Vol.38 No.3 JAN‑MAR 2010

Great Lakes Governors discuss their ports . A focus on technology . Ballast water management rulemaking V O L U M E 3 8 N U M B E R 3 G LGREAT LAKER J A N U A R Y – M A R C H 2 0 1 0 The Interlake Steamship Company Interlake Corporate Center 4199 Kinross Lakes Parkway Richfield, Ohio 44286 Telephone: (330) 659-1400 FAX: (330) 659-1445 E-mail: sales@interlake-ISO Certified steamship.com Precious Cargo? WE CAN HANDLE IT! At Interlake Steamship we treat each and every shipment as if it were priceless. Whether it’s coal, grain, taconite pellets or limestone we know how important that cargo is to our customers… and to their customers. And, we know how important it is that it be delivered in a timely manner with the utmost care. With self-unloading vessel capacities ranging from 17,000 to 68,000 tons, you can trust Interlake Steamship with all your dry bulk cargo needs on the Great Lakes. Call Interlake Steamship – where all cargo is precious cargo. GREAT LAKES/SEAWAY REVIEW January-March, 2010 1 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 The international transportation magazine of Midcontinent North America Iron ore industry experiences uncertainty, looks for stability. Page 19. Lake Superior Lake Michigan Lake Erie Lake Ontario Lake Huron Ontario Minnesota Wisconsin Michigan Pennsylvania New York Qúebec N Illinois Indiana Ohio G L A R T I C L E S J A N U A R Y- M A R C H 2 0 1 0 Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Ballast Water Management NATIONAL BALLAST REGULATIONS . . . . . . . . . 7 Looking into aspects of the U.S. Coast Guard’s proposed rulemaking. Port Development ASSESSING VALUE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Great Lakes Governors discuss the importance of commercial ports today and in the future. Commodities IRON ORE INDUSTRY LOOKS FOR STABILITY . . . . . . . . . . . . . . . 19 Plant operations continue to fluctuate beyond announcements, expectations. InterviewA FOCUS ON TOP PRIORITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 A candid discussion with the Chairman of the Cleveland-Cuyahoga County Port Authority. Short Sea Shipping FACT-FINDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Seaway corporations travel to Europe to study short sea shipping, prepare for next trade mission. Technology MOVING TOWARD SUSTAINABILITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Seaway leverages the latest technologies in modernizing Canada’s infrastructure. FUNDING YEAR TWO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 U.S. Seaway uses 2010 appropriation to begin hydraulic updates to older locks. SEEING IN THE DARK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 New night vision technology available to help mariners. E-NAVIGATION IN THE ST. LAWRENCE RIVER . . . . . . . . . . . . . . . . . . . . . . 47 Canadian Coast Guard uses technology to enhance travel. Intermodal TransportationMEETING GOALS THROUGH INTERMODALITY . . 53 Model evaluates road, water and rail for environmental impact, time and cost. Admirality LawMAKE THE RIGHT CHOICE . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Longshore Act versus Jones Act. Marine Photography SUPERIOR’S ISLAND OUTPOSTS . . . . . . . . . . . . . . . . . . . 66 Great Lakes People IN HARMONY WITH THE LAKES . . . . . . . . . . . . . . . . . . . 68 Troubadours educate, entertain with songs of the inland seas. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 GREAT LAKER D E P A R T M E N T S Great Lakes Governors discuss the importance of their commercial ports and their economic impact. Page 12. Latest technological improvements modernize the system’s infrastructure, enhance safety and support sustainability. Page 36. 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 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. © 2010 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 JANUARY-MARCH, 2010 NUMBER 3 2 www.greatlakes-seawayreview.com • Seaway size ocean vessels • Interlake commerce • Inland river barges • Pipeline facilities • Canadian Pacific Railway Comes with a view! 5 Acre Parcels Available Now 2323 S. Lincoln Memorial Dr., Milwaukee, Wisconsin 53207 www.milwaukee.gov/port • Union Pacific Railroad • Immediate access to ALL transportation modes • Call for information • (414) 286-8131 • bnowak@milwaukee.gov There’s room for you Great Lakes/Seaway Review Cover: Edgar B. Speer at the Soo Locks. Photo by Roger LeLievre. Great Laker Cover: Huron Island in Lake Superior. Photo by Gary Martin. GREAT LAKES/SEAWAY REVIEW January-March, 2010 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 Donjon takes over shipyard on Lake Erie Through an agreement with the Erie-Western Pennsylvania Port Authority and the acquisition of the assets of Erie Shipbuilding, Donjon Marine Co. has opened Donjon Shipbuilding & Repair LLC (DSR) on a 44- acre site on Lake Erie, Pennsylvania. The acquisition adds shipbuilding and repair to Donjon’s marine services, which include dredging, salvage, heavy-lift and towing. DSR’s facility, equipped with 1,250 x 120 x 22-foot drydock, includes 4,000 feet of pier space and more than 200,000 square feet of production area. The enclosed fabrication and assembly buildings are housing fullyautomated cutting, fabrication and coating equipment that is sufficient to build and maintain everything from deck barges to ocean-going vessels.. Fednav’s Pathy headlines Marine Community Day Before 200 attendees, Fednav Limited President & CEO Laurence G. Pathy offered insights into the need for Great Lakes/St. Lawrence Seaway domestic and international stakeholders to work together to become more innovative in growing marketshare amid the current and coming challenges. He noted that there has been a modal shift from maritime to land-based options and that about 30 percent of ships that came into the system in 2009 were in ballast vs. three percent in 2006. “We all know we’ve had a difficult year,” he said, noting that, as a system, we need to stop being reactive and be more imaginative in shoring up cargo. “If we’re seeking new business, let’s begin in our backyards. We need to think outside the box to gain and keep marketshare.” One approach to becoming more innovative is to attract more young professionals. Fednav hires interns annually and in 2010 is fully funding two Great Lakes-based student fellowships— one in Canada and one in the U.S. The company has committed three years of funding to the pilot program. “We need to attract new managers and foster new, fresh ideas,” Pathy said. In general, system stakeholders need to do a better job of educating potential customers, reducing costs, engaging the governments to support the industry and continuing to refine its role as an environmentally-responsible form of transportation. . The Great Lakes/St. Lawrence Seaway maritime industry will soon have a staffed office and virtual resource center known as the Great Lakes Marine Information Bureau. Marine Delivers is being developed to develop and provide factual information to elected officials and media representatives on a consistent basis. Surveys conducted by National Public Relations shows that public perception about the maritime industry is