Vol.39 No.2 OCT‑DEC 2010

O C T O B E R – D E C E M B E R 2 0 1 0 The Future of Lakes Coal Movement . Opportunities in Wind . Grain Exports Strong . Fleet Renewal V O L U M E 3 9 N U M B E R 2 G LGREAT LAKER 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! Prepared for Tomorrow? At Interlake Steamship, investing in the future is a top priority. Our state-of-the-art electronic charting, positioning and communication systems add up to superior navigational safety. Our electronic load controllers and skewed propeller blades keep Interlake’s diesel propulsion engines running at peak efficiency. Repowering of MV Lee A. Tregurtha ensures her continued reliable operation. These are just a few examples of Interlake’s long-term commitment to its customers. Interlake Steamship – prepared for today, and prepared for tomorrow. 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 O C T O B E R – D E C E M B E R 2 0 1 0 Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Guest Editorial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Guardian of the Lakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Regional Shipyard Activity Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Naval Architecture & Engineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Cargoes MOVING FORWARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 The challenges facing innovation in the Great Lakes/St. Lawrence Seaway. Commodities: Grain BAD NEWS FROM EUROPE, GOOD NEWS FOR SEAWAY . . 10 U.S. grain exports strong, but wet weather crimps Canadian crop. Interview NEW COMPANY ON THE LAKES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Donjon expands global services to shipbuilding and repair operation in Erie. Commodities: Wind OPPORTUNITIES IN THE WIND . . . . . . . . . . . . . . . . . . . . . . 19 Poised to benefit from the rush to wind power. Commodities: Coal THE FUTURE OF COAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Ontario energy legislation presents new challenge for lake fleets. Shipbuilding & Ship Repair THE SHIPS ARE COMING IN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Shipyards throughout the system take on winter work, new construction. FLEET RENEWAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Removal of Canadian import tariff on ships opens the door to new construction. NON-COMMERCIAL CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Shipyards experience growth in labor force from government builds. Propulsion RETROFIT INVOLVES WATER-LUBRICATED BEARINGS . . . . . . . . . . 45 Recent conversion on Peter R. Cresswell demonstrates efforts to solve oil leakage issues. Containers ONE WORLD, ONE CONTAINER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Intermodal transportation from concept to reality. Marine Photography A DAY ON THE ST. LAWRENCE . . . . . . . . . . . . . . . . . . . . . 56 Lights in Canadian waters. Great Lakes People WORKING THE DOCKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 A journey through ILA’s evolution in Duluth-Superior. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 GREAT LAKER D E P A R T M E N T S GREAT LAKES/SEAWAY REVIEW October-December, 2010 1 2010 is one of the busiest seasons in recent history for export grain. Page 10. Ontario energy legislation impacts Lakes coal movement. Page 25. The Ken Boothe Sr. is nearing completion at Donjon Shipbuilding & Repair. Page 32. Great Lakes Maritime Research Institute Port City Tug Port City Marine Services Port City Steamship Services 2 www.greatlakes-seawayreview.com Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com www.greatlaker.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor Rebecca Harris Art Director Lisa Liebgott Production Manager Tina Felton Business Manager Amanda Korthase Circulation Manager ADVERTISING DEPARTMENT Kathy Booth Account Manager Rex Cassidy Account Manager James Fish Director of Sales John H. Nikolai Account Manager Patricia A. Rumpler 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; Joe Cappel, Director of Cargo Development, Toledo-Lucas County Port Authority; Steven A. Fisher, Executive Director, American Great Lakes Ports Association; 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; Daniel L. Smith, Former National Executive Vice President, American Maritime Officers; 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. Great Lakes/Seaway Review Cover: Detail of Edward L. Ryerson propeller. Photo by Jerry Bielicki. Great Laker Cover:. Windmill Point Lighthouse, Prescott, Ontario. Photo by Gary Martin. 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 39 OCTOBER-DECEMBER, 2010 NUMBER 2 Celebrating 40 years of serving the Great Lakes/St. Lawrence Seaway system. Port City Tug Port City Marine Services Port City Steamship Services TUG AND BARGE OPERATORS VESSEL MANAGEMENT 560 Mart Street Muskegon, MI 49440 231.722.6691 office 231.726.6636 fax 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. 229 Voss Kovach Hall 1305 Ordean Court 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 UNIVERSITY of WISCONSIN Wisconsin’s Leading Public Liberal Arts College Supporting Sustainable Maritime Commerce on the Great Lakes University of Minnesota Duluth G R E A T L A K E S / S T . L A W R E N C E S E A W A Y GREAT LAKES/SEAWAY REVIEW October-December, 2010 3 Heavy dimensional cargo moves west from Duluth Two, 300-ton components for the same transformer moved through the Port of Duluth recently. The transformers and accessories arrived at Clure Public Marine Terminal from their manufacturing origin in Germany via Rotterdam, aboard the BigLift freighter Tracer. Crews from Lake Superior Warehousing Co. discharged the high, wide and heavy cargo directly onto specialized railcars dockside. One of those specialized cars, a new 20-axle railcar managed by SRT, was recently introduced into American service. A train comprised of this car and eight others (including a 16-axle railcar) left Duluth for the 1,200- mile Canadian Pacific clearance route northwest to Lethbridge, Alberta, where the transformers power the Montana Alberta Tie Line—the first international merchant transmission line in North America. “When fully operational next year, the 214-mile transmission line will interconnect the electricity markets of Alberta and Montana,” said Paul Kos, Director of Engineering for Montana Alberta Tie Ltd., “opening up a huge potential for development in renewable energy projects in both countries.” “The Port of Duluth factored strategically in this single-line rail move,” said David Walker, Senior Manager, CP Logistics Solutions. “It’s great to see all of these projects finally getting connected. This transmission line will transform renewable energy into power for customers on both sides of the border.” . DATELINE Great Lakes Commission’s Albert Ballert dies Albert G. Ballert, 95, died October 5 in Livonia, Michigan. He found his love for working with the shipping industry in the Great Lakes/St. Lawrence Seaway through his employment with the Great Lakes Commission (GLC). Dr. Ballert started with the GLC when it was founded in 1956, continuing as Director of Research emeritus through 2006, a 