Vol.41 No.1 JUL‑SEP 2012

V O L U M E 4 1 J U L Y – S E P T E M B E R 2 0 1 2 N U M B E R 1 DIS technology approved . Certifying ballast systems for use . Evolution in barging & towing G LGREAT LAKER ISO Certified Interlake Steamship’s capable and experienced vessel crews know the Great Lakes. They’ve navigated them all, even the most challenging ports. Interlake’s knowledgeable marketing and traffic personnel understand your business. And Interlake’s conscientious operations and engineering staff oversee machinery upgrades and continual improvement processes aboard their nine versatile self-unloaders. Together, the Interlake team provides safe, reliable, and timely delivery of your bulk cargos. Vessel capacities from 17,000 to 68,000 gross tons permit flexibility in fulfilling your Great Lakes transportation needs. Put the knowledgeable Interlake team to work for you. The Interlake Steamship Company 7300 Engle Road • Middleburg Heights, Ohio 44130 Phone: 440-260-6900 • 800-327-3855 • FAX: 440-260-6945 Email: jhopkins@interlake-steamship.com Website: www.interlakesteamship.com The international transportation magazine of Midcontinent North America Draft Information System approval brings many advantages. Page 7. Tug-barge concept adoption by U.S. fleet signals a trend. Page 35. Wind components loaded for export to Spain. Page 44. 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 Between issues of Great Lakes/Seaway Review, stay current with our weekly news service, Digital Dateline, at www.greatlakes-seawayreview.com/digdateline/ A R T I C L E S J U LY- S E P T E M B E R 2 0 1 2 Also available as an interactive digital magazine. GREAT LAKES/SEAWAY REVIEW July-September, 2012 1 D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Regional Shipyard Activity Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Great Lakes People AS TOUGH AND AS SOFT AS THEY COME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Chief Cook Irma McCracken retires after 35-year career on the Lakes. Marine Photography LIGHTS FAR FROM SHORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Catching a glimpse of maritime heritage in the northern reaches of Lake Michigan. Barging & Towing GREAT LAKE WARRIORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Two tugboat captains share their experience filming History Channel series. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 Laker Library Reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Technology DRAFT INFORMATION SYSTEM APPROVED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 E-navigation enhancement gives ships three additional inches of draft. Ballast Water Management NOW WHAT? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 What to expect after publishing the Ballast Water Discharge Standard. Regulations SEAWAY UNDER-UTILIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Are regulations to blame? Interview GROWING WATERBORNE COMMERCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Tim Heney leads Thunder Bay Port Authority to 11 percent cargo increase. Commodities SEAWAY EYED BY NEW MINING OPERATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Magnetation Inc’s burgeoning business could be a boost for shippers. Barging & Towing WATCHING AN EVOLUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Tug-barge transportation on the Great Lakes gets nod from U.S. fleet. A LOOK AT THE POSSIBILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Longer vessels could sail the St. Lawrence Seaway. Commodities TRADE WINDS BLOWING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Expiration of U.S. subsidy will impact ports, cargo. Vessel General Permit TRANSITIONING VESSELS TO BIODEGRADABLE LUBRICANTS . . . . . . . . . . . . . 51 A review of lubricant requirements in the upcoming U.S. EPA’s Vessel General Permit. Environmental Regulation REACTIVE OR PROACTIVE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Linking maritime sustainability and environmental policy to industry operations. Training & Recruitment KEEPING TRAINING ON COURSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Maritime academies navigate a new future. Ballast Water Management BALLAST SYSTEM TESTING FACILITY LICENSED . . . . . . . . . . . . . . . . . . . . . . . . . 61 Great Ships Initiative part of NSF International’s approval by U.S. Coast Guard. PARTNERING ALONG THE WAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 MARAD itemizes its role in installing ballast water treatment systems. Sucession Planning THE BRAIN DRAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Experiencing loss of intellectual property through attrition. G LGREAT LAKER 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 Cris Shankleton Creative 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 Ellen Jenson 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; 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; Robert Lewis-Manning, President, Canadian Shipowners Association; 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: Canada Steamship Lines’ Baie St. Paul is soon to arrive in the system. Photo courtesy of CSL. Great Laker Cover: Charlevoix south pier light is spectacular at sunset. 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 41 JULY-SEPTEMBER 2012 NUMBER 1 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 July-September, 2012 3 DATELINE GLMRIS moves closer to completion The U.S. Army Corps of Engineers’ Great Lakes and Mississippi River Interbasin Study (GLMRIS) is moving forward, with Nicole Roach becoming Project Manager through year’s end while longterm Project Manager Dave Wethington takes a temporary assignment in Washington, D.C. The study’s progress includes completion of an inventory of available technologies for controlling Aquatic Nuisance Species (ANS) in the Chicago Area Waterway System (CAWS). The ANS Control Paper identifies existing technologies that could potentially be used to prevent ANS transfer between the Mississippi River and Great Lakes basins. It identifies more than 90 technologies, grouped into 27 categories. “This document is important because it sets the framework for how we’re going to move forward on the study,” Wethington said. “The next step is to develop criteria we can use to screen these controls.” The team is acting on the Aquatic Nuisance Species White Paper, released in 2011, which identifies 39 species of concern. “We are conducting a risk assessment on those 39 species, looking at their potential to pass through the waterways and then to colonize and establish in the opposite basin,” Wethington said. Researchers will soon have the ability to pair viable controls with high- and medium-risk species. The Corps has also released three interim reports providing baseline economic assessments of commercial fisheries, pro-fishing tournaments and treaty, rights and subsistence fishing in the Great Lakes, Upper Mississippi River and Ohio River Basins. An assessment of the economic impact of recreation and recreational angling in the basins will be released at the end of the year. A report looking at charter fishing is scheduled for release early next year. The current project schedules call