Vol.41 No.3 JAN‑MAR 2013
J A N U A R Y- M A R C H 2 0 1 3 N U M B E R 3 Modal comparison study . Low lake levels . Infrastructure investment . U.S. fleet renewal V O L U M E 4 1 G GREAT LAKER L J A N U A R Y- M A R C H 2 0 1 3 N U M B E R 3 Modal comparison study . Low lake levels . Infrastructure investment . U.S. fleet renewal V O L U M E 4 1 G GREAT LAKER L Interlake Steamship Phone: 440-260-6900 .. 800-327-3855 FAX: 440-260-6945 Email: firstname.lastname@example.org Website: www.interlakesteamship.com Anchored in the tradition of men and ships with names like Mather, Coulby, Dalton, Sherwin, and Hoyt, The Interlake Steamship Company has been a recognized leader in Great Lakes transportation for one hundred years. Harry Coulby, who combined several fleets into Interlake Steamship in 1913, was followed by other forward-thinking men who built new ships, modernized the fleet, and carried on the tradition of superior customer service. Over the years, Interlake Steamship has celebrated milestones such as the .. MV James R. Barker – the first 1000-foot ship built entirely on the Great Lakes in 1976; .. MV Paul R. Tregurtha – the longest Great Lakes vessel built (as William J. DeLancey) in 1981; .. Streamlined Inspection Program – implemented as a prototype aboard one ship in 1996, SIP is now a fleetwide standard; .. Tug/barge DorothyAnn-Pathfinder – self-unloading barge converted from the idle ship J. L. Mauthe in 1998 paired with Z-drive tug Dorothy Ann built in 1999; .. Certification to ISO standards – first US-flag Great Lakes fleet certified to the ISO 9002 standard in 2000; .. Diesel engine repowering – three steamships and one motor vessel have received new highly-automated, environmentallyfriendly diesel power plants between 2006 and 2012. Interlake’s commitment to providing safe, reliable, responsive and environmentally responsible customer service now extends into the next 100 years. 100 Years Committed to Excellence Delivering a Tradition of Service The Interlake Steamship Company 7300 Engle Road Middleburg Heights, Ohio 44130 GREAT LAKES/SEAWAY REVIEW January-March, 2013 1 The international transportation magazine of Midcontinent North America Historic low water impacts cargo movement. Page 11. Seaway entities invest in system infrastructure. Page 23. Top hat traditions showcased. Page 62. www.greatlakes-seawayreview.com Great Lakes/Seaway Review 221 Water Street, Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 email@example.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 Great Lakes Traditions A TIP OF THE HAT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 Captain, crew welcomed in time-honored ceremony for first ship of the season. Great Lakes People FROM THE BRIDGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Capt. Jim Leaney shares his experience aboard Baie St. Paul. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Laker Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 On the Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Environment STUDY RESULTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Bi-national study highlights green advantages of Great Lakes/Seaway shipping. Lake Levels LOW WATER LEVELS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Keeping cargo moving during historic low water. Interview PROMOTING MARINE TRANSPORTATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 DOT Deputy Secretary John D. Porcari addresses Seaway use and its future. Infrastructure MODERNIZING U.S. SEAWAY INFRASTRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . 23 New lock ice flushing system, miter gate rehabilitation mark halfway point in process. EXECUTING STRATEGIC INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Seaway leverages the latest technologies to modernize existing locks and channels. Legislative Update GRIDLOCK HINDERS LEGISLATIVE AGENDA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Leadership in key committees provides hope for movement on system issues. Ballast Water Management STEP BY STEP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Discharge regulations: discussions continue on bi-national, international alignment. Ports NICHE PORTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 All ports should be factored into National Freight Policy. Fleets FLEET RENEWAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 U.S. Maritime Administration releases study on updating U.S.-flag fleet as economy recovers. Environment ACHIEVING BALANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Working collaboratively on economic development, environmental stewardship. Ports ECONOMIC GATEWAYS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Measuring the economic value of commodities. Commodities EXPORT COAL MOVES EAST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 The Seaway provides an answer to west coast terminal constraints. Business Development A PRELIMINARY CONCEPT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Trailer-only short sea shipping on Lake Michigan. Emissions A CARBON TAX? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Another look at emissions regulations. Environment A VISION FOR THE INDUSTRY’S FUTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Sustainable Shipping Initiative works to make industry profitable and sustainable by 2040. GREAT LAKER J A N U A RY- M A R C H 2 0 1 3 G L D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Acting Administrator’s Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 LAKE ERIE LAKE ONTAR IO DonJon Shipbuilding & Repair Marine Pollution Control 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 JANUARY-MARCH 2013 NUMBER 3 2 MPC IS OSRO #003 Sea. Land. Solutions. Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 firstname.lastname@example.org 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 Patricia A. Rumpler Account Manager Ellen Trimper 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. © 2013 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: The Mesabi Miner heads out of the Port of Duluth-Superior. Photo courtesy Duluth Seaway Port Authority. Great Laker Cover: The Baie St. Paul takes its crew into a new era. Photo by Patrick Lapinski. 