often based on a lack of facts and information. According to the survey, when people hear and understand the benefits of the marine industry, support increases significantly. The bureau will have a public policy focus and will work in conjunction with groups like Hwy H2O and Green Marine. The bureau’s focus will be to: be responsible in communicating facts, not hyperbole; be responsive, providing quick feedback; be regular, consistently maintaining communications; and be relevant. A two-year business plan is in place with the bulk of the funding already received or committed. For more information or to offer support, contact Steve Fisher, Executive Director of the American Great Lakes Ports Association at fisher@greatlakesports.org or Ray Johnston, Executive Director of the Chamber of Marine Commerce at rjohnston@cmc-ccm.com. . Laurence G. Pathy A commitment to American-made products, dedication to saving and creating jobs, creating economic development opportunities and restoring the promise of the middle class has earned Congresswoman Betty Sutton (D-OH) an award as 2010 Great Lakes Legislator of the Year from the Great Lakes Maritime Task Force (GLMTF). Attending the presentation in Washington, D.C. in February are (from left): James H.I. Weakley, Lake Carriers’ Association; John D. Baker, Great Lakes District Council, ILA, AFL-CIO; Torey Zingales, MEBA, AFL-CIO; Rep. Sutton; Don Cree, Great Lakes for AMO, AFL-CIO; Tim Buxton, United Steelworkers of America-District 1, ALF-CIO-CLC; Mark Barker, Interlake Steamship Company; and Dana Byrne, Cliffs Natural Resources. David Matsuda has been nominated by President Obama as Administrator of the U.S. Maritime Administration. He awaits Congressional confirmation. Matsuda has been serving as Deputy Administrator and Acting Administrator of the Maritime Administration since July 2009. He worked for more than a decade in federal transportation policy, programs and oversight. Prior, he served as Deputy Assistant Secretary for Policy at the U.S. Department of Transportation (DOT). Previously, Matsuda spent more thanseven years working in the U.S. Senate, helping draft and secure passage of federal transportation legislation, including modernization of oil pollution prevention and response programs, an overhaul of the nation’s passenger rail system, and security improvements at U.S. seaports. He has served on the staff of U.S. Senator Frank Lautenberg, the Senate Committee on Commerce, Science and Transportation’s Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security, the Office of Chief Counsel at the DOT’s Federal Railroad Administration and as a Georgetown University Government Affairs Institute Fellow. . David Matsuda Marine Delivers launches April 1 MARAD Administrator awaits confirmation D A T E L I N E Lakes & Ohio River Division of the U.S. Army Corps of Engineers, the silver fish have not been found above the barriers. “All tests show the barriers are working,” he said, noting that a second barrier is planned to be constructed later this year as a back-up. Public hearings and meetings are ongoing on how to best limit the spread of Asian Carp. The Corps is working to release factual information, such as the fact that closure of two locks and a slew station would not close all pathways the carp could migrate into Lake Michigan. There are two water pathways that do not have barriers in place. In addition, closing the locks would have far-reaching impacts on businesses and recreational use of the area. . Canadian government addresses ship tariff The Canadian government recently announced its intention to remove the 25 percent duty on certain vessels brought into Canada. Because there is currently no shipbuilding in the country of Seaway-sized vessels, the tariff has become a penalty for ship operators, who face an automatic 25 percent increase in asset acquisition to renew their fleets. With the future installation of ballast water management technology and the need for modern engines capable of burning low-sulphur fuels, fleet renewal is critical to the existing bulk fleet and to provide options to further expand short sea shipping initiatives. . Green Marine adds to leadership David Bolduc has been appointed Executive Director of Green Marine Management Corporation, which oversees the development and management of the Green Marine Environmental Program. As Executive Director, Bolduc will be responsible for all aspects of the administration and strategic development and provide support for the Green Marine CEO Steering Committee, the St. Lawrence and Great Lakes’ Environment Committees. Bolduc has been instrumental in developing the program since its launch in 2007. “This is an important step forward for Green Marine that will strengthen the management of the program and ensure that our strategic goals are achieved,” said Ray Johnston, Chairman of Green Marine Management Corporation. Bolduc will be located in Quebec City and can be reached at (418) 649-6004 or david.bolduc@green-marine.org. . Asian Carp could set precedence Leadership from throughout the Great Lakes/St. Lawrence Seaway system is bringing awareness of the importance of the Asian Carp issue to industry stakeholders: it could set precedence on how issues on invasive species and transportation are handled in the future. With state lawsuits, calls to action and the Obama administration requesting the locks and canals be closed along the Mississippi waterway in Illinois—some permanently and others a few days a week—an emotional whirlwind has erupted. The U.S. Army Corps of Engineers is leading the effort of how to deal with the requests and the potential of the carp moving into the Great Lakes via Lake Michigan. Through a hi-tech testing method used in 2009, known as eDNA, the DNA of Asian Carp has been found beyond the Corps-operated electric barrier system in place in the river system. However, according to Michael White, Director of Programs for the Great 4 www.greatlakes-seawayreview.com David Bolduc D A T E L I N E SLSMC promotes two Stephen Kwok has taken on the role of Regional Director of The St. Lawrence Seaway Management Corporation’s (SLSMC) Niagara Region. In this capacity, he is responsible for the dayto- day operations of the Welland Canal. Prior, he served as the Corporation’s Director of Operations and Technical Services. Jean Aubry-Morin was appointed Vice President, Corporate Sustainability for the SLSMC. In the new role, he oversees the Seaway’s Operations and Technical Services, as well as the advancement of SLSMC’s sustainability efforts. . Algoma vessels take on Canadian flag Seaway Marine Transport (SMT) is adding Algoma Spirit, Algoma Discovery and Algoma Guardian to SMT’s operating fleet. These vessels have been owned and operated by a foreign subsidiary of Algoma Central Corporation and time-chartered to Fednav International. Under SMT’s new arrangement, ownership and operation will be transferred to Algoma Central Corporation and time chartered to SMT through 2014. The ships will be used primarily in the grain and iron ore trades. . Toledo receives $2 million grant The Toledo-Lucas County Port Authority is receiving a $2 million Clean Ohio Revitalization Fund (CORF) grant from the State of Ohio to complete the remaining environmental remediation and demolition at the former Industrial Park at Beazer, known as the former Toledo Coke site, located at the port. Site development is expected to create construction jobs and host hundreds of new manufacturing and seaport jobs. The 32-acre parcel offers redevelopment opportunities to combine large scale manufacturing and shipping to help avoid the difficulties of moving oversized loads. The port authority purchased the property in 2004 for $900,000. In addition to the $2 million grant, a 40 percent match—$1,383,632—has been committed by a Housing and Urban Development Economic Development Initiative grant and an Ohio Department of Development Shovel Ready grant. With these grants, the port authority completed environmental assessments and funded construction of a road and installation of water, sanitary and storm sewer systems into the property. The property is adjacent to the Port Au- GREAT LAKES/SEAWAY REVIEW January-March, 2010 5 Bringing Business to the Port & Economic Development to the Region Duluth-Superior is the #1 port on the Great Lakes. The Port is an engine for growth – a global gateway for business and industry – a multimodal transportation hub with the cargo handling expertise you need to acquire raw materials and ship finished goods quickly and efficiently. One of the region’s largest owners/operators of industrial property, the Duluth Seaway Port Authority works with nearly 60 businesses that provide 1,000+ fulltime jobs on the waterfront and at the Duluth Airpark. We acquire property, invest in infrastructure, develop building sites and retrofit facilities to meet the needs of growth-oriented companies. Sites range from small lots to 50+ acre parcels and include over a halfmillion square feet of industrial space, plus a Foreign Trade Zone. Call us today. We can provide smooth sailing for your business expansion/relocation project. 218.727.8525 www.duluthport.com 1200 Port Terminal Drive • Duluth, Minnesota 55802-2609 USA Port Drives Industrial Development …by land and by sea Stephen Kwok Jean Aubry-Morin REGIONAL CALENDAR thority’s 181-acre Ironville Docks Development, which is undergoing a transformation following an $18 million public-private partnership investment in new rail lines, seaport improvements and other developments funded in part by a $5 million State of Ohio Job Ready Sites grant. Both the Ironville Docks and Beazer properties will be leased to companies with business models that include needs for marine commerce. . MAY 6 Windsor Marine Night St. Clair Centre for the Art (519) 258-5741 or wpa@portwindsor.com 19-20 Green Tech for Shipping 2010 Hyatt Regency, Montreal www.green-marine.org/green-tech-seminar JULY 11-14 TRB Joint Summer Meeting Minneapolis, Minnesota www.trb.org or bmillar@nas.edu GREAT LAKES/SEAWAY REVIEW January-March, 2010 7 B A L L A S T W A T E R M A N A G E M E N T to integrating a release standard 1,000 times more stringent than IMO. “The IMO standard is extremely low, meaning really good,” Croot said. “It’s like one drop of water in 20 Olympic swimming pools or one second in 32,000 years.” Deadlines in flux. Installation deadlines are a being considered flexible because the technology to meet the IMO standard is still developing, said Allegra Cangelosi, Director of Environmental Projects for the Northeast- Midwest Institute and Principal Investigator of the Great Ships Initiative. Depending on when the system designers can prove that their systems work and can begin to make them available will impact the deadlines. During the public comment period for the Notice of Proposed Rulemaking for the U.S. Coast Guard Ballast Water Discharge Standard, which closed December 4, 2009 the Coast Guard received about 2,500 comments. The comments are now being reviewed, a step in moving toward ultimately establishing a national discharge standard. The Coast Guard has developed a schedule to provide stakeholders with a process for integrating Phases 1 and 2 of the proposed standard. (See schedule below). As it stands, Phase 1 involves new vessels meeting the International Maritime Organization (IMO) standard in 2012 and existing vessels complying in 2014, with a drydocking window extending to December 31, 2016. “The discharge standard provides a concrete code for system manufacturers to meet,” said U.S. Coast Guard Commander Gary Croot, Chief of the Environmental Standards Division in Washington, D.C. However, Croot said the 2012 timeline as a first deadline for compliance is aggressive because ballast water treatment systems— most of which are still being developed and tested—will need to undergo U.S. federal type approval, a process that will involve review by independent labs that have yet to be certified by the Coast Guard. The type approval process is Phase 2 of the Coast Guard’s plan—in addition National ballast regulations Looking into aspects of the U.S. Coast Guard’s proposed rulemaking Phase 1 and Phase 2 Standards Implementation Schedule (5 year grandfathering) SOURCE: U.S. COAST GUARD 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 January-March, 2010 9 B A L L A S T W A T E R M A N A G E M E N T third party, performance of proposed ballast treatments,” Cangelosi said. Besides validating systems for freshwater use, the initiative services are also available to provide testing for companies with technologies that are deemed promising by independent review. She said, “We’re willing to meet them wherever they are and provide them with bench-scale, landbased or shipboard research services, and then they can take those findings back to the drawing board to improve their systems. They can also call on us to demonstrate for governments that they’re performing to some preordained level, so these services can either be R&D or actual validation testing.” The systems that have received IMO final approval use a variety of technologies to treat ballast water. Some of the most common are: • Filtration – A physical-separation system that strains out living and nonliving particles. Typical filters have pore sizes of 40-50 microns (40-50 micrometers). Anything smaller may mean slowing the filtration process, as the water has to travel through a finer mesh. • Ultraviolet Light – A biocide that either alters the DNA of living organisms “There’s a real race going on right now among treatment vendors to get their systems approved and on the map so that the deadline for ships to install is not delayed,” she added. Amid the lack of treatment systems, ship operators are using ballast water exchange— also known as flushing—as a form of treatment. Bi-national ballast tank inspections are showing the approach to be an effective option, however, treatment systems are expected to expedite ships’ journey rather than have them stopped while undergoing a complete release and reload of ballast while more than 200 miles offshore. Cangelosi sees another advantage to the developing technology. “With ballast water treatment, we can know in advance to what extent we’re treating, and then we can monitor to determine how that treatment is working,” she said. As the U.S. Coast Guard continues establishing the national standard, it has planned reviews along the way. In 2013, a practicability review will determine if technology can meet the criteria. A similar review is scheduled for 2016. “It’s much more important to establish a Phase 1 standard that’s achievable as apposed to establishing a pie-in-the-sky standard,” Croot said. “If the final standard comes out and Phase 1 was 10 times more stringent than IMO, it’s been our experience that none of the systems that have been type approved by foreign administrations would meet the criteria. And, even if there was a system 10 or 100 times more stringent than IMO, we’re not confident that we could verify it.” Testing and validation. There are currently upwards of 40 different treatment systems being developed, from rudimentary stages to having received IMO certification. About eight systems have received type approval, a credential for use, from foreign administrations. However, before being approved by the U.S., the systems will need to undergo review and approval at U.S.