for a recommended plan for the CAWS in 2015, assuming sufficient funding is provided. A second area, beyond the CAWS, has already produced a Preliminary Risk Characterization Report identifying 18 potential sites that have a risk of potential ANS transfer between basins. When completed, the study will recommend an overall plan to prevent ANS transfer between the Mississippi River and Great Lakes systems. Interim reports are available at www.glmris.anl.gov. . Grain exports dip, prices rise Grain shipments via the Seaway have been down since May, due to extreme weather conditions in the U.S. From March 22 to July 31, export volumes of U.S. grain were down 50 percent from 2011, falling to 379,000 metric tons. Overall, grain traffic through the Seaway is down nearly 18 percent from 2011 levels. Heavy rains and flooding early in the season affected key growing areas in the U.S. Severe drought conditions in much of the U.S. have also had a major impact on field crops this year, according to the U.S. Department of Agriculture (USDA). Almost 80 percent of agricultural land in the country is experiencing drought, the most extensive since the 1950s. “There has been little American winter wheat traveling through the Seaway due to the flooding earlier this year, and we expect that corn and soybeans shipments this autumn will be negatively impacted by the current drought in the U.S.,” said Bruce Hodgson, Director of Market Development for the St. Lawrence Seaway Management Corporation. Lower volumes have increased values for wheat, corn, milling durum and malting barley, according to the Canadian Wheat Board’s final Pool Return Outlook for 2011-2012. Some shipowners are expecting Canadian grain shipments to be strong this fall, however. “The new wheat crop will start moving in September-October and all indications are that it looks pretty good,” said Greg Wight, CEO of Algoma Central Corporation. While global wheat production is projected to be lower in the 2012-2013 crop by 5 percent, Canadian production is estimated to rise from its five-year average by 9 percent. U.S. wheat is expected to rebound, according to USDA supply and demand estimates. . International Joint Conference draws more than 60 Donald Roussel, Director General, Marine Safety, Transport Canada; Michael N. Parks, Commander, Ninth U.S. Coast Guard District; and Marc Grégoire, Commissioner, Canadian Coast Guard lead a panel discussion during the International Joint Conference in Mont Tremblant, Quebec. New crane operating in Thunder Bay CSA appoints new president Robert Lewis- Manning has become President of the Canadian Shipowners Association (CSA). Lewis-Manning joined the CSA in 2010 as Vice President, Operations after a 24-year career in the Royal Canadian Navy. He is a member of the Canadian Coast Guard National Marine Advisory Board and the Transport Canada Marine Advisory Board. He earned a bachelor’s degree in political science and economics from Dalhousie University and a master’s in management consulting from Royal Roads University. Lewis-Manning said he is “eager to increase the profile of this important and innovative industry and ensure that it is recognized as a leader in sustainability and prosperity in Canada.” . Monroe has new director Paul C. LaMarre III is now Director of the Port of Monroe. “Mr. LaMarre was selected from a slate of highly-qualified applicants and has the training, skills, maritime and port operating experience to provide immediate leadership for both the development and the management of the port,” said Tom Kryston, port Commission Chair. As Manager of Maritime Affairs for the Toledo-Lucas County Port Authority since 2007, LaMarre marketed the Toledo Shipyard, implemented capital improvements and increased its presence in the broader Great Lakes maritime community. He conceptualized, designed and developed the National Great Lakes Maritime Museum at the Toledo Marine Passenger Terminal and secured grant funds to make it possible. . Robert Lewis- Manning Paul C. LaMarre III 4 www.greatlakes-seawayreview.com D A T E L I N E Corps’ Detroit District welcomes new commander Lt. Col. Robert J. Ells assumed command of the U.S. Army Corps of Engineers, Detroit District, in a traditional Change of Command ceremony. Ells recently served as Assistant Operations Officer, Engineer Squadron Commander and Executive Officer of the 1st Special Forces Operational Detachment-Delta at Fort Bragg, North Carolina. He earned a Bachelor of Science Degree from the U.S. Military Academy at West Point, New York in 1993, a master’s degree in Engineering Management from the University of Missouri at Rolla and a master’s degree in Civil Engineering (Construction Management) from the Virginia Polytechnic Institute and State University at Blacksburg, Virginia. Ells is a registered Professional Engineer and certified Project Management Professional. His military education includes the Engineer Officer Basic and Advanced Courses and the Army Command and General Staff College. He is a graduate of the Mountain Warfare, Airborne, Air Assault, U.S. Navy Scuba, Combat Skills and Department of Defense High Risk Survival Courses. Ells assumes command from Lt. Col. Michael C. Derosier, who served the district for the last two years and has moved on to serve at the Office of the Assistant Secretary of the Army for Civil Works. . New training vessel at U.S. Merchant Marine Academy The U.S. Maritime Administration has secured a new training vessel for the U. S. Merchant Marine Academy in Kings Point, New York. In an agreement with the National Aeronautics and Space Administration (NASA), the academy will receive a space shuttle solid rocket booster recovery ship, the MV Liberty Star to provide a hands-on learning environment on which midshipmen can train using modern navigational technology, including dynamic positioning and advanced towing techniques. The maritime administration will relocate the vessel from Cape Canaveral, Florida to Kings Point, New York this fall. It is planning shipyard work to increase onboard berthing and convert the MV Liberty Star to a training vessel after its arrival. “Securing this modern vessel supports the goals outlined in the academy’s new strategic plan and will ensure our midshipmen get the top-notch education and train- Government of Ontario proposes legislation to protect Lakes The Great Lakes Protection Act was introduced in the Legislative Assembly of Ontario June 6. If passed, the legislation would provide new tools for the government of Ontario to protect Great Lakes beaches, wetlands and other coastal areas. The act would authorize the Minister of the Environment to set targets and authorize the development and implementation of initiatives to address specific issues. In addition, it would establish a Great Lakes Guardians’ Council to be led by the Minister of the Environment. The council would include representatives from First Nations and Mètis communities, Ontario ministries, municipalities, environmental groups and the scientific community, as well as the agriculture, manufacturing and tourism sectors. The legislation would also provide grants to help community groups undertake improvement