposal under the Great Lakes Restoration Initiative.” Release of the pending U.S. Coast Guard regulations on ballast water management, which have been in the works for years, is the closest the U.S. has gotten to a national standard. The Canadian Seaway began requiring saltwater flushing in 1993 at least 200 miles offshore for ships entering the system with ballast onboard. NOBOB vessels were required to do the same in 2006. The U.S. now requires the same. Ballast treatment systems. The states’ various ballast water management regulations have created a hodge-podge of requirements that today’s technologies cannot meet. During the industry’s presentation, shipowners discussed repetitive trade patterns for the lakers that remain in the system, noting that if AIS have been spread throughout the system, it has already been done and that ballast treatment systems would not address this today. In addition, the varying state requirements are holding back plans for fleet renewal because shipowners need an overall standard with which to meet when building new ships that are built to last 30 to 50 years. On behalf of Fednav, an international shipping company, Robichon said: “Our big concern has always been that the individual states and legislatures are going their separate ways, trying to regulate ballast water discharges in an inconsistent manner. It’s complicated shipping in the Great Lakes, whether domestically or internationally.” Robichon said it was beneficial to see state and federal presentations, to hear firsthand the issues they face and the adaptability of the technologies to the ships, especially the difficulties the domestic fleet is having trying to integrate technology developed at the global level. Fednav is testing shipboard ballast system technology on two of its ships. The company is partnering with the State of Michigan on testing a chemical treatment system that uses copper ion and chlorine to treat ballast, allowing the state to test the effectiveness of the system. The prototype OceanSaver® system-a filtration, nitration and cavitation system-has been installed aboard the Federal Welland. “The big issue now is whether the Coast Guard standard, starting with the IMO standard and ramping up, will become the new ‘normal’ and will the Coast Guard and the IMO harmonize,” Robichon said, noting that shipowners need to know the standards before they can make millions of dollars in ship investments. Interim measures. “Moving forward sometimes takes doubting a little bit of our own infallibility to merge our individual visions into a community vision,” said Smith, expounding on a quote by Benjamin Franklin. “Today, we are closer to seeing international and national standards and implantation schedules for ballast management than we have ever been. Yet, if adopted, we are still seven to 10 years away from full implementation of these programs.” Because of the timeline, interim solutions were discussed, steps to further close the door on new AIS. However, with regulations pending, technology still being reviewed and approved by the IMO and fleet renewal programs inching along because of the lack of the first two, interim options are not quick—or easy. A second meeting is hoped to be held by the participating stakeholders in February to discuss the action items that are being researched as a result of the first meeting. Janenne Irene Pung . B A L L A S T W A T E R M A N A G E M E N T 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 Lower Lakes Towing Ltd. Lower Lakes Transportation Company P.O. Box 1149, 517 Main Street, Port Dover, Ontario, N0A 1N0 Phone 519-583-0982 Fax 519-583-1946 lowerlakes@kwic.com GREAT LAKES/SEAWAY REVIEW October-December, 2009 15 B A L L A S T W A T E R M A N A G E M E N T is huge. This is simply unfair. • Second, it is questionable whether the fleet can be outfitted with the required technology by 2016. Achieving this mandate assumes that supply can meet demand and that skilled labor is available to build and install treatment systems onboard thousands of vessels. • Third, vessel-based treatment does not enable port states to monitor vessels equally nor does it enable independent verification of the successful treatment of ballast discharged by every vessel. • Fourth, unless vessels are fitted with backups, the failure of an onboard treatment system could result in the discharge of untreated ballast. Some observers question whether all systems can eliminate all known or future discovered ballast contaminants. If not, onboard treatment is not a reliable solution unless shipowners equip vessels with multiple systems, including backups. • Fifth, and crucial from a shipowner’s perspective, is the question of liability. What if port states apply strict liability enforcement standards to ballast discharges, as many now do regarding oily water discharges? If they do, mandatory onboard treatment offers nothing but legal jeopardy. This regimen does not protect the environment or the public interest. Another solution. Eltide proposes a shore-side