- certified labs. “There’s going to be a difference between what has been approved by foreign administrations,” Croot said. “The U.S. will review each system’s specifications.” There are three labs in the U.S. at this time that have shown interest in becoming certified by the Coast Guard to work as independent laboratories in reviewing and validating ballast treatment systems: Great Ships Initiative (GSI), Maryland Environmental Research Center and the Pacific Northwest Naval Lab. According to Croot, the first two labs are much farther along in their development than the Pacific Northwest Naval Lab, but all labs seeking certification must meet a variety of quality assurance and quality control criteria. An important factor will be a lab’s willingness to fully disclose its findings, something that GSI already practices. Details of the certification process is something that will be done congruently with preparing the Coast Guard’s final rule and something that Croot said extends outside the Coast Guard’s, and the federal government’s, purview. To aid in meeting the fast-approaching deadlines, the GSI is stepping up to help provide independent freshwater testing and validation for new treatment technologies, a cooperative effort between ports in the Great Lakes system, environmental groups and federal, state and local governments. “The first order of business for the Great Ships Initiative has been to set up an integrated set of demonstration services that could be deployed to help validate, as a or literally cooks the organisms. Either way, the organisms die. This system works well in clear water, because the UV light can penetrate the water to greater distances. Companies have to design UV systems so that everything in the water gets close to a lamp. • Ozonation – A technique that adds the gas ozone to water to destroy bacteria and other microorganisms. • Electrolytic Chlorination – A system that generates chlorine from brine and water. The chlorine serves as a biocide. • Cyclonic Separation – A technique using a vortex to either destroy particles in the water or to separate and remove them. • Cavitation – A system that harnesses the same pressure differential that exists in the normally damaging bubbles that form around shippropellers and uses it to destroy organisms in the ballast water. • Biocides – Applying any number of chemicals, such as peroxide, that kill organisms in the water. “Each of these technologies has strengths and weaknesses, but the companies try to combine them to optimize their strengths,” Cangelosi said, noting that although much work remains to be done, the stage is set for success. “I think that the sophistication curve is on an exponential growth rate right now. We’ve gone from people trying to solve it in their minds and putting a gizmo together, to big corporations taking on ballast treatment development, to sophisticated validation testing and awareness of what can and cannot happen in terms of treatment. We’re gaining the capacity and the knowledge required to make a real success of this R&D effort.” Standards: G9 and G8. There is more than just one guideline to determine system validity. The G9 guidelines were developed to address ballast treatment systems that use active substances, or chemical treatments. They provide a process by which to identify if the system’s active substances are safe to use onboard and if they are safe to use for the environment. The G9 standard was developed by the group known as GESAMP, or the Group of Experts on Scientific Aspects of Marine Environmental Protection, which is sanctioned by the United Nations. The process for approval involves a system manufacturer approaching an administration for type approval. With the endorsement of the administration, the manufacturer applies to GESAMP for basic approval, which means that the chemicals are safe to use onboard the vessel. To aid in meeting the fast-approaching deadlines, the GSI is stepping up to help provide independent freshwater testing and validation for new treatment technologies, a cooperative effort between ports in the Great Lakes system, environmental groups and federal, state and local governments. Hotline open… … Operators are ready to take your call. Canada Steamship Lines 759 Square Victoria Montreal, Quebec H2Y 2K3 T: (514) 982-3800 • info@cslmtl.com • www.csl.ca cargo ship B A L L A S T W A T E R M A N A G E M E N T As a coalition of shipping groups was handed a defeat by the New York State Supreme Court in February in response to an appeal filed over a New York State Supreme Court ballast water decision, industry attention is focusing on Wisconsin’s new ballast rules. The latest New York ruling meant the shippers have lost another round in their battle to keep states from passing individual ballast rules. Parties involved in the appeal include the Port of Oswego, New York; Port of Albany, New York; American Great Lakes Port Association (AGLP); Canadian Shipowners Association; Federal Marine Terminals and Lake Carriers’ Association. In Wisconsin, some new rules took effect in February, but they are not expected to have immediate impact beyond best management standards and reporting requirements on vessels trading into Wisconsin ports until 2012 and beyond. “For 2010 there’s no change from 2009 (for lakers and salties),” said Wisconsin Department of Natural Resources’ (WDNR) spokeswoman Susan Sylvester. Steve Fisher, AGLP Executive Director, agreed. Wisconsin’s plan should have no immediate impact on shipping bound for ports such as Milwaukee, Superior or Green Bay. “There’s a requirement for 2012 for new ships, but nobody is really building new ships right now so the relevant deadline is 2014 for existing ships, he said” By January 2014, they will have to have installed ballast water treatment technology to meet either the standard crafted by the IMO or 100 times stronger than that, depending on a review the state is going to do between now and then.” The AGLP has been pushing for a unified federal approach to the protection of the Great Lakes—and all U.S. waters— from invasive species via ballast water and has been urging Congress to adopt such an