projects. . Lt. Col. Robert J. Ells REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW July-September, 2012 5 REGIONAL CALENDAR D A T E L I N E ing they need to compete and win in a competitive global marketplace,” said U.S. Department of Transportation Secretary Ray LaHood. Like other maritime administration reserve ships, the training ship will remain on call for occasional use—in this case NASA missions—allowing cadets to get atsea experience with commercial crews. For more coverage on training and recruitment in the industry, see page 57. . Scientists conduct study of Lake Huron Scientists from the Great Lakes Environmental Research Laboratory are conducting a field campaign in Lake Huron to study the structure and function of the lake’s ecosystem and the impact of various stressors, such as invasive species, climate change, nutrient loading and overfishing. The campaign is sponsored in part through the Great Lakes Restoration Initiative. The 2012 Lake Huron Coordinated Science and Monitoring Initiative will employ a number of research vessels. Cruises began in the Thunder Bay National Marine Sanctuary near Alpena, Michigan in April and July and are continuing in September, with sampling conducted on EPA and Environment Canada research vessels across Lake Huron. The data collected will serve as the foundation for a long-term ecological research program and will integrate observations on biological, chemical and physical variables with process-based lab experiments to develop ways to explore changes in the lake. . SEPTEMBER 25-26 Great Lakes Wind Collaborative 5th Annual Meeting Erie, Pennsylvania Becky Pearson, bpearson@glc.org www.glc.org/events 27-28 GLMRI, Fall Meeting Duluth, Minnesota, www.glmri.org/news OCTOBER 8-11 Breakbulk Americas 2012 Transportation Conference & Exhibition George R. Brown Convention Center Houston, Texas www.breakbulk.com/events 15-16 4th TRANSLOG 2012 Conference McMaster University, Ron Joyce Centre Burlington, Ontario Deane Maynard (905) 525-9140 ext. 22542 maynard@mcmaster.ca www.trans-logic.ca 15-16 Ballast Water Management Technology Conference North America Miami, Florida www.informamaritime.com/BWMTechNA 16-17 10th Annual Indiana Logistics Summit Indianapolis Convention Center Indianapolis, Indiana www.indianalogistics.com 17 Interactive Retrofit Installation Workshop (BWMTech North America) Miami, Florida www.informamaritime.com/BWMTechNA 23 Quebec Marine Day Quebec National Assembly Quebec City, Quebec www.st-laurent.org Port of Duluth-Superior The Port of Duluth-Superior anchors the western edge of the entire Great Lakes St. Lawrence Seaway and links the heartland of North America to the world. This fast, flexible freight network extends across the U.S. and Canada. Ships, trains and trucks move products around the Lakes and across the globe from North Dakota to Brazil, Montana to Spain, Japan to Alberta, Denmark to Iowa, Minnesota to Turkey and all points between. Strategic location. Exceptional clearances. Award-winning service. Moving cargo cheaper, faster, safer. Going the Distance. 218.727.8525 www.duluthport.com BIG PORT. SMALL WORLD. FAR-REACHING RESULTS 24-26 SNAME 2012 Annual Meeting & Expo & Ship Production Symposium Rhode Island Convention Center Providence, Rhode Island Alana Anderson, (201) 499-5066 or alana@sname.org, www.sname.org NOVEMBER 14-15 Highway H2O Conference 2012 Toronto, Canada, Kelly DiPardo (905) 641-1932 ext. 5377 www.hwyh2o-conferences.com We are committed to environmentally responsible business and operating practices. View our environmental policy at www.fednav.com FMT FALLine Fednav Direct www.fednav.com EXPORT FEDNAV Trade Partner T E C H N O L O G Y GREAT LAKES/SEAWAY REVIEW July-September, 2012 7 Draft Information System approved E-navigation enhancement gives ships three additional inches of draft With a new generation of technology being used in the Great Lakes/St. Lawrence Seaway system, decisions on a ship’s total cargo, speed and course are being based on advanced uses of real-time information. The onboard Draft Information System (DIS) technology—which received final Seaway approval July 11—is increasing navigational safety while enabling ships to carry more cargo. SOURCE: TRANSAS USA More information To review the DIS specifications, as posted in the Federal Register, go to http://www.gpo.gov/fdsys/pkg/FR-2012-07-11/html/2012-16859.htm. The Algoma Mariner has been a key in testing the Transas USA version of the new DIS system. The Discounts Just Got DEEPER with the Service Incentive Program! If you Qualify as New Business on the Seaway you can save up to 20% on tolls. Carriers who also qualify as a New Service on the Seaway could save up to an additional 20% for a 40% total savings on tolls! These add to the savings of shipping via the Great Lakes St. Lawrence Seaway System. Visit our website for details or call Market Development at 905-641-1932 x5438 www.hwyh20.com/tollincentives.html SAVE UP TO 40% T E C H N O L O G Y GREAT LAKES/SEAWAY REVIEW July-September, 2012 9 For safety reasons, the Seaway requires a minimum under-keel clearance for vessels from Montreal through the seven lower locks and the eight locks of the Welland Canal. The DIS provides more precision in measuring the clearance by giving mariners realtime operational and navigational information in transit. “The new system is a milestone for the Seaway and an example of how the Canadian and U.S. Seaway corporations can innovate with stakeholders to improve the safety and efficiency of the Seaway transit experience,” said Craig Middlebrook, Acting Administrator for the U.S. Saint Lawrence Seaway Development Corporation (SLSDC). Breaking it down. The International Hydrographic Organization has international standards for electronic navigation and includes electronic nautical charts (ENC). Systems that process the information are known as ENC Information Systems, or ENCIS, which have been approved for use by the IMO, according to the specifications published for the DIS system. The ENCIS wasn’t intended for use in confined waterways and additional information The DIS provides more precision in measuring the clearance by giving mariners real-time operational and navigational information in transit. This high resolution chart shows the contour line. SOURCE: INDUSOL INDUSTRIAL CONTROL All screenshots from CSL’s Spruceglen. The deepest draft is entered by the mariner, 8.15 meters, and a minimum under-keel clearance is set to 0.3 meters. SOURCE: INDUSOL INDUSTRIAL CONTROL T E C H N O L O G Y 10 www.greatlakes-seawayreview.com is required for ships transiting locks, canals, narrow channels and shallow lakes. The DIS is an aid to navigation that may operate in conjunction with an ENCIS, allowing predicted under-keel clearance ahead of the vessel to display on the current ENCIS or on a separate screen. Both approaches are being used by system vendors. The program uses the following information to calculate and display under-keel clearance: • High resolution bathymetry data provided by the Canadian Hydrographic Service for Canada and the National Oceanic and Areas of caution are highlighted while exiting the Snell Lock. SOURCE: INDUSOL INDUSTRIAL CONTROL T E C H N O L O G Y GREAT LAKES/SEAWAY REVIEW July-September, 2012 11 Atmospheric Administration or U.S. Army Corps of Engineers for the U.S. • Water levels received automatically via Seaway AIS stations from a network of water level gauge stations or set manually by the user • Ship forward and after draft set manually by the user • Ship squat based on Seaway Squat Models for the vessel and channel type, with ship type and squat varying on the ship designations as: new laker, traditional laker, oceangoing laker, oceangoing bulker and chemical tanker The software brings this information, and more, together on the When the vessel’s speed increases, the areas of caution also change due to a vessel in the vicinity (less than three boat lengths away from Own-Ship). Two levels of caution are visible, red for the Own-Ship squat and orange for the additional squat created by the second vessel. SOURCE: INDUSOL INDUSTRIAL CONTROL                                                                   ! “  # !