treatment methodology for ballast. Treatment systems developed and tested for onboard application could be RANDY J. GILLEN Corporate Secretary Eltide Environeering, Inc. The impact of Ballast: “Invasive marine species are one of the four greatest threats to the world’s oceans,” according to the International Maritime Organization. The discharge of ballast into the sea is a major contributor. The threat is not limited to the world’s oceans. Arguably, degradation of coastal and inland ecosystems caused by invasive species is a more destructive and costly problem. Invasive species are not the only cause of environmental damage. Ballast also contains potentially epidemic disease bacteria and toxic bio-chemical compounds. Globally, the cost of ecological damage is enormous. The U.S. Government Accountability Office has estimated that the annual financial impact of damage caused by invasive species exceeds $135 billion in the United States alone. It is not surprising that, internationally, regulators are reacting to political pressure to deal with ballast. IMO’s Regulation D-2 of the BWM establishes requirements for the treatment of ballast. This regulation mandates onboard ballast treatment equipment for all vessels by 2016. Deficiencies of onboard treatment. A mandatory onboard treatment regimen is no panacea—it is a retrograde approach with shortcomings and avoids a real solution. A quarter century of dealing with onboard oily water separation technology ought to have taught us to imagine a more effective tact. Consider this: • First, the onboard regimen imposes the entire financial burden of dealing with ballast solely on vessel owners. The capital cost of outfitting the global commercial fleet An alternative strategy Examination of a shore-based solution IMO’s Regulation D-2 of the BWM Convention establishes requirements for the treatment of ballast. This regulation mandates onboard ballast treatment equipment for all vessels by 2016. 16 www.greatlakes-seawayreview.com written certifications (in a universal format established by convention) is administered by port state authorities. When ballast is received in port, the port state authority issues a Ballast Receipt Certificate to the master of the discharging vessel and to the receiving port authority. When clean ballast is delivered to a vessel or to another port, the authority issues a Clean Ballast Delivery Certificate to the receiving vessel’s master (or the receiving port authority) and to the delivering port authority. Ballast is discharged into the environment only if the authority issues a Clean Ballast Disposal Authorization to the disposing port authority. Commercialization. Clean ballast is a commodity that can generate revenue including: collection, cataloguing and cleaning fees; certification fees; and clean ballast sales income. Benefits. A global network of shore-side treatment infrastructure provides an effective, worldwide solution to ballast management that would: • Eliminate overboard discharges of ballast from ships directly into the world’s oceans and coastal and inland waters. • Protect the public interest by ensuring that only clean ballast is released into the environment. • Enable port states to control ballast by verifying and certifying that it has been treated and cleaned using approved technologies. deployed immediately for shore-side use at port-based facilities. In its 2008 Status Report regarding ballast treatment technology, Lloyd’s Register projected that 17 of the 29 treatment systems surveyed would obtain land-based IMO test approval by year-end. Most critical, is to establish a methodology by which the successful treatment of all ballast is verifiable by port states. Key to this is the premise that clean ballast is a marketable commodity. Port-based management. Eltide’s methodology has eight components: Collection. During cargo loading operations, vessels discharge ballast into a dockside collection system, ideally a pipeline, not port waters. It is conveyed to a designated reservoir where it is sequestered and tested. The ballast is isolated until the port state authority stipulates what method(s) of treatment it requires, if any, to clean the collected ballast. Cataloguing. For every vessel that discharges ballast, the port state authority catalogues information including: each vessel’s identity and the volume of ballast collected from it; the place of its original uptake; the contaminants present, if any; and the method(s) of treatment authorized, if any. Cleaning. Ballast collected from each vessel remains sequestered until treatment, if required, is completed. Control. Ballast collected from each vessel remains sequestered until the port state authority issues a written verification certificate that it is “clean.” Conservation. Collected ballast, when certified to be clean, is delivered to a clean ballast reservoir where it is secured and conserved until consigned. Consignment. Clean ballast is consigned: for delivery to any vessel that requires ballast; for delivery to other port(s) to