Vol.38 No.4 APR‑JUN 2010

Alternative fuels  The 2009 season  Long-term dredging strategy  Bi-national ballast inspections V O L U M E 3 8 N U M B E R 4 G LGREAT LAKER A P R I L – J U N E 2 0 1 0 Interlake Steamship 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 WE CAN HANDLE IT! Moving Mountains? Whether it is a mountain you need to move, or it just seems like it, at Interlake Steamship we work closely with our customers to solve their raw materials delivery challenges. Our dedicated shore personnel and experienced vessel crews focus on achieving safe, reliable, on-time cargo delivery. Interlake Steamship’s versatile self-unloading vessels, with capacities ranging from 17,000 to 68,000 gross tons, are equipped to get the job done, even under the most challenging conditions the Great Lakes have to offer. Whether your mountain is taconite pellets, coal, limestone or grain, call Interlake Steamship. Our job is moving mountains. www.greatlakes-seawayreview.com Great Lakes/Seaway Review 221 Water Street, Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com The international transportation magazine of Midcontinent North America G L A R T I C L E S A P R I L – J U N E 2 0 1 0 Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 The Lake Carriers’ Association Viewpoint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Commodities ONTARIO LEAVES COAL BEHIND . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Provincial regulations has coal-burning power plants switching to biomass. The 2009 Season OVERALL TONNAGE LOSS . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Shipping industry relieved to leave 2009 season behind, savoring a handful of successes. Dredging LOOKING FOR A LONG-TERM STRATEGY . . . . . . . . . . . . . . . . . . . . . . 25 Options are being explored as CDFs approach capacity, limiting the ability to dredge. Ballast Water Management BI-NATIONAL INSPECTIONS . . . . . . . . . . . . . . . 32 Results from Coast Guard inspections of international vessels released. The Environment ADDRESSING THE ASIAN CARP . . . . . . . . . . . . . . . . . . . . . . 37 Constructing a third electric barrier between the river system and Great Lakes. Interview INVESTING IN THE FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Hamilton’s Bruce Wood rolls out the port’s vision. Commodities AN ENGINE FOR GROWTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Green Bay considers an intermodal freight facility as an economic priority for the region. Infrastructure ADDITIONAL FUNDING PENDING . . . . . . . . . . . . . . . . . . . . . . . 53 Work continues on new Soo Lock. Maritime Heritage TOLEDO LANDS NATIONAL MARITIME MUSEUM . . . . . . 57 Goal is to create a Smithsonian of Great Lakes history. Marine Photography MORE ISLAND OUTPOSTS . . . . . . . . . . . . . . . . . . . . . . . . 58 Exploring lights along the St. Marys River and northern Lake Huron. On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 GREAT LAKER D E P A R T M E N T S GREAT LAKES/SEAWAY REVIEW April-June, 2010 1 Mandated cessation of coal use in Ontario converts coal-burning power plants to biomass. Page 7. Tonnage down in 2009; ports look to a better year in 2010. Page 12. Long-term strategy for dredging sought, as CDFs approach capacity. Page 25. Port of Milwaukee 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 Amanda Korthase 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 $32.00; two years $53.00; three years $75.00. Foreign: One year $47.00; two years $68.00; three years $100.00. One year digital edition $20. 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 APRIL-JUNE, 2010 NUMBER 4 • 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 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 Cover: Federal Shimanto loading grain at CHS1 in Superior. Photo by Jerry Bielicki. Great Laker Cover: White Shaol Lighthouse. Photo by Gary Martin. Celebrating 40 years of serving the Great Lakes/St. Lawrence Seaway system. G R E A T L A K E S / S T . L A W R E N C E S E A W A Y GREAT LAKES/SEAWAY REVIEW April-June, 2010 3 “Intolerable” abuse of dredging fund to end If Congress passes S.B. 3213, ships will no longer need to lightload because of shallow draft. The bill requires the Harbor Maintenance Trust Fund (HMTF) to spend what it collects on maintaining harbors and channels each year rather than amass a surplus to “paper balance” the federal budget. Congressman James Oberstar (D-Minn.) is calling the misuse of funds “intolerable.” The bill is sponsored by Senator Carl Levin (D-Mich.). “Putting a fence around the Harbor Maintenance Trust Fund is the only way the Great Lakes navigation system will be dredged to project dimensions,” said Adolph Ojard, Executive Director of the Duluth Seaway Port Authority. “Years of inadequate funding have left the system clogged with an estimated 15 million cubic yards of sediment. Every time a ship leaves Duluth/Superior harbor with a less than full load, it jeopardizes jobs in the port, on the ships and at the steel mills and power plants that receive cargo.” A U.S.-flag laker with a rated capacity of 68,757 tons recently left Duluth/Superior bound for Detroit with only 62,710 tons on board. The 6,047 tons left behind represent enough iron ore to make the steel for roughly 5,000 automobiles. The tax generates significant funds, as much as $1.6 billion per year. However, annual expenditures are less than $800 million. As a result, the fund has a surplus of nearly $5 billion. In other legislation, the Great Lakes Short Sea Shipping Act of 2009 (S.B. 1509) and a similar bill in the House (H.R. 3486) would exempt non-bulk cargo from the Harbor Maintenance Tax. An exemption of this type has been sought for years to increase container traffic. H.R. 3486 also includes a change in the definition of the eastern boundary of the system to include Nova Scotia, where container shipping operations will be centralized. . DATELINE Great Lakes Feeder Lines has become a two-ship fleet with the addition of the Arctic Sea. The 3,988 gross-ton ship was built in 1991 in Tuzla, Turkey as a general cargo vessel with bulk and container capability. The ship can carry 270 20-foot equivalent containers, has reefer sockets for 21 containers and is outfitted with two box-types holds with hydraulically-operated hatch covers. It is also fitted with two 25 metric ton capacity cranes that can be combined for a lift of 45 metric tons. The ship sailed from Malta in April under Great Lakes Feeder Lines ownership. Cleveland hires new President and CEO William D. Friedman is the new President and CEO of the Cleveland-Cuyahoga County Port Authority. “I look forward to the challenge and to making the port more efficient and more effective,” Friedman said. Friedman has more than 20 years in port-related leadership experience, with four years as CEO of the Ports of Indiana. He also held a variety of positions at the Port of Seattle and previously worked for Duke Realty Corporation, where he served as Vice President of Ports and Logistics. While at Duke, the company expanded into five major container port markets, including Los Angeles, Baltimore and northern New Jersey. He also worked on projects in Ohio, serving as a key member on a team that started the Rickenbacker Global Logistics Park in Columbus. Friedman replaces Peter Raskind, who agreed to serve as interim CEO following the November resignation of Adam Wasserman. Raskind cut annual expenses by nearly a million dollars, placed a plan to relocate the port to East 55th Street on hold, canceled a plan to fill in a port slip because of cost and identified the need to dredge Cleveland Harbor as the single most pressing problem facing the port. . 