Vol.41 No.4 APR‑JUN 2013

A P R I L – J U N E 2 0 1 3 N U M B E R 4 LNG as fuel gains momentum . Manufacturing and cargo . The 2012 season . Funding for dredging 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: boconnor@interlake-steamship.com 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 April-June, 2013 1 The international transportation magazine of Midcontinent North America The renaissance in manufacturing lies within the Great Lakes region. Page 13. Tonnage nears pre-recession levels in the 2012 season. Page 21. Interlake Steamship Company celebrates 100 years. Page 60. 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 free weekly news service, Digital Dateline, at www.greatlakes-seawayreview.com/digdateline/ A R T I C L E S A P R I L – J U N E 2 0 1 3 D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Acting Administrator’s Outlook. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 100th Anniversary A CENTURY OF DOING BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Interlake’s roots reach back to Picklands Mather & Co. Passenger Cruising CRUISING ON THE INLAND SEAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Great Lakes cruise ships deliver an exceptional experience. Meet the Crew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Propulsion NEW CENTURY, NEW FUEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Interlake Steamship Company plans to use liquefied natural gas as its primary fuel. Manufacturing THE PARALLEL RENAISSANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Great Lakes/St. Lawrence Seaway business expected to follow manufacturing trend. Shipbuilding MORE DELIVERIES, MORE ORDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 System continues to benefit from shipowner investments. The 2012 Season FROM STEADY INCREASES TO RECORD GAINS . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 System totals and trends indicate rebound toward the system’s 2008 peak. INFRASTRUCTURE INVESTMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Hundreds of millions of dollars for system-wide modernization. Dredging LIGHT AT THE END OF THE CONGRESSIONAL TUNNEL . . . . . . . . . . . . . . . . . . 36 WRDA passes the Senate with positive provision for Great Lakes dredging. Water Levels THE IJC RECOMMENDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Using St. Clair structures to impact lake levels warrants closer look. Interview A FRIEND OF THE GREAT LAKES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Rear Admiral Parks shares his final words as U.S. Coast Guard District Nine Commander. Propulsion THE CHALLENGE OF TIER 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Preparing for the coming regulatory changes. INCOMING REGULATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Canada continues to align air emissions measures with the United States. Ballast Water Management WHEN CAN WE CELEBRATE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Ballast water regulations continue to create angst in the system. Interview FUNDING, ENVIRONMENT, INFRASTRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Sen. Carl Levin discusses key Great Lakes issues. G GREAT LAKER L ABS Marine Pollution Control 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 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; Stephen Brooks, 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: Wind turbine blades at the Port of Duluth- Superior. Photo by Robert Welton. Great Laker Cover: Interlake Steamship Company’s Paul R. Tregurtha. 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 APRIL-JUNE 2013 NUMBER 4 2 www.greatlakes-seawayreview.com MPC IS OSRO #003 Sea. Land. Solutions. Marine P +1 (313) 849-2333 – 24/hour www.MarinePollutionControl.com Pollution Control G R E A T L A K E S / S T . L A W R E N C E S E A W A Y GREAT LAKES/SEAWAY REVIEW April-June, 2013 3 DATELINE Foxx sworn in as U.S. Transportation Secretary In a private ceremony July 2, Anthony Foxx was sworn in as the 17th U.S. Secretary of Transportation. He replaced former Secretary Ray LaHood. Foxx, former Mayor of Charlotte, North Carolina was unanimously confirmed by the U.S. Senate June 27. In a written statement, he said safety will remain the department’s top priority. “At the same time, I will work to improve the efficiency and performance of our current transportation system while building the infrastructure we need for future generations,” he said. “In doing so, I look forward to bringing my ‘on the ground’ experiences as mayor, while embracing the tremendous knowledge, skill and ingenuity of the DOT workforce and our many stakeholders.” As Secretary of Transportation, Foxx leads an agency with more than 55,000 employees and a $70 billion budget that oversees air, maritime and surface transportation. . CSA partners on ballast filtration tests Members of the Canadian Shipowners Association (CSA) have partnered with Great Ships Initiative (GSI) on efficacy tests of ballast water filtration systems in the cold, freshwater of the Great Lakes/St. Lawrence Seaway system. The tests are taking place this summer at the GSI ballast treatment testing facility in Superior, Wisconsin. To date, no technology has been type-approved for operation in the system