$ %&’   #( %)*% #+ ,%-.-)-.&//) 0$+ ,%-. %&.%/- 111                         !  “ # $  % &’  () *$ +,      +  $# 12 www.greatlakes-seawayreview.com bridge. The technology uses an algorithm and creates chart formulas for transiting locks, channels and open water. It provides signals, or warnings, if the ship’s current course and speed will result in less clearance than safely allowed. The early warnings provide mariners with more time to make corrections, as needed. Adjustments to speed are important because a ship’s speed causes a downward pressure, or squat, bringing it closer to the Seaway’s bottom. A safety margin of 30 centimeters of under-keel clearance is required during transit. The high definition chart shows the bottom of the ship in relation to the river, channel or lake bottom (see the figure on this page). “Although the water level gauges have been in place at regular intervals for a number of years, technology is now allowing us to make that information available to mariners in real-time,” said Luc Lefebvre, Manager of Operational Services for the St. Lawrence Seaway Management Corporation. “DIS is giving tools to mariners so they can see where there are higher risks ahead of time. I’ve been involved in this process since 2006 and the cooperation between agencies and companies has resulted in a great benefit.” The software is being produced by two companies: Transas USA and Indusol Industrial Control. The ships may travel at a draft three inches beyond the Seaway’s published maximum, which could mean loading an additional 350-400 metric tons of cargo per trip. The technology also adds a buffer for the ships to keep them from overdrafting and records the voyage of the vessel— the route, under-keel clearance, water levels and other parameters needed to replay the voyage—similar to the black box T E C H N O L O G Y Draft when speeding Draft @ 6 knots (max squat) Static draft Average draft (including squat @ 6 knots) 31 cm squat allowance 30 cm safety margin NOMINAL DEPTH SHIP SHIP DECK 23 m By 2010, every ship using the enhanced system was granted permission to take advantage of the three inches of additional draft after they applied. Any Cargo. Your Destination. McKeil Marine is the reliable tug and barge company that through Eastern Canada and the Arctic. With over 55 years Y Destin our M Marine to move any car of providing innovative marine solutions, you can trust McKeil Ar specializes in customized car cargo to your destination. oviding n cargo shipping into the Gr . ctic. go Great Lakes ge Calculating Under-keel Clearance SOURCE: TRANSAS USA Complexities to determining draft Over the years, the maximum draft of vessels transiting the Seaway in the Montreal to Lake Ontario sections and the Welland Canal has gradually increased. • 1959 opening – Maximum draft was 22 feet, 6 inches • Today – Maximum draft is 26 feet, 6 inches Changes in water levels and ship sinkage or “squat” complicate adjusting the maximum draft. Draft is measured prior to departure but a moving ship sits lower in the water, particularly in shallow or narrow channels. How much a ship “squats” depends on a variety of factors, such as the size and speed of the ship, shape of the channel, depth of the water, currents, wind and the presence of other ships. . GREAT LAKES/SEAWAY REVIEW July-September, 2012 13 T E C H N O L O G Y used aboard airplanes. “A mariner’s job is not easy and the purpose of the technology is to build a picture for the mariner to use so they can make decisions,” said Robbert van Eijle, Owner of Indusol, who helped the Seaway entities write the specifications for a project he invented. “Giving the mariner the best tools possible to do the job is very important.” Seeing it come together. The technology is the result of years of vision and research. In 2000, a study was done to help the Seaway better understand and model ship squat. In 2002, the system implemented use of the Automatic Identification System (AIS) technology, which transmits a ship’s exact location to the Seaway’s Traffic Control Center and, in turn, to other ships on the waterway equipped with an AIS display. Like the squat study, the real-time vessel location technology was a precursor to today’s DIS. “These were both critical pieces to the DIS study,” Lefebvre said, noting there are ongoing commercial requests for the Seaway to increase the system’s maximum permissible draft. As water levels began to lower, the Canadian Seaway began to look at how technology could help avoid reducing draft, or at least to defer a reduction. Along came Indusol’s 3D-Navigator technology, allowing the crew to view the ship’s course and surroundings in high resolution, with alerts signaling suggested changes well in advance. The use of 3D-Navigator and cooperation by shipowner Canadian Steamship Lines (CSL) allowed another layer of research and refinement to the technology. To meet requests by CSL, Indusol enhanced its 3D-Navigator to include DIS capability. Throughout 2008 and 2009, the company tested its expanded product onboard ships in the system. By 2010, every ship using the enhanced system was granted permission to take advantage of the three inches of additional draft after they applied. Throughout the collaboration, conversations and development, some shipowners were concerned increased draft would require reduced speeds to navigate complex locks and channels. Slowing ships would pose another type of concern—efficiency in making contracted commitments. Onboard testing showed no delays and, in some cases, reduced the time of locking through, according to van Eijle, noting that ship operators filled out forms stating the time they entered and exited the locks as a form of recordkeeping. Based on the positive results, formal reviews began. In 2011, the specifications for The Great Lakes premiere marine transportation company offering: • Asphalt & fuel oil transportation • Vessel & fleet management • Project management • Ice breaking • Ship assistance • General towing Stan Andrie President 231.332.9227 Mike Caliendo Vice-President—Transportation 231.332.9243 P.O. Box 1548 Muskegon, MI 49443 Fax 231.726.6747 www.andrie.com