Vol.40 No.3 JAN‑MAR 2012
V O L U M E 4 0 J A N U A R Y – M A R C H 2 0 1 2 N U M B E R 3 National ballast water standard . Coal trade patterns . LNG as a marine fuel . Investments in shipbuilding G LGREAT LAKER Interlake Steamship ISO Certified The Interlake Steamship Company • Interlake Corporate Center 4199 Kinross Lakes Parkway • Richfield, Ohio 44286 Phone: (330) 659-1400 • FAX: (330) 659-1445 E-mail: email@example.com Aself-unloading fleet of various vessel sizes and capacities ranging from 17,000 to 68,000 gross tons means the Interlake Steamship team will safely and reliably deliver your cargo. Interlake’s continuous improvement program keeps vessels operating at peak performance. The fleet is ISO 9001:2008 Certified, and has an ongoing commitment to minimize its environmental impact. Recent ship re-powerings with clean, modern diesel engines earned Interlake the 2010 Midwest Clean Diesel Initiative Leadership Award. Interlake’s knowledgeable marketing personnel and experienced vessel crews work together to deliver your cargo where, when and how you want it. Put the reliable Interlake team to work for you. GREAT LAKES/SEAWAY REVIEW January-March, 2012 1 The international transportation magazine of Midcontinent North America National ballast water standard released by U.S. Coast Guard. Page 13. Trade patterns changing as Lakes coal moves to Europe. Page 15. Shipbuilding contracts add capacity, upgrade interlake and international fleets. Page 40. Also available as a fully interactive digital magazine. www.greatlakes-seawayreview.com Great Lakes/Seaway Review 221 Water Street, Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 firstname.lastname@example.org A R T I C L E S D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Naval Architecture & Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Maritime Heritage PRESERVING A LEGACY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Lake Huron’s Thunder Bay National Marine Sanctuary: Caretaker of the Great Lakes shipping industry legacy. Marine Photography RANGE LIGHTS OF THE GREAT LAKES . . . . . . . . . . . . . . . . . . 74 Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Ballast Water Management NEW YORK DELAYS BALLAST RULING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 State joins the system in calling for a national ballast water standard. TIMELINE OF BEST PRACTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Industry measures taken to protect the Great Lakes/St. Lawrence Seaway system. A NATIONAL STANDARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 U.S. Coast Guard issues federal ballast water management standard. Commodities SHIFTING TRADE PATTERN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Lakes coal being exported to Europe. Propulsion STEPPING ON THE GAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Fundamentals of liquefied natural gas as a marine fuel on the Great Lakes. RESEARCH IN MOTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 GLMRI team studying feasibility of converting steam engines to liquid natural gas. Greenwood’s Guide CELEBRATING 50 YEARS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 “Greenwood’s Guide to Great Lakes Shipping” reaches golden anniversary. Legislation LEGISLATIVE PRIORITIES FOR 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Lake Carriers’ Association advocates for vessel owners. Technology OPPORTUNITY IN TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Highway H2O examines how to maximize the system’s competitive edge. Shipbuilding ECONOMIC INDICATORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Millions in ship investments beyond newbuilds. EXPANDING THE SHIPYARD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Great Lakes Shipyard acquires property as part of four-phase expansion plan. TUG-BARGE DELIVERY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Donjon Shipbuilding launches its first new unit at Lake Erie yard. LCS SHIPS ON THE WAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Fincantieri Group continues to gain government builds and more. NAVY CONTRACT CREATES JOBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Seaway Marine & Industrial Inc. continues service to Great Lakes fleet. Dredging BUDGET CONSTRAINTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 President’s budget still below maintenance level for Great Lakes navigation projects. TAKING THE LEAD . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Ports expand research for beneficial use of dredged material. Ballast Water Management THE GREAT LAKES BALLAST WATER PARADOX . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Here are the steps being taken between now and use of onboard treatment technology. Infrastructure EXTENDING THE PIERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Ontario stimulus money invests in new wharf construction at Oshawa, Prescott ports. G LGREAT LAKER J A N U A RY- M A R C H 2 0 1 2 DonjonShipbuilding ABS Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 email@example.com www.greatlakes-seawayreview.com www.greatlaker.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor 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 Ellen Jenson Account Manager 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; Mark Barker, President, The Interlake Steamship Company; Noel L. Bassett, Vice President-Operations, American Steamship Company; Dale Bergeron, Maritime Transportation Specialist and Educator, Minnesota Sea Grant; Bruce Bowie, President, Canadian Shipowners Association; David Bolduc, Executive Director, Green Marine; 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; Mark Pathy, President & Co-CEO, Fednav Limited; John Vickerman, Founding Principal, Vickerman & Associates, LLC; Mike Wallace, Member of Parliament, Burlington, Ontario; James H.I. Weakley, President, Lake Carriers’ Association; Greg Wight, President & CEO, Algoma Central Corporation. 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. © 2012 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: Asiaborg moving into Duluth port terminal slip. Photo by Jerry Bielicki. Great Laker Cover: DeWattville Range Lights on the Canadian shore of the St. Lawrence River. 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 40 JANUARY-MARCH 2012 NUMBER 3 2 www.greatlakes-seawayreview.com 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 January-March, 2012 3 DATELINE No toll increase, continuing incentives for Seaway The St. Lawrence Seaway Management Corporation (SLSMC) is not increasing tolls in 2012. The decision to extend the toll freeze and several incentive programs was made to maintain the momentum being achieved by the Seaway’s market development initiatives. “We are striving to reduce system costs and bring more cargo into the system,” said SLSMC President and CEO Terence Bowles. “The extension of the toll freeze and of the various incentive programs represents tangible steps toward meeting these objectives.” In addition to the toll freeze, a Service Incentive Program continues for a second season. The program is directed at carriers calling at the Great Lakes and to assist them in developing or expanding liner or semi-liner services between the Great Lakes and global markets. The incentive, combined with the New Business Incentive, will provide