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, 2013 3 DATELINE Seaway tolls to increase in 2013 Tolls for the Canadian locks have increased for the 2013 season by 3 percent, ending a five-year freeze on toll rates. “Our five-year toll freeze has served our business and stakeholders well, helping us come through a very difficult economic period,” said Bruce Hodgson, Director Market Development for The St. Lawrence Seaway Management Corporation (SLSMC). “This allowed us to continue to be competitive.” According to SLSMC, the increase allows the Great Lakes/St. Lawrence Seaway system to remain competitive while helping to fund the millions of dollars in infrastructure enhancements being done on the Canadian-owned locks. The new toll is expected to represent a 2.5 to 5 percent overall revenue increase for the corporation, according to Hodgson. The St. Lawrence Seaway Schedule of Tolls for 2013 also features the following incentives: • A new Gateway Incentive is designed to attract cargoes moving through other gateways, which will provide for an incentive greater than 20 percent on a case-by-case basis. Once defined, the rules and regulations for the incentive will be posted at greatlakesseaway. com • A New Business Incentive Program offering a 20 percent discount on cargo tolls for three seasons for any commodity/origin/destination combinations approved by the SLSMC as being new business • Volume Rebate Incentive Program offering a 10 percent reduction on cargo tolls for the incremental volume increase over the highest volume achieved by a shipper/receiver over the previous five years. For more detailed information, go to http://www.media-seaway.com/seaway_handbook/ seaway-handbook-en/web_schedule_ tolls.pdf. . Chamber of Marine Commerce announces management changes Stephen Brooks has been appointed President of the Chamber of Marine Commerce. Raymond Johnston, CMC President since December 1999, becomes Executive Vice President. These appointments are effective April 1, 2013. Brooks joined the CMC in 2006 after 13 years working in government and political operations on Parliament Hill. As Vice President of Government Affairs with the CMC, he has been an effective advocate on behalf of the marine transportation industry. He has provided leadership in policy development, expertise in government relations and communications and helped build the organization into a bi-national voice on commercial maritime affairs. CMC’s Board of Directors has expressed appreciation for Johnston’s 13 years of valuable service as President, during which time he led the organization and the marine shipping industry to numerous historical achievements, including spearheading and guiding the successful industry sustainability program, Green Marine. He will continue to provide oversight of Green Marine along with leadership on industry research and member relations. “These management changes provide the Chamber of Marine Commerce a high degree of stability and continuity that will serve to ensure the on-going success of the organization as we move forward,” said Richard Corfe, Chair of the CMC’s Board of Directors. . 2013 shipping season underway The 2013 Great Lakes shipping season began March 2 with the sailing of the tug/barge unit Prentiss Brown/St. Marys Conquest. The vessel, operated by Port City Marine Services, departed its winter lay-up berth in Milwaukee and sailed for Charlevoix, Michigan, where it loaded 9,200 tons of cement for delivery to Chicago. Next to get underway was the tug/barge unit Dorothy Ann/ Pathfinder. The vessel, operated by Interlake Steamship Company, departed Great Lakes Shipyard in Cleveland, Ohio March 3 to load about 13,000 tons of iron ore at Cleveland Bulk Terminal for delivery to the steel mill at the end of the deep-draft section of the Cuyahoga River. Stephen Brooks Raymond Johnston Congress considers bills to free up dredging funds Bills before the House of Representatives and the Senate could end the dredging crisis on the Great Lakes. H.R. 335 and S. 218 would require money collected for the Harbor Maintenance Trust Fund (HMTF) be spent for its intended purpose. H.R. 335, the Realize America’s Maritime Promise (RAMP) Act, was introduced by Rep. Charles Boustany (R-LA) January 22 and currently has 101 cosponsors. S. 218, the Harbor Maintenance Act of 2013, was introduced by Sen. Carl Levin (DMI) February 4 and currently has 35 co-sponsors. The legislation addresses how the HMTF spends only $1 of every $2 collected for dredging— the intended purpose. The surplus, now approaching $7 billion, is used to mask the size of the federal deficit, according to the Great Lakes Maritime Task Force. As a result, 17 million cubic yards of sediment has built up in Great Lakes’ harbors, causing the largest vessels to lose more than 10,000 tons of cargo per trip because of draft issues. “The dredging crisis is obliterating the efficiencies of Great Lakes shipping,” said Donald Cree, President of Great Lakes Maritime Task Force and Great Lakes Special Assistant to the National President for American Maritime Officers. Sediment building up in the Great Lakes has been compounded by low water levels. “Initial forecasts suggest that vessels will have to load to less than 25 feet when transiting the St. Marys River this spring,” said John D. Baker, 2nd Vice President of GLMTF and President Emeritus of the ILA’s Great Lakes District Council. “Plunging water levels are beyond anyone’s control, but the dredging crisis is man-made,” said James Weakley, 1st Vice President of GLMTF. The U.S. Army Corps of Engineers estimates it needs $200 million to restore the Great Lakes Navigation System to project dimensions. . Adonis D A T E L I N E Wastewater management system trial complete A year-long trial of the Eltide Wastewater Management System has been completed onboard the Lower Lakes vessel Saginaw. The system was developed for the management and elimination of oily bilge, black and grey waters generated onboard marine vessels. The system, controlled by an integral computer and proprietary software, is fully automated. By using waste heat available onboard, the system enables zero overboard discharge of wastewater containing oil, chemicals, microbes and invasive species, bacteria and black and grey waters, while simultaneously measuring and recording the volume of all contaminated water eliminated. During the onboard trial, an environmental assessment was conducted by PFH Consultants, in cooperation with the McMaster University Environmental and Occupational Health Laboratory. Air samples were drawn from the system and analyzed in accordance with National Institute for Occupational Safety and Health (NIOSH) protocols and standards. Of the 30 elements listed in the NIOSH protocol, 28 were reported by PFH Consultants as “not detected” by the McMaster analysis of the samples drawn. Transport Canada provided funding for Eltide’s initial shore-side testing of the system in 2010 and type approval was issued January 11. The Eltide System is also the subject of U.S. Patent No. 8,343,310, issued January 1. . Great Lakes Maritime Academy approved to offer bachelor’s degree The Great Lakes Maritime Academy in Traverse City, Michigan will soon confer its own baccalaureate degree. Currently, both engineering cadets and deck cadets at the academy earn a bachelor’s degree in business administration through a partnership with Ferris State University, in addition to their maritime credentials. Future cadets will have the option of pursuing a bachelor’s degree through the academy. In addition, the academy’s curriculum includes two full commercial sea projects, something not done at other academies. All faculty at the academy are