where the Canadian vessels operate. Canadian shipowners are looking proactively to find practical solutions to ballast water management. The membership chose to partner with the world-class, government-funded GSI testing facility to build objective knowledge of technological solutions. Results from the trial of filtration technologies are expected by the end of August 2013. “Our membership has a track record of leading the use of innovative technologies and best management practices to improve performance, safety and to protect the environment,” said Robert Lewis-Manning, President of the Canadian Shipowners Association. “The partnership with GSI is important because it builds on our industry’s leadership and demonstrates the commitment of the members of the Canadian Shipowners Association to find solutions that are practical, can work in our unique operating environment and will achieve results in a cost-effective manner.” . Adolph Ojard retires Duluth Seaway Port Authority Executive Director Adolph Ojard is retiring later this year, after a decade in leadership at the port. Ojard joined the port authority in 2003, after more than 30 years with U.S. Steel Corporation and its affiliates, where he held executive positions in rail, inland barging and Great Lakes shipping. He currently chairs the Great Ships Initiative Advisory Committee, a regional effort to stop ship-mediated invasive species in the Great Lakes/St. Lawrence Seaway system. Ojard has been actively involved with maritime policymaking initiatives at the federal level in his role as President of the American Great Lakes Ports Association and, more recently, as Chair of the U.S. Delegation of the American Association of Port Authorities. A national search is underway for a new Executive Director and the board anticipates filling the position by late summer or early fall. . Top: Rear Adm. Fred Midgette (right) shakes hands with Rear Adm. Michael Parks after relieving him of duty as Commander of the U.S. Coast Guard Ninth District June 27, 2013. Above: Midgette shares remarks during the ceremony. Adolph Ojard Rear Adm. Midgette takes command Rear Adm. Fred M. Midgette assumed command of the Ninth Coast Guard District June 27 in an official Change of Command Ceremony in Cleveland, Ohio. Former Commander Rear Adm. Michael Parks retired after 35 years of service. Midgette reports to the Ninth District from his position as the Military Advisor to the Secretary of Homeland Security. He’s returning to Cleveland, having previously served as Ninth District Chief of Staff, or second in command of district operations, from May 2010 to May 2011. Since then, Midgette has served as Military Advisor to the Secretary of Homeland Security, assisting in the coordination and execution of policy and operations between the Department of Homeland Security and the Department of Defense. To read an exit interview with Rear Adm. Parks, please turn to page 43. . McKeil D A T E L I N E dredging needs—and enable the Corps to remove the backlog of sand and silt clogging many Great Lakes harbors. “This provision gives our legislators a specific regional program to support during the annual appropriations process,” Fisher said. “Currently, if our legislators want to push for more funding for Great Lakes harbor dredging, their only option is to fight for a larger national budget for the Corps—with no assurance that additional dollars will go into the Great Lakes.” . Report shows region as economic powerhouse The economic output of the Great Lakes region outranks Germany, France, Brazil and the United Kingdom. If the region were a country it would rank as the fourth largest economy in the world behind the United States, China and Japan, according to a Bank of Montreal Capital Markets report. With the region undergoing an economic recovery, its potential to produce is swelling. Producers will need raw materials to create their products. For information on how the region’s economy is tied to the commercial shipping industry, please turn to page 13. . Port of Prescott to change name Effective January 1, 2014, the Port of Prescott, Ontario will become the Port of Johnstown. “The name change better reflects the geographical location of the port,” said Robert Dalley, General Manager. According to Dalley, when the port was built in 1930 the closest town was Prescott, Ontario, several miles upriver. The port, however, is located in the community of Johnstown in the township of Edwardsburgh/ Cardinal, near the Canadian terminus of the Ogdensburg-Prescott International Bridge. . National committee contains one regional representative Final appointments have been made to the new National Freight Advisory Committee. Paul LaMarre, Director of the Port of Monroe, is the only maritime representative from the Great Lakes. The committee is made up of 47 members, with each serving a two-year term. The committee will advise the U.S. Department of Transportation on national freight policy and development of a National Freight Strategic Plan. It is comprised of diverse representatives from throughout the nation, including from cities, other transportation sectors and ports, businesses and unions. . House WRDA bill gains momentum H.R. 2273, the Great Lakes