approach. The Wisconsin Department of Natural Resources has been doing the same. “Wisconsin has always favored a strong national standard and without that, we were required to issue our own standard,” Sylvester explained. The shipping industry has long feared that states acting unilaterally will create a patchwork of regulations that could be difficult to navigate. Fisher said those fears may be coming true, at least for now. “We’ve always advocated for a uniform rule/requirement from state to state and all over the United States,” he said. “Now that’s not what we’re going to get. The Coast Guard is developing a regulation, but that regulation specifically allows states to implement their own, tougher regulations. So we’re still potentially looking at a hodgepodge of rules from state to state.” Wisconsin’s new ballast rules include: • February 1, 2010, large commercial vessels are prohibited from discharging ballast tank sediment, seawater and certain other substances. They must adopt best management practices for handling these substances to reduce the risk of releasing new invaders into the Great Lakes. Oceangoing ships and lakers must both meet these requirements. • By the end of 2010, the WDNR, with advice from a stakeholder committee, will determine if commercial treatment technology is available to meet the states numerical ballast water discharge standards that will apply to oceangoing ships. Wisconsin’s standard is proposed to be 100 times more restrictive than the proposed standard for the International Maritime Organization. If the technology is not feasible, the Wisconsin standard will change to the IMO standard. • January 1, 2012, any oceangoing vessel built on or after that date must treat ballast water to reduce the number of live plants, animals and organisms in it to meet numerical standards that WDNR regards as appropriate protection against introducing new invasives. • January 1, 2014, existing oceangoing ships must meet these same standards before discharging. • Lakers will not be required to treat their ballast water to meet standards under the current general permit, which will be valid for five years. • If the U.S. Coast Guard or the U.S. Environmental Protection Agency adopts numerical standards that Wisconsin regards as adequately protective, Wisconsin will examine whether a state permit is still necessary. Fisher said he is skeptical if any commercial treatment technology will be available to meet Wisconsin’s ballast water discharge standards. “For those of us who follow technology, I can tell you we are unaware of any technology that can meet 100 times the IMO standards,” Fisher said. “Keep in mind that the companies that are developing these environmental technologies are doing it for the international market. How many companies out there are going to develop a product that meets the needs of ships that just happen to trade into Wisconsin, which is a pretty small subset of international shipping?” Sylvester remains optimistic. “There are several treatment systems that are still undergoing testing to see if they are effective in freshwater systems,” she said. “That’s what we’re waiting for, a system that will meet the discharge standards.” Even though Wisconsin’s rules won’t have any immediate impact on shipping, Fisher said the state is potentially playing with fire. “In the end, ships don’t have to go to Wisconsin, and if they chose to go to nearby states instead, all Wisconsin is doing is chasing commerce and jobs away from its ports,” he said. The National Wildlife Federation and its state partner, the Wisconsin Wildlife Federation, have filed a legal challenge that claims the state’s new rules are not stringent enough. Roger LeLievre . Following basic approval, more lab testing is conducted and information provided to GESAMP to review and determine whether the system is functioning properly and the discharge is safe for the environment. If GESAMP determines this to be true, it gives the system final approval. “The approval does not say how effective the system is,” Croot said. At this time, the manufacturer goes back to the administration to request type approval process. The shipboard and land-based testing that is conducted for G9 is based on G8 guidelines. However, administrations have interpreted those guidelines differently, according to Croot, because the guidelines are not specific as to how sampling and testing is to occur. If a system uses filtration or ultraviolet technology, it does not need to go through the G9 process. Once type approval is given by a flag state, the system can be put on ships and considered IMO compliant. Getting systems on ships. As the U.S. seeks to establish its federal regulation for ballast discharge, shipowners are expressing a feeling of being held hostage to build new ships and install treatments systems. If they purchase a system today, will they need to replace it in a few years to meet newer standards? Some of the comments received by the Coast Guard prior to December 4 asked whether grandfathering would be part of the final rulemaking. “We’re still in the comment-review process,” Croot said. “We’ve received comments from environmentalists who want short grandfathering, or none, and from shipowners and operators who want at least a 10-year grandfathering period.” “It’s not a democratic process,” he added. “We don’t add up the number of people who are in favor and opposed. We have to make that determination based on additional data, such as the cost to the industry and the benefits of having a more stringent treatment system on ships.” As it moves the process forward in a timetable that is expected to extend into the deadline for complying with IMO standards, the Coast Guard is conducting a cost-benefit analysis to address whether—and for how long—grandfathering may be part of the final ruling. “We don’t want to do anything to discourage people from putting equipment on early and a short grandfathering period would do that,” Croot said. “The shipowners are the wildcard here.” Janenne Irene Pung . State-by-state regulations Appeal loses in New York, new rules introduced in Wisconsin GREAT LAKES/SEAWAY REVIEW January-March, 2010 11 The Ohio River is the nation’s ninth longest river. This water system accounts for one-third of all annual U.S. inland waterborne commerce by tonnage and moves more cargo than the Panama Canal (approximately 63 million tons in 2000). The Ohio Department of Transportation (ODOT) has committed to identifying the state’s critical multi-modal transportation assets— all modes of travel and shipping—and identifying Ohio’s greatest economic development assets that drive the state’s economy. We know that transportation affects the performance of economic development centers. We are striving to stabilize and maximize transportation funding to create a fully integrated, multi-modal transportation system for Ohio. Great Lakes/Seaway Review: Do you have a strong working relationship with the port(s)? If not, is strengthening that relationship important to you? Daniels: Indiana benefits from a strong relationship with our ports. In fact, our unique port system often is cited as a model by other states and public entities