2010 Binational Trade Mission scheduled This fall, the U.S. and Canadian Seaway Corporations will host the 32nd Annual Binational Trade Mission to Amsterdam and Rotterdam, The Netherlands, Antwerp, Belgium and London, England from November 1-5. The trade mission will provide system stakeholders with the opportunity to work with industry leaders proficient in conducting short sea shipping on a daily basis, as well as reconnect with current users and prospective customers. . Duluth moves its first wind components by rail A train carrying wind turbine components from the Port of Duluth signaled the start of a new chapter in transportation logistics. The shipment of 24 Siemens wind turbine nacelles and spinners/cones (plus 33 containers) arrived at the Clure Public Marine Terminal from Denmark aboard the Metsaborg. Components were loaded on specialty railcars and hauled to Casper, Wyoming, where they were then trucked to Duke Energy’s Top of the World 101.2-megawatt project in Converse County, Wyoming. This is the port’s first wind turbine move that integrates rail. “Adding a rail alternative to trucking allows us to expand our transportation capacity and provides significant efficiency and environmental benefits for long-distance transports,” said Sally Chope, Transportation & Logistics Manager for Siemens Energy. The BBC Sweden delivered additional nacelles and hubs for this same project, which also moved via train. “While trucking will always play an essential role in the wind energy supply chain, combining the efficiencies of water and rail transport further expands the service area of the Port of Duluth,” said Adolph Ojard, Executive Director of the Duluth Seaway Port Authority. . William D. Friedman Polsteam D A T E L I N E Ceres Global plans to acquire Riverland Ceres Global Ag Corp. has agreed to buy Riverland Ag and its grain-handling facilities. Riverland is an agricultural grain supply chain ingredient company that owns and operates 12 grain storage and handling facilities in Minnesota, North Dakota, New York and Ontario, Canada with a total storage capacity of 44 million bushels. Its customers include leading food and beverage companies. The $48 million cash deal for Minneapolis, Minnesota-based Whitebox Commodities Holdings Corp, which operates as Riverland Ag, is expected to be complete by summer. The deal also includes $26 million of common shares and 150,000 common share purchase warrants.. Former SLSDC Administrator passes The Great Lakes/St. Lawrence Seaway maritime community lost one of its most noteworthy leaders when the Honorable Stanford E. Parris passed away in his home in Hudgins, Virginia March 27. Parris was a self-made man who rose from his humble beginnings in Champaign, Illinois to become a highly-decorated fighter pilot during the Korean War, an attorney, a member of the Fairfax County, Virginia Board of Supervisors, a member of the Virginia House of Delegates, the Secretary of the Commonwealth of Virginia, a six-term member of the U.S. House of Representatives and the Administrator of the Saint Lawrence Seaway Development Corporation from 1991-1994. . Historic ice study completed A recent study shows no adverse impacts to the shoreline could be observed from icebreaking activity. Using a baseline characterizing the impact of natural ice break-up and clear-out, the study revealed that the use of icebreakers to clear the shipping channel did not result in any measurable change to shoreline ice scour and/or land-fast ice breaking away from the shore. The three-year observational study was a joint project of the U.S. Saint Lawrence Seaway Development Corporation (SLSDC), Transport Canada, the Canadian St. Lawrence Seaway Management Corporation (SLSMC), the U.S. St. Regis Mohawk Tribe and the Canadian Mohawk Council of Akwesasne. All participants endorsed the study’s conclusion. The study revealed that the forces imposed on the shoreline due to icebreaking activities were significantly less than the forces exhibited by ice floes driven onto the shoreline by high winds. . Canada Steamship Lines eyes emissions controls Canadian Steamship Lines (CSL) has signed a Letter of Intent with ECOSPEC Marine Technology to work together in developing and installing CSNOx technology on its fleet. CSL and ECOSPEC plan on installing the CSNOx system on a Great Lakes vessel later this year to validate and obtain certification of performance and efficiency for the system in freshwater, making the CSL installation the world’s first CSNOx freshwater environment project. The companies are optimistic that the system could be the environmental emission reduction breakthrough that the marine industry is searching for and become the new standard for emission reductions. ECOSPEC CSNOx is the world’s first commercially- viable solution in reducing sulphur dioxide (SO2), nitrogen oxide (NOx) and carbon dioxide (CO2) from emissions of large ocean trading vessels. All three gases are removed in one process and in a single system, without using harmful chemicals. . Stanford E. Parris 4 www.greatlakes-seawayreview.com Duluth Seaway Port Authority REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW April-June, 2010 5 Melford secures land options for container terminal Developers of the proposed deepwater container terminal at Melford, Nova Scotia have secured options on a second parcel of land that totals the acreage needed for the container terminal project. With the Nova Scotia government approving an option for Melford International Terminal Inc. to purchase about 1,248 acres of Crown land, the privately-held company will now pursue financing. The project would encompass approximately 1,730 acres. The marine container terminal would occupy about 300 acres and the adjoining logistics park some 1,425 acres. The most recent land agreement involves the proposed terminal and logistics park. Now that the company has the approved options for the land it needs to move forward, financing will be sought for the C$350 million project. Melford terminal could be in operation by late 2012 or early 2013. Developers would like to see the facility handle up to 500,000 TEUs in its first year of operation. . Toledo Port to receive $15 million grant The Toledo-Lucas County Port Authority received a $15 million U.S. Department of Energy grant through the Retrofit Ramp- Up Initiative. The funding is awarded to projects where communities, governments and non-profit organizations together pioneer innovative programs for concentrated and broad-based retrofits of neighborhoods and towns and—eventually