a total savings of 40 percent on tolls and assist in developing new export traffic and cargoes. The New Business Incentive, which launched in 2008, will continue to be applicable to qualifying import and export cargoes. The Volume Incentive Program will also remain effective. During the 2011 season, $3.5 million in new business was identified through the New Business Incentive, with $12.5 million over the four years it’s been in place, according to Bruce Hodgson, Director of Market Development for the SLSMC. “Over the last few years, we have witnessed the success of our New Business Incentive,” Hodgson said. “This reinforces the need to continue to promote the Great Lakes/St. Lawrence Seaway system by continuing to offer incentives that will highlight the benefits of the system and provide motivation to utilize the Continental Gateway Corridor. It is difficult for traffic volumes to build unless there is an established service.” To determine eligibility, details and applications concerning the incentive programs, please go to www.greatlakes-seaway.com or www.hwyh2o.com/ tollincentives.html. . Canada celebrates 50th anniversary of Canadian Coast Guard A collection of five stamps entitled Canadian Pride and a new $50 note have been released in recognition of the Canadian Coast Guard’s 50th Anniversary. The permanent stamp features Canadian Coast Guard Ship Louis S. St-Laurent and is part of the five-stamp issue. The Louis S. St-Laurent is the oldest of the Canadian Coast Guard’s vessels and will be replaced by the Diefenbaker, which is currently under construction. The $50 polymer bank note illustrates the nation’s role as a leader in Arctic research and features the Amundsen. The Canadian Coast Guard was created on January 26, 1962. Events and activities to celebrate its 50 years of service will be held throughout the year in communities across the country. For more information, go to the Golden Jubilee website, established as part of the anniversary celebration, at www.ccg-gcc.ca/eng/CCG/50th_Anniversary. . President funds Great Lakes Restoration Initiative President Barack Obama has included $300 million in the 2013 budget for the Great Lakes Restoration Initiative, which maintains funding at the level appropriated by Congress in 2012. Over the last three years, the Great Lakes Restoration Initiative has provided $1.075 billion to restoration programs in the eight Great lakes. The most recent installment has yet to be spent. Money from the program’s first two years has been divided among more than 600 projects. During his 2008 campaign, Obama called for devoting $5 billion to Great Lakes restoration over 10 years. To fulfill that goal, future installments must reach $500 million. Obama budgeted $475 million his first year in office, but the totals have dropped to about $300 million a year since the economic downturn. . Passage of RAMP Act would create big dollars for dredging The Great Lakes is a driving force behind pushing the RAMP Act through Congress. Also known as H.R. 104, the bill is the first step in the legislative process to enacting a law to restrain the use of Harbor Maintenance Trust Fund dollars for use within the maritime industry. The Harbor Maintenance Tax is a user tax to create funding for the operation and maintenance of the nation’s navigation system. To date, more than $6 billion has been collected and never been used for the intended purpose. If passed by Congress and signed into law, the maritime industry would stand to gain about $600 million annually for dredging and other operational and maintenance needs. “This is a game changer,” said Mark Ruge, Partner of K&L Gates, LLP, Counsel for Lake Carriers’ Association, noting the additional money would enable the U.S. Army Corps of Engineers to contract out dredging that would return all harbors in the country to their authorized depths.The bill remains in committee. . Carter recognized for years of service Gerry Carter (left), President of Canada Steamship Lines, accepts thanks for his commitment to the marine industry from Ray Johnston, President of the Chamber of Marine Commerce, during Marine Club. Carter is retiring in April, with Louis Martel stepping into the role. During his tenure with CSL, Carter served on the Chamber of Marine Commerce Board of Directors. His parting words for the industry upon receiving the recognition: “Stay together. Stay united. Because the changes we face in the next five years will be greater than what we’ve faced in the last 10 years. We need to speak as one voice.” In response to industry interest, the 2012 Great Lakes Seaway Trade Mission will revolve around the JOC Breakbulk Exhibition and Conference in Antwerp, Belgium from Tuesday-Thursday, May 22-24. As part of the trade mission, participants will attend additional meetings with potential clients and take tours of the ports of Antwerp and Ghent. For more information, go to www.hwyh2o.com. . Bi-national trade mission heading to Antwerp Chamber of Marine Commerce D A T E L I N E 4 www.greatlakes-seawayreview.com tion and use in ballast water treatment. Bassett and ASC staff and crew are attributed to being “significant collaborators and frequently led problem-solving efforts that would have been outside the capabilities of traditional researchers in the field. He has also helped researchers and project participants to better understand and appreciate the needs and concerns of an effective and efficient maritime industry, which led to expanded dialog and cooperation.” Jensen has led a number of educational campaigns that have raised public awareness and funds to help stop the spread of invasive species in Minnesota and across the country. Craig Middlebrook and Mark Burrows, Codirectors of the Great Lakes Ballast Water Collaborative, were also nominated for the Outstanding Invasive Species Leadership Award for advancing ballast water management within the Great Lakes through the formation and leadership of the collaborative. The contributions of Middlebrook and Burrows have had a significant impact on national ballast water legislation and policy development. Bassett and Jensen were among five recipients at the first National Invasive Species Awards ceremony, which was one of many events planned in conjunction with National Invasive Species Awareness Week. . Port of Milwaukee brings wind turbine online The Port Administration Building of Milwaukee, Wisconsin is now being powered by a small wind turbine. The project, spearheaded by the mayor’s office, broke ground in November and began operating in February. The $600,000 investment is funded by federal and local incentives and grants for renewable energy. The turbine, manufactured by Wisconsinbased Northern Power, can generate up to 150 percent of the port building’s needs, with any excess returning to the grid, said Larry Sullivan of the Port of Milwaukee. The 120-foot turbine is expected to save the city up to $20,000 annually. . Industry stakeholders recognized for achievement, in ballast management Two Great Lakes maritime representatives received National Invasive Species Achievement Awards March 1 in Washington, D.C. Noel Bassett, Vice President of Operations for American Steamship Company (ASC), was awarded the 2012 Outstanding Invasive Species Volunteer Award, and Doug Jensen, Aquatic Invasive