T E C H N O L O G Y the technology were written in accordance with the ISO-IEC Directives, Part 2, “Rules for the Structure and Drafting of International Standards.” After more shipboard testing and a full review by Lloyd’s Register of both the Indusol and Transas systems, the Canadian and U.S. Seaways gave their final approval of the technology. Throughout the process, several shipowners were involved in the testing both vendors’ systems. Although final approval doesn’t change the daily habit for the 20 ships already using the Indusol technology, it does make way for more shipowners to make the investment. Regardless of which section of the Seaway is being transited and where the maximum allowable draft is set, the technology offers the benefit of three additional inches of draft. “We see a lot of potential with this development in other areas of the world,” said Paul Welling, Regional Sales Director, North America for Transas USA, noting other countries where river systems are shallow and difficult to navigate. “With the ability to move more tons of cargo, the system pays for itself pretty quickly,” he added. According to SLSDC, the DIS technology is not a requirement for shipowners. Janenne Irene Pung . The orange caution has disappeared, as the distance to the second vessel is now more than three boat lengths. In front of the vessel is an area of caution in the middle of the channel. SOURCE: INDUSOL INDUSTRIAL CONTROL Entering the Eisenhower Lock, the conning monitor is showing: • (At the top) the sideway speed of the bow, 0.03 knots to starboard • (In the middle) the forward speed: 2.7 Knots and the sideway speed at 0.28 knots to starboard. The purple arrow indicates the wind direction • (At the bottom) is the sideway speed of the stern, 0.87 knots to starboard As the boat is turning to port but sliding sideways to starboard, the stern is moving faster to starboard than the bow. The red to the side of the lock wall is mud deposited by the use of bow thrusters. SOURCE: INDUSOL INDUSTRIAL CONTROL The early warnings provide mariners with more time to make corrections. 14 www.greatlakes-seawayreview.com Over $2B worth of cargo moves through the Port of Hamilton annually. From dry bulk, liquid bulk, and project Centennial, celebrate the people and companies who have helped www.hamiltonport.ca 905 525-4330 or 800 263-2131 build the Port of Hamilton. c cargo, we’ve handled it all on. www e e all. As we mark our Centennial w.e ennial, we Bring your ships and shore together in one integrated system A Complete Maritime Human Resource System: Crew Management .. Crew Planning .. Course Planning .. Competence Matrix and Requirements .. Documents scanning .. Mail Merge .. Web Recruitment Portal Full US Payroll with built-in tax and social security .. All AMO, SIU and USW calculations and reporting Check printing .. Direct Deposit interfaces .. Accounting System interfaces .. E-mail interface .. Automatic ship-shore replication of crew and payroll information For more information, visit our website: www.adonis.no Tailor- made for the Great Lakes zpirit.no 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 July-September, 2012 17 LORNE THOMAS, CAPT, USCG (RET.) External Affairs Division U.S. Coast Guard Ninth District At long last, the U.S. Coast Guard published a final rule in March that established a discharge standard for potentially invasive organisms contained in ship’s ballast water. The discharge standard aligns with the International Maritime Organization’s (IMO) Ballast Water Management Convention adopted in 2004. The final rule also established the applicability of the ballast water discharge standard and the implementation schedule for new and existing vessels. The dozens of Coast Guard members that have been part of this regulatory expedition over the years should feel like Rocky on top of the steps, pumping their fists into the air and jumping up and down. Goal accomplished. Send out a press release. Cue the credits. Job well done. But as the glory fades, a question comes to mind—now what? Without question, the development of the rule, and its supporting environmental and economic analyses, was difficult and prolonged. The subsequent implementation of the rule itself will present its own set of challenges, including the first step of type approving ballast water management systems (BWMS). Now what? What to expect after publishing the Ballast Water Discharge Standard 18 www.greatlakes-seawayreview.com for installation on U.S.-flagged vessels, as well as foreign vessels that discharge ballast water in U.S. territorial seas. Initially, salties trading on the Great Lakes will be required to install BWMS that comply with these type approval requirements. The Coast Guard’s type approval process is consistent with the IMO’s Ballast Water Management Convention G-8 Guidelines and utilizes environmental testing protocols developed in accordance with longstanding U.S. Environmental Protection Agency practices. The robust type approval process consists of land-based and shipboard testing focused on the biological efficacy of the BWMS, as well as other operating parameters. For those systems whose performance could be affected by the cold and pure freshwater of the Great Lakes, additional testing may be necessary. A thorough assessment of the BWMS’ ability to properly operate in the harsh marine environment is also undertaken during the land and shipboard testing phase. Finally, all of the system’s components are examined to ensure compliance with marine engineering, electrical and mechanical standards and regulations. This testing and certification is usually conducted by vessel classification societies. Data and test results submitted by BWMS manufacturers for foreign Administration type approvals may be accepted for portions of the Coast Guard type approval process. The Coast Guard will assess the portfolio of the foreign type approval and determine if the testing facility’s procedures, quality control and sufficiency of the required tests are equivalent to Coast Guard standards. This assessment will determine if any of the data and tests can be accepted. The testing required for Coast Guard type approval could take many months. The timeframe will depend on the quality of the data and information in the type approval application portfolio. Independent laboratories. An important component of the type approval process will be the Coast Guard acceptance of independent laboratories to test and evaluate BWMS efficacy based on land-based and shipboard testing. A list of Coast Guard accepted independent laboratories may be Coast Guard approval of BWMS. The Coast Guard will type approve BWMS in accordance with Title 46 of Code of Federal Regulations (CFR) Subchapter Q, in a manner similar to other approved shipboard equipment, such as oil-water separators and marine sanitation devices. BWMS manufacturers will need type approval from the Coast Guard for the different types of systems they intend to mass-produce and install on vessels. In a nutshell, the type approval applicants must demonstrate the ability to comply with relevant requirements in the regulations, successfully complete