licensed merchant marine officers and adjunct faculty, who are currently sailing in the industry, help the academy maintain its close ties to the shipping industry. “It’s exciting that the academy will have additional options for those maritime cadets who attend,” said John Berck, Director of Admissions and Enrollment Management, adding that the academy will continue its strong relationship with Ferris State University. . Canadian Coast Guard restructures In April, the Canadian Coast Guard is moving from a five-region to a three-region model. The three zones are now categorized as the Atlantic, Central and Arctic regions. The Great Lakes/St. Lawrence Seaway system is located in the Central and Arctic Region and the local headquarters is relocating from Sarnia, Ontario to Montreal, Quebec. The new Central and Arctic Region is expanding, taking on the Quebec Region. It is hoped the restructuring will create greater efficiencies, ensure close oversight and create a nationally-consistent approach to governmental and departmental priorities. As part of the Canadian Coast Guard’s fleet renewal program, outlined in Economic Action Plan 2012, the first wave of a C$5.2 million investment in new vessels is beginning to deliver. The lives of 16 Coast Guard vessels will be extended and modernizations on two additional hovercraft will be completed over the next 10 years. . 4 www.greatlakes-seawayreview.com Bring your ships and shore together in one integrated system A Complete Maritime Human Resource System: For more information, visit our website: www.adonis.no Tailor-made for the Great Lakes x Full US Payroll with built-in ta a Requirements .. Documents sc Crew Management .. Crew Pla Crew Portal with Ti and social security .. All AMO, SIU a canning .. Mail Merge .. Web Recruitm anning .. Course Planning .. Competen me & Attendance U and USW ment Portal nce Matrix and www payroll information System interfaces .. E-mail int calculations and reporting .. C w.terface .. Automatic ship-shore replic Check printing .. Direct Deposit interfa ation of crew and aces .. Accounting Port of Duluth-Superior Duluth Seaway Port Authority REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW January-March, 2013 5 REGIONAL CALENDAR D A T E L I N E Sen. Carl Levin not seeking re-election Sen. Carl Levin (D-MI) will not seek reelection in 2014. He said he can best serve by concentrating on the challenges facing Michigan and the country without the distraction of campaigning for re-election. The senator said he intends to focus on ending corporate tax-avoidance schemes, continuing the Michigan manufacturing renaissance, ending the use of secret money for political campaigns and dealing with fiscal pressures on U.S. military readiness. “These issues will have an enormous impact on the people of Michigan and the nation for years to come, and we need to confront them,” Levin said. “I can think of no better way to spend the next two years than to devote all of my energy and attention to taking on these challenges.” . MAY 2 Windsor Marine Night 2013 Port of Windsor St. Clair Centre for the Arts (519) 258-5741 email@example.com www.portwindsor.com 5-9 TRB National Transportation Planning Applications Conference Hyatt Regency Columbus, Ohio www.trbappcon.org 14-15 Supply Chain Canada 2013 Mississauga Convention Centre Mississauga, Ontario (905) 513-7300 www.supplychaincanada.com 14-16 Breakbulk Europe 2013 Antwerp, Belgium Kelly DiPardo, (905) 641-1932 ext. 5377, firstname.lastname@example.org 15 PORTSECURE 2013 Ottawa, Ontario www.portsecure.ca 22 Michigan Port Collaborative Spring Summit 2013 Radisson Hotel Lansing, Michigan www.michiganport collaborative.com/conference.asp 29-31 Green Tech 2013 Hyatt Regency Vancouver, British Columbia www.green-marine.org/ annual-conference JUNE 10-12 Canadian Transportation Research Forum Conference Lord Nelson Hotel Halifax, Nova Scotia www.ctrf.ca/future_conferences.htm 19-21 Great Lakes & St. Lawrence Cities Initiative 10th Annual Meeting & Conference Marquette, Michigan www.marquette2013.com 25-27 Mari-Tech 2013 Westin Nova Scotian Hotel Halifax, Nova Scotia (902) 435-0350 email@example.com www.mari-tech.org The 2013 shipping season is ramping up, and the top tonnage port on the Great Lakes is open for business. Nearly 1,000 vessels will visit the port, moving some 40 million short tons of cargo in and out – iron ore, coal, limestone, grain, cement, salt, heavy-lift/project cargo and more. The Port of Duluth-Superior connects the heartland of North America to the rest of the world. Make it your connection for world commerce. 218.727.8525 www.duluthport.com PORTof DULUTH-SUPERIOR CARGOCAPITAL GreatLakes Fednav www.fednav.com Winner of International Bulk Journal Awards for Bulk Ship Operator of the Year PRIDE FEDNAV Reliable Partner FMT FALLine Fednav Direct E N V I R O N M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2013 7 One aspect of a study released by Marine Delivers shows the Great Lakes/St. Seaway Lawrence Seaway system fleet nearly seven times more fuel-efficient than trucks and 1.14 times more fuel-efficient than rail. The study is titled “The Environmental and Social Impacts of Marine Transport in the Great Lakes-St. Lawrence Seaway Region” and was conducted by Ontario-based consultant Research and Traffic Group. After peer reviews from independent experts in the U.S. and Canada, the study was released to define the modal and environmental advantages of using marine shipping to transport goods in the Seaway region. The study found that Great Lakes ships are more fuel-efficient and emit fewer greenhouse gases per thousand cargo-ton miles than land-based alternatives. It also calculated the potential impact if current cargo movements were to shift from marine to road and/or rail modes of transport—results that show increased societal impacts including additional traffic congestion, higher infrastructure maintenance costs and significantly greater levels of noise. This bi-national research project marks the first time a study has examined the external impacts of the U.S., Canadian and international fleets operating on the navigation system, using actual data from all three categories of shipowners. Previous studies of the three modes of transport drew comparisons based on the average performance of each mode, rather than making a like-for-like comparison based on each mode carrying the same cargo mix. According to marine industry stakeholders, the study’s results underscore the importance of investing in the infrastructure and technology required to foster growth in Great Lakes/St. Lawrence Seaway transportation. “The study findings present a more complete picture of shipping in the Great Lakes in terms of the benefits of this mode of transportation,” said Steve Fisher, Executive Director of the American Great Lakes Ports Association. “Data from the study will help inform future decisions on subjects ranging from investments in new technologies, budget