Species Program Coordinator for Minnesota Sea Grant, received an award for Outstanding Achievement in Invasive Species Outreach and Education. The awards are jointly sponsored by the Aquatic Nuisance Species Task Force, the National Invasive Species Council and the Federal Interagency Committee for the Management of Noxious and Exotic Weeds. Bassett has led ASC’s role in testing ballast water treatment systems onboard its vessels. He was recognized for his contributions to research leading to the development of emergency and permanent ballast water treatment systems for ships and for creating options for biocide selec- SOURCE: PORT OF MILWAUKEE Duluth Seaway Port Authority REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW January-March, 2012 5 Chicago Sanitary and Ship Canal named to National Register of Historic Places The Chicago Sanitary and Ship Canal has been named to the National Register of Historic Places. The canal extends 33.9 miles from Chicago to Lockport, Illinois and serves as a connection for the Great Lakes to the Mississippi River. It was constructed from 1892 to 1907 to reverse the flow of the Chicago River and the sewage it carried away from Lake Michigan, the source of the city’s drinking water. In 1955, the American Society of Civil Engineers deemed the canal one of the “Seven Wonders of American Engineering,” according to the Historic American Engineering Record. It has become significant as a component of the Illinois Waterway, which opened in 1930 and created a navigable waterway connecting Chicago and Lake Michigan, with the Mississippi River and beyond. The new historic district is comprised of dams, locks, control stations and spillways. The U.S. National Park Service approved the state’s recommendation to place the canal in the register in January, adding to the Illinois Historic Preservation Agency previously recognizing the canal as a historic resource. As a result, any significant changes to the system must be reviewed and approved. . Ratner Steel to locate new facility at Port of Indiana Ratner Steel Supply Co. is locating a new facility at the Port of Indiana and creating up to 30 new jobs by 2015. The Roseville, Minnesota-based company produces steel sheets and plates and will invest $14.25 million to build and equip a 102,000- square-foot steel service facility at the Lake Michigan port. Construction began in March with the facility slated to open in early 2013. “Having a Minnesota-based company like Ratner Steel decide to open a facility in Indiana reinforces our magnetic appeal to companies across the Midwest,” said Dan Hasler, Secretary of Commerce and Chief Executive Officer of the Indiana Economic Development Corporation. “More and more companies are finding our pro-business, low-tax environment advantageous to their growth.” Ratner Steel, which currently has 62 fulltime employees nationwide, plans to begin hiring new sales, clerical and production associates in October. The Port of Indiana is now home to 30 companies, including 16 steel-related firms. “This port is home to the who’s who of steel companies and Ratner Steel is a great addition,” said Rich Cooper, CEO for the Ports of Indiana. “Ratner will not only benefit from synergies with existing port companies, but also from being able to access our railroad, highway and waterway connections.” . MAY 3 25th Annual Windsor Marine Night 2012 Port of Windsor, St. Clair Centre for the Arts (519) 258-5741 or firstname.lastname@example.org www.portwindsor.com 8-9 Supply Chain & Logistics Association Toronto, Ontario, www.sclcanada.org 22-24 Great Lakes St. Lawrence Seaway Trade Mission, Breakbulk Europe 2012 Antwerp, Belgium www.breakbulkevents.com 22-24 Michigan Port Collaborative Traverse City, Michigan www.lightsandports.org 29-30 Green Tech 2012 Loews Hotel Le Concorde Quebec City, Quebec www.green-marine.org/annual-conference JUNE 3-6 Canadian Transportation Research Forum Calgary, Alberta, www.ctrf.ca JULY 8-11 TRB Joint Summer Meeting Irvine, California, www.trb.org CARGOCAPITAL GreatLakes Let’s talk tonnage. Millions of tons and billions of dollars move through the Port of Duluth-Superior every year. Collectively, the port’s 21 waterfront terminals handle some 1,000 shiploads of iron ore, coal, limestone, grain, salt, cement and project cargo headed to destinations in Canada, the U.S. and around the world. Moving nearly 40 million tons of cargo in and out of the port supports over 11,500 jobs and generates $545 million in wages plus $1.5 billion in business revenues for our Twin Ports economy. Ships deliver the goods. Our Port Delivers Prosperity. PORT of DULUTH-SUPERIOR 218.727.8525 www.duluthport.com B A L L A S T W A T E R M A N A G E M E N T New York delays ballast ruling State joins the system in calling for a national ballast water standard The Great Lakes/St. Lawrence Seaway shipping industry breathed a collective sigh of relief February 22 when the State of New York extended the timeline for implementation of its ballast water regulation. While no longer requiring shipowners to meet discharge permit standards 100 times the international level by next January, the state is pushing for a federal regulation. “New York remains concerned about the introduction and spread of invasive species in the state’s waterways and we hope that a strong national solution can be achieved,” said New York State Department of Environmental Conservation (DEC) Commissioner Joe Martens. “At the same time, shipping and maritime activity is critical to New York state and international commerce. A technically feasible national standard which recognizes the critical economic role played by our waterways is the only viable way to address the spread of destructive aquatic invaders through ballast water.” Delaying compliance of the ballast water discharge permit to December 19, 2013 provides time for several steps to align, enabling shipowners to comply with the regulation: • The U.S. Coast Guard and the U.S. Environmental Protection Agency (EPA) will have more time to work through a federal standard, which is occurring now. The EPA recently closed comments on its proposed standard and the Coast Guard published its standard for public review and comment in the Federal Register to take effect in June. • With time to gauge incoming regulations, vendors developing ballast water management systems and the certification facilities that test them will have a greater opportunity to ensure their products actually meet the standard. • Shipowners will then have time to Petty Officer 2nd Class Travis Kelly, (left), Marine Safety Detachment Massena, works with a crewmember to get a sample of ballast water from the Eider in Montreal. The U.S. Coast Guard inspects all vessels’ ballast water before they enter the Great Lakes to prevent invasive species inhabiting ecosystems. SOURCE: U.S. COAST GUARD B A L L A S T W A T E R M A N A G E M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2012 7 The DEC’s rulings are the most stringent in North America and have been the source of controversy, since they require the use of technologies not yet approved by federal regulators. select and install approved ballast water treatment systems without expensive guess work. The DEC extension coincides with the expiration of the EPA’s Vessel General Permit (VGP). The