for creating port authorities. We appoint a bipartisan board of commissioners to oversee the Ports of Indiana, and the board hires industry professionals to manage day-to-day operations and work with the state on key issues. The board oversees a world-class port system that stimulates Indiana’s economy without using state tax dollars. Doyle: Building on our state’s geographic advantages, the state utilizes a Harbor Assistance Program to assist harbor communities along the Great Lakes and Mississippi River in maintaining and improving waterborne commerce. With substantial increases in funding during my time in office, 12 www.greatlakes-seawayreview.com gan’s marine industries are also important and include shipbuilding and maintenance, recreational boating, charters and marina services. With this economic diversity in mind, Michigan launched the Michigan Port Collaborative to elevate the recognition and economic vitality of our state’s Great Lakes port communities. The collaborative is committed to protecting and promoting our Great Lakes and developing our coastal communities as “Michigan’s Front Door.” Quinn:Maritime transportation is part of the foundation that makes Illinois the logistics capital for North America. Shippers can access Illinois’ inland ports via the St. Lawrence Seaways or the Mississippi River. This makes maritime transportation a key player in facilitating global trade. Rendell: The marine transportation system is integral to the economic vitality of the Commonwealth. Pennsylvania has three major ports: a deepwater port in Philadelphia; an inland waterways port in Pittsburgh; and a Great Lakes port in Erie. Not only do these ports and marine-related industries account for hundreds of thousands jobs, each port provides for a vital and direct conduit to the global marketplace, enabling Pennsylvania shippers to compete globally. Strickland:With more than 700 miles of navigable waters with 256 miles of coastline along Lake Erie forming its northern border and 451 miles of coastline along the Ohio River forming its eastern and southern borders; Ohio is a maritime state. Lake Erie is the twelfth largest freshwater lake in the world and the Lake Erie system annually accommodates 58.8 million tons of commodities moving to, from and within Ohio. The annual value of Ohio port shipments on Lake Erie is $5.7 billion. With ports throughout the Great Lakes/St. Lawrence Seaway system becoming more involved in spearheading projects that involve stakeholders from throughout their communities, along with the pressure to mix commercial with recreational use, we asked the region’s governors to share their views on economic development and the future of waterborne trade in their areas. Six of the eight Great Lakes Governors responded. Four of 15 questions are included here, with the remainder available digitally. Great Lakes/Seaway Review:What is your perception of the value of maritime transportation in your state? Daniels:Waterborne shipping generates significant economic, environmental and logistics benefits for Indiana. It’s environmentally friendly and efficient for Indiana companies to move large volumes of goods with less energy consumption, emissions and manpower than other modes and a major contributor to Indiana’s outstanding logistics and transportation system. Doyle:Wisconsin’s ports are critical to our state economy. Our state’s ports provide an important transportation alternative that many states cannot offer to their manufacturers, shippers and suppliers. Wisconsin is geographically fortunate to be surrounded on three sides by two commercially navigable waterway systems: the Mississippi River and the Great Lakes/St. Lawrence Seaway. Wisconsin is home to 20 commercial ports and 111 harbors and marinas that support 11,387 jobs and annually generate over $1.3 billion in economic output. Wisconsin’s harbors and ports serve as hubs of economic activity for manufacturing, shipbuilding, cargo handling, passenger ferry services, transportation logistics, commercial fishing and as recreational centers. Each year, Wisconsin’s 20 commercial ports handle some 44 million tons of cargo worth an estimated $7 billion. Granholm: Marine transportation is of great value to the State of Michigan and especially our 37 cargo ports, which handle approximately 12 percent of all cargo originating or terminating in this state. This proportion is significantly higher for specific commodities (e.g., iron ore, cement). Michi- P O R T D E V E L O P M E N T Great Lakes Governors discuss the importance of commercial ports today and in the future ASSESSING VALUE For a complete interactive, searchable report on the 15 questions posed to the Great Lakes Governors and their responses, including tables and charts, go to www.greatlakes-seawayreview.com. GREAT LAKES/SEAWAY REVIEW January-March, 2010 13 a key asset and recognizes the important role it plays within our logistics industry. Rendell:We have a strong relationship with the ports. Not only is my administration very supportive of Pennsylvania’s maritime industry, my Office of PennPORTS, located in the Department of Community and Economic Development (DCED), directly works with the ports every day. The ports are economic engines that create direct, family-sustaining employment opportunities at the ports and create jobs through the supply chain and value-added manufacturing sectors (transportation and logistics, distribution centers, exporters and importer manufacturing, etc.). Strickland: Admittedly, the State did not have a strong working relationship with the ports in the past. During my administration, we created the first Office of Maritime at ODOT. Created in mid-2009, this office already oversees a $60 million portfolio of state-funded maritime investments and is the lead state on two U.S. Maritime Administration initiatives: Interstate 90/Marine Highway Corridor Program and the Ohio River “Marine One” Corridor. Great Lakes/Seaway Review: How important is the maritime industry in terms of your state’s economic development? Daniels: Indiana is known as “the Crossroads of America” largely because of its highway transportation and logistics assets. But the state also is at the intersection of the nation’s two major inland waterway systems— the Great Lakes and the Ohio-Mississippi river system. With a system of three ports located at the hub of these major trade routes, Indiana has a distinct advantage in providing lower shipping costs for companies using different modes of transportation. Some steel companies located at our ports save as much as $10 per ton on transportation costs versus their out-of-state competitors without the benefit of direct port access. Doyle:Wisconsin ports are the economic engines that help drive the state’s economy. Water transportation is the most cost efficient travel mode for moving bulk commodities such as agricultural products, petroleum, coal and construction materials. Freight rates per ton-mile for waterborne modes are as much as 60 percent lower than rates for other types of overland shipments. Wisconsin commodities handled by cargo ships and barges accounts for approximately 44 million tons of products per year. Farm