allocations for infrastructure projects and appropriate levels of regulation, to name just a few. The marine industry now has the information it needs to address questions by federal and state governments on the value of shipping to its constituents.” Mark Barker, President of The Interlake Steamship Company, added that this study provides additional foundational data to help Study results Bi-national study highlights green advantages of Great Lakes/Seaway shipping The study found that Great Lakes ships are more fuel-efficient and emit fewer greenhouse gases per thousand cargoton miles than land-based alternatives. Distance in kilometers to move one metric ton of cargo with 1 liter of fuel Base year 2010 Post renewal of all modes Marine Rail Truck Marine Rail Truck Seaway-size Fleet 265 213 42 394 226 49 U.S. Fleet 235 212 34 342 224 40 Combined Great Lakes/Seaway Fleet 243 213 35 358 225 41 Distance in miles to move one ton of cargo with 1 U.S. gallon of fuel Base year 2010 Post renewal of all modes Marine Rail Truck Marine Rail Truck Seaway-size Fleet 688 553 109 1,022 586 127 U.S. Fleet 610 550 88 887 581 104 Combined Great Lakes/Seaway Fleet 631 553 91 929 584 106 FUEL EFFICIENCY TO MOVE GREAT LAKES-SEAWAY CARGO SOURCE: RTG ANALYSIS OF CONFIDENTIAL MARINE CARRIER DATA Toledo Lucas County Port Authority 8 www.greatlakes-seawayreview.com the Great Lakes marine industry continue to reduce its environmental footprint. “Interlake was pleased to be part of this groundbreaking study,” he added. “As a company, we are committed to minimizing the impact our fleet has on the environment. Our vessels carry more than 20 million gross tons annually and do so using significantly less fuel per ton than it would take to move the same cargo by landbased modes. With continual improvement programs, new technologies and regulatory changes we see the benefits of marine shipping increase in the future.” In addition to the Great Lakes/Seaway fleet’s being nearly seven times more fuel-efficient than trucks and 1.14 times more fuelefficient than rail, it was found that rail and trucks would emit 19 percent and 533 percent more greenhouse gas emissions, respectively, if these modes carried the same cargo the same distance as the fleet. The study also emphasizes the significant role that marine shipping plays in reducing congestion on roads and railways: • It would take three million train trips to carry the total cargo E N V I R O N M E N T This study provides additional foundational data to help the Great Lakes marine industry continue to reduce its environmental footprint. ENERGY EFFICIENCY COMPARISON – COMBINED GREAT LAKES/ SEAWAY SYSTEM FLEET (2010) SOURCE: RTG ANALYSIS BASED ON EACH MODE CARRYING GREAT LAKES/SEAWAY TRAFFIC AN EQUAL DISTANCE Marine Rail Truck Metric Ton-Km/liter 243 213 35 Ton-miles/U.S. gallon 631 553 91 West Michigan Port Operators E N V I R O N M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2013 9 transported by the Great Lakes/Seaway fleet in 2010, as much as double the existing traffic on some rail lines in Canada and at least a 50 percent increase in traffic on some of the busiest lines in the U.S. • It would take 7.1 million truck trips to carry the total cargo transported by the Great Lakes/Seaway fleet in 2010. That would increase existing truck traffic by between 35 to 100 percent depending on the highway. • If Great Lakes/Seaway marine shipping cargo shifted permanently to trucks, it would lead to $4.6 billion in additional highway maintenance costs over a 60-year period. An additional assessment gauged the long term efficiency and emissions performance of Great Lakes vessels after meeting new regulatory standards and achieving improvements with new technology and the use of low-sulphur fuels between 2012 to 2025. The fleet would record significant decreases in emissions as follows: • GHG emission reductions of 32 percent • NOx emission reductions of 86 percent • SOx emission reductions of 99.9 percent • Particulate Matter emission reductions of 85 percent . The study also emphasizes the significant role that marine shipping plays in reducing congestion on roads and railways. ENERGY EFFICIENCY COMPARISON – COMBINED GREAT LAKES/ SEAWAY SYSTEM FLEET (Post Renewal of All Modes) SOURCE: RTG ANALYSIS BASED ON EACH MODE CARRYING GREAT LAKES/SEAWAY TRAFFIC AN EQUAL DISTANCE Marine Rail Truck Metric Ton-Km/liter 358 225 41 Ton-miles/U.S. gallon 929 584 106 The largest port on the coast of West Michigan Providing your Lake Michigan bulk storage needs 75 years of cargo and material handling experience (231) 722-6691 westmichiganportoperators.org • e-mail inquiries to firstname.lastname@example.org Internationally Accessible Marine Freight Corridors FERRYSBURG | HOLLAND | MUSKEGON St. Lawrence Seaway Management Corporation SLSMC 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% GREAT LAKES/SEAWAY REVIEW January-March, 2013 11 Despite being the most studied lakes on the planet, the future of Great Lakes water levels are a looming question. And the current loss of inches in depth is creating problems for both commercial and recreational users. “We can predict a couple months out, but it’s hard to predict 10 years out,” said Craig Stow, Research Scientist at NOAA’s Great Lakes Environmental Research Laboratory. “If we could, we’d know what to do. We could deal with really low or high levels, if we were certain.” The recording of Great Lakes water levels began in the early 1800s, with consistent data beginning in 1860. According to Stow, low lake levels may occur in cyclical periods ranging up to a century, or even longer, before rebounding. Data shows high water levels occurred in the 1870s, early 1950s, early 1970s, mid- 1980s and mid-1990s. Very low lake levels were recorded in the late 1920s, mid-1930s, mid-1960s and late-1990s to the present. The current trend is the longest period of low water levels on record for the Great Lakes. (Please see the related graphs and tables on page 13.) Low water levels Keeping cargo moving during historic low water L A K E L E V E L S LAKE ERIE LAKE ONTARIO STST. LA LAWRENRENCE ST. LAWRENCE RIVER . . . . . . . . . . . . . . . . . . . . . . . Tonawanda -12″ Buffalo -40″ Dunkirk Erie -12″ Ashtabula -24″ Fairport Harbor -54″ Cleveland -54″ Indiana Harbor -48″ Huron -24″ St. Joseph -54″ Holland -54″ Grand Haven -54″ Muskegon -24″ Saginaw -60″ Alpena -24″ Stoneport -12″ Calcite -12″ St. Marys River -18″ Marquette -8″ Calumet -48″ Waukegan -84″ Green Bay -24″ Duluth/Superior -18″ CLOSED Draft Insufficient LOST INCHES, LOST EFFICIENCIES AT REGIONAL PORTS By mid-season in 2012, ships were loading to less than 26 feet when just 15 years ago, ships were transiting the Soo Locks drafting 28 feet or more, according to Lake Carriers’ Association. SOURCE: GREAT LAKES MARITIME TASK FORCE Overall, ice coverage is down 71 percent from 1973. Lloyd’s Register Lloyd’s Register brings together an extraordinary breadth of experience