50-year commitment. He authored numerous publications, newsletters and checklists relating to the ships and their cargo, water levels and precipitation. Dr. Ballert visited every port and community along the entire system’s coastline, accumulating an extensive collection of photographs. He was always willing to share his photographs and his experience. . $35 million being invested at Port of Toledo Through federal grants, $35 million dollars is paying for multiple projects at the Port of Toledo, including acquiring the historic 111-acre Jeep Parkway property. Funding is going to make improvements to the mouth of the Maumee Bay—where the port is being shored up for shipping. Fresh pavement along Front Street is part of economic development which includes new roads, rail line updates and other infrastructure improvements which are all part of the plan. The investment is being made to encourage private development in the region. By the time all the stimulus cash is spent, the Port of Toledo will be able to load and unload lake freighters and salties faster than other ports—capable of sending all kinds of cargo across the U.S. or around the world by ship, train or truck. . Canadian government launches Asian carp study Canada is launching a comprehensive, basin-wide, bi-national Asian carp risk assessment that will take about 18 months to complete. This work will pinpoint areas within the Great Lakes basin most vulnerable to invasion and identify likely routes where they could enter the Canadian side of the system. “The Great Lakes are an international treasure and an economic cornerstone for communities on both sides of the border,” said the Honorable Diane Finley, Minister of Human Resources and Skills Development and Regional Minister for Ontario. “I am pleased that our government has moved forward with this initiative to help protect our Great Lake ecosystems from the threat of Asian carp.” Asian carp migrated north from the Mississippi River system and could eventually enter the Great Lakes, where it would be difficult to control their spread to other Lakes and beyond. The results of the project will help identify potential habitat and spawning locations for Asian carp and transfer routes to help guide prevention, monitoring, rapid response and control efforts by authorities on both sides of the border. By gaining a greater understanding of the potential spread, population numbers and specific impacts of Asian carp, the Canadian government will be prepared to take actions against any emerging threats to its waters. “The United States Government is pleased that Canada is making this important contribution to help address the threats posed by Asian carp in the Great Lakes,” said David Jacobson, U.S. Ambassador to Canada. “These efforts will supplement the work underway by the United States to implement our Asian Carp Control Strategy Framework and Action Plan.” . System takes on potential river traffic The Canal Barge Company shipped nine barges of wind turbine modules from Tampico, Mexico through the Great Lakes/St. Lawrence Seaway system to the Port of Detroit because the Mississippi River system couldn’t accommodate height requirements of the bridges at Lemont on the Illinois River. The modules were destined for the Marathon Refinery in Detroit, Michigan. Although its expectations were to return the nine barges to their headquarters in New Orleans, Canal Barge left one barge in the system to work for Great Lakes Towing, which is contracting with KK Integrated Logistics to haul wind turbines from Buffalo, New York to Menominee, Michigan. . Albert Ballert D A T E L I N E 4 www.greatlakes-seawayreview.com AFL-CIO, who received the Paul Hall Award of Merit and the Honorable Donald M. Payne, Congressman from New Jersey, who received this year’s Government Man of the Year Award. The Rasmus citation reads: “The American maritime industry has no greater champion than you. Although awards such as this one are nothing new to someone of your stature, please know that our appreciation, admiration and respect for your work and character simply could not be any deeper or more sincere. You are a model for employers everywhere.” . Cleveland maximizes project cargo opportunities Eleven massive pieces of project cargo, each weighing as much as a railroad locomotive, were unloaded at the Port of Cleveland and delivered to Alcoa’s Cleveland Works facility in Cuyahoga Heights. The shipment—weighing 2,100 metric tons—includes structural components needed to refurbish Alcoa’s 50,000-ton forging press used to produce major parts for commercial and military aircraft, including the F-35 Strike Fighter. “The local economy has a manufacturing base that relies on the ability to move project cargo—heavy, bulky pieces such as this shipment needed for Alcoa’s press,” said Will Friedman, CEO of the Cleveland-Cuyahoga County Port Authority. “This capability is also important for new, emerging industries like wind energy that need cost-competitive solutions to transport wind turbines. Heavy lifts have provided a steady stream of work and revenue for both the port and local companies, and it is something we can continue to capitalize on.” This year, the port is scheduled to transfer approximately 3,400 metric tons between local companies and domestic and international partners. The press components will be unloaded by the vessel, Tracer, traveling from Germany via The Netherlands. The pieces will be move directly from the ship to a barge and transported upriver. . Port authority saves city millions in dredging costs The Hamilton Port Authority is managing a major dredging project in the east harbor for the City of Hamilton. Comparisons between the original off-site disposal plan and the port proposed confined disposal facility (CDF) show a savings of C$4.35 million. The revised project includes one-time placement of dredged material into the port authority’s Pier 27 CDF. If not placed in the CDF, the dredged material would be moved inland for disposal, increasing project costs—and taking more than 2,000 truckloads of material off the roads, en route to Pier 24 for handling and dewatering. The City of Hamilton will compensate HPA for the loss of CDF storage capacity. . Ron Rasmus named Management Man of the Year The Maritime Port Council of Greater New York/New Jersey and vicinity of the Maritime Trades Department, AFLCIO, has chosen Ronald C. Rasmus, President & CEO of The Great Lakes Towing Company and its affiliates as Management Man of the Year. Rasmus was selected for the award by the organization’s 43 affiliate unions represented by some 500,000 members. In addition to leader of The Great Lakes Towing Company, he serves as President & CEO for The Great Lakes Group; Tugz International LLC, Cleveland, Ohio; and its affiliate Puerto Rico Towing & Barge Co., San Juan, Puerto Rico. The award was formally presented at the New York-New Jersey Annual Maritime Port Council’s Dinner at the Sheraton Hotel and Towers in New York City. At Rusmus’ side were Richard L. Trumka, President of the National GREAT LAKES SHIPYARD .. .. .. .. .. .. .. .. .. .. .. .. …. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. www.thegreatlakesgroup.com 7 0 0 T O N S decided the time was When The Great Lakes .. Canadian right to revolutionize Towing Company ………. ……………… ……………. ………….. Lakes — it will ………. ……………. …. have a world- operatio reliable, versatile, efficient to the new machin save time and money thanks Company customers will Great Lakes Towing .. .. .. service shipyard, the Great Lakes. As ………….. ……………….. The Great Lakes T hoist. Headquartered lifting: a Marine Travelift solution that could its business, it knew ations. ne’s ve wing operations. .. will Great quick handle .. .. …….. .. .. ‘The Towing Company’ the operators of a full- …. ………….. ………….. …. Towing Company is the in Cleveland, Ohio, ravelift 700C mobile boat manage the heavy there was only one Let the revolution begin. …… ……………… ……………… …. save time and money Lakes Towing Company’ turn-around. Most importantly accommodate emergency …… …….. …….. ……………… …….. the full range of ……………… ……………….. thanks to the Company’s customers importantly, The lifts and ensure ………….. ……………… Great Lakes vessels largest mobile boat Travelift 700C, it will …….. ………….. ………….. consuming, ………… …. …….. e hoist on the U.S. and have more than the …. …….. …….. ………. ………… one-at-a-time drydockings using ………… …………………….. ………. thegreatlak esgroup… .. .. .. .. .. .. .. .. .. .. .. …. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. www.thegreatlakesgroup.com decided the time was When The Great Lakes .. Canadian right to revolutionize Towing Company ………. ……………… ……………. ………….. Lakes — it will ………. ……………. …. have a world- .. .. service shipyard, ‘The the Great Lakes. ………….. ……………….. The Great Lakes T hoist. Headquartered lifting: a Marine Travelift solution that could its business, it knew operations. .. will Great quick handle .. .. …….. .. .. Towing Company’ As the operators of a full- …. ………….. ………….. …. Towing Company is the in Cleveland, Ohio, ravelift 700C mobile boat manage the heavy there was only one Let the revolution begin. …… ……………… ……………… …. save time and Lakes Towing Company’ turn-around. Most importantly accommodate emergency …… …….. …….. ……………… …….. the full range of ……………… ……………….. money thanks to the Company’s customers importantly, The lifts and ensure ………….. ……………… Great Lakes vessels largest mobile boat Travelift 700C, it will …….. ………….. ………….. consuming, one-at-a-time ………… …. …….. .. e hoist on the U.S. and have more than the …. …….. …….. ………. ………… drydockings using ………… …………………….. ………. thegreatlak esgroup.Ron Rasmus Duluth Seaway Port Authority Barriers in place to combat Asian carp spread A 13-mile concrete and steel mesh fence splitting the narrow divide between the Des Plaines River and the Chicago Sanitary and Ship Canal has been installed to keep Asian carp from entering the Great Lakes. The $7 million project, paid for from the Great Lakes Restoration Fund, is a low-tech solution to keep the carp from breaching the low-lying strip of land between the river and the shipping canal during heavy rains. With a bill in Congress and a verdict soon expected in a divisive court case aimed at closing Chicago-area shipping locks to halt the northward migration of the fish, officials say the fence is a reminder that the daily battle against the carp continues. Though it’s unclear how many Asian carp exist in the Des Plaines River, the winding tributary connects to the Illinois River where Asian carp are known to be abundant. The fence is designed to work in partnership with a more sophisticated carp weapon—the underwater electrical barriers installed a decade ago in the shipping canal near Romeoville. The fence is three feet tall in some spots but rises to eight feet in areas prone to deeper flooding. The fence is a product of sophisticated engineering. Its mesh wiring is designed to allow passage of water to relieve flooding but is small enough to block out all but the smallest fish and eggs. The fence begins just north of the electrical barriers and follows along the Centennial biking trail toward Chicago. . Admiral Thad Allen joins Rand Admiral Thad Allen has joined the Rand Corporation as a senior fellow. Expected to make the transition in May, his retirement was delayed when asked by President Obama to manage the oil spill emergency response and clean-up of the BP oil spill in the Gulf of Mexico. Allen became the 23rd Commandant of the U.S. Coast Guard in May of 2006. While serving as the Coast Guard’s chief of staff, he served as the principal federal official overseeing Hurricane Katrina response and recovery efforts in the Gulf Coast region. Allen will be based in the Rand office in Arlington, Virginia and will focus his work on homeland security, ocean policy and defense policy issues. His work initially will be concentrated in the Rand Homeland Security and Defense Center. The center conducts analysis to prepare and protect communities and critical infrastructure from natural disasters and terrorism. . JANUARY 21 Marine Club Annual Dinner Royal York Hotel, Toronto, Ontario www.themarineclub.org 23-27 Transportation Research Board 90th Annual Meeting, Washington, D.C. Trb.org/annualmeeting2011/am2011program.aspx FEBRUARY 9-13 121st Annual I.S.M.A. Convention Doubletree Guest Suites-Fort Shelby Hotel Detroit, Michigan, www.detroitlodge7.org 16-17 Great Lakes Waterways Conference Cleveland, Ohio www.greatlakeswaterwaysconference.com 17-18 SNAME Cleveland, Ohio Richard Mueller rmueller@netsco.us MARCH 1-2 Great Lakes Days Washington, D.C. www.glc.org/greatlakesday GREAT LAKES/SEAWAY REVIEW October-December, 2010 5 REGIONAL CALENDAR D A T E L I N E The Port of Duluth never rests on success. We continually grow and advance our capacity to meet the changing demands of a global economy. Ranked among the top 10 wind cargo ports across the U.S. and Canada, the Port of Duluth is offering customers a new intermodal option – moving wind turbine components by rail. Rail is a great alternative for most energy-efficient, long distance moves. Combining the efficiencies of water, road and rail transport offers our wind energy customers the best options in the most centrally located, multimodal hub in North America. We’re definitely here for the long haul. Port of Duluth. Here for the long haul. 218.727.8525 • www.duluthport.com Thad Allen Algoma Tankers 6 www.greatlakes-seawayreview.com GREAT LAKES/SEAWAY REVIEW October-December, 2010 7 C A R G O E S ness cycle is not a strategy. “We need to look to containers.” “There’s so much that’s not in our control, but at the end of the day, we have to live with it,” said Richard Corfe, recently retired President & CEO of the SLSMC. “We have to adapt. In the mid-’80s, we were going through hard years, but we believed the traditional cargoes would come back. The difference today is that we know those cargoes won’t be coming back. If we want to be shipping 50 million tons, it will have to be bulk plus other cargoes. This is what is driving our market development and our cargo incentives.” Indicators of opportunities for container traffic have come in the form of maxed out container ports along much of the East and West Coasts, growing container traffic at