states. The grant allows the port authority to establish an Advanced Energy Utility (AEU) within the City of Toledo to implement the wide-scale use of energy efficiency and alternative energy practices and solutions in residential, commercial, governmental and industrial facilities. The port authority AEU will utilize financing through the Northwest Ohio Bond Fund, as well as other financing mechanisms to effect more than $300 million in energy efficiency and alternative energy improvements over three years. This program will create jobs from all sectors, including services such as energy audits, engineering design and construction and will include the retraining members of the workforce for new green energy installations. The AEU will begin within the City of Toledo and will expand to other cities and townships within Lucas County. Ultimately the program will be expanded to all 28 counties that are part of the Toledo-Lucas County Port Authority’s financing jurisdiction in Northwest Ohio. . JULY 11-13 Transportation Research Board 2010 Joint Summer Meeting Minneapolis, Minnesota, www.trb.org 19-21 Freshwater Wind 2010, Cleveland, Ohio Erin Dolleris, (818) 888-4445 x 48 or erind@infocastinc.com SEPTEMBER 20-21 Great Lakes Wind Collaborative 3rd Annual Meeting, Cleveland, Ohio Becky Pearson, (734) 971-9135 or bpearson@glc.org OCTOBER 27-28 Hwy H2O Annual Meeting, Toronto Ontario, www.hwyh2o-conferences.com NOVEMBER 1-5 32nd Annual Binational Trade Mission The Netherlands, Belgium and England Rebecca McGill, rebecca.mcgill@sls.dot.gov Bruce Hodgson, bhodgson@seaway.ca FEBRUARY 2011 8-9 Marine Community Day; InterContinental Hotel & Conference Center www.marinecommunityday.com Duluth-Superior is the #1 port on the Great Lakes, a thriving hub for global trade & ranked among the top 10 ports handling wind energy cargo in North America. 218.727.8525 www.duluthport.com 1200 Port Terminal Drive • Duluth, Minnesota 55802-2609 USA Bringing Business to the Port & Economic Development to the Region Great Lakes Cargo Capital Port of Cleveland Full service, fast, access, high quality and low cost. The Port of Cleveland is the only choice. Businesses around the world rely on the Port of Cleveland. You too, can give your business a lift with the Port of Cleveland’s maritime services including: • 9 berths and 6,500 linear feet of dock space maintained at full Seaway depth of 27 ft. • Heavy-lift crane capacity of 150 short tons. • More than 350,000 square feet of warehouse space and one million square feet of open storage. • Connections to all major interstates and direct access to two major railroads (CSX and Norfolk Southern). The Port of Cleveland… More Than a Working Waterfront 1375 East 9th Street Suite 2300 Cleveland, Ohio 44114 216.241.8004 phone 216.241.8016 fax www.portofcleveland.com GREAT LAKES/SEAWAY REVIEW April-June, 2010 7 C O M M O D I T I E S the coal plants provide additional power when demand peaks and are the source for some electrical export to the U.S. ECO estimates that it will invest about $150 million in the transition, with its primary intended to reduce the emission of nitrogen oxides, sulphur dioxides and greenhouse gases. Impacts on the fleet. The conversion will impact more than ratepayers. It will impact shipping companies that carry the coal through the Great Lakes for delivery to three of the four plants. Nanticoke generating station represents the greatest change. The largest coal-burning plant in North America, Nanticoke receives all its coal by vessel. The plant is located on the northeastern end of Lake Erie and has a dock at the plant for receiving most of the between six and 10 million short tons of U.S. coal purchased by OPG. According to McCarthy, the utility traditionally orders 10 million short tons of coal annually, but less has been ordered since the economic downturn. The rest of the waterborne coal is delivered to Lambton, near Sarnia on Lake Huron and Thunder Bay on Lake Superior. Lambton only receives delivery by vessel while Thunder Bay can take receipt of coal—or another type of fuel—by vessel or rail also. “The ships are presently moving about six million [metric] tons across Lake Erie to Nanticoke with more—about one million [metric] tons—going up to Lampton,” said Ted Cowan, Researcher for Ontario Federation of Agriculture (OFA). Of the 12 turbine units at Nanticoke and Lambton, four will be closed in October 2010 and some of the remaining eight could be converted to natural gas and/or biomass, according to McCarthy, who added that some of the coal units will run right up to the 2014 deadline. Ontario’s fourth station, Atikokan in Regulations on how electricity can be generated in Ontario will greatly impact carriers delivering coal to plants in the province. Through passage of Ontario Regulation 496/07, known as Cessation of Coal Use, coal can no longer be burned as a fuel source at electric plants as of December 31, 2014. Plants in Nanticoke, Lambton, Thunder Bay and Atikokan—the only coal-burning plants in the Province of Ontario—are being impacted. The coal burning turbines must either be converted to operate on another fuel source or be shut down. Ontario Power Generation (OPG), which operates all four plants, has been reducing its use of coal leading up to the December 31, 2014 deadline. “The Province of Ontario is phasing out coal and there are cleaner sources available,” said Eric McCarthy, OPG Director of Fuels, noting that the provincially-owned utility generates about two-thirds of Ontario’s power. “We are looking at converting some of those facilities to biomass or natural gas.” The four power plants currently generate between 16 and 20 percent of Ontario’s electricity, or 6,434 megawatts, according to the Environmental Commissioner of Ontario (ECO). In addition to year-round use, Ontario leaves coal behind Provincial regulation has coal-burning power plants switching to biomass Through passage of Ontario Regulation 496/07, known as Cessation of Coal Use, coal can no longer be burned as a fuel source at electric plants as of December 31, 2014. Marinette loading pulp at the Port of Thunder Bay. 