and expertise within a global team. Together, we are uniquely equipped to help marine businesses ensure they are meeting regulations and operating safely in relation to their assets, people and processes. Learn more about our global network – go to www.lr.org/marine Broader knowledge for a safer world. Lloyd’s Register is a trading name of the Lloyd’s Register Group of entities. Services are provided by members of the Lloyd’s Register Group. For further details please see our web site: http://www.lr.org/entities L A K E L E V E L S GREAT LAKES/SEAWAY REVIEW January-March, 2013 13 Low levels, low ice cover. Drought and increased evaporation rates could create a challenging year for the shipping industry. Water levels in Lake Michigan-Huron hit record lows in December. By mid-January, Lake Michigan-Huron was 16 inches below 2012 levels for the period. Lakes St. Clair, Erie and Ontario were 12, 21 and 17 inches lower, respectively, than levels a year ago. Superior was down one inch, a number that doesn’t reflect Superior’s range of vulnerabilities, including rapid warming. “Lake Superior is warming faster than we expected and faster than the summer air temperature,” said Jay Austin, Associate Professor of Physics at the University of Minnesota’s Large Lakes Observatory. “Winter ice cover plays a strong role in what goes on the rest of the year.” In January, Great Lakes ice cover flirted with last season’s historic lows. Overall, ice coverage is down 71 percent from 1973. But in the winter of 2011-2012, there was only 5 percent coverage, compared to the 1979 maximum of 95 percent coverage and the average 40 percent coverage. It is generally accepted that ice coverage is highly relevant to lowering water temperatures and evaporation rates, but some experts question the science. However, higher than average water temperatures create other issues impacting Great Lakes shipping operations. “We have found rapid increases in water temperature tend to create higher winds leading to higher evaporation rates,” Austin said. “The winds increased by 20 percent over the last couple decades and there’s no reason to expect it won’t continue.” Negative impacts. Adjustments are required by ports and ship-operators to accommodate the low water levels. Carriers are being forced to light-load vessels moving through the Lakes, channels and harbors. Light-loading requires additional trips to get the cargo moved, which increase environmental impacts and expenses. By mid-season in 2012, ships were loading to less than 26 feet when just 15 years ago, ships were transiting the Soo Locks drafting 28 feet or more, according to Lake Carriers’ Association. Depending on the vessel, each inch of lost draft reduces payload from 50 to 270 tons of cargo. 183 184 Year Water surface elevation (meters) 600 1100 600 1100 600 1300 600 1100 Total annual basin.wide precipitation (mm) Lake Michigan and Huron Lake Erie 173 174 175 176 177 178 74 75 76 Lake Ontario 1860 1880 1900 1920 1940 1960 1980 2000 Lake Superior 183 184 300 800 500 900 800 1100 500 900 173 174 175 176 177 178 74 75 76 Year Water surface elevation (meters) Total annual over-lake evaporation (mm) Lake Michigan and Huron Lake Erie Lake Ontario 1860 1880 1900 1920 1940 1960 1980 2000 Lake Superior GREAT LAKES PRECIPITATION GREAT LAKES EVAPORATION Hundreds of trucks are required to haul one boatload of cargo. Historical gauge-based, basin-wide precipitation estimates for the Great Lakes and, for comparison, water level observations. Green and orange bars represent annual basin-wide precipitation above and below the average for the period of record. Note: Precipitation values for 2011 are provisional. SOURCE: NOAA GREAT LAKES ENVIRONMENTAL RESEARCH LABORATORY Simulated annual over-lake evaporation based on the NOAA/GLERL Large Lake Evaporation Model, and for comparison, water level observations for the Great Lakes. Orange vertical bars represent annual evaporation rates greater than the average over the simulation period (1950- 2011) while green vertical bars represent annual evaporation rates below the average. SOURCE: NOAA GREAT LAKES ENVIRONMENTAL RESEARCH LABORATORY The Great Lakes Group 14 www.greatlakes-seawayreview.com As the 2013 season was beginning, the Paul R. Tregurtha took on 58,000 tons of iron ore at the ArcelorMittal steel mill in Indiana Harbor, down 18,000 tons of its capacity. During the 2012 season, Arcelor- Mittal depended on commercial shipping in the Lakes to move 25 million tons of raw materials to its plants. “The fewer tons on the ships, the more ships we need to meet the demand,” said Dan Cornillie, Manager of Marine and Raw Material Logistics, noting the company is leaving behind 6,000 tons per trip because of the limited draft. “We’re using the available ships for the full season. There aren’t more hours in the season to use,” Cornillie added. Within its constricting budget, the U.S. Army Corps of Engineers has begun prioritizing ports that move a million tons of cargo per year over smaller ports falling below the mark. Oftentimes, these ports are used to receive raw materials to keep power and steel plants operating. ArcelorMittal can no longer get the larger ships it uses into the harbor at Holland, Michigan, creating concerns that more cargo going into the system’s smaller harbors will be forced to move by train or truck, or the materials will be shipped to larger ports located farther from final delivery and trucks will be the only solution for the final leg of the journey. About 964 trucks are required to haul one boatload of cargo. In addition to creating pinches in transportation, companies like ArcelorMittal are being challenged with how to plan logistics amid the low water levels and lack of dredging. Using averages and constant adjustments is becoming the norm when planning how many tons may be loaded for the various routes being used throughout the Lakes. “I have no confidence based on both the data and what I’ve seen that we can predict what’s happening,” Cornillie said. “The only way we can cope with the low levels is with dredging.” Even beyond commercial shipping, the U.S. Coast Guard was without the use of a ship stationed at Michigan City, Indiana for L A K E L E V E L S Quick access to Great Lakes water level information With support from U.S. Environmental Protection Agency, through the Great Lakes Restoration Initiative, the National Oceanic Atmospheric Administration’s Great Lakes Environmental Research Laboratory has developed an interactive web-based tool for viewing monthly and annual lake-wide average water level data and forecasts. Known as the Great Lakes Water Level Dashboard, the tool is intended to improve public understanding of natural Great Lakes water level variability and the inherent uncertainty in modelbased water level forecasts. As part of ongoing development, the group plans to include additional information on precipitation, evaporation, runoff and net basin supplies, as