the Port of Halifax, the expansion of the Panama Canal to usher more Panamax and super-Panamax ships toward North America’s East Coast by 2014/15, infrastructure investments at East Coast ports to increase their container capacity and continuing plans to construct the Maher Melford International Terminal at Nova Scotia. “Having Maher sign on with Melford is huge,” Johnson said. “It’s what we’ve been waiting for and what they’ve been working on for so long. A lot of naysayers are finally saying: ‘maybe we were wrong.’” In July, Maher became a shareholder in Melford and committed to provide services for the container terminal planned for Melford, Nova Scotia. It currently operates container terminals Prince Rupert, British Columbia and Port Elizabeth, New Jersey. Establishing feeder services. More containers will be coming into the East Coast. The question is: Will the Great Lakes/St. Lawrence Seaway system capture a portion of the business or will the boxes move inland via rail and road? When the St. Lawrence Seaway was constructed, it was considered an engineering marvel—a project that had taken more than 150 years to progress from the earliest vision to May 13, 1954, the day the Wiley-Dondero Seaway Act was signed into law by President Dwight D. Eisenhower. The act authorized the U.S. government to work jointly with Canada to create a deepwater navigation channel that has since been proclaimed North America’s Fourth Seacoast. Fifty-one years of use finds the St. Lawrence Seaway amid infrastructure upgrades and changing cargo patterns—and still operating at less than 50 percent of its capacity. While some stakeholders prefer to do business as usual, others are concerned that business as usual will result in continuing cargo losses. With global shipping evolving from bulk to package products and breakbulk into containers, there are a growing number of people who are looking to move containers through the system as a means of increasing cargo flow. Growing traffic. With the exception of the new Poe-sized lock at Sault Ste. Marie, Michigan, appropriations are flowing in both Canada and the U.S. to upgrade the system’s infrastructure. With funding and upgrades underway, attention of both the Saint Lawrence Seaway Development Corporation (SLSDC) and the St. Lawrence Seaway Management Corporation (SLSMC) is on growing system use. “We’re using a two-pronged strategy,” said Collister Johnson, Administrator of the SLSDC. “The management corporation has been very active in the engineering part of growth with self-spotting, maximizing the system’s depth to 26.9 feet and self mooring, preparing the system for the future. The other part is growing traffic, and I’ve always believed that sitting back and being held captive to the busi- Moving forward The challenges facing innovation in the Great Lakes/St. Lawrence Seaway To create a supplemental cargo flow, changes are needed in system governance, much of which was created prior to the worldwide container boom. “The adoption of new ideas and techniques does not occur naturally but results from hard work, trial and error.” University of Wisconsin-Milwaukee Center for Urban Transportation Studies SOURCE: GREAT LAKES FEEDER LINES Chamber of Marine Commerce 8 www.greatlakes-seawayreview.com service launched July 3, 2009 by the Port of Hamilton to move boxes from Hamilton to Montreal twice weekly. The service, suspended for the 2010 season, had more than 20 customers supporting it. “We went into the pilot program to find a greener, more cyclically responsible way to bring containers back and forth,” said Ian Hamilton, the port’s Vice President of Marketing. “We ran over 90 percent of the time and were encouraged by the response. We believe we were able to put a model together to offer value, particularly when other commodities such as steel coils, heavy scrap metal boxes and liquid bulk weren’t allowed on rail.” In the absence of government incentives, the service was suspended because the port needed shipping lines to make freight commitments. “In Quebec, the green program incents cargo to find greener modes,” Hamilton said, noting that a program of this type doesn’t exist in Ontario. The port is working with the federal and provincial governments to create green program incentives in Ontario to help carry start-ups through their first two years. “When you are doing start-ups, you understand there are going to be successes and setbacks,” Johnson said. “It’s part of the private business sector. My hope is there will continue to be entrepreneurs looking at this market knowing there can be successes if you have the right pricing and infrastructure.” The Port of Cleveland and Great Lakes Feeder Lines have jointly announced plans to launch a container service from Cleveland to Montreal in the spring. Great Lakes Feeder Lines now has two vessels—the Dutch Runner and Arctic Sea—that have capacity for container and breakbulk cargo. The service would allow ocean carriers to hand-off transatlantic containers into the Great Lakes, providing a more cost-effective and environmentally-friendly alternative to truck and rail transport. “We saw the opportunity and recognized some of the challenges,” Shumway said. “Perhaps we were more naïve then than we are now, but we continue to see opportunities. Our business plan is to build out short sea shipping within the system.” “This is an exciting opportunity for the port, the region and the state,” said Will Friedman, CEO of the Cleveland-Cuyahoga County Port Authority, noting the port does not require capital investments or enlarged facilities to begin moving containerized and other freight to Montreal. “We have the space, equipment, a capable terminal operator and a productive waterfront workforce in place. We can move containers today.” “I’ve looked at the numbers and they are competitive on a per box basis,” Johnson said. “There are indications that cross-lake shipping from the U.S. to Canada and Canada to the U.S. can be competitive in terms of time, reliability and price. I’m convinced that this type of maritime feeder service can work, but it has to have the right conditions.” Creating the right conditions. To create a supplemental cargo flow, changes “There are plenty of people who think it won’t work,” said Stan Shumway, Managing Partner for Great Lakes Feeder Lines, which has been running feeder lines on the East Coast and working diligently to establish them in the Seaway. “You just have to overcome negative thinking. You can’t show people a market study when you’re creating the market.” In 2009, there were fewer than 100 containers moved in the system, with those resulting from Sea3, a pilot container feeder C A R G O E S GREAT LAKES/SEAWAY REVIEW October-December, 2010 9 are needed in system governance, much of which was created prior to the worldwide container boom. The challenges in further developing cargo traffic in the system have been identified as including: • The need to work with U.S. Customs and Border Protection when bringing cargo from foreign ports, which involves providing the infrastructure, personnel and equipment needed to inspect the containers. • A 