specified tests and utilize quality assurance processes and procedures. The quality assurance processes monitor product uniformity to ensure the BWMS do not deviate from the approved design. The BWMS type approval process is expected to be a similar, but perhaps, more complex process compared to type approval of other pollution prevention equipment. BWMS are required to be type approved DOCK SITE 100th St. and Calumet River, Chicago, IL 60617 Tel: (773) 375-3700 • FAX: (773) 375-3153 • E-mail: kramert@kochind.com Coal Blending STOCKPILING Transloading The most modern, innovative and customer-oriented transfer terminal in mid-continent North America will save you time and money in the movement, storage and transfer of your dry bulk cargo. With ease and dispatch. Worry free. KCBX will receive your cargo from rail cars, trucks and river barges. We will transfer it to any land or water mode or store it for you. We are ideally positioned to blend Western, Eastern and Illinois Basin coals as well as petroleum coke prior to transloading product to lake vessel, ocean vessel or river barge. We utilize our high speed bottom dump car unloading station or by blending from ground storage while dumping a single commodity from rail cars. Our portable material handling equipment can also provide customized on-site blending and stockpiling services at our 46 acre facility. We offer remarkably quick barge turn-around. If you are moving the products we most usually handle—steam coal, petroleum coke, metallurgical coal, taconite pellets or any other dry bulk commodity—call Tom Kramer’s marketing office at (773) 933-5302. Let us show you how it’s done best! The testing required for Coast Guard type approval could take many months. 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 July-September, 2012 19 found on the Coast Guard Information Exchange at http://cgmix.uscg.mil. To gain acceptance as an independent laboratory, the laboratory must be independent of the equipment manufacturer, must have access to an appropriate facility for carrying out the required land-based and shipboard tests and must document that its personnel are both qualified to assess design and construction requirements and perform the required environmental and operational testing. In fact, the Great Ships Initiative facility in Superior, Wisconsin will be involved in the type approval tests for BWMS that desire to operate in the Great Lakes. Alternate management systems. The Coast Guard fully recognizes there will be a delay from the effective date of the rule to the ability of independent laboratories to begin conducting type approval testing of BWMS. To address this delay, the Coast Guard has developed an interim program to accept the use of some BWMS that have been type-approved by other countries. Such systems may apply for acceptance and use in U.S. waters as Alternate Management Systems (AMS). AMS is intended as a bridging strategy to allow for the use of BWMS type approved by foreign Administrations in accordance with the IMO Ballast Water Management Convention. The AMS must be installed and approved prior to the vessel’s compliance date and would be used in lieu of ballast water exchange until full type approval can be obtained. To be considered for AMS designation, a BWMS must already be type approved by a foreign administration, in accordance with the convention and relevant guidelines developed by the IMO. Use of an AMS will be allowed for up to five years after the vessel would otherwise be required to comply with the ballast water discharge standard. The five-year period should provide the manufacturer or vendor with sufficient time to obtain U.S. type approval, either using the data from the tests already completed or by undergoing new tests designed specifically to comply with 46 CFR 162.060. Compliance and enforcement. Compliance and enforcement of the rule will occur during routine port and vessel examinations. The Coast Guard will enforce compliance with the rule by verifying convention documents and equipment, checking record-keeping and reporting compliance during domestic vessel inspections and scheduled examinations. Type approval of BWMS is a critical and necessary step in the efforts to prevent the introduction and spread of aquatic nuisance species. Neither U.S. nor Canadian enforcement agencies will be present for every use of BWMS; therefore, the agencies must have a high degree of confidence these BWMS will meet the discharge standard every time. Due to the microscopic size of organisms in ballast water, a discharge that does not meet the BWMS will be especially difficult to detect by either vessel operators or compliance personnel. The Coast Guard’s rigorous and comprehensive type approval process will significantly increase the reliability and effectiveness of ballast water management systems and help protect the national treasure we know as the Great Lakes. . For more information, please visit www.uscg.mil/ environmental_standards/. Editorial assistance was provided by John Morris and CDR Ryan Allain at the Environmental Standards Division at Coast Guard Headquarters. B A L L A S T W A T E R M A N A G E M E N T Details on the U.S. ballast water management standard The following summary from the Federal Register details th U.S. Coast Guard’s national ballast water management requirements, as they pertain to shipboard implementation: The first vessels to which the new ballast water management requirements will apply are new vessels constructed on or after December 1, 2013. Approval and use of a plan and a system will be verified by the Coast Guard to ensure the requirements are met onboard the vessel. For vessels constructed on or after December 1, 2013, and for existing vessels constructed before that date and inspected/examined after the vessels compliance dates, Coast Guard officials should verify compliance with the new Ballast Water Discharge Standard during routine, scheduled inspections/examinations. Vessels required to comply with the standard, which includes vessels currently required to conduct mid-ocean ballast water exchange and seagoing vessels greater than 1,600 gross register tons that do not operate beyond the U.S. Exclusive Economic Zone that take on and discharge ballast water in more than one Captain of the Port Zone, will comply with the ballast water management requirements found in 33 CFR 151.2025. This includes implementing one of the following options: • Install and operate a ballast water management system that has been approved by the Coast Guard • Use only water from a U.S. public water system, as defined in 40 CFR 141.2, which meets the requirements of 40 CFR parts 141 and 143 as ballast water • Perform a complete ballast water exchange in an area 200 nautical miles from any shore prior to discharging ballast water, unless the vessel is required to employ an approved management system per the schedule found in 33 CFR 151.2035(b). An alternate management system that meets the requirements may also be used, so long as it was installed on the vessel prior to the date that the vessel is required to comply with the standard in accordance with 33 CFR 151.2035(b) • Discharge