well as long-term water level forecast, climate model studies and ice data. To use the interactive tool, please go to www.glerl.noaa.gov/data/now/wlevels/dbd/. Unclear funding for dredging will continue the challenge of keeping harbors open, especially for many smaller ports. Andrie GREAT LAKES/SEAWAY REVIEW January-March, 2013 15 four months last summer because the 47- foot vessel couldn’t get out of the harbor. Community harbors have restricted dockage and more and more private and public entities are trying to find a way to fund necessary dredging. Looking for dredging relief. With water levels historically low and funding for dredging following suit, a perfect Great Lakes storm has been brewing. With the U.S. Congress as full of uncertainties as Mother Nature, unclear funding for dredging will reinforce the challenge of keeping harbors open, especially for smaller ports. Included in the Corps’ 2013 budget request is $31 million to dredge 15 commercial harbors and navigation channels. Projects include Michigan’s Detroit River, Grand Haven, Holland, Manistee, Muskegon and the Saginaw River. The list also includes Ohio’s Ashtabula, Cleveland, Conneaut, Sandusky and Toledo Harbor. Dredging is budgeted for Duluth, Minnesota; Green Bay, Wisconsin; and Calumet and Indiana Harbors, Indiana. About 2.4 million cubic yards of material is targeted for removal from the navigational channels to facilitate safe transportation of commercial cargo. Yet, according to LCA, there’s more than 17 million cubic yards of sediment accumulated in the waterways. The 2013 dredging allocations leave a number of harbors in trouble. Three would be expected to close, eight limited to lightloading due to shoaling and 12 harbors, including those equipped with U.S. Coast Guard stations, experiencing operational constraints. What funds actually become available for 2013 dredging is an unknown. According to Mike O’Bryan, Chief of Engineering and Technical Services, the Corps is proceeding under the assumption the requested funds will become available. Until the federal government settles its own fiscal crisis, funding uncertainty is a reality. “We are at the mercy of Congress,” O’Bryan said. “We could get less (money) or more—or Congress could shut down.” Industry stakeholders have been working for years to get legislation in place that requires money collected into the Harbor Maintenance Trust Fund (HMTF) be used for its intended purpose—maintaining the country’s ports, rivers and channels. According to LCA, the Great Lakes Navigation System can be restored to its authorized depths for $200 million, or just 2 percent of what’s been collected for that purpose and not appropriated for dredging. The transportation bill passed in June 2012 indicates Congress’s support of the Administration requesting full use of the Harbor Maintenance Trust Fund revenue for dredging the nation’s deep-draft ports and waterways. “This is a huge step in the right direction and puts us in that much stronger position as the 113th Congress get underway,” the Great Lakes Maritime Task Force stated in its 2012 Annual Report. “In fact, legislation requiring the HMTF to send what it takes in each year has already been introduced in the House and Senate.” Keeping the cargo moving. While L A K E L E V E L S Port infrastructure across the Great Lakes was built to accommodate variations in lake levels, but not to the extent the system now faces. 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 Clean Harbors L A K E L E V E L S 16 www.greatlakes-seawayreview.com Lake level fluctuations International Joint Commission to offer recommendations to U.S., Canadian governments This spring, the International Joint Commission is presenting recommendations from the International Upper Great Lakes Study to the U.S. and Canadian governments. The comprehensive five-year, $14.6 million (C$17.6) study involves the work of more than 200 scientists and engineers. Key recommendations include a new regulation plan for outflows from Lake Superior. Study findings support adoption of adaptive management strategies across the Great Lakes to accommodate fluctuating lake levels. The impact of low lake water levels on commercial navigation is specifically addressed in the study with the vessel and port management strategies summarized below. What to expect • Low water levels will force operators to reduce loads and increase number of trips and total costs in moving a given amount of cargo. • Vessel speed reductions may be necessary, in addition to current rules and stoppages necessary to avoid grounding. • Longer navigation seasons may increase vessel use, reduction in stockpiling and lower icebreaking costs. • Increasing the number of trips may result in capital expenditures or the need for fleet additions. Strategies for low water levels • Reroute vessels to ports less impacted by low water levels. • Partially unload at a port without depth constraints before unloading at a port with limited depths. • Modify existing vessels and shift to newer types of vessels better suited to lower water levels, such as the integrated tug and barge. • Dredge harbors and channels deeper. • Change dock and related infrastructure to allow operations at lower water levels. C L E A N H A R B O R S E N V I R O N M E N T A L S E R V I C E S 24-Hour Hotline 800.OIL.TANK (800.645.8265) • www.cleanharbors.com Clean Harbors provides essential environmental services on land and water to the maritime industry across the Great Lakes. • Onboard services • Port and facility operational support • Emergency response and readiness (OPA 90 OSRO coverage) • Hazardous and non-hazardous waste disposal and recycling • Vessel decommissioning and abatement • Offshore facility services Ready to Serve You. Brown County Port of Green Bay Port of Green Bay L A K E L E V E L S GREAT LAKES/SEAWAY REVIEW January-March, 2013 17 Congress and Mother Nature stage their course for 2013, ports focus on the business of keeping cargo moving. The western Lake Michigan Port of Milwaukee, third largest exporter of grain in the Great Lakes, was last dredged in 2011. Primary cargo for the port also includes coal, salt, cement, steel and energy equipment. Leading into 2013, low lake levels had minimal impact on this naturally deep harbor. “We’ve seen a little lighter-loading but no major interruption,” said the port’s Chief Engineer Larry Sullivan. While land transportation could become more desirable for customers if the navigation system is stymied by water level issues, Sullivan said the Milwaukee port has not yet experienced a loss of business to the rail or trucking industries. Port infrastructure across the Great Lakes was built to accommodate variations in lake levels, but not to the extent the system is now facing. “We are at the lower limits of what the docks were designed for,” Sullivan said of Milwaukee’s infrastructure. At this time, the Port of Milwaukee has not implemented specific strategies to