24-hour notice of arrival required for international deliveries, inhibiting short cross-lake deliveries. • Costs created by the Jones Act and Canadian Cabotage Law that, while they curb other forms of maritime competition, they also stifle opportunities for free-flowing, European-style short sea shipping. • The continued presence of the Harbor Maintenance Tax. The removal of the tax on containers would create a significant perbox savings for carriers. • The need for stakeholder teams to put together the total pricing package, which includes a carrier, terminal operator, port and even union representation. “Cross-lake container traffic doesn’t have to start with the ports,” Johnson said. “It starts with shippers and shipping lines. They need to understand that this is in their economic self interest. ‘Build it and they will come’ won’t happen. At the end of the day, it’s not the port that will drive this. The ports are like the Seaway, they are infrastructure.” Tradition vs. innovation. The economic downturn has challenged businesses throughout the industry to do more with less. Cargo dips have impacted the bottom line and are also creating opportunities for innovation. Like when the vision for the St. Lawrence Seaway was first shared, some of the innovations have been received with immediate resistance. Others are integrating the vision and are helping business diversify their business plans. “The systems should be the hotbed of innovation,” said James Hartung, Senior Vice President/Director of Marketing for Seasnake World Wide. “Instead, the system is struggling to recapture its own identity and retain viability and vitality.” Hartung introduced a new ship design to system stakeholders in 2009. There was little interest expressed in Seasnake, a ballast- free ship design that carries cargo in smaller modules that can be left behind for loading and unloading as the remainder of the ship continues along its route. In essence, the ship’s modules are like 153- foot containers that are pulled by a traction unit and pushed by a caboose. His presentation at the International Cargo Handling & Co-ordination Association meeting in Casablanca, Morocco in April received quite a different response. “I received much more interest and inquiries, even feedback and reinforcement,” Hartung said. “It’s the opposite of what happened on the Great Lakes.” In October, Seasnake signed a letter of intent with an Indian-based group to build the prototype. Hartung believes the difference stems from how hard professionals in third-world countries work to expand marketshare and credibility. “On the Great Lakes, innovative ideas are considered more of threat,” he said. “They require us to move out of our comfort zones, beyond our experience and expertise. When I first looked at Seasnake, with 30 years of experience in the industry, I was skeptical. But as I studied the research and saw the tank tests, I became more comfortable. I had to go through that process.” Innovation working in the system currently can be found with McKeil Marine’s Niagara Spirit, a tug-barge unit equipped with a large ramp on the front to expedite loading and unloading, reducing stevedoring costs and expediting turnaround on regular shipments of aluminum ingots being moved into the Great Lakes from the Port of Sept-Iles. Trucks drive onto the ramp with ingots and a forklift unloads it. The trucks turn around and drive off the ship. The ingots have been delivered to Three Rivers, Toledo, Oswego and Detroit. “We look at ourselves as the young kids on the block,” said Steve Fletcher, Executive General Manager and Vice President of Operations for McKeil Marine Limited. “We have to be creative to carve out our niche in the industry.” To date, about 750,000 metric tons of the ingots have been moved, taking roughly 30,000 trucks off the road. The Niagara Spirit is also used for moving steel slabs and coils, as well as coal. She has been fitted with a moveable roof to serve as a domed roof that protects the steel coils from the elements. The roof covers about one-third of the ship’s topside. Another first for McKeil involves combining shipments of two companies—one previously moving a quartz-like product on the road and the other on rail—onto its barge service. They are now moving the material from Newfoundland into the system. The company’s customers are open to its innovations because McKeil is providing solutions. “Until we had the opportunity to move steel coils, we had never thought of engineering and installing a retractable roof on a barge,” Fletcher said. “Before that, the only options were truck or rail.” What is failure? Progress and innovation often has setbacks. The Port of Hamilton and its partners still believe Sea3 has potential. Great Lakes Feeder Lines is launching a feeder service in 2011. “We were able to demonstrate that you can move containers back and forth from Montreal to Hamilton on a relatively regular basis,” Fletcher said. “Our biggest challenge was the business model and the time it fell in this economic cycle. It was the worst year ever for container lines.” “This is a new cargo coming from a new place,” Shumway said, noting that studies show the number of containers coming to America will only increase in the years to come. “People are starting to get it, and it’s helping that people are worried about fuel prices, capacity and the new security regulations as they pertain to drivers.” “The system must keep moving forward,” Hartung said. “A failure isn’t just a failure. It’s an opportunity to refine your thoughts and move that much closer to meeting your expectations. Let’s think new. Let’s act new. Let’s seek new collaborative efforts and a new sense of what we should be doing and how we should be doing it.” Janenne Irene Pung . C A R G O E S Containers are being loaded aboard a barge by Federal Marine Terminals stevedores at the Port of Hamilton. Cargo dips have impacted the bottom line and are also creating opportunities for innovation. 10 www.greatlakes-seawayreview.com C O M M O D I T I E S Grain shortages overseas have led to one of the busiest seasons in recent history for grain exports through the Great Lakes/St. Lawrence Seaway. By mid-August, one-quarter of Russia’s grain crop had been destroyed. Drought, followed by devastating fires, led its government to ban exports of grain through the end of the year to conserve supplies for domestic food production and animal feed. In September, Russian Prime Minister Vladimir Putin said the grain ban would be extended until late 2011, which could mean the boom in grain exports for the Seaway will continue, at least until an evaluation of the 2011 Russian harvest. That’s good news for Bruce Hodgson, Director of Market Development for the St. Lawrence Seaway Management Corporation. Up to the end of September, the throughput of U.S. grain, compared to the same period in 2009, was up by 36 percent, from 989,000 metric tons to 1.3 million metric tons. Canadian grain was down 12 percent from last year’s total of 3,697,000 metric tons. The combined throughput for U.S. and Canadian grain at the end of September was 4,591,000 metric