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 Biomass Fuel – Wood Pellet Map Current lumber and pulp facilities, such as mills Generation Facilities SOURCE: TOM SAGASKIE Atikokan GREAT LAKES/SEAWAY REVIEW April-June, 2010 9 northwest Ontario, receives coal by rail and could receive an alternate fuel by rail or truck. The northwest Ontario plant is the first to undergo the conversion. Plans for alternate fuels. With coal on the outs, the province is increasing its use of natural gas, planning to restore nuclear power through refurbishments and new builds and increasing use of renewable energy sources such as wind, solar, hydro and bioenergy. The newest plants use natural gas; however, based on location and opportunity, the four coal stations will likely be fuel by biomass—wood or agriculture pellets. According to Susan Wood, Director of the Office of Research Services at Queen’s University, it is cost prohibitive to install a gas line through the rural areas that lead to the coal plants. Biomass is a fuel source created out of compressed agricultural and forest products. It is often formed into pellets that are easy to transport and use. The wood pellets are made up of parts of the trees that have traditionally been left behind when harvesting, such as top limbs. Northern Ontario has an abundance of soft lumber. The agricultural pellets are made from crop residues, such as cornstalks, emptied corn cobs, and spoiled hay and grain. None of the materials used would have been sold as food products. Wood pellets would most likely be produced in northern Ontario because of the soft lumber supply there. Agricultural pellets would be created by residue or a specialty crop in southern Ontario, said Tom Sagaskie, General Manager of the Guelph Junction Railway. “Essentially, they would otherwise have been plowed back into the ground, burned out in the open or stored in the bush where they’re not in the way,” Cowan said of the agricultural residue. The new balance between food production and residue production could create a financial boon for farmers where the number of tobacco farms has been reduced from 1,000 to about 325 farms. In 2009, OPG had issued a request for expressions of interest for two million metric tons of biomass fuel. Currently, there is no known provider for agri-pellets. And even with wood pellets, the production facilities must be built. Through the regulation, Ontario recognizes that: • Converting the units to biomass will produce significantly less energy. As tested, wood pellets have 7,900 btu per pound while agricultural pellets have 7,300 btu per pound and bitumous coal 12,500 btu per pound. • The change will increase overhead for producing power, with coal costing about C$50 per metric ton and biomass costing between C$100 and C$150 per metric ton. The change could translate into ratepayers paying three to four cents more per kilowatt hour. Pending commodity loss, shift. McCarthy estimates that about one million tons of dry biomass pellets would need to be moved annually to Nanticoke and Lambton—a sixth of the coal currently C O M M O D I T I E S ECO estimates that it will invest about $150 million in the transition, with its primary intent to reduce the emission of nitrogen oxides, sulphur dioxides and greenhouse gases. Thunder Bay Lambton Nanticoke Andrie Incl The Great Lakes premiere marine transportation company offering: • Asphalt & fuel oil transportation • Vessel & fleet management • Project management • Ice breaking • Ship assistance • General towing Stan Andrie President 231.332.9227 Mike Caliendo Vice-President—Transportation 231.332.9243 P.O. Box 1548 Muskegon, MI 49443 Fax 231.726.6747 www.andrie.com Ports of Indiana Shipping is being considered for price and for its environmental benefit. C O M M O D I T I E S legislative change, no more coal will deliver to the power plants after December 31, 2014. Large scale production facilities are needed and transportation links must be developed. “It’s quite clear that everybody is going to need a dance partner for this to work,” Sagaskie said, noting that pelletization stakeholders will need to partner with transportation professionals from each of the three modes: truck, train and vessel. Janenne Irene Pung  the endeavor include: 1) using the rail to transport wood pellets to a Great Lakes port and then ship them to the plants; 2) trucking pellets to Great Lakes ports and then shipping; 3) rail direct and 4) possibly a small amount of direct truck deliveries. There are numerous details that have yet to be worked out regarding the shift from coal to biomass to produce power in Ontario. However, what’s sure is that the regulation aligned with the Green Energy Act has been passed and unless there’s a being shipped at a low level. “Because of Lambton and Nanticoke, we are assessing having the vessels units remain vessel units,” McCarthy said. “It’s most effective if we leverage as much of the existing infrastructure as possible.” “In Nanticoke, volumes would be quite large and trucking is not feasible,” Cowan said. “The road couldn’t take the number of trucks required, and there’s a dock right at the plant. I see something in the vicinity of 40 to 80 shiploads of material going to Nanticoke, half of that from northern Ontario and half from southern origins.” Biomass pellets weigh about one third per cubic foot of coal. Because of the weight difference, the ships would fill on volume well before reaching tonnage capacity. Shipping is being considered for price and for its environmental benefit. “Shipping is an important part of the answer,” Cowan said. “There’s a lot of land that surrounds the Great Lakes where we can grow for less and move it for less than anywhere on earth. Other locations are looking at much more expensive solutions.” One other area where ships have been mentioned is as a tool to store the pellets onboard while the system is closed. The pellets cannot be stored outside and the ships are equipped for moisture control. “It’s an extreme stretch of the imagination there, but you would need a mammoth storage facility for this material,” Sagaskie said. The government-owned rail industry is hoping to capture cargo as well. Sagaskie said the rail challenges include: • The large volume that would be moved, calling for a commitment for about 70 rail cars at a cost of C$131 million. • The need to construct pelletizing plants, as well as storage and handling facilities. • A need to upgrade the rail infrastructure on secondary lines for C$1 million per location. • A cost of re-establishing second/third rail access to Nanticoke of C$70 million. He said the transportation options for GREAT LAKES/SEAWAY REVIEW April-June, 2010 11 For the second year in a row, a slow shipping season has been augmented by the grain harvest. However, the 7.76 percent increase in grain tonnage merely lessened the blow the industry took in 2009. All but a few ports in the Great Lakes/ St. Lawrence Seaway system tabulated losses over the year with system-wide shipping tonnage down 25 percent from 2008. The numbers show the lowest volume shipped in a season since the early 1960s, according to the St. Lawrence Seaway Management Corporation (SLSMC). Tonnage topped out at 30.491 million metric tons vs. 40.798 million metric tons in 2008. All bellwether cargoes except grain showed significant declines (see chart on page 17). “Given the Seaway’s reliance upon the steel industry for a substantial portion of our business, the economic downturn during the last year has certainly impacted our traffic level,” said Richard Corfe, President and CEO of SLSMC of the 274-day season. “The depth of this downturn underscores the importance of the SLSMC’s efforts to diversify our cargo base, and we are working diligently on a number of fronts to attain this goal.” The Saint Lawrence Seaway Development Corporation (SLSDC) likens the 2009 season to the opening lines of Dickens’ “Tale of Two Cities:” the best of times; the worst of times. The best of times included the highs of the 50th Anniversary celebrations and additional funding for the Asset Renewal Program. The worst of times are found in the business downturn. The extremely sharp 2008/9 recession (five quarters) in the U.S., had a chilling effect on the marine movement of raw materials associated with steel production on the Great Lakes and movement of finished steel products through the Seaway. The North American/European contraction in the manufacturing sector during this period saw across-the-board, deep drops in earnings, in demand and in investments. Iron ore shipments through the system dropped 41 percent from 2008. Other large decreases were seen in general cargo, including steel shipments, down 52 percent. Domestic trade. On the Lakes in 2009, cargo slowed by 34.2 percent. The major U.S.