manage declining water levels. Sullivan emphasized the importance of viewing Lake issues through a lens encompassing the entire navigational route. “We’re part of a system,” he said. “Anything that hurts the system, hurts us.” The Port of Alpena in northwest Lake Huron’s Thunder Bay is a small operation, but vital to its community. The port primarily supports two commercial entities, the cement manufacturer Lafarge and a hardboard manufacturer. Both are major employers for the community of 10,000. Port cargo includes cement, salt, gravel and coal. Interim City Manager Greg Sundin said because public funding for dredging disappeared, Lafarge has maintained its own shipping channel for the past two years. According to the Corps, the Alpena harbor is in need of dredging, but is not funded for 2013. The harbor is located in shallow Thunder Bay, dubbed Shipwreck Alley by early sailors. If water levels continue to drop significantly, dredging may not be an option for Alpena, even if funds become available. “Once you get too low, you hit bedrock,” Sundin said. Lafarge has about 4,500 employees and 400 industrial and distribution sites in the United States. The Alpena cement plant is the largest on the Lakes. The company also has limestone quarries in Michigan, Ohio and Ontario. Annually, the company moves 16 million tons of cargo by vessel on the Lakes, according to the GLMTF. The Alpena City Administrator said the community continues to view the harbor as an asset for economic development and is intent on preserving it. “We’re holding our own,” he said. “We do what we can to maintain the depths and we keep an eye on it.” Sally Barber and Janenne Irene Pung . According to LCA, the Great Lakes Navigation System can be restored to its authorized depths for $200 million, or just 2 percent of what’s been collected for that purpose and not appropriated for dredging. Access world and domestic markets using the LOWEST COST method of transportation available. CONNECT waterborne vessels to regional markets network of highways and railroads. 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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 I N T E R V I E W GREAT LAKES/SEAWAY REVIEW January-March, 2013 19 Great Lakes/Seaway Review: What role can the U.S. Department of Transportation (DOT) play in promoting more use of the waterways? Porcari: I regularly visit Seaway locks and ports on the Great Lakes to promote the Seaway as a vital link for shipping goods affordably from the Midwest to the rest of the world. Moving goods by water lets consumers and producers save money while protecting our environment by reducing carbon emissions. While too few in Washington have had the chance to see the important work of the Seaway firsthand, the Department of Transportation is doing what it can to ensure the Seaway has the resources to continue maintaining its locks to keep them operating efficiently and reliably. The Seaway Asset Renewal Program, which the Obama Administration supported, is a $175 million undertaking to perform crucial maintenance and repairs to help keep the Seaway strong. As President Obama said in his State of the Union address, improving our infrastructure strengthens our economy and helps American businesses. By following the President’s prescription of Fixing it First, we are looking out for the billions of dollars in economic activity and more than 227,000 jobs in the Great Lakes and Midwest that count on the Seaway locks. Great Lakes/Seaway Review: The DOT has developed the America’s Marine Highway program. What initiatives are being taken to promote use of the nation’s waterways to alleviate congested land-based routes? Porcari: America’s Marine Highway Program is a great opportunity to use an underutilized asset to enhance freight movement. We’re working with shippers and maritime interests on the East Coast, the West Coast and the inland waterways to encourage and establish viable marine highways. Think of it as the early designation of the land-based highway system. The marine highways can carry vast amounts of cargo in and through the states and their designation will encourage this option with those who need the freight moved. Great Lakes/Seaway Review: Are there any initiatives specific to the Great Lakes/St. Lawrence Seaway system? Porcari: In August 2010, the U.S. Transportation Secretary, Ray LaHood, designated the Great Lakes as the M-90 Marine Highway Corridor to bring attention to their potential for marine freight and passenger movements. The Secretary also designated the M-75 Detroit/Windsor Crossing and the M-71/77 Lake Erie Marine Highway Crossing because of their potential to relieve major freight truck bottlenecks between major U.S. and Canadian metropolitan areas. In September 2010, the Secretary designated the Detroit/Wayne County Ferry Project as a Marine Highway project. This Promoting marine transportation DOT Deputy Secretary addresses Seaway use and its hope for the future John D. Porcari serves as the 19th U.S. Deputy Secretary of Transportation. He assumed the position on June 1, 2009. As Deputy Secretary, Porcari is the Department of Transportation’s Chief Operating Officer with responsibility for day-to-day operations of the 10 modal administrations and the work of more than 55,000 DOT employees nationwide and overseas. He is focused on transportation’s key role in economic development and providing the foundation for America’s future prosperity. Before becoming Deputy Secretary, Porcari served an unprecedented two tours as Secretary of the Maryland Department of Transportation from January 2007 to June 2009 and between 1999 and 2003. As MDDOT Secretary, he was responsible for an integrated, multi-modal, statewide transportation system that included highways, transit, the Port of Baltimore, Baltimore-Washington Thurgood Marshall International Airport, a statewide general aviation system, Maryland’s toll authority and its Motor Vehicle Administration. Between 2003 and 2007, Porcari served as Vice President for Administrative Affairs at the University of Maryland, College Park. He previously served as Deputy Secretary of Transportation for Maryland and as Assistant Secretary for Economic Development Policy at the Maryland Department of Business and Economic Development. Prior to his positions in state government, he served as vice president of a civil engineering and land use consulting firm and at the local government level. Porcari recently discussed maritime issues with Editor Janenne Irene Pung. John D. Porcari U.S. Deputy Secretary of Transportation University of Findlay 20 www.greatlakes-seawayreview.com Transportation is one of the foundational investments you make for economic development in the future. It’s been true for the Erie Canal and the St. Lawrence Seaway. We see that investments made in transportation literally pay off for many generations. Maritime transportation plays an important role in the American economy. Our