tons. Although traditionally Canada provides the bulk of the grain that moves through the Seaway, this year is an exception. “The Canadian harvest is off considerably,” Hodgson said. “Grain exports from Canada are down by 14 percent versus the same period last year.” Although demand is up in terms of the world market, other factors are also contributing to the increased tonnage. “Part of what’s driving U.S. grain through our system are high barge rates on the Mississippi River—they’ve got some construction and maintenance going on— and in certain parts of the Mississippi it’s daytime operation only,” he said. News from the Duluth-Superior end of the Seaway has also been positive. Recent tonnage reports indicate a robust grain trade that by early October had already posted an 89 percent increase over last year’s 807,961 metric tons, according to Ronald Bad news from Europe, good news for Seaway U.S. grain exports strong, but wet weather crimps Canadian crop Herbert C. Jackson loading wheat at General Mills in Superior. GREAT LAKES/SEAWAY REVIEW October-December, 2010 11 the market just took off. It’s one of those things you can’t predict.” Lining up ships. During a single week in September, 17 ships were either loading grain or at anchor waiting for a berth to open up, a sight that “harkened back to a time when grain really moved that quickly out of this port. It really was an encouraging sign for everyone here,” said Adele Yorde, the port’s Public Relations Manager. “For us that’s meant a lot of longshoremen working and some of the boats coming out of layup, which wasn’t anticipated at the beginning of the year.” The laid-up Canadian bulk carrier Gordon C. Leitch was among those reactivated to help handle the increased tonnage. L. Johnson, Duluth Seaway Port Authority’s Trade Development Director. In September alone, the port experienced a 123 percent increase in outbound grain shipments, which totaled 626,702 metric tons. Those cargoes—primarily durum wheat and spring wheat headed to Europe, North Africa and the Middle East—nearly doubled in response to shortages created by the Russian ban on grain exports. “The stars lined up for us as far as U.S. spring wheat and durum wheat,” Johnson said. “It started out slow on the grain side, then the wind turbine cargo started to pick up. We are always anticipating the wheat harvest, which comes in August, then the Russians announced their problems and Vessels of the Netherlands-based Wagenborg Shipping have been regular visitors to Duluth, as have units represented by BBC Chartering, Germany’s Beluga Shipping, the Montreal-based Fednav and Canfornav fleets and Poland’s Polsteam. Windmill components, project cargo and steel are often carried inbound, with agricultural cargo making up the eastbound payload. Canfornav and Polsteam have each had new vessels enter Great Lakes/St. Lawrence Seaway service this year, with more to follow, Yorde said. One such vessel, Polsteam’s Miedwie, made its maiden voyage in September, loading durum wheat at Gavilon Grain in Superior, Wisconsin. Although traditionally Canada provides the bulk of the grain that moves through the Seaway, this year is an exception. C O M M O D I T I E S Polsteam USA 12 www.greatlakes-seawayreview.com C O M M O D I T I E S “This is the first of eight new ships built to that size and those specs. We take that as a positive sign that their commitment to the Great Lakes/Seaway system is still in intact,” Yorde said. Meanwhile, grain shipped from Duluth/ Superior for domestic use is down by about 10,000 tons. “It’s holding steady,” Johnson said. Numbers from the government are also positive. According to the U.S. Department of Agriculture, total inspections of grain (corn, wheat and soybeans) from all major U.S. export regions reached 2.28 million metric tons in early October, up 40 percent from the previous year. Exports were up 369 million bushels from 2009/10 and were only 12 million bushels less than the 2007/08 exports, a 15-year high. Looking at Canadian grain. The news isn’t quite so good on the Canadian side of the border, where John Lyons of the Canadian Wheat Board blamed weather for 2010s low numbers, which followed a relatively strong year in 2009. “The 2009/10 crop in Western Canada is coming in with below-average quality and roughly average yields. Quality, and overall production, were affected by wet and cold weather throughout much of the growing season,” Lyons said. “In the spring, millions of acres went unseeded due to excessive rains that made fields impassable for many farmers. In September, more cold and wet weather delayed the harvest across the Prairies, creating some quality concerns.” That situation has been keenly felt in Thunder Bay, Ontario which has not enjoyed the same boost in grain traffic as has Duluth/Superior. “It’s good and bad. The coal and the potash are up significantly, but the grain is down about 13 percent,” said port CEO Tim Heney. “Overall, because we’re a grain port, that drags us down. There’s a lot of factors involved and the wet weather is probably one of them.” Grain exports though September stood at 3,694,000 metric tons, down 13 percent from the same time in 2009, when they were up five percent, he said. When asked about the outlook for the remainder of the 2010 season and into spring 2011, Heney was pessimistic. “I don’t really anticipate a bounce back,” he said. “The port has the capacity to make up that difference in a long weekend, but I don’t really see that happening. And there’s not very good predictions for next spring because of the crop.” Nor has Toledo shared in the grain export bounty. Grain shipments through the end of September were 29 percent lower than the same period in 2009. Due to vomatoxin contamination in Toledo’s 2009 corn crop, spring and summer exports were down this year. “The vast majority of the tainted corn has now been traded and the new 2010 fall corn and soybean crops are loading out on ocean vessels and lakers at a brisk pace,” said Joe Cappel, Director of Cargo Development for the Toledo-Lucas County Port Authority, in October. Whether or not the brisk business in grain continues for the Seaway in 2011 is anyone’s guess. “I think it will continue for the balance of this season,” Hodgson said. “Of course, supply and demand being what it is, it is difficult to tell what will happen next season. We haven’t seen any projections at this point in terms of the Canadian crop and we don’t know what the carryover will be from next year. I wish we had a better crystal ball for next year.” Roger LeLievre . GREAT LAKES/SEAWAY REVIEW October-December, 2010 13 I N T E R V I E W Great Lakes/Seaway Review: What is your philosophy for Donjon Marine Co. and has it changed since founding the company in 1964? Witte: My philosophy is to conservatively build a company in cooperation with our employee base, recognizing that our growth and our prosperity is directly related to those employees, and to be certain that we share a partnership in our companies. The philosophy has evolved in the sense that I began the business as a young man and was much more aggressive, competitive and single- minded