Navigation System Sustainability Act, seeks to reform the U.S. Army Corps of Engineers’ annual budgeting process by requiring the Corps to evaluate the Great Lakes navigation system as a single budget item—rather than the current practice of evaluating each individual port. Under the current evaluation system, most Great Lakes ports do not compete well. The precedent for this new approach is the Mississippi River, which is currently evaluated as a system during the budgeting process, rather than as scores of individual ports. “We believe that if the Great Lakes were treated the same way, we would fare better as a region,” said Steve Fisher, Executive Director of the American Great Lakes Ports Association. H.R. 2273 also establishes a new $200 million Great Lakes’ dredging program within the Corps of Engineers. This program is meant to address the Great Lakes’ unique 4 www.greatlakes-seawayreview.com …………………………………………………………………………………….. ………………………………………………………………………………………. …………………………………………………………………………………… …………………………………………………………………………………… ……………………………………………………………………………… ………………………………………………………………………… ……………………………………………………………………………… ………………………… We’re doing business different. Duluth Seaway Port Authority Port of Duluth-Superior REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW April-June, 2013 5 REGIONAL CALENDAR D A T E L I N E Marinette Marine completes shipyard improvement plan Marinette Marine Corporation (MMC) opened the company’s newest facility in Marinette, Wisconsin, marking the completion of a more than $73 million facility upgrade. The expansion, which includes five new buildings, could increase the shipyard’s production by 100 percent. The upgrades allow the company to exceed the requirements of a 2010 multi-billion dollar contract with the U.S. Navy to deliver two Littoral Combat Ships (LCS) per year. It also gives the company additional capacity to pursue other programs, such as the U.S. Coast Guard’s Offshore Patrol Cutter, for which it has submitted a design, according to Marinette Marine President Chuck Goddard. Since 2009, MMC has doubled its indoor production area and increased its workforce by 60 percent, for a total of 1,400 employees. The company has sought to maximize production efficiency and minimize energy consumption utilizing state-of-the-art technology, including computer-controlled manufacturing equipment. . SEPTEMBER 9 Great Lakes Commission 2013 Annual Meeting Hilton Milwaukee City Center Milwaukee, Wisconsin www.glc.org 9-11 RETECH 2013 Marriott Wardman Park Washington, D.C. www.retech2013.com 12-13 2013 Ohio Conference on Freight Kalahari Conference Center Sandusky, Ohio www.tmacog.org 22-23 Great Lakes Wind Collaborative Annual Meeting Columbus, Ohio www.glc.org 23-26 Breakbulk Americas 2013 Ernest N. Morial Convention Center New Orleans, Louisiana www.breakbulk.com OCTOBER 9-10 Indiana Logistics Summit Indiana Convention Center Indianapolis, Indiana www.indianalogistics.com/summit 22 Quebec Marine Day Quebec National Assembly Quebec City, Quebec www.st-laurent.org 22-24 Fleet Optimization Conference Sheraton Stamford Hotel Stamford, Connecticut www.shippinginsight.com NOVEMBER 6-8 SNAME 2013 Annual Meeting & Expo Hyatt Regency Bellevue Bellevue, Washington Alana Anderson, alana@sname.org www.sname.org 13-14 Hwy H2O Conference 2013 Toronto Airport Marriot Toronto, Ontario www.hwyh2o-conferences.com The vitality of this region depends on the strength of this Port…and the strength of the many industries it serves: .. Manufacturing .. Energy .. Construction Agriculture .. Transportation Each year, the Port of Duluth-Superior handles nearly 1,000 vessel visits and 40 million short tons of cargo. Largest tonnage port on the Great Lakes. Economic engine for the region. Moving full-speed ahead. 218.727.8525 | www.duluthport.com PORT of DULUTH-SUPERIOR gio re visit Po Agr Mining Man the Port relies on the s n ts c ort handle iculture ufacturing Constru e industr f s es uction ries Mo Econo ton 218.727. PORTof D oving omic nnage Lake 8525 SUPE es. ERIOR American Maritime Officers 6 www.greatlakes-seawayreview.com P R O P U L S I O N GREAT LAKES/SEAWAY REVIEW April-June, 2013 7 While Interlake Steamship Company is celebrating 100 years of doing business, it’s pressing into the next century with plans to convert the fleet to use liquefied natural gas (LNG). With questions such as how to situate the LNG tank onboard and where and how frequently to fuel considered, Interlake has entered into an agreement in principle with Shell to supply the new fuel to support the conversion. Interlake plans to have its first conversion complete by the spring of 2015. “We’ve looked at all of the available options and we feel LNG is a solution that works for the long-term,” said Interlake President Mark Barker, noting how the new fuel source will greatly reduce the level of carbon dioxide, sulfur oxide, nitrogen oxide and particulate matter released from the ships. “This move takes our dedication to environmental stewardship to the next level. While the marine mode of transportation is already by far the most environmentally- friendly way to move goods throughout the Great Lakes region, operating on LNG would further reduce our vessels’ environmental impacts.” The