replenish clean ballast inventories; or for discharge into the environment (only if the clean ballast reservoir reaches maximum capacity). Certification. In order to document the handling of all ballast (globally) and to verify its safe recycling among vessels or discharge into the environment, a system of B A L L A S T W A T E R M A N A G E M E N T Some observers question whether all systems can eliminate all known or future discovered ballast contaminants. Ballast Treatment Platform Dirty Ballast Collection Line Clean Ballast Delivery Line The Ballast Treatment Platform is equipped with multiple treatment technologies. Treated ballast is delivered to the Clean Ballast Reservoir after it has been certified to be “clean.” DOCK Schematic of Port-Based Ballast Management Infrastructure Vessel A discharges its ballast during cargo loading operations. Before cargo loading begins, Vessel A is connected to the Dirty Ballast Collection pipeline. The discharged ballast is collected and conveyed by this pipeline to the Dirty Ballast Reservoir. Ballast collected from Vessel A is sequestered in the Dirty Ballast Reservoir, tested for contaminants and then delivered to the Ballast treatment Platform for cleaning. VESSEL A Dirty Ballast Reservoir GREAT LAKES/SEAWAY REVIEW October-December, 2009 17 • Establish a global clean ballast certification and recycling protocol. • Establish a ballast data base for tracking and research purposes. Clean ballast business model. If one accepts the proposition that clean ballast is a commodity, the impact of discharging “dirty” ballast into the world’s waters can be eliminated by the incentive of profit. The proposed network of port-based ballast management facilities has a clear business purpose: to profit from the receipt, treatment and recycling of ballast. The responsibility for solving ballast issues should not be borne entirely by the marine industry. Protection of the public interest is the responsibility of government and, if ballast treatment is of such import, port states should acknowledge this responsibility by funding the necessary ballast management infrastructure. That expenditure is justifiable based solely on a reduction of the annual cost of rehabilitating damaged ecosystems. Further, infrastructure costs could be recovered through rent, fees and profits from ballast facility operations. If necessary, infrastructure costs could be shared by the public and private sectors. Many private-sector enterprises have applicable expertise and would likely participate within the framework of a “forprofit” business venture. We envisage a network of independent ballast management facilities owned and operated by partnerships of port authorities, government agencies, non-governmental organizations and private enterprise, including shipowners, suppliers of ballast treatment technologies and other necessary systems and equipment, and interested investors, each organized to reflect local business interests and customs. At each port, the collection, storage and delivery of ballast will require appropriate means of conveyance such as a pipeline system, reservoirs and a ballast treatment platform. The cost of managing and operating these assets can also be recovered through fees and profits from operations. Of the 28 suppliers surveyed by Lloyd’s in its 2008 Report, 21 had installed systems. These suppliers would have a different (but larger) market—not of vessels but ports comprising the proposed network. To process its share of ballast discharged by the 90,000-plus vessels in the global fleet, each port would require many systems. Developers of IMO approved technologies could negotiate with any port for the sale, licensing, management or operation of their systems. Compared to a mandatory onboard treatment regimen, Eltide’s methodology benefit shipowners in the following ways: • Capital costs to retrofit ballast intake and discharge ports for connection to shoreside infrastructure would be far less than the cost of installing onboard technology. • The cost of operating onboard technology would be eliminated. • Ballast management and recycling costs would be documented, thereby enabling shipowners to recover such costs from the client. • The prospect of strict liability regarding ballast discharges into the sea would be eliminated. Unless there is an urgent re-thinking of ballast water management, by default, the marine industry (and the public) will suffer the imposition of a mandatory onboard treatment regimen that is grossly deficient. We believe the public will exists to insist that our governments facilitate effective environmental protection. The federal governments of the United States and Canada have the power and resources to implement a port-based ballast management infrastructure in North America and lobby for its extension internationally. We must help them find the political will to do so. . Randy Gillen is a retired lawyer and partner with the St. Catharines-based firm Chown, Cairns. He was also Vice- President of Horn Abbot Ltd., the