Saint Lawrence Seaway Development Corporation released an economic development study last fall that listed 227,000 good-paying, family-supporting jobs as coming from this waterway. It’s an incredible economic resource. In 2010, there was $34 billion in business revenue and $14 billion in U.S. wages and salaries and almost $10 billion of that was in the Great Lakes/St. Lawrence Seaway area. It gives you a sense that designating these corridors is not only important for the shipping industry, but for the economies of the Great Lakes states, as well. It all comes from a conviction that we haven’t always maximized the use of the Great Lakes. Great Lakes/Seaway Review: What is being done to ensure the future of the marine highway system? Porcari: We are putting our money where our mouth is. The Saint Lawrence Seaway Development Corporation has a 10- year Asset Renewal Program for updates and important bread-and-butter repairs to the locks themselves and the infrastructure related to them. It is a very logical, methodical way to rebuild what has been a longserving infrastructure. Since the Seaway opened more than 50 years ago, we have put very little money into maintaining it. In addition, Secretary LaHood released a report in 2011 that would serve as a roadmap for creating and further strengthening the nation’s marine highways and highlighting the benefits of using our waterways as part of America’s new clean energy economy. Our report called for investment in inland waterways for general freight movement both to relieve congestion and as part of the effort to achieve energy independence. In addition, we are always working with the U.S. maritime industry to encourage the use of alternative fuels and clean technologies, and continue to fund maritime environmental research that focuses on emissions reduction and the use of cleaner burning, alternative fuels, such as biofuels and natural gas. Great Lakes/Seaway Review: As you know, private industry has made significant investments in the future of the Seaway system, including new vessels and repowering vessels. What does U.S. DOT see as the future role of the system as it relates to the nation’s full transportation plan? potential ferry service would provide a transportation alternative to the congested Ambassador Bridge and the Detroit/Windsor tunnel—the two busiest border crossings in North America. The Maritime Administration continues to seek additional opportunities for Marine Highway Services in the Great Lakes region to relieve congested border crossings for the movement of both freight and passengers. We think that, over time, most of the growth in goods movement can actually occur on the water. As a nation, we’re blessed with the Great Lakes as an inland waterway system because it can be a real asset for that movement. Great Lakes/Seaway Review: What is the bottom line reason for forming America’s Marine Highways? Porcari: Developing America’s Marine Highways is really economic development, at large, for all of the Great Lakes states. For example, requiring manufacturers to use American-made transit equipment has had a direct benefit for many manufacturers in the Great Lakes states. I N T E R V I E W McKeil Marine GREAT LAKES/SEAWAY REVIEW January-March, 2013 21 Porcari: It’s important to secure private investment. We can help do so by showing consistency and predictability on our part, like we are with the Asset Renewal Program. As we develop the Marine Highway Program and have opportunity, through the Maritime Administration or any part of the department, to fund improvements, we will continue to do that. As an example, through the Shipyard Program we have invested in travel cranes, new welding equipment and metal cutting equipment to revitalize those shipyards. The new equipment will make them more efficient. In a larger sense, as we’re very focused on freight movement throughout the country and North America, the highway program gives us the opportunity to look at intermodal connections throughout the Great Lakes. A loan program like the Railroad Infrastructure Financing (RRIF) is a good fit for ports on the Great Lakes to improve their rail access. The Port of Oswego has just applied for a RRIF grant. Being from New York and growing up with my grandfather as Director of the Oswego port authority, I was able to see the investments made there a generation ago and now see us help with investments a generation later. Great Lakes/Seaway Review: Are there any infrastructure priorities and funding initiatives being discussed that relate to the Seaway system? Porcari: Clearly, it is important to invest in the maintenance part of the infrastructure. Ongoing dredging needs are critical. In addition, there’s a real opportunity in the future to repower the U.S.-flagged Great Lakes vessels, through LNG power, for example. The Great Lakes have great local sources for natural gas and there are discussions ongoing about the possibilities. We can use our Title XI loan program for repowering projects of this type if the vessel owners are interested. We think it’s very important to have a strong U.S-flagged fleet, including the lakers. Great Lakes/Seaway Review: How can the marine highway benefit from the $105 billion allotted for FY 2013 and 2014 through MAP-21? Porcari: We think that marine highway can benefit from MAP-21 in a couple of ways. First, in a larger sense, we have a freight policy council that includes all of the modes. I chair it. We are currently putting together a public advisory committee for the council and we expect that people from water, rail and land will participate. We will ultimately produce a national freight policy. We think the Great Lakes states and the Great Lakes/St. Lawrence Seaway system will be direct beneficiaries of that policy because shipping is such an efficient and environmentally- friendly way to move goods Great Lakes/Seaway Review: With funding a primary concern, how is DOT approaching the legislation in both the House and Senate which would commit to using funds collected from the Harbor Maintenance Trust Fund for maintaining the nation’s waterways? Porcari: We can help spotlight how transportation works as a system and that, if you make investments on the landside of the port, it doesn’t help if you’re not doing the dredging or have the Asset Renewal Program for the locks themselves. We’re helping to build a consensus on the need for these various funding approaches and consistencies. Great Lakes/Seaway Review: Do you have anything else to add? Porcari: The Great Lakes and the Seaway system are under-utilized assets and as the manufacturing economy rebounds and the economy, in general, rebounds, we can turn a great national asset for the nation into an even better and more fully-utilized asset. . I N T E R V I E W …………………. ……………………………. ………………………………………………………………………………………… ……………………………………………………………………………….. ………………………………………………………………………….. …………………………………………………………………………………… ……………………..