-flag carriers hauled 66.5 million net tons of dry-bulk cargo, according to the Lake Carriers’ Association (LCA), which falls 37.8 percent below the five-year average for interlake trade. Like the Seaway, which was down from 11.932 to 6.853 million metric tons of iron ore in 2009, the Lakes largest decrease came in iron ore, dipping nearly 50 percent from the 2008 tonnage (see chart on page 13). In addition, iron ore shipments were down in 2008, with economic slowdowns negatively impacting the second half of the season. U.S. and Canadian lakers carried about 31.8 million net tons of iron ore, the lowest tally since 1938, according to LCA. And coal loadings fell below 30 million net tons, a 25 percent decrease compared to 2008. The 23.5 million net tons of limestone shipped from U.S. and Canadian ports was the lowest since 1984. Canadian-flagged lakers hauled 46.5 million metric tons of cargo in 2009, with 21 percent of it being iron ore and 19 percent salt, according to the Canadian Shipowners Association. The tonnage is the lowest in the last 10 years. “2010 is going to be a better year, frankly, because 2009 couldn’t have been worse,” said Collister (“Terry”) Johnson, Jr., SLSDC Administrator. “We’re past the bottom now and the question is: how quick and how much the increase will be?” Whether shipping along the St. Lawrence River or up and down the Great Lakes, system stakeholders are watching orders and trends to forecast the answer to that question. “We anticipate another good year for grain,” Johnson said. “We believe that iron and steel commodities will rebound from the 52 percent drop they experienced compared to the 2008 season, but caution is the watchword because demand has not picked up substantially in the automotive sector following the spike seen during the ‘cash- T H E 2 0 0 9 S E A S O N Overall tonnage loss Shipping industry relieved to leave 2009 season behind, savoring a handful of successes Duluth GREAT LAKES/SEAWAY REVIEW April-June, 2010 13 for-clunkers’ program last August and September. Expectations are positive for more wind industry components moving through the Seaway. And sustained crude oil pricesat less than $75 a barrel-signal increased pipe manufacturing and project cargo important for the Alberta oil sands.” Seeing increases in 2010. Early indications for the 2010 season show increases. The Soo Locks opened four days early based on industry requests to the U.S. Army Corps of Engineers that cited “an improved business climate.” SLSMC has reported a marked increase in cargo shipping through the Seaway from January to April of this year, up 18 percent from the 2009 totals for the same timeframe. Iron ore shipments to steel manufacturers have increased 127 percent in the region. “These numbers reflect the integral role that the marine shipping industry plays in North America’s emerging economic recovery—especially in the manufacturing sector,” Corfe said. Combined traffic is expected to increase by 2.5 million metric tons in 2010 or approximately 10 percent above 2009 levels, according to SLSMC. Increases are being forecast in most cargo categories, a signal that the economy has begun to show signs of improvement. While the corporation is cautiously optimistic that cargo levels will improve, it does not expect to see all cargoes return to past levels, which reinforces the industry’s need to diversify business. As of April 30, the total number of transits through the Seaway was also up, from 330 in 2009 to 375 in 2010, with increases shown in both the Montreal/Lake Ontario and Welland Canal sections. Improving infrastructure. As individual ports and business owners tracked tonnage and sought contracts, officials at both SLSDC and SLSMC were continuing system modernization. The U.S. received $17.6 million to fund 21 projects during Year 2 of its 10-year Asset Renewal Plan, totalling $92 million. SLSMC continues to test self-mooring and self-spotting technology in the Welland Canal as part of its increased asset renewal funding that commits $270 million worth of improvements from 2008-2013. Testing of hands-free mooring continued in 2009. Research and development is planned for the current season since results to date have been positive. The construction of three hydroelectric power plants on the Welland Canal adjacent to Locks 1, 2 and 3 by Rankin Renewable Power Inc. has been completed. The hydropower plant generates enough electricity to run the Seaway’s operations, enabling it to sell surplus power to the grid. On June 30, ground was broken at the Soo Locks in Sault Ste. Marie, Michigan for the new Poe-sized lock. Since then, coffer dams have been installed and continued construction is waiting Congressional funding. At least $100 million is needed for fullscale construction to begin. Seeing some highs, more lows. During the 2009 season, few ports experienced tonnage increases, with the majority willing to leave the year behind for what looks to be a more productive season this year. The Port of Burns Harbor shipped nearly six times as much grain in 2009 as it did during the 2008 season. A drop in salt prices increased salt going through the port by 42 percent over 2008. Combined with its two sister ports along the Mississippi River system, the Ports of Indiana experienced a tonnage increase of 7 percent. The port also handled wind turbines and an oversized cancer-fighting cyclotron in 2009. The Port of Chicago was able to dig in and end the 2009 season with tonnage slightly lower than last season—2.344 million metric tons vs. 2.352 million metric tons in 2008. “It was not one of our best years, but certainly year-end was much better than an- T H E 2 0 0 9 S E A S O N Increases are being forecast in most cargo categories, a signal that the economy has begun to show signs of improvement. U.S.