VGP proposed for the next four-year term (VGP2), from December 2013 through December 2017, includes adopting a protocol established by the International Maritime Organization (IMO) in 2004. This regulation is accepted and being used internationally. “The EPA proposal can be strengthened to better protect against the harms associated with aquatic invasive species and take advantage of numerous recent, cost-effective advances in treatment technology,” Martens said. “A strong, uniform national standard is the preferred approach to ensuring that vessels install and use achievable and costeffective technology to treat ballast water discharges.” Seven of eight Great Lakes states have passed varying ballast water permit regulations to develop local standards in the absence of a federal regulation. The DEC’s rulings are the most stringent in North America and have been the source of controversy, since they require the use of technologies not yet approved by federal regulators. (Please see the related graphic below to review ballast water permit requirements for the Great Lakes states.) “New York’s decision effectively eliminates the unworkable ballast water rules put in place during the Paterson Administration,” said Steve Fisher, Executive Director of the American Great Lakes Ports Association. “We applaud Governor Cuomo for protecting jobs and supporting the thousands of Americans who make their living in the maritime industry.” A recent economic impact analysis estimated that implementation of New York’s ballast discharge regulations would nega- Patchwork of Ballast Discharge Rules Agency Existing Lakers Existing Salties New Lakers New Salties U.S. Coast Guard/U.S. EPA VGP1 N/A BWE/BWMP N/A BWE/BWMP SLSDC/SLSMC N/A BEW/SWF N/A BEW/SWF Michigan N/A Technology by 2007 N/A Technology by 2007 Ohio N/A IMO by 2016 IMO by 2016 IMO by 2012 Wisconsin N/A IMO by 2014 N/A IMO by 2012 New York 100x IMO by Aug. 2013 100x IMO by Aug. 2013 1000x IMO by Jan. 2013 1000x IMO by Jan. 2013 Minnesota/Illinois IMO by 2016 IMO by 2016 IMO by 2012 IMO by 2012 Pennsylvania – – – – Indiana N/A IMO by 2016 N/A IMO by 2012 U.S. EPA VGP 2 N/A IMO by 2016 N/A IMO by 2012 Canada IMO by 2016 IMO by 2012 SOURCE: AMERICAN GREAT LAKES PORTS ASSOCIATION Fednav B A L L A S T W A T E R M A N A G E M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2012 9 tively affect more than 72,000 jobs, $10 billion in business revenue and $1.4 billion in federal, state, local and provincial taxes. Because the technology to treat ballast water to 100 times the international standard is not yet in use, the regulation would have halted commerce with New York ports and through its waterway. Looking at rationale. In a letter sent to shipowners who previously had requested extensions for complying with the New York regulations, the DEC determined that at least one of the following factors exists: • There is a shortage of the technology necessary to meet the limits set forth in the certificate, a vessel-specific engineering constraint or other factors related to the availability and installation of technology beyond the vessel owner/operator’s control that delays technology being available and installed in time to comply with this standard. • The unavailability of supply or installation constraint is the only reason the compliance deadlines cannot be met. • The vessel has exhausted all other options to comply with these standards. Because of the stated reasons, the DEC granted extensions for ballast water discharge standards for existing vessels, vessels constructed after January 1, 2013, for grey water and bilge water discharge prohibition. In DEC’s comments to the EPA, Martens proposed adopting a national standard with the following key elements: • A 100 times IMO discharge standard implemented by June 1, 2016 • A voluntary discharge standard of 10 times IMO by June 1, 2014 • Grandfather until 2024 vessels deploying 10 times IMO systems prior to June 1, 2014 • Continue to require ballast water ocean exchange and flushing • Require the use of any reasonable and effective management practices to limit aquatic invasive introductions prior to 2016 “Canada applauds New York State for withdrawing its unattainable ballast water requirements and agrees that uniform standards are the best way to protect the marine environment,” said Parliamentary Secretary Pierre Poilievre. “We welcome this action, as enforcement of the rules on transiting ships would have stopped commercial shipping on the Seaway.” “Fednav Limited welcomes the New York DEC’s support for a uniform national ballast standard under the EPA’s proposed VGP2 and its decision to grant extensions through the term of the EPA’s existing VGP,” said George Robichon, Special Counsel for Fednav Limited. “In our view, VGP2, as proposed, goes some considerable way to balancing the importance of marine transportation and everyone’s concern for the marine environment in a consistent, reasonable and achievable manner.” Making a difference. Because of New York’s location and the short distance between the Canadian and U.S. coasts, New York’s coastal zone spans the northeastern section of Lake Ontario, essentially creating a potential bottleneck for all commercial transit entering the Great Lakes. As a result, the U.S. and Canadian federal governments— as well as the governments of several neighboring states and provinces—have strongly encouraged the State of New York to moderate its position and harmonize its ballast water discharge rules with federal and international standards. In an effort to educate the new administration in New York on the impact of the regulations, trips to Albany, New York have become commonplace for representatives from maritime-related associations, companies and even Members of the Canadian Parliament. The effort included partnering with New York-based ports outside the system and hiring professionals to help identify key contacts and secure appointments for meetings with officials. “Everyone created a drumbeat of concern,” Fisher said of the system-wide effort. “Now we’re hoping the other states will stand down one by one and defer to the federal government, which is the way this ought to work.” “This is perhaps the most effective time we’ve come together as a region,” said Jim Weakley, President of Lake Carriers’ Association. “Now we’re waiting with baited breath to see what the final EPA and Coast Guard regulations will be,” said Congressman Steven LaTourette (R-OH), noting the Great Lakes are a leader in Congress when ad- Taking the next step Where to learn more about ballast water regulations • To review the 2011 Summary of Great Lakes Seaway Ballast Water Working Group report, link or go to http://www.greatlakes-seaway.com/en/pdf/2011_BW_Rpt_EN.pdf. • For more information on ballast water issues, link or go to http://www.tc.gc.ca/eng/mediaroom/backgrounders-b11-hs007-6535.htm. • To further review the New York Department of Environmental Conservation’s comments, link or go to http://www.dec.ny.gov/docs/water_pdf/ballastltr022112.pdf. • To review the U.S. Coast rulemaking, link or go to http://www.regulations.gov and enter docket number USCG-2001-10486. A recent economic impact analysis estimated that implementation of New York’s ballast discharge regulations would negatively affect more than 72,000 