owner of the Trivial Pursuit board game and associated intellectual properties. He has also been involved in securing patent protection for new equipment and systems developed by Eltide Environeering Inc. B A L L A S T W A T E R M A N A G E M E N T The capital cost of outfitting the global commercial fleet is huge. This is simply unfair. (connection to each dock) (connection to each dock) Treated ballast is conserved and stored in the Clean Ballast Reservoir. Clean ballast is sold to vessels (Vessel B) or other ports requiring clean ballast or, with approval, discharged into the environment. The port has a pipeline infrastructure that includes a Dirty Ballast Collection line and a Clean Ballast Delivery line with connections at each dock in the port. DOCK Vessel B receives ballast during cargo off-loading operations. Before cargo off-loading begins, Vessel B is connected to the Clean Ballast Delivery pipeline. Clean’ ballast is drawn from the Clean Ballast Reservoir and conveyed by this pipeline to the vessel. VESSEL B Clean Ballast Reservoir GREAT LAKES/SEAWAY REVIEW October-December, 2009 19 C O M M O D I T I E S Astrong grain harvest this fall is good news traffic on the Great Lakes/St. Lawrence Seaway System. The U.S. Department of Agriculture and the Canadian Wheat Board report that— although planting was later than usual, resulting in a later harvest— the forecast this year is for near-record grain production. Representatives from both sides of the Canadian-U.S. border are expecting grain movements down the Seaway to help bolster what has been a down season. Combined U.S. and Canadian grain tonnage through the Seaway this year was up by nearly 11.2 percent as September began, compared to last year at this time, said Bruce Hodgson, Director of Market Development for the St. Lawrence Seaway Management Corporation. Canada’s farmers are supplying much of the impetus for that tonnage increase. Canadian grain throughput has increased by more than 12.7 percent and U.S. originated grain traffic has increased by more than 6.3 percent compared to 2008. Seaway grain tonnage totaled 9.7 million metric tons (10.7 million short tons) in 2005, 11.5 million metric tons (12.7 million short tons) in 2006, 10.2 million metric tons (11.2 million short tons) in 2007 and 7.8 million metric tons (8.6 million short tons) in 2008. Although the increase in grain traffic is welcome, it probably won’t be enough to rescue the system from this year’s tonnage shortfalls. Hodgson said the Seaway is projecting a 20-25 percent drop in total tonnage for 2009 compared to 2008. Total tonnage last year was almost 41 million metric tons (45 million short tons). Ports see some bright spots. There’s also optimism at the western end of the system. Filling ships 2009 grain harvest helps to supplement the season’s light tonnage “We’re up 20 percent this year from last year, which isn’t saying a lot,” said Ronald L. Johnson, Duluth Seaway Port Authority’s Trade Development Director. “But at least it’s up. We’re going to do better than the 1.2 million short tons (1.1 metric tons) from last year, but I really don’t know how much. There are other parts of the world that are going to be harvesting wheat. We just don’t know how the season’s going to play out.” The Port of Thunder Bay was also on track in early October to beat last year’s 5.7 million metric tons (6.1 million short tons), thanks to predictions for an average crop in terms of volume and yield. “Year-to-date we’re up about 14 percent, at the end of September,” said port CEO Tim Heney. Figures for the past four years show Thunder Bay at around 6 million metric tons (6.6 million short tons), and Heney predicts to come in right around that mark in 2009. “We’re hoping for business as usual in the fall, trying to maintain that 14 percent,” he said. Increased grain traffic at the Port of Toledo is one of the bright spots for the port this season, said Toledo-Lucas County Port Authority’s Senior Manager of Business Development Joe Cappel, with grain shipments through August showing a 56 percent increase over last year’s 469,697 short tons (425,469 metric tons) total. “One of the reasons for the increase is that Kraft Foods is receiving wheat from Canada that they mill into flour for their bakeries. They built a vessel receiving spout at their facility last fall and have been receiving steady shipments of wheat all season,” he said. “I also spoke with The Andersons and ADM (terminals) and both companies said we can expect export beans Canadian grain throughput has increased by more than 12.7 percent and U.S. originated grain traffic has increased by more than 6.3 percent compared to this time in 2008. 20 www.greatlakes-seawayreview.com A new era in agriculture, manufacturing, energy and transportation has arrived and the Port of Toledo offers the advantages of a full service seaport and an inland distribution center all in one location. Accelerate shipments by near-sourcing your company’s access to do

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