no ballast water into the waters of the United States • Discharge to a facility onshore or to another vessel for purposes of treatment For most vessels, current ballast water exchange will remain the preferred method of compliance until the vessel is required to install a management system. Some vessels may install a system accepted by the Coast Guard as an alternate management system and use it in lieu of conducting mid-ocean ballast water exchange. At this time, no alternate acceptances have been issued. For further information regarding the standard, refer to http://www.uscg.mil/hq/cg5/cg522/cg5224/. For questions about enforcement of the Final Rule, please contact LCDR Chuck Fluke at (202) 372-1235 or Charles.K.FlukeATuscg.mil. For general questions regarding ballast water management, send an email to CGCVCATuscg.mil. . alouette.com Sept-Îles – Québec – Canada Innovation. Engagement. Sustainability. Discover the future. Discover Alouette. In harmony with its environment, Aluminerie Alouette offers high quality jobs for over 1000 employees and suppliers committed to their community in Sept-Îles, in an endless quest for excellence. 20 BWMS manufacturers will need type approval from the Coast Guard for the different types of systems they intend to mass-produce and install on vessels. R E G U L A T I O N S GREAT LAKES/SEAWAY REVIEW July-September, 2012 21 Seaway under-utilization Are regulations to blame? rupt the bread-and-butter formula of downbound grain and upbound iron ore. But what other forces have been at play? A recent study conducted by McMaster University’s Institute for Transport and Logistics considers the range of regulatory and non-regulatory factors that have affected outcomes on the Seaway over the years and to weigh the contributions of all factors. The emphasis was on the lower reaches of the system: along the Quebec- Ontario Corridor and through the locks of the St. Lawrence Seaway and the Welland Canal. The Seaway is unique among the transportation modes of the region in that it MARK FERGUSON Senior Research Consultant Institute for Transportation and Logistics McMaster University TOM LAVERY Masters Candidate Centre for Spatial Analysis Institute for Transport and Logistics McMaster University Tonnages on the Seaway are not what they were in the 1970s and 1980s. A question that naturally arises is whether regulations are getting in the way. The Seaway makes an enormous contribution today to the economy of the region. Various macro-events of recent decades have conspired to somewhat dis- The Seaway falls under the jurisdiction of two nations, eight state governments and two provinces and is under the influence of other entities such as the U.S. Department of Transportation, U.S. Environmental Protection Agency (EPA), Transport Canada and Environment Canada. The Blue Water Bridge is one of several cross-border routes used for commercial purposes. 22 www.greatlakes-seawayreview.com never deviates far from the border that separates Canada and the United States. For the other modes, the border is something to be crossed and there are programs in place to expedite that process. But that is not the case for the Seaway and being so border-oriented has implications. Certainly, Canada and the U.S. are on friendly terms and we do have the North American Free Trade Agreement (NAFTA), but the two countries have never formed a customs union, let alone a common market. The level of integration is much less than what is seen in the liberalized marine environment of the European Union. What we do have are marine stakeholders— and lots of them. The Seaway falls under the jurisdiction of two nations, eight state governments and two provinces and is under the influence of other entities such as the U.S. Department of Transportation, U.S. Environmental Protection Agency (EPA), Transport Canada and Environment Canada. There are multiple pilotage authorities, port authorities, advocacy groups and others. With the Seaway functioning as an inter-dependent system and with so many powerful regulatory entities, it is not surprising that events such as the New York State ballast water saga will arise from time to time and put a real chill over the investment environment. The need for fewer stakeholder organizations and the regulatory streamlining that would result is obvious, but the means to achieve such an outcome is less so. By way of comparison, Highway 401 handles a large share of goods in the region and is overseen by one entity: the Ontario provincial government. Protectionism. It can be argued that the two key pieces of marine legislation which define domestic marine movements create something of a chill in their own right. In the U.S., we have the Jones Act of 1920 and in Canada we have the Coasting Trade Act of 1992. These are protectionist pieces of legislation which reserve movements between ports in the same country to domestically- flagged vessels manned by domestic crews. The Jones Act goes a step further by insisting that vessels be U.S. built and majority owned. One could argue that restrictions on domestic airline movements are similar. A foreign airliner destined for Chicago can definitely not pick up new passengers in New York as it drops others off. But, on the other hand, it is quite common for domestic U.S. flights to use foreignbuilt aircraft. The Jones Act was devised long before the Seaway opened, with national security concerns being front and center. While it MPC IS OSRO #003 Sea. Land. Solutions. A half-century of innovation, leading the way to the future of environmental clean-up ea. L olut S S Marine Pollution Control +1 (313) 849-2333 – 24/hour www.MarinePollutionControl.com ions. ollution ollutionControl.Port City Tug Port City Marine Services Port City Steamship Services Sand, aggregate, coke, coal and other cargoes delivered where you need them, when you need them. Michigan-Ohio Barge LLC SERVING ALL Great Lakes PORTS INTRODUCING TUG AND BARGE OPERATORS VESSEL MANAGEMENT 560 Mart Street Muskegon, MI 49440 231.722.6691 office 231.726.6636 fax R E G U L A T I O N S GREAT LAKES/SEAWAY REVIEW July-September, 2012 23 was not about the Seaway, its impact is felt there. Canada pushed hard for marine liberalization in negotiations for the original Free Trade Agreement and for NAFTA, but the U.S. mounted a strong defense of the Jones Act. Canada, in turn, developed similar legislation in the form of the Coasting Trade Act. The overall outcome is one of reduced possibilities. There is today the curious outcome where the two sets of domestic trades function rather as two solitudes. Most U.S. vessels operate in the upper lakes and never go through the lower locks and/or cannot fit through them. Most Canadian vessels tend to operate in the lower lakes. Meanwhile, the potential for new short-sea shipping opportunities is reduced as fewer route permutations are possible in the joint servicing of U.S. and Canadian Ports. The Harbor Maintenance Fee is prominent for movements involving U.S. ports and is a clear barrier to the rise of non-bulk shipping on the Seaway. Since the fee is value-based and tied to each shipment, it imposes an extra burden on multiple, higher