jobs, $10 billion in business revenue and $1.4 billion in federal, state, local and provincial taxes. Petty Officer 2nd Class Travis Kelly, Marine Safety Detachment Massena, takes a sample of ballast water from Eider. SOURCE: U.S. COAST GUARD Polsteam B A L L A S T W A T E R M A N A G E M E N T 10 www.greatlakes-seawayreview.com dressing federal pre-exemption of state policies. “You need one rule and it needs to be enforced. And you need people to be able to find the technology required to meet the rule.” Long-standing practices. Before the Great Lakes states began passing individual regulations for ballast water discharge permits, a group of industry leaders was formed to set ballast water management practices. The group, known as the Great Lakes Seaway Ballast Water Working Group, is comprised of the system’s operators, the Saint Lawrence Seaway Development Corporation (SLSDC) and the St. Lawrence Seaway Management Corporation (SLSMC), along with the U.S. Coast Guard and Transport Canada-Marine Safety. The group’s mandate is to develop, enhance and coordinate bi-national compliance and enforcement efforts to reduce the introduction of aquatic invasive species via ballast water and residuals. As part of its directive, the group requires ships entering the system from outside the exclusive economic zone (EEZ) —200 nautical miles from any shore—to exchange or flush their ballast water tanks with saltwater. The process occurs while at sea and uses the salt content of the water to kill invasive species that may have boarded in ballast water while in port elsewhere. The requirement is considered one of the most stringent in the world. It also involves providing detailed documentation and submitting to tank inspections in Montreal, Quebec. If the ballast tanks have not been flushed, the ship is required to retain the ballast water and its residuals onboard, treat it in an environmentally-sound and approved manner or return to sea to perform the exchange. If U.S. and Canadian inspectors are not satisfied with the compliance, civil penalties are imposed. In 2011, 100 percent of vessels bound for the system from outside the EEZ received ballast management exams on each Seaway transit. All 7,203 ballast tanks, during 396 vessel transits, were assessed, according to the 2011 Summary of Great Lakes Seaway Ballast Water Working Group, dated February 2012. “It’s not the process, it’s not the numbers, it’s the results that matter,” said Collister Johnson, Jr., SLSDC Administrator. “The results show there have been no introductions of invasive species into the system for six years and we’re going on seven.” Independent research by Fisheries and Oceans Canada indicates the risk of ballast water introductions of invasive species into the Great Lakes has been mitigated to extremely low levels. Since these protections were put in place in 2006, there have been no new discoveries of aquatic nuisance species in the Great Lakes. “The Ballast Water Working Group will continue its work to deter the introduction of aquatic invasive species in the Great Lakes using regulatory, technological and management-based protocols,” the report states. “The agencies take the threat of invasive species very seriously and are dedicated to finding new answers to combat the problem.” While celebrating victories along the way, the industry must continue to wait and see the final results of having two federal agencies script ballast water management regulations and whether the two rules coincide with each other. “The jury is still out, but we hope the EPA and the Coast Guard are working together,” Fisher said. “As we know, the states can decide every four or five years to regulate shipping unless Congress changes the law.” Janenne Irene Pung . B A L L A S T W A T E R M A N A G E M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2012 11 SOURCE: GREAT LAKES SEAWAY BALLAST WATER WORKING GROUP Timeline of best practices Industry measures taken to protect the Great Lakes/St. Lawrence Seaway system 1989: In response to calls from the International Joint Commission and the Great Lakes Fishery Commission over the discovery of the Ruffe in Lake Superior, Canada established guidelines requesting all vessels entering the freshwaters of the St. Lawrence River and the Great Lakes to exchange their ballast. The use of ballast water exchange was based on the effectiveness of Canadian studies undertaken by Environment Canada to protect the aquaculture facilities in the Magdalen Islands. Early 1990s to 1997: The U.S. Coast Guard established regulations based on the Canadian Guideline in 1993 under the authority of the Nonindigenous Aquatic Nuisance Prevention and Control Act of 1990. Ballast Water on Board (BOB) vessels are vessels that declare they have ballast tanks that contain ballast water. The U.S. Coast Guard started testing BOB vessels on a voluntary basis in 1991 and on a mandatory basis in 1993. The inspection process included boarding vessels between the two U.S. locks in Massena (Eisenhower and Snell) and testing the ballast water to ensure salinity was at least 30 ppt. Ballast with a salinity of at least 30 ppt is considered evidence that the tanks have been adequately exchanged with seawater, providing a reasonably harsh environment for any remaining freshwater organisms. 1997 to Present: The U.S. Coast Guard, Transport Canada and the Seaway corporations developed a joint inspection program called the Enhanced Seaway Inspection (ESI) for foreign-flag vessels, which covered applicable safety and environmental equipment onboard vessels and is conducted prior to the vessel’s initial transit of the system. During the vessel’s ESI, a ballast tank inspection is conducted by one or more of the Great Lakes Seaway Ballast Water Working Group member agencies to ensure compliance with U.S., Canadian and Seaway ballast regulations. The ballast tanks are sampled to verify compliance. 2002 St. Lawrence Seaway Requirement: The U.S. and Canadian Seaway corporations instituted a requirement that all foreign-flag vessels entering the system comply with the Best Management Practices of the Shipping Federation of Canada. In addition, vessels not operating beyond the EEZ but operating within the system, such as lakers, must agree to comply with the Voluntary Management Practices to Reduce the Transfer of Aquatic Nuisance Species within the Great Lakes by U.S. and Canadian Domestic Shipping, dated January 26, 2001. These management practices require vessels to agree to regular inspections of ballast tanks and regular removal of sediment. 2004 U.S. Coast Guard National Mandatory Ballast Management Requirements: This final rule changed the national voluntary ballast water management program to a mandatory one, requiring all vessels equipped with ballast water tanks and bound for ports or places of the United States to conduct a mid-ocean ballast water exchange, retain their ballast water onboard or use an alternative, environmentally-sound management method approved by the Coast Guard. Penalties were established for failure to comply with the requirements for reporting and recordkeeping which were broadened to include a majority of vessels bound for ports or places in the United States. 