-Flag Dry-Bulk Carriage on the Great Lakes December 2004-2009 and 5-Year Average (net tons) Average Commodity 2004 2005 2006 2007 2008 2009 2004-2008 Iron Ore Direct Shipments 4,734,614 4,381,314 4,269,348 4,739,105 2,542,629 3,305,421 4,133,402 Transshipments 274,168 244,349 126,640 125,848 0 264,961 154,201 Total 5,008,782 4,625,663 4,395,988 4,864,953 2,542,629 3,570,382 4,287,603 Coal Lake Superior 1,522,896 1,577,517 1,853,981 1,850,750 1,740,663 1,159,290 1,709,161 Lake Michigan 448,254 349,411 365,353 330,585 387,436 130,587 376,208 Lake Erie 509,246 583,308 464,393 434,543 344,677 359,393 467,233 Total 2,480,396 2,510,236 2,683,727 2,615,878 2,472,776 1,649,270 2,552,603 Limestone 1,451,122 1,597,925 2,482,742 1,516,357 381,735 579,416 1,485,976 Cement 286,457 342,500 272,524 258,410 211,883 170,296 274,355 Salt 69,887 124,480 91,348 112,591 113,946 127,933 102,450 Sand 41,395 28,018 30,253 11,305 15,348 0 25,264 Grain 42,062 45,367 58,333 46,284 32,395 16,730 44,888 Totals 9,380,101 9,274,189 10,014,915 9,425,778 5,770,712 6,114,027 8,773,139 SOURCE: LAKE CARRIERS’ ASSOCIATION * Iron ore transshipments are cargoes destined for ArcelorMittal Steel’s Cleveland Works. The mill is at the end of the navigable section of the Cuyahoga River. The narrow, twisting river cannot accommodate the largest vessels in the fleet, so iron ore is first unloaded at Cleveland. Seasnake 14 www.greatlakes-seawayreview.com done to increase dockage pre-positioning, is continuing into the current season. “We are confident that although ’09 was not a growth year and it finished slightly down from the previous year, the potential of the economy starting to stabilize gives us hope and optimism for a better 2010,” Ianello said. The global economy took a toll on shipments into the Port of Cleveland in 2009, with volumes substantially lower than in 2008. The port finished the season with 6.345 million metric tons, down from the 2008 total of 10.637 million metric tons. Traditional patterns prevailed and iron ore represented slightly more than half of the port’s volume (51 percent), with stone totaling 38 percent, cement and petroleum 9 percent and coal, salt and steel/metals each totalling 1 percent. Port officials believe the worst is behind them, anticipating a 20 percent increase in volume in 2010. “While the year ended with total volumes substantially lower than usual, there are indications that shipments have bottomed out,” said Eric Hirsimaki, port Operations/Facility Manager. Officials look to the future with optimism and are exploring infrastructure projects to better address cargo needs, partnering with government to manage dredge spoils. “The primary focus of the Port Authority and other local interests is to resolve issues relating to disposal of dredge spoils,” Hirsimaki said. “We are working with the Corps of Engineers to develop a means to accomplish this work and identify locations for new disposal areas.” The primary bright spot in 2009 for the Port of Detroit was receiving 42 barge loads of metals from the Port of Quebec. The business generated by the London Metal Exchange (LME) involved aluminum ingots, which supplemented traditional steel cargoes. The ingots represented 40 percent of cargo volume last year, while steel coils accounted for 30 percent of the volume— 345,564 metric tons, dropping from 347,540 metric tons in 2008; the port’s fiveyear average is 478,518 metric tons. In 2010, a rail spur is being constructed into Nicholson’s Detroit dock. The port is hopeful shipment of wind turbines will enhance future business. Overall, the port authority projects 2010 to be a weak season, unless cargo is again augmented by LME, according to port Deputy Director Steven Olinek. For the Port of Duluth-Superior, 2009 was one of the most difficult seasons on the books. Shipping just over 28.3 million metric tons, overall tonnage was down 32 percent from 2008 and from the five-year average of 39.5 million metric tons. With the economic recession hitting construction, automotive, steel and appliance industries in the United States and Canada, demand for raw materials fell dramatically, causing the port’s iron ore trade to fall 56 percent from 2008 levels, the lowest volumes since the 1930s. Coal, limestone and other bulk commodity shipments dropped 20 percent. ticipated at the beginning of the year,” said Tony Ianello, Executive Director. A breakdown of the port’s 2009 commodities is: 50 percent steel and steel products, 30 percent cement and 20 percent grain/stone and PL480. Although the port didn’t secure new commodities, new avenues by which the traditional commodities traveled helped strengthen the year. During the season, the port completed a new entrance and security facilities. Grading and asphalt repairs, which are being T H E 2 0 0 9 S E A S O N Perfect for the Great Lakes, St. Lawrence Seaway System and Oceans. Marine transportation of inter-modal cargoes using a train of cargo-modules in an articulated arrangement. The Seasnake, Sea-Train, consists of a traction unit, a series of cargo modules and a “caboose.” The design can be tailored to meet a broad range of cargo handling and special-use needs. There are virtually no limitations to the diversity of cargo handling designs that can be incorporated into a Seasnake cargo module. 218-343-2009 419-270-1060 seasnakewwmllc@aol.com jhhartung@aol.com P.O. Box 482 Superior, Wisconsin 54880 www.seasnake.net GREEN BY DESIGN Designed to incorporate ballastfree technology. Multi-module cargo-handling design dramatically reduces potential environmental impacts. Greater efficiency in propulsion/ hull design futher improves the air emissions-reduction advantages of maritime shipping as compared to alternative modes of transportation. Estimated to be less expensive to own and operate than an equivalent ship or ITB/ATB system. Ahead of the curve Ahead of the curve GREAT LAKES/SEAWAY REVIEW April-June, 2010 15 In the midst of this decline, grain stood out as a ray of hope. While the season proved slow for agricultural commodities, grain shipments totaled 907,000 metric tons, up 32 percent from 2008 volumes. “At the end of October 2009, outbound grain had already surpassed year-end totals for the previous year,” said Adolf Ojard, Duluth Seaway Port Authority Director. Improvement projects include Recovery and Reinvestment Act funding of repairs of corroded steel sheet piling along 6,000 lineal feet of dock wall at Clure Public Marine Terminal. Completion is anticipated in 2011. With support from Wisconsin Port Assistance grants, several terminal owners/ operators are also investing in reconstruction of aging facilities. Fraser Shipyards in Superior is repairing a section of its bulkhead wall in 2010, covered by $2 million in federal funding. Transshipment of wind turbine components will remain a key payload for general cargo in Duluth. “Being the farthest inland port on the Great Lakes/St. Lawrence Seaway system, we have become a strategic intermodal hub for inbound and outbound shipments of wind energy cargoes,” Ojard said. “We also continue to field inquiries about wood pellets and bio-fuels as the demand for alternative energy sources continue to grow.” Although guarded, port officials are optimistic about prospects for the current season, expecting to experience a rebound paralleling the general economic recovery. “Regional steel mills have re-fired blast furnaces and almost all of Minnesota’s Iron Range taconite facilities have resumed operations to meet early season demand for pellets,” Ojard said. “Signs are positive that by the third quarter of 2010, we will start seeing shipments of iron ore, limestone and coal rebounding to levels of previous years.” The Port of Green Bay began the 2009 season with