products, metallic ores, coal and scrap materials account for 98 percent of the commodities shipped from Wisconsin ports. Inbound freight handled at Wisconsin ports amounts to 8.3 million tons annually. Coal, nonmetallic minerals, clay, concrete, stone and scrap/waste materials make up 88 percent of the total inbound commodities. Wisconsin’s harbors and ports are a great benefit to the state’s balance of trade since 77.6 percent of all commodities are exported to destinations outside Wisconsin. Granholm: The maritime industry is critical to Michigan now and we believe it will be more so in the future. Critical economic sectors—manufacturing, construction and power generation—will continue to rely on maritime transportation. Quinn: The State of Illinois is ranked seventh in the nation for total waterborne commerce— the first six states are all coastal saltwater states. Illinois is also ranked seventh in the country for customs districts. The Illinois International Port District (the Port of Chicago) is ranked thirty-third in harbor grants awarded have increased from $1.2 million in fiscal year 2002 to $9.5 million in fiscal year 2009. Realizing the economic opportunity in the program, in 2004 I signed into law an expansion of Harbor Assistance Program eligibility to allow private businesses to access the program and improve their port facilities. Since its inception in 1978, Wisconsin’s Harbor Assistance Program has awarded 68 grants totaling more than $73 million to improve the infrastructure and operation of our commercial ports found along the shores of Lakes Michigan and Superior, as well as those along the Mississippi River. The grants have supported dockwall construction and rehabilitation, infrastructure upgrades, dredging and the establishment of confined disposal facilities to hold the dredged material. Granholm: Historically, the Michigan Department of Transportation (MDOT) has been the primary point of state contact with this state’s 37 commercial ports and 139 individual marine terminals, as well as their related industries. In 2007, a coalition of state agencies reached out to Michigan’s Great Lakes port communities to identify common issues and interests. The result is today’s Michigan Port Collaborative, a diverse partnership of federal, state, local, regional governments, private sector partners, non-profit groups and academic leaders dedicated to building stewardship of the Great Lakes through strategic economic and tourism development that revitalizes and maintains working waterfronts. The continued growth and success of the collaborative is critical to Michigan’s economic future. Quinn: The state views the port system as P O R T D E V E L O P M E N T Governor of Ohio Ted Strickland Governor of Illinois Patrick J. Quinn Governor of Michigan Jennifer M. Granholm Governor of Wisconsin Jim Doyle Governor of Indiana Mitchell E. Daniels, Jr. Governor of Pennsylvania Edward G. Rendell Liebherr Nenzing Crane Co. 11801 NW 100th Road, Suite 17 33178 Medley, Florida Tel.: +1 305 889 0176 Fax: +1 305 889 0655 info.lnc@liebherr.com www.liebherr.com Liebherr Nenzing Crane Co. 7075 Bennington Street 77028-5812 Houston, Texas Tel.: +1 713 636 4050 Fax: +1 713 636 4051 info.lnc@liebherr.com www.liebherr.com The Group Experience the progress. GREAT LAKES/SEAWAY REVIEW January-March, 2010 15 the nation for waterborne commerce; with the first 31 ports all being saltwater ports. According to the U.S. Army Corps of Engineers, the Chicago Port District had 24.5 million tons of cargo go through the port in 2007 (the most recent year available). This is down from the 25.7 million tons shipped in 2006, but is up eight percent from 2003 when 22.6 million tons were shipped through the district. Here is the web address of an economic impact study that was done for the Chicago Port District: www.theportofchicago.com/pages/EIS.html. Rendell: Pennsylvania’s ports are an asset in our economic development strategic plan. Having three different types of ports (deepwater, inland waterways and Great Lakes) offers Pennsylvania shippers competitive options to export products and import raw materials. It also helps us attract new domestic and international companies, which provides an important economic ripple effect. Strickland: As America’s economy recovers, there will be increased need to move more goods across the nation. The next logical mode to develop for heavy freight is water. While under-utilized in the past, Ohio’s ports will play an integral role in Ohio’s strengths in logistics and distribution, with the potential to attract international companies that maintain operations here. Ohio manufacturers rely on ports to help deliver their locally made products to markets across the country and around the world to obtain low-cost delivery of raw materials. Great Lakes/Seaway Review: Do you have specific administrative officer(s) who are actively engaged in—and advocating for—maritime transportation, particularly as it relates to regional economic development? If so, who are those individuals and what actions are they taking to enhance/ improve maritime commerce? Daniels: Our state’s lead maritime advocate is the Ports of Indiana. The Ports’ focus is to enhance and improve maritime commerce with the goal of increasing shipments and attracting new customers. The Indiana Economic Development Corporation, created by Governor Daniels in 2005, collaborates with the Ports to identify new business opportunities that may be port dependent. Doyle: The Wisconsin Department of Transportation has within its Division of Transportation Investment Management a Railroads and Harbors Section (RHS) that administers the harbor assistance program (HAP). The harbors and waterways program manager, along with the RHS section chief, are directly responsible for addressing the infrastructure improvement needs presented to HAP. Granholm:MDOT Director Kirk Steudle and his staff have played a lead role in addressing important transportation priorities, including issues that affect the maritime industry. MDOT, for example, was instrumental in advocating for a new, expanded lock at the Soo Locks and actually facilitated the commitment of Michigan’s portion of the non-federal cost share for the project, before Congress recently eliminated the need for a cost-share. That project is now underway, thanks in large part to MDOT’s consistent support. Additionally, Curtis Hertel, Executive Director of the Detroit/Wayne County Port Authority, and his staff have been vocal proponents on maritime issues that affect the Southeast Michigan region. Quinn: The Department of Commerce and Economic Opportunity is Illinois’ lead agency for international and domestic business development. Illinois has a network of 10 foreign trade offices around the world that promote Illinois as a destination for foreign direct investment. These foreign offices work with their colleagues in Illinois to promote Illinois’ key assets in the area of logistics. This includes inland ports, intermodal facilities, air cargo, truck and rail. Foreign ocean carriers/shippers with offices in Illinois include: Mitsui OSK-Japan, Hapag- Loyd-Germany, China Ocean Shipping Company (COSCO), Hanjin