value cargo movements and especially in an administrative sense. The fee unwittingly supports the idea that the Seaway is for bulk goods. It’s little wonder that the Short Sea Shipping Act of 2011, which is before Congress, seeks to exempt non-bulk movements from the fee. Pilotage. For the Quebec City to Montreal section of the St. Lawrence in particular, which features some tricky navigational challenges, pilotage is a thorny issue. A single trip can cost in the vicinity of C$15,000, which is actually cheap compared to other places in the world. There are approximately 6,000 assignments per year in the region. During winter, multiple pilots are required. Experienced captains are not exempt from using a pilot as they are elsewhere on the system. Safety is obviously a critical issue, but there is little doubt that pilotage costs make it more difficult for new marine services to turn a profit. On the environmental front, it appears that the regulatory bark has been worse than its bite. With regard to invasive species and ballast water standards, a bullet was dodged with respect to strict New York State standards. On the imposition of new standards with respect to sulphur emissions from fuel, Canadian stakeholders have had concerns with some EPA actions, but it appears matters will be resolved over time. Other factors. In terms of non-regulatory factors, one of the biggest has been the rising dominance of rail freight over the past 30 years. CN Rail, for example, has a transcontinental network in both the north-south and east-west directions and has a stock market capitalization some 75 times that of Algoma Central Corporation, one of the leading Seaway shippers. Intermodal does a reasonable imitation of trucking and its associated speed and service quality. Carload is the traditional rail business and is bulk-oriented, but sophisticated marshalling logistics assemble diverse trains for multiple destinations. Seaway marine is most comparable in many ways to the unit train business with its singular loads of coal or sulphuric acid. The rise of self-unloading marine vessels has added greatly to the speed and flexibility of bulk movements by water but rail freight takes a good share of the business and is a more formidable competitor in North America than in Europe. In parallel with the rise of rail is the rise of the modern day supply chain. There is a strong emphasis on just-in-time manufacturing, lean inventories and cutting costs. Many critical goods movement facilities, such as intermodal terminals and warehousing have suburbanized away from ports and close to major interstates/expressways. For obvious reasons, it is much easier for rail facilities to suburbanize than port facilities. While there are razor-thin inventories in some sectors of the economy, consider examples in the marine bulk goods sector, where inventories accumulate by late summer to prepare for the winter closure of the Seaway. The winter closure is completely out of step with modern day supply chains and detracts heavily from the potential for higher value goods to ship via the Seaway. The study concludes that key nonregulatory factors are so powerful that problems of Seaway under-utilization, despite various regulatory deficiencies, cannot primarily be blamed on the regulatory environment. This is not to give regulators a free pass: there is ample room for improvement. So what is a possible solution to regulatory burdens that the Seaway faces? A current McMaster’s report on free zones gives an idea for one speculative possibility: explore ways to optimize the usage of the Seaway via extensive use of the Foreign- Trade Zone concept. Treat Seaway ports as outside the customs territory of both countries and permit free movement of all U.S. and Canadian vessels between these ports. Have none of these movements defined as cabotage movements. Encourage processing activities within these zones to link more goods closer to the marine mode. The FTZ concept will, of course, fit well with international cargoes and note that the Harbor Maintenance Fee already is administered differently within FTZs, being charged quarterly and not by shipment. Also, Canada’s FTZ-like programs are currently under review by the Federal Department of Finance. The proposed approach would no doubt require significant legislative change but perhaps there is a way to sidestep the Jones and Coasting Trade Acts and move the Seaway closer to its full potential. . The study associated with this article was suggested and supported by members of the McMaster Institute for Transportation and Logistics Advisory Board: the Hamilton Port Authority, the City of Hamilton, Hamilton International Airport and the CareGo Group of Companies Inc. The study concludes that key non-regulatory factors are so powerful that problems of Seaway under-utilization, despite various regulatory deficiencies, cannot primarily be blamed on the regulatory environment. The Harbor Maintenance Fee is prominent for movements involving U.S. ports and is a clear barrier to the rise of non-bulk shipping on the Seaway. Full service, fast, access, high quality and low cost. The Port of Cleveland is the only choice. Businesses around the world rely on the Port of Cleveland. You too, can give your business a lift with the Port of Cleveland’s maritime services including: • 9 berths and 6,500 linear feet of dock space maintained at full Seaway depth of 27 ft. • Heavy-lift crane capacity of 150 short tons. • More than 350,000 square feet of warehouse space and one million square feet of open storage. • Connections to all major interstates and direct access to two major railroads (CSX and Norfolk Southern). The Port of Cleveland… More Than a Working Waterfront 1375 East 9th Street Suite 2300 Cleveland, Ohio 44114 216.241.8004 phone 216.241.8016 fax www.portofcleveland.com T H E A D M I N I S T R A T O R ’ S O U T L O O K CRAIG H. MIDDLEBROOK Acting Administrator Saint Lawrence Seaway Development Corporation GREAT LAKES/SEAWAY REVIEW July-September, 2012 25 formed enough to realize what it is we don’t know, we are both comforted (I understand where we are now) and made anxious (How in the world are we going to get from here to there?). For a long time in ballastwater- related discussions, many of us have operated with a less-than-complete knowledge of the many complexities associated with ballast water science, technology and regulation. Through the herculean efforts of many individuals and institutions over the past six years, many of the data gaps have been methodically filled in. After years of talking past one another, a common language has emerged to allow us to talk with one another using a new, shared vocabulary. That is a huge development. What is becoming more apparent with each passing month (and after each meeting) is that as everyone with a stake in this issue becomes better informed, the realm of uncertainty gets smaller. The fact that the uncertainty is still there, however, particularly with implementation deadlines beginning to loom, makes us anxious (and for some, maybe, depressed), but just remember how large that realm of uncertainty was a mere year ago, m

Maritime Editorial