tonnage falling 60 percent below 2008 levels. A summer uptick and strong fall offset losses, and the port finished the year down 18 percent overall. Domestic imports dropped from just over 1.9 million metric tons in 2008 to 1.4 million in 2009. Coal took the greatest hit, falling 31 percent. Foreign imports helped the final numbers, increasing 4 percent from 2008 to 2009. The port received just over 314,000 metric tons of foreign cargo last year, compared to 302,000 metric tons in 2008. The increase was largely due to a 22 percent boost in salt imports needed by Northeast Wisconsin road commissions as a harsh winter depleted road salt inventories. Rising water levels proved another plus, helping increase cargo volume, according to Green Bay Port Manager Dean Haen. Haen projects an upswing in 2010 as the economy recovers and roads and rails become increasingly congested, which is good news for the local economy which sees a $75 million annual impact from port activities, including 621 jobs. The port is actively engaged in addressing dredging issues, dredge disposal and beneficial use of dredge material. Efforts include using dredge materials as a component in highway reconstruction and using clean materials to restore islands within the bay. In 2010, the port received $3 million in federal dredging dollars, bringing total funding for the projects to $6.4 million. While cargo volume fell 25 percent to 8.258 million metric tons and vessel calls were down 20 percent in 2009, the Port of Hamilton expects to see improvements in 2010. “We are looking to see a rebound of the steel sector begin in 2010, which will bring T H E 2 0 0 9 S E A S O N Toledo Great Lakes/St. Lawrence Seaway 2008 Port Performance 2008 2009 5-Year Average (metric tons) (short tons) (metric tons) (short tons) (metric tons) (short tons) Buffalo 600,000 661,387 — — — — Burns Harbor 1,400,000 1,543,236 — — — — Chicago 2,351,761 2,592,373 2,343,902 2,583,710 2,655,302 2,926,969 Cleveland 10,637,000 11,725,285 6,345,000 6,994,165 10,470,000 11,541,199 Detroit 347,540 383,097 345,564 380,919 478,518 527,476 Duluth 41,403,925 45,640,015 28,314,077 31,210,927 39,500,760 43,542,135 Green Bay 1,900,000 2,094,391 1,400,000 1,543,236 2,280,711 2,514,054 Hamilton 11,128,691 12,267,282 8,258,123 9,103,022 11,248,342 12,399,175 Lorain 2,188,265 2,412,149 — — — — Milwaukee 2,931,000 3,230,875 2,910,000 3,207,726 2,958,000 3,260,637 Monroe 959,786 1,057,983 1,322,665 1,457,989 1,173,747 1,293,835 Montreal 27,866,550 30,717,613 24,524,139 27,033,236 26,036,017 28,699,796 Ogdensburg 101,100 111,444 — — — — Oshawa 233,195 257,053 — — — — Oswego 997,345 1,099,385 1,078,345 1,188,672 950,000 1,047,196 Quebec 27,229,095 30,014,939 22,082,434 24,341,717 24,456,035 26,958,164 Sept-Iles 22,617,581 24,931,615 19,832,967 21,862,104 21,950,383 24,196,155 Thunder Bay 8,070,619 8,896,335 7,285,000 8,030,338 — — Toledo 9,975,810 10,996,448 9,102,537 10,033,829 10,054,090 11,082,737 Toronto 1,992,508 2,196,364 1,622,582 1,788,590 1,812,330 1,997,752 Trois-Rivieres 2,519,000 2,776,722 2,573,000 2,836,247 2,567,000 2,829,633 Valleyfield 319,166 351,820 420,740 463,753 400,229 441,177 Windsor 5,224,000 5,758,474 4,887,000 5,386,995 5,300,000 5,842,250 SOURCE: AS REPORTED BY INDIVIDUAL PORTS Upper Lakes Group Set your course to the future with Upper Lakes Group Upper Lakes is able to offer a wide range of marine transportation and marine services options to its customers. It is a partner in Seaway Marine Transport (SMT), the largest Canadian flag fleet of Great Lakes bulk carriers and self-unloaders. SMT is developing an aggressive fleet renewal strategy, the first result of which is the new max-Seaway sized coastal class self-unloader ‘Algobay’ which was delivered into service this year, to be joined by a sistership next year. McAsphalt Marine Transportation specializes in the marine transportation of asphalt and residual fuels. Its 2001 built, 11,000 dwt articulated tug/ barge ‘Everlast’/‘Norman McLeod’ was joined last season by a new fleetmate, the AT/B ‘Victorious’/’John J. Carrick’. These vessels offer state-ofthe- art safety and efficiency, combined with the flexibility and cost-effectiveness of articulated tug/barge operations. MarineLink, a new venture tasked with developing the ‘next generation’ of shipping on the Great Lakes such as Ro-Ro ferries, container feeder services and other Short Sea Shipping operations, have launched their new project cargo division using the Heavy Lift Barge ‘MarineLink Explorer’. This vessel is equipped with bow and stern ramps, two 216 tonne derricks combinable to 425 tonnes lift, and both deck and cargohold carriage. MarineLink offers its customers a wide range of marine services. Using its fleet of 1,600 dwt Mississippi barges and specialized pusher tugs, MarineLink is able to offer Short Sea Shipping services to customers in the St. Lawrence River and Detroit/St. Clair River regions. By utilizing ‘drop barge’ operations and the ability to move from one to four barges at a time, MarineLink is able to offer efficient and flexible marine transportation options to its customers. For more information about these operations, please call us and let us help you with your marine requirements. The Upper Lakes Group of marine companies include ship building and repair, marine electrics and electronics, marine fuelling and grain handling facilities in addition to a wide range of marine transportation operations. A Tradition of Innovation GREAT LAKES/SEAWAY REVIEW April-June, 2010 17 additional vessel traffic and boost tonnage volumes,” said Bruce Wood, port President & CEO. “We are continuing efforts to diversify the cargo mix in order to create new streams and drive additional volumes through the port.” Port of Hamilton’s steel-related cargoes account for nearly 80 percent of total tonnage. The idling of the Hamilton U.S. Steel plant and global recession combined last year to reduce volumes well below five-year averages of 11.129 million metric tons. The season saw ore shipments total 3.846 million metric tons, coal 1.993 million metric tons and soybeans 478,438 metric tons. Soybeans, however, saw a 10-year high at the port. Scrap metal, asphalt, fuels and oil saw significant increases. Container shipments were another bright spot for the port. Levels ramped higher due to the launch of the Sea3 container feeder service running between Hamilton and Montreal. Port officials anticipate momentum to build this season through property development, the introduction of new terminal operators and other factors. With its international shipping up 22 percent in 2009 and overall tonnage down less than 1 percent, the Port of Milwaukee is well positioned for economic recovery. Two bulk commodities saw a significant increase last year. Salt distributed from the port was up 23 percent due to increases in salt mine production. Grain exports were up more than 74 percent, benefitting from favorable shipping rates out of the Lakes. Total tonnage for 2009 was 2.910 million metric tons, down slightly from 2.931 million metric tons in 2008, mirroring the fiveyear average of 2.958 million