2005 U.S. Coast Guard NOBOB Best Management Practices: As a result of the National Oceanic and Atmospheric Administration (NOAA) and Great Lakes Environmental Research Laboratory (NOAA/GLERL) study published in April 2005 and the risks identified, the U.S. Coast Guard and Transport Canada-Marine Safety inspectors began examining no ballast onboard (NOBOB) vessels in conjunction with the ESI in May of 2005. In August 2005, the U.S. Coast Guard issued its “NOBOB Best Management Practices,” which recommends vessels conduct mid-ocean ballast water exchange whenever possible and, if not possible, conduct mid-ocean saltwater flushing. 2006 Canadian Regulations: Canada promulgated the Ballast Water Control and Management Regulations under the Canada Shipping Act in June of 2006. The regulations enacted the International Maritime Organization’s D1 requirements for ballast water exchange for any vessel entering waters under Canadian jurisdiction from outside Canada’s EEZ and included both transoceanic and coastal voyages (BOB and NOBOB). Additionally, vessels coming from outside waters under Canadian jurisdiction declaring no ballast on board must ensure that the residual ballast water in tanks has been exposed to salinity conditions equivalent to ballast water exchange by complying with one of the following options: • The residual ballast water came from ballast water that was properly exchanged at sea • The residual ballast water meets the international standard for treated ballast water • The vessel complies with sections 1, 2, 6 and 7 of the Code of Best Practices for Ballast Water Management of the Shipping Federation of Canada dated September 28, 2000 • The vessel conducted a saltwater flushing at least 200 nautical miles from shore 2006 Ballast Water Working Group: The Great Lakes Seaway Ballast Water Working Group was formed to harmonize ballast water management efforts between its governing agencies. 2008 St. Lawrence Seaway NOBOB Requirement: The U.S. and Canadian Seaway corporations enacted new requirements that requires vessels to conduct saltwater flushing of their ballast tanks that contain residual amounts of ballast water and/or sediment in an area 200 nautical miles from any shore before entering waters of the Seaway. Vessels must also maintain the ability to measure salinity levels in each tank onboard so that final salinities of at least 30 ppt can be ensured. 2009 Coast Guard Proposed Ballast Water Discharge Standard Rulemaking: The Coast Guard’s 2009 Notice of Proposed Rulemaking proposed a two-phase standard for the allowable concentration of living organisms in vessels’ ballast water discharged in U.S. waters. On November 11, 2011, the Office of Management and Budget began an interagency review of the Coast Guard’s Interim Final Ballast Water Discharge Standard rulemaking. The Coast Guard intends to publish the Interim Final Rule in the spring of 2012. 2010 Canada Ratifies the Ballast Water Management Convention: At the 60th meeting of IMO’s Marine Environmental Protection Committee in March 2010, Canada finalized its instrument of ratification for the International Convention for the Control and Management of Ships’ Ballast Water and Sediments, becoming the 27th country to ratify the convention. St. Lawrence Seaway Management Corporation can become Qualify as New Business on the Seaway and you save 20% on tolls If your cargo qualifies as New Business, you can add to your savings by shipping via the Great Lakes St. Lawrence Seaway System. New Business can include cargo that has a new origin, a new destination, or that was previously moving via a different mode of transportation. Or cargo that has not been previously shipped via the Seaway in the last 5 years in a volume larger than 10,000 tonnes. Visit our website for details and an application to qualify. www.hwyh2o.com B A L L A S T W A T E R M A N A G E M E N T STEVEN FISHER Executive Director American Great Lakes Ports Association After more than a decade of complaints from environmental activists, state governments and the shipping industry, the U.S. Coast Guard has finally issued federal, nationwide ballast water discharge regulations. The new rules were published in the March 19 Federal Register and will take effect 90 days later. The Coast Guard proposed these rules in August 2009. They are now final. The new requirement to install ballast water treatment equipment applies to ocean-going vessels. For now, U.S.-flag and Canadianflag lakers are not being required to install ballast water management systems. The Coast Guard makes clear that they may chose to regulate lakers in the future. The new federal ballast water discharge regulations are consistent with the International Maritime Organization (IMO) ballast water convention. They require vessel operators to install ballast water treatment systems to meet the IMO water quality standard. We have long urged the Coast Guard to adopt the IMO requirements because such technology exists and is feasible. Requirements and timing. The Coast Guard acknowledges that it will take several years to establish a ballast water treatment system approval program. Further, it will take treatment system vendors several years to have their products tested and evaluated. In light of these realities, the Coast Guard has established the following deadlines for compliance: • New Vessels – vessels constructed after January 1, 2013 must comply upon entering U.S. waters, • Existing Vessels – must comply upon the first drydocking after January 1, 2016. Of key importance, the Coast Guard also allows vessel operators to make application for compliance deadline extensions. This provision will allow the Coast Guard to address problems that may arise. Treatment system approval. While ballast water treatment systems exist that can meet the IMO standard, they are not yet being mass-produced. Nor have any been approved by the U.S. Coast Guard to satisfy U.S. regulatory requirements. The new rules establish a national ballast water treatment technology testing and approval program. This program has been one of the key missing pieces of the puzzle. Without it, vessel operators were unable to purchase “approved” ballast water treatment systems. While it will take some time for the Coast Guard to stand up the new approval program (the Coast Guard estimates it will take three years), at least there is now forward movement. Other elements of the regulations. The Coast Guard provides a process to give temporary (five-year) approval to foreign-approved ballast water treatment systems. This allows for the anticipated delay in getting “Coast Guard approved” ballast water treatment equipment to market. In the ruling, the Coast Guard removes any grandfathering language for installed equipment and reserves the right to require vessel operators to install more effective equipment in the future, which is not good news. Vessel operators would be more willing to move forward quickly if they had assurance that their investment in ballast water treatment equipment was grandfathered. Vessels engaged in innocent passage through U.S. waters are not subject to the regulation. Issuance of the regulations is the most significant development on the ballast water issue in 20 years. For the first time, there is now a federal, nation-wide legal requirement for vessel operators to install ballast water treatment equipment. This regulation will