at the time. Great Lakes/Seaway Review: Tell us about the name Donjon Marine and from where it originates. Witte: The name Donjon comes from my first daughter, Donna, and my first son, John. They were crawling under the dining room table while I was thinking of a name for the company I was going to start. They came out from under the table and that’s how we came up with the name. Great Lakes/Seaway Review: What prompted your transition from being an admiralty attorney to starting Donjon? Witte: As these things happen, it was a matter of circumstance. I had a friend in the steel scrap iron business. While I was practicing law, he bought two barges and had them docked very close to my office. He asked me to come and look them over. I New company on the Lakes Donjon expands global services to shipbuilding and repair operation in Erie Arnold Witte is President & CEO of Donjon Marine Co., which recently added Donjon Shipbuilding & Ship Repair, LLC to its group of companies. The shipyard is located in Erie, Pennsylvania, on property owned by the Erie-Western Pennsylvania Port Authority. Currently, Donjon employs in excess of 800 people globally in marine salvage, dredging, material recycling, shipbuilding and other related services. The family-oriented business—with eight Wittes among the employee count— is headquartered in Hillside, New Jersey, in a 9,000-square-foot facility including offices, conference rooms and a 7,250-square-foot, temperature-controlled warehouse. Donjon Shipbuilding & Repair offers services in drydocking, ship repair, barge construction, vessel conversion, repowering, maintenance, steel fabrication and steel assembly. Great Lakes/Seaway Review Editor Janenne Irene Pung spoke with Arnold Witte about opening the newest shipbuilding company in the system and his future plans for the operation. ended up buying them for $3,000, giving him $1,000 down. I paid off the barges very quickly during a period of inflation and was able to charter one and sell the other for more than I paid for both of them. It seemed like a good way to start a business. Great Lakes/Seaway Review: Was there marine experience in your family prior to your starting Donjon? Witte: My father had a small barge and marine demolition business in the New York area. I was fortunate enough to gain some experience in marine activities at a very early age. Great Lakes/Seaway Review: How does operating Donjon Shipbuilding & Repair in Erie, Pennsylvania fit into your overall plans? Witte: As with all of our companies, we hope to have conservative and continuous growth. We have found the employee base in Erie excellent. The cooperation of the local community is outstanding and the regulatory agencies, particularly the port authority, have been supportive of our activities and day-to-day marine operations. Great Lakes/Seaway Review: How did the opportunity to operate the shipyard arise? Witte: Donjon Marine had a series of 11 barges built at the Erie shipyard under our predecessor, Erie Shipbuilding. So, we had a pre-existing business relationship with the port authority. Great Lakes/Seaway Review: Three previous operators at the shipyard have declared bankruptcy in the past 15 years. Did this create hesitations and/or concerns? Witte: It was certainly taken into consideration, but we felt the quality of the labor force, in combination with sufficient capital and a bit of ingenuity and hard work, would result in success. So far, we are going down the right path, and we’ll see what the future brings. We’re becoming even more confident in the productivity of the yard as We reviewed the current status of business in the Great Lakes, and combining it with the existing ship inventory, decided the introduction of a state-of-art vessel with significant speed and capacity would be a welcome addition J. Arnold Witte President & CEO Donjon Marine Co. ABS 14 www.greatlakes-seawayreview.com we progress, but it’s only been 10 months. Great Lakes/Seaway Review: What about the Donjon shipyard will make you stand out to shipowners? Witte: The quality of the work. Our quality assurance and corporate experience— combined with the experience of the people at the yard—insists that we deliver quality products. Great Lakes/Seaway Review: How did having a project in the works at the shipyard (construction of a $50 million 877- foot integrated tug/barge) influence your decision to settle in Erie? Witte: It was an issue to be visited and resolved. We had two alternatives: first, scrap what we had and start all over and second, to complete the vessel that was in early stages of production. We reviewed the current status of business in the Great Lakes, and combining it with the existing ship inventory, decided the introduction of a state-of-art vessel with significant speed and capacity would be a welcome addition. We have chosen to finish the build and will own the vessel upon its completion. We have taken on a partner in the project, SEACOR Holdings, Inc., a publicly traded company. Because we operate a fleet of 80 vessels, it’s not a big step for us to operate the unit, keeping in mind we would have to develop local knowledge and capability. But we already carry bulk materials in the New York metropolitan area and on the east coast: stone, sand, scrap iron and other bulk commodities. We also have experience operating our own terminal, so we’re not without experience in the operation of a bulk business, although the Great Lakes area is unique. Our primary concern is to complete the vessel. Whether we sell it, charter it or operate it will be determined later. Great Lakes/Seaway Review: What have been the difficulties in taking over the project midstream? Witte: The introduction of a different entity and different people requires a period of review and consolidation, but it’s gone quite well because of the character and nature of the employee base. Great Lakes/Seaway Review: Will you be focusing on both shipbuilding and ship repair from the onset? Witte: Yes. Our winter maintenance program is about full. Great Lakes/Seaway Review: Will all of Donjon’s work automatically come to the Erie shipyard? Is there enough to provide a sound business base? Witte: We expect all of our divisions to be competitive and, to the degree that Erie can build and support Donjon’s construction program at a competitive rate, they will certainly have that opportunity. But they do not have exclusive control over our building decisions, not withstanding common ownership. Great Lakes/Seaway Review: Where would you like the shipyard to be two years from now, from an employee and infrastructure standpoint? Witte: We now have in excess of 100 employees and I would expect we would be very comfortable with 150 employees by that time. We have already been making significant changes to the yard. We are involved in a substantial robotics program. Material flow is the key to any shipyard, and we’re working hard in utilizing substantial capital in improving the quality of the yard. Great Lakes/Seaway Review: Tell us about your plan to build hybrid, diesel/ electric powered tugboats for GE Transportation. Witte: This is a cooperative