metric tons. The port handled several full shipload projects in 2009. The heaviest piece ever to move across railroad tracks came on a special heavy-lift ship through the St. Lawrence Seaway—an 800-ton transformer. In anticipation of additional wind blade shipments, Federal Marine Terminals-Milwaukee (FMT) brought in two 83,776- pound capacity reach stackers with special attachments to expedite handling. FMT is expecting its Milwaukee terminal to handle the 150-foot blades because of the port’s favorable land transportation capabilities. Also, the port’s highway ramp is expanding to a 175-foot radius from 100 feet to accommodate longer cargo. Predictions for the current season are positive, with an increase in machinery exports expected. The Port of Monroe bucked 2009 trends ending the year with tonnage increases. Cargo volume grew from 959,786 metric tons in 2008 to 1.322 million metric tons, stepping above the five-year average of 1.173 million metric tons. Inbound tonnage through Monroe Harbor increased 38 percent. Among its commodities, coal accounted for 84 percent of the port’s volume (1.117 metric tons), while limestone ranked second in volume at 9 percent (124,284 metric tons). Limestone shipments increased as a result of DTE Energy’s implementation of a new process at its Monroe power plant. The groundbreaking of an 115,000- square-foot facility by Ventower Industries, producer of industrial-sized wind generator towers, signals new opportunities for the port. The company is investing $22 million in the project which is expected to create up to 150 new jobs. The port anticipates upgrading its rail service and dock in 2010 and 2011 to accommodate Ventower’s transportation needs. Market diversification paid off for the Port of Montreal in 2009. While container traffic between Northern Europe and North America took a hit, the impact was mitigated by transshipment ports in the Mediterranean and Caribbean. As a result, container traffic managed to remain a primary activity, representing 46 percent (11.300 million metric tons) of the port’s cargo, down 15.4 percent over 2008. Container traffic on the Mediterranean grew 5.5 percent. Liquid bulk represented 32 per- Milwaukee 2009 Seaway Traffic Results (thousands of metric tons) MONTREAL/LAKE ONTARIO WELLAND CANAL COMBINED TRAFFIC 2008 2009 2008 2009 2008 2009 Total Cargo 29,353 20,646 33,580 26,391 40,798 30,481 Grain 7,324 7,801 6,849 7,463 7,592 8,125 Iron Ore 9,148 3,865 9,502 6,161 11,932 6,853 Coal 957 736 3,632 2,886 3,639 2,886 Other Bulk 9,982 7,275 12,348 9,204 15,694 11,647 General Cargo 1,914 926 1,247 676 1,914 926 Total Transits 2,706 2,415 3,518 2,806 4,235 3,639 SOURCE: ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION Seaway Traffic Results From Opening to April 30, 2010 (thousands of metric tons) MONTREAL/LAKE ONTARIO WELLAND CANAL COMBINED TRAFFIC 2009 2010 2009 2010 2009 2010 Total Cargo 2,233 2,417 2,598 3,158 3,099 3,654 Grain 875 704 841 646 906 713 Iron Ore 491 874 485 1,238 614 1,396 Coal 52 108 209 402 209 402 Other Bulk 682 565 976 739 1,237 971 General Cargo 133 167 86 134 133 172 Total Transits 196 216 283 333 330 375 SOURCE: ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION T H E 2 0 0 9 S E A S O N The Great Lakes Group last year as a result of its transition to an agriculture-handling facility tied to expansion at Perdue Agribusiness/Oswego Grain. Barge movement for agriculture products increased from two in 2008 to 30 during the 2009 season. Agriculture shipments moved into Canada and the Mediterranean with exports going to Egypt and Libya. The port also signed a 20-year agreement with New Hampshire-based Sprague Energy for the operation of the liquid petroleum terminal. Aluminum remained strong in 2009, as did cement. Total tonnage increased to 1.078 million metric tons, topping the 2008 volume of 997,345 metric tons, and showing a twoseason climb above the five-year average of 950,000 metric tons. Total tonnage was represented by soybeans, corn and wheat at 25 percent; aluminum at 30 percent, cement at 30 percent petroleum and 20 percent and fertilizer representing 5 percent. Momentum established in 2009—even bringing in the highest level of rails cars ever to move through the port—is expected to carry throughout the current season. “The 2010 season looks strong with two windmill projects slated to move through the port,” said Jonathan Daniels, port Executive Director. “The port will also continue its partnership with the nuclear power industry with the arrival of transformers from Spain for a local power plant.” The port continues to initiate upgrades, including completing the construction of a concrete pad for additional bulk storage space and plans to construct a new entrance to facilitate more efficient movement of project and heavy-lift cargo and the rehabilitation to the north portion of the port’s rail line. A new guard building and camera system are also being installed. While it experienced unprecedented drops in tonnage, the Port of Québec’s cruise market performed well in 2009, providing a record season in terms of visitors and serving to stabilize financial results. More than 117,000 passengers and crew members came to Québec City last year, an increase of 4 percent over 2008. The season defined Québec City as the largest destination port on the St. Lawrence. Cargo handled in 2009 dropped 19 percent from 2008, which set a record of 27.229 million metric tons. The 2009 total is 22.082 million metric tons; below the fiveyear average of 24.456 million metric tons. Between 2000 and 2008, the port experienced average annual growth of 7 percent. The 2009 drop reflected the struggling economy. Of the cargo moved last year, 60.8 percent was liquid bulk and 38.9 percent was dry bulk. General cargo accounted for only 0.3 percent. The slowdown in solid bulk tonnages is attributed to lows in the construction and steel industries in the United States and in petroleum products. The port’s efforts to diversify over the past few years focused on increasing tonnages of nickel, alumina, raw sugar, kerosene and biofuels. This measure helped offset 2009 losses. Despite the economic situation, infrastructure improvements continue. Last year cent of the season’s cargo. Strong grain shipping also helped offset losses in container volumes, up 4.4 percent. Petroleum held steady over the year. And bulk cargo dipped 8.7 percent to just over 13 million metric tons. Total tonnage for the season fell 12 percent in 2009 from 27.866 million metric tons to 24.524 million metric tons. The average tonnage for the last five-years is 26.036 million metric tons. The Port of Oswego experienced growth T H E 2 0 0 9 S E A S O N 18 www.greatlakes-seawayreview.com CAT Marine Power Toledo Lucas County Port Authority 20 www.greatlakes-seawayreview.com marked the completion of a $30 million installation of new handling equipment by one of the port’s dry bulk operators. Port officials look to the latter part of 2010 for an uptick in activity. “The global economic slowdown will continue to affect certain terminals’ performance, at least during

Maritime Editorial