immediately give birth to a huge private sector demand for ballast water treatment systems. The companies that manufacture those systems will now have the financial motivation to invest in bringing those products to market. This regulation does much to “crystallize” the future ballast water regulatory landscape. As the federal regulatory regime becomes more certain, it is my hope that individual states will stand down and unravel the patchwork of state rules now in existence. . A national standard U.S. Coast Guard issues federal ballast water management standard GREAT LAKES/SEAWAY REVIEW January-March, 2012 13 CN Railroad Together we’ve built a partnership that delivers. www.cn.ca With our reliable supply chain partners, worldwide network and robust infrastructure, no single company delivers North America like CN. Seamless transfer, transportation and delivery. C O M M O D I T I E S GREAT LAKES/SEAWAY REVIEW January-March, 2012 15 Anew logistics chain is moving lowsulfur coal from the Powder River Basin in Montana and Wyoming to Northern Europe. A bi-national, multimodal partnership is creating a new business model to help replace the coal delivery that had been lost to the Province of Ontario. The province passed the Cessation of Coal Use regulation, mandating to not use coal as an energy source after December 31, 2014. Through the transition, Ontario Power Generation (OPG) is using up its coal reserves and deciding which plants will be converted to a yet-to-be-established renewable resource and which ones will be permanently shut down. With the loss of OPG as a primary customer, Midwest Energy Resources Company (MERC) has experienced an eight million ton drop in business, from 23 million to 15 million tons of coal annually. New business development is turning a traditional Lakes’ cargo into a growing Seaway export. “We knew the OPG business was going away, so we began to look internationally,” said MERC President Fred Shusterich. “The European market has always been there, but we’re pursuing it more aggressively,” said Brett Porter, Director-Coal Marketing for BNSF Railway. “We’re all tonnage driven businesses and we’re all being very creative.” What the partners know and are pitching to foreign buyers: Quebec City is twothirds the ocean distance to Northern Europe of the Gulf ports, which creates cost savings for delivery. It is also a 12-month, deepwater port accessible by Panamax and Cape-size vessels. Panamax vessels can handle about 80,000 metric tons of coal while Cape vessels move closer to 130,000 metric tons of coal. It takes four to five lakers to fill a Cape-sized vessel. During the 2011 season, MERC, BNSF Railway, Canada Steamship Lines (CSL) and Quebec Stevedoring partnered to deliver about 380,000 net tons of low-sulfur coal in combination to Spain and Rotterdam aboard three Cape-sized ships. The operation involved: • BNSF begins the supply chain by delivering 123-car unit trains of low-sulfur coal from the Powder River Basin to MERC’s Superior Midwest Energy Terminal Midwest Energy Resources Company is expanding its throughput by four million tons in 2012 through its bi-national partnership to move lowsulfur coal to Europe. in Superior, Wisconsin. Coal from about 2.5 trains is stockpiled to fill a laker. • MERC loads coal it onto CSL Seawaysized vessels from its 1,200-foot dock. • CSL carries the coal on a six-day journey to Quebec Stevedoring’s Beauport Sector dock in Quebec City, where it is stockpiled until about six laker loads are collected, to fill a Cape-sized vessel. • Quebec Stevedoring loads the coal aboard an ocean vessel for its 9.5- to 10- day journey across the Atlantic Ocean to Northern Europe. The first Cape-sized vessel of the 2012 season is due at the Port of Quebec in mid- April. The partnership will have coal ready to load. “It’s all about scheduling and making sure we have the flexibility to put the coal on the dock or put it directly onto the ship when it arrives,” said Tom Brodeur, Vice- President of Marketing and Customer Service for CSL. Coal exports are exploding. The Seaway isn’t the only trade route experiencing a surge in export coal. Asia and India are taking on more U.S. coal to support their industry. Coal companies are setting up Shifting trade pattern Lakes coal being exported to Europe SOURCE: MIDWEST ENERGY RESOURCES COMPANY Fabco 16 www.greatlakes-seawayreview.com subsidiaries on foreign soil to secure export contracts. U.S. coal is flowing from all coasts, through many new trade routes. Analysts estimate that U.S. coal exports amounted to 100 million tons in 2011, putting America behind Australia and Indonesia and ahead of Russia, Columbia and South Africa in the world export coal rankings. According to the U.S. Energy Information Administration, exporting coal to Canada was down 46.2 percent, or about four million tons, from 2010 to 2011, while exports to Morocco, Slovenia, Japan, Ukraine, United Kingdom and Italy were up significantly over the same time period. While North America is beginning to shun coal as an energy source because of regulatory changes, Europe is welcoming low-sulfur coal. Overall, coal as an export for the U.S. was up 30.8 percent from 2010 to 2011. “With the advent of U.S. coal terminals along the East Coast, the Gulf Coast and the West Coast, the ports are being plugged with cargo and different routes are being sought,” said Geoff Lemont, Quebec Stevedoring Vice-President, Bulk Division. “This is what we are providing.” Some of the partners attended a coal conference in Spain recently, where they were educators on the benefits of using the Great Lakes/St. Lawrence Seaway as a route to Northern Europe. Looking at impacts. The logistics chain has proven its value against Columbian, Russian and South African competitors and European plants have tested the efficiency of burning the low-sulfur coal. The trial has resulted in a three-year contract, increasing coal exports for the partnership five-fold. “We expect to export about two million net tons this year and are currently working toward four million net tons exported by 2014,” Shusterich said. “The four million will make up about half of what we’ve lost with the OPB business. The world wants U.S. coal and, at times, there are capacity issues at U.S. coastal ports. We’re well positioned to be a stronger player in what, for us, is a new market—the European export coal market.” The BNSF Railway is a primary mover of coal from the Powder River Basin. In addition to the Seaway partnership, it moves coal west to the Pacific Rim. According to Porter, the company’s most direct route is to MERC’s facility in Superior, Wisconsin— a 1,000 mile, two-day haul. “This is a very efficient supply chain,” he said. “MERC is very well run. They can dump five unit trains a day, consistently. They’re one of the few destinations where we don’t have to worry about staging and parking trains. They can unload them as fast as we can get them there.” For Quebec Stevedoring, the partnership is boosting business by about 25 percent, according to Lemont. The stevedoring company expects its dockhands to be loading vessels about every 30 days. In the interim, it’s storing the coal as it arrives on an open asphalt pad. “Coal is going to become a significant part of our operation in the future,” Lemont said, comparing