effort with the Erie port authority and Donjon Shipbuilding, with supporting interest by GE. We have made application to fund the construction of a green hybrid tug. Regardless of being awarded grant money, we could move forward with the construction of a prototype hybrid tug in the future. The grant prompts the introduction of that type of business a little bit earlier than expected, which would immediately improve employment and contribute to the wellbeing of the community. But we don’t live or die by grants; as a matter of fact, our group of companies has never had a grant before. Great Lakes/Seaway Review: With the 25 percent duty on foreign shipbuilding being waived in Canada, do you expect a sudden bidding war to ensue for those shipbuilding needs? Witte: We have had prior experience both owning and operating vessels in Canada. I believe the removal of tariffs will be helpful to the U.S. shipbuilding industry— and we’re open for business. Great Lakes/Seaway Review: You have already been awarded the International Maritime Hall of Fame Award in 2003 for lifetime contributions to the maritime community. What’s next? Witte: I’m very grateful to have received that award, but it doesn’t have much of an effect on day-to-day activities. As far as the future, I never view life as an end. It’s a progression of events and with the support of all of our people, whether I’m here or not, I expect Donjon to look for opportunities to serve a common interest that will benefit everyone. . Atlantic Cat Toromont Cat Hewitt Cat CAT Marine Power Mak Sales and Service POWER OVER TROUBLED WATERS Marine transportation has a bright future even though rough seas remain in terms of ship emissions and operating costs. Navigating through this requires solid wisdom gained from past experience and the drive to understand and manage emerging realities. As your authorized Caterpillar and MaK dealers we can help. Talk to us about new engine-related environmental initiatives, planning and asset management. We know these waters well and can help you plot the most efficient and sustainable course. MaK sales and service in the: GREAT LAKES 1-877-MaK-Power QUEBEC, ATLANTIC CANADA AND NORTH EASTERN USA 902-468-0581 Caterpillar sales and service in: QUEBEC AND THE MARITIMES 902-468-0581 ONTARIO, NUNAVUT AND NEWFOUNDLAND 1-877- Cat-Power Visit us at: marine.cat.com American Maritime Officers GREAT LAKES/SEAWAY REVIEW October-December, 2010 17 T H E A D M I N I S T R A T O R ’ S O U T L O O K COLLISTER (“TERRY”) JOHNSON, JR. Administrator Saint Lawrence Seaway Development Corporation communicate the maritime industry’s commitment to addressing a number of key environmental issues. Next year, Green Marine will focus on member ports and terminals and their efforts to improve environmental performance in a number of areas, including reduction of greenhouse gas emissions and discharges of cargo residues. These good news stories about best practices and continuous improvement on the environmental front can help develop a greater awareness of the maritime industry’s activities and benefits, and to further educate the public and the media. Also underway is an important evaluation of the economic impact of the Great Lakes St. Lawrence Seaway System. For the first time, in a single study, Canadian and U.S. benefits and impacts will be evaluated to give a comprehensive snapshot of our binational system. This economic impact study will serve to update Canadian and U.S. data regarding employment and tax revenue. Data will be provided at the regional level, by country (U.S./Canada) and by state and province. This study, scheduled for completion sometime early next year, will provide a great deal of critical, factual and verifiable information about the Seaway System and its users that can be widely utilized for educational purposes. The more the industry works to inform the general public and backs up its messages with facts and data, the easier it will be for the industry to receive a fair hearing in the court of public opinion and among the media. . It seems like lately there’s an excess of repetitive and factually-inaccurate negative coverage of the maritime industry. If you’re as frustrated as I am about this trend, do something about it. Get engaged in the debate, make your voice heard and do your part to help get the facts about the industry into the public domain. With the existence of Marine Delivers (www.marinedelivers.com)—the industry’s effort to better inform the public in both Canada and the U.S.—there is a way to help make your voice heard, individually and collectively. The industry should utilize every opportunity to educate the public on the benefits of marine transportation: economic contributions, environmental sustainability and continuous improvement. The economic impact message is a strong one in terms of the number of jobs supported and how the industry is the most efficient and cost-effective delivery network for commodities, thus helping keep prices for consumer goods stable. At a minimum, the industry has a good story to tell concerning the environmental efficiency of the marine industry to transport goods, offering fuel efficiency, fewer emissions and congestion mitigation. It can publicize the facts and evidence about what the industry is doing to address other environmental issues such as ballast water. Quantifying best practices and continuous industry improvements in the areas of the environment, safety and energy utilization are also key industry advantages. As stakeholders, you can contribute to the communications effort in your own way: • Write or respond to an article or op-ed • Challenge invalid assertions • Be visible in your community • Build coalitions—corporate, commodity- based, geographic, trade associations • Publicize a ‘good news’ story— traffic up, new cargoes, infrastructure improvements You can also take an active role by participating in future public events and activities, such as ‘port days’ events, conferences and other opportunities to educate the general public. These are all avenues where maritime stakeholders can be visible, deliver a message, improve public understanding and generate an appreciation of the Great Lakes maritime industry. Gone are the days when “just keeping quiet and your head down” was an acceptable way of doing business. On another front, the marine industryled Green Marine (www.green-marine.org) initiative continues its efforts to identify and act on the environmental issues impacting the shipping industry. Earlier this year, the group released its second annual report listing the performance of shipowners and managers in voluntarily making environmental improvements. While the scoring process relies on self-evaluation, the results are verified by independent third parties for quality assurance utilizing supporting documentation and records. This U.S./Canadian partnership is achieving positive results as the regulatory compliance scores of its member companies are rising, with 2009 scores showing significant improvement over 2008. These results are made public to further demonstrate and ACTIVATE, CO

Maritime Editorial