Shipping, South Korea, China Shipping and Evergreen Shipping-Taiwan. Logistics is also a focus area of the domestic business development team, as more than 200 of the Fortune 500 companies operate major distribution centers in Illinois. Rendell: DCED’s Office of PennPORTS serves as the vehicle for statewide port policy and as liaison to ports in Philadelphia, Erie and Pittsburgh. It provides technical assistance to enhance regional port operations, harmonizes port operations with state planning and fiscal priorities, develops plans for transportation and distribution inter-connections among the three ports and maximizes their operations for the benefit of the Pennsylvania economy. Herb Packer leads the office as Executive Director, and he works daily with all of the Commonwealth’s ports on matters of economic development, environmental concerns, port security and emergency preparedness. Strickland: Mark Locker was named as the first administrator for the Ohio Department of Transportation’s Office of Maritime in 2009. One of the first orders of business was to select and advance several stimulusfunded infrastructure projects related to water transportation. Other actions that will enhance and improve maritime commerce undertaken by the Office of Maritime are: • To be a strong advocate for the ports and assisting them in obtaining additional federal funding for maritime projects. • To provide vision and leadership to advocate for Ohio maritime interests related to the use of water transportation to get Ohio goods to global markets. • To promote and facilitate Short Sea Shipping on the Great Lakes. Engage the Consulate of Canada, Netherlands and other countries. • To assist the Ohio Department of Development as an advisor on maritime investments related to economic development and logistics. • To maintain membership of the Ohio Port Authority Council. Great Lakes/Seaway Review: How do the port(s) impact your area’s economy? Do you know the port’s economic impact and the number of direct and indirect jobs it provides? Daniels: The Ports of Indiana handles more than $1.5 billion in cargo shipments per year, but that is just the tip of the iceberg when it comes to the overall maritime shipping contribution to the Indiana economy. Indiana’s three ports produce thousands of jobs and create hundreds of millions of dollars in wages. The public terminals are a key component of the state’s economy and their waterborne shipments have a tremendous economic impact. Doyle:Wisconsin ports and harbors not only serve as transportation hubs for the movement of commodities, ports also are the center of the state’s shipbuilding industry, commercial and charter fishing, passenger ferry operations, marina and boat slips and maritime activities associated with the U.S. Army Corps of Engineers. Many of the state’s tourist attractions are located on or near the port locations. A study conducted by the Wisconsin Department of Transportation in 2004 found that Wisconsin’s ports support 11,387 jobs (6,171 direct jobs and 5,216 indirect jobs) and annually generate over $1.3 billion in economic output and nearly $377 million in personal income from wages, salaries and proprietor incomes. Granholm: The Port of Detroit alone employs over 10,000 direct and indirect jobs through the maritime industry, according to the Saint Lawrence Seaway Development Corporation. This same study also stated that for every one ton of steel moved across those docks in Detroit, $250 is generated in related economic impact, through personal income, business revenues and local/state taxes. If you use this multiplier with the steel moved in Detroit during the 2008 shipping P O R T D E V E L O P M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2010 17 season, you realize an impact of approximately $100 million to the regional economy of Detroit. As the state works with the Michigan Port Collaborative, we will generate and centralize similar data for all of our Great Lakes cargo ports. In addition, we will continue to invest in the recreation, tourism and noncargo industries associated with our ports and marinas. Quinn: Here are the specific numbers: (see chart below) Rendell: A study commissioned by Penn- PORTS, Martin & Associates, the foremost consulting company for economic impact in the maritime industry, found that Pennysvania’s maritime industry accounted for 300,000 direct, indirect and consigned jobs, and provided an annual fiscal impact exceeding $36 billion. Strickland: Based on 2007 survey results from the Ohio Council of Ports, 26 of Ohio’s port authorities reported a combined $6.5 billion annual economic impact on Ohio’s economy. Twenty thousand jobs with a $571 million annual payroll stemmed from port authority deals and projects directly. Those projects combined reported $213 million in new capital investment in 2007. Great Lakes/Seaway Review: Is it important to you to retain a commercial port presence along the waterfront? Do you have waterfront land-use plans that include the port and, if so, briefly summarize those plans? Daniels: Indiana has 400 miles of navigable waterways along the Ohio River and Lake Michigan. Waterfront development is always a balance between environmental impacts, economic needs and social benefits. Acquiring land for future expansion needs and preserving current sites in and around our ports for maritime related development is extremely important— especially as more and more businesses rely on our waterways for transporting their goods in a cost-effective manner. Maintaining a commercial presence on our waterfront is very important to our state’s economy. Doyle:Maintaining commercial port activity in Wisconsin is critical to the economy and is a natural outcome of the dollars invested through the Harbor Assistance Program (HAP). Part of the application process for a HAP grant is the preparation of a planning document that gives an assessment of the ports’ infrastructure improvement needs for a three-year period. The applicant must also demonstrate how the proposed project fits into any existing harbor development plans or comprehensive regional plans. Granholm: Developing and maintaining working waterfronts in concert with public access, recreation and tourism are key elements of a strong economic future for Michigan. It’s especially important to maintain a commercial port presence in those areas already facilitating maritime commerce, like Detroit, Bay City and Marquette. We need to maintain our infrastructure in order to accommodate new industries and opportunities, like those offered by the alternative energy industry. The Michigan Port Collaborative specifically seeks to promote greater land use planning and integration within state plans. Because there is currently no methodology that enables Michigan coastal managers to understand the current rate of waterfront property being converted to solely private use—or to identify locations experiencing the most significant conversion rates—the state is undertaking a two-year project with federal and university partners to: • Develop and apply a method to determine the conversion rate of Michigan’s working waterfronts • Identify and distribute

Maritime Editorial