the partnership and export plan to what the company has been doing with iron pellets. “We have been transshipping iron pellets from the Great Lakes to foreign markets for a number of years now. Coal is going to work the same way. It’s a new commodity for our business plan.” With 1.5 million metric tons of coal expected to move on CSL’s ships this season because of the partnership, Brodeur said it reminds him of when the carrier pioneered the top-off. In the late 1980s, the company would send five or six lakers through the Seaway system in tandem to pick up steam coal and transport it to salties at the ports of Sept-Iles and Quebec. Again, East Coast ports were backlogged and coal was in high demand. “This is happening again, only this time, we don’t have the capability to do a sixship top-off,” Brodeur said. “The fleet is smaller on the self-unloader side and the coal is coming from further away, from Lake Superior instead of Lake Erie.” The Port of Quebec can handle both bulkers and self-unloaders, which allows CSL to maximize the use of its fleet. The new business is filling 2.5 to three ships throughout the season, using about 15 percent of the fleet’s capacity. And with iron ore movement growing and grain being harvested in the fall, coal is competing with other eastbound cargo. “This is why we’re ordering new ships,” Brodeur said. “The business volumes are growing.” Like CSL, coal from MERC has moved across the Atlantic before, but never in large quantities. With the coal already moving east and more contracts being sought, the goal of the partnership is to continue to add to its tonnage. “With the growth of this business, our goal is to be a player that is maximizing its assets into the international trade market,” Shusterich said, noting that he has an all-tons-are-significant approach to business development whether international or domestic. Janenne Irene Pung . GREAT LAKES/SEAWAY REVIEW January-March, 2012 17 missed due to our absence. Hwy H2O stepped onto the path to joining those conversations and the hope was the conference delegation realized the same importance and would join the online world as well. Why Twitter? The next step involved getting professional assistance to determine which medium was best for Hwy H2Oand to enter that world seamlessly and skillfully. After many conversations and reviewing Facebook, LinkedIn, Twitter, My Space and Four Square, it was determined that Twitter would be the ideal venue for Hwy H2O. It was noted that: • Many transportation industry professionals were already on Twitter • Other social media outlets were tuned in more to the general public and the retail sector • Twitter promoted short messages that would likely encourage more readership Twitter was capable of achieving the goals originally set. In an effort to promote the Great Lakes/St. Lawrence Seaway with other industry professionals, the 140 character limit was ideal for getting our messages out quickly and frequently. The character limit was also a great selling point to encourage other industry members to participate. Twitter also provided the means to have messages reach a broader audience through retweeting and interacting with others. The social media professionals provided a tutorial on what the Hwy H2O account should look and feel like. It was important to establish a “voice” for Hwy H2O and to ensure the tweets being published are always a reflection of that voice, as well as meeting the objectives. There are key things to know and learn to ensure a smooth transition into the new world of Twitter marketing, such as how to properly post links to complete articles, how to engage followers and what some of the lingo is and how to use it. The benefits. The 2011 navigation sea- G U E S T E D I T O R I A L TWITTER AS A MARKETING TOOL How Hwy H2O is embracing social media In the spring of 2011, Hwy H2O launched a Twitter account in an effort to join the social media marketing trend and become part of the real-time conversations happening in the transportation industry. Why social media? Reaching the conclusion that Twitter was the route for the Hwy H2O social media plan was a long process. Research was pursued before deciding how and when to integrate social media marketing into an already well-established traditional marketing campaign consisting of print, radio and television ads, among other promotional activities. Successful integration of social media requires a clear list of the objectives to be achieved. Ours were as follows: • To communicate with potential customers • To expand the Hwy H2O reach • To continue to generate awareness about the Great Lakes/St. Lawrence Seaway system to potential customers and industry professionals • Generate discussions with Hwy H2O Port Partners and Members on current events and relevant topics • Educate and share interesting and current news about the Great Lakes/ St. Lawrence Seaway, Hwy H2O Port Partners and Members and the marine industry • Be kept informed on what is happening within the transportation industry The secondary goal was to have Hwy H2O Port Partners and Members participate in social media marketing, with online conversations with them part of the main objectives. At the 2010 Hwy H2O Conference the lunchtime keynote speaker talked about social media and the online world. The keynote speaker highlighted the fact that “online conversations are taking place regardless of who was there to participate.” This was clearly a strong message that led to the realization that there are conversations and possibly business leads being son opening was the perfect opportunity to launch the Hwy H2O Twitter account, with numerous messages to be tweeted. Since then, tweets have included information on the newly launched Service Incentive program, stakeholder announcements, tweets during the 2011 Hwy H2O Conference with key messages from the speakers. Followers started off slow, but as a community continued to be built, the number of followers increased naturally. The @hwyh2o account will continue to grow in followers, the focus being on quality over quantity. Overall, the social media experience has been a positive one. There have been some sales leads that have taken place and many opportunities to provide further information to interested parties on the Great Lakes/St. Lawrence Seaway system. A great example is when a company affiliated with the Alberta Oilsands started following Hwy H2O on Twitter and, through a number of tweets, learned of the valuable role the Great Lakes/St. Lawrence Seaway could play in their supply chain. The Hwy H2O Conference tweets gained the interest of those who did not attend and it is suspected that the conference attendance this year will be higher because of those tweets. The integrated approach, the blend of traditional marketing initiatives and the new interactive, customer-approach promotion is enticing and providing an opportunity to connect with customers and the community in a far more personable way. If you’re not already, follow @hwyh2o on Twitter and stay connected to the Great Lakes/St. Lawrence Seaway system. . Burce Hodgson is Director, Market Development for The St. Lawrence Seaway Management Corporation. He oversees the binational marketing campaign with counterparts at the Saint Lawrence Seaway Development Corporation.