conversion of Interlake’s vessels from heavy-fuel-oil burning engines to engines operating on LNG will require the company to make significant capital investments. The new engines will burn dual fuels, meaning the vessels most recently converted New century, new fuel Interlake Steamship Company plans to use liquefied natural gas as its primary fuel When converted, Interlake’s vessels are expected to be the first LNG-powered ships on the Great Lakes and among the first in the U.S. Interlake plans to have its first conversion complete by the spring of 2015. Adonis 8 www.greatlakes-seawayreview.com to Tier 2 diesel engines will again visit the shipyard for a repowering project. The current engines are built to only burn diesel and the new generation of vessels will burn an estimated 99 percent LNG with the rest being diesel. Interlake is already working through engineering and design plans, seeking regulatory approval and securing financing. When converted, Interlake’s vessels are expected to be the first LNG-powered ships on the Great Lakes and among the first in the U.S. “We’ve designed the ship to have enough capacity to minimize the impact of increased fueling,” Barker said, noting that moving to LNG allows Interlake to use a fuel sourced, produced and distributed entirely in North America, reducing reliance on imported fossil fuels. “The maritime transportation industry already supports thousands of jobs and billions of dollars in wages throughout the Great Lakes,” Barker said. “We are now evolving in a way that would allow Interlake to participate in the long-term growth and economic prosperity of the region it has served for 100 years. This move allows us to back the growing natural gas industry, P R O P U L S I O N The conversion of Interlake’s fleet is expected to begin with the Mesabi Miner, a 1,004-foot selfunloader capable of hauling 63,300 gross tons of cargo. SOURCE: ROBERT WELTON 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 Small Scale Liquefaction at Sarnia Regional Fuel Depot U.S. Transshipment Depot LNG Transport by Train LNG Refuelling Station LNG-fuelled Lake Freighte r LNG Transport by Barge LNG Trailer Truck LNG-powered Drilling Rig s LNG-fuelled Truck LNG Trailer Truck P R O P U L S I O N GREAT LAKES/SEAWAY REVIEW April-June, 2013 9 which is also creating valuable jobs here in the U.S.” Shell will be supplier. As it stands, Shell will be Interlake’s exclusive supplier of LNG and has plans to build a small-scale liquefaction unit—0.25 million tons per annum—at its Sarnia Manufacturing Centre in Sarnia, Ontario. The fuel units are made up of moveable modules that are smaller than traditional LNG production facilities and are each about the size of a cargo train car. The Sarnia facility will make use of existing truck and marine offloading facilities for bulk LNG shipments, as well as LNG refueling of Great Lakes vessels. There is also the potential to expand the existing infrastructure to include the capacity for rail offloading. While LNG has been used in the power sector for more than 50 years, Shells reports that smaller production facilities are needed to provide the fuel for transportation. As a result, it has developed the technology known as the Moveable Modular Liquefaction System, which enables delivering smaller amounts of LNG in an economic, convenient and safe way in the transportation sector. Once operational, this project will supply LNG fuel to the five Great Lakes, their bordering U.S. states and Canadian provinces and the St. Lawrence Seaway, according to Shell. Through an Memorandum of Understanding Great Lakes Corridor Design The Great Lakes Corridor is designed to use marine vessels, trucks and trains to bring LNG fuel to its customers in various commercial sectors. The plant above will be constructed by Shell in Sarnia, Ontario. Moving to LNG allows Interlake to use a fuel sourced, produced and distributed entirely in North America, reducing reliance on imported fossil fuels. Sarnia Great Lakes Montreal Ottawa Toronto New York City Washington, DC Louisville Indianapolis Chicago Detroit SOURCE: SHELL LNG Production LNG Availability Zone Clean Harbors P R O P U L S I O N 10 www.greatlakes-seawayreview.com 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. with TravelCenters of America, the facility is also expected to supply LNG fuel to long-haul transport trucks at truck stops between Chicago, Detroit and Louisville, Kentucky. A map of Shell’s Great Lakes Corridor—the Sarnia plant’s distribution area—shows the facility providing fuel for areas as far away as Montreal, Quebec, Washington, D.C., Indianapolis, Indiana and the Louisville trucking route. Pending final regulatory permitting, Shell expects to begin production in about three years, according to the company. In addition to being users, the company plans to distribute its fuel via vessels, trucks and trains. Originally built in 1952 by Canadian Oil Companies Limited, the refinery in Sarnia became part of Shell’s operations in 1963. It currently has about 350 fulltime employees. Shell is also working to use natural gas as a fuel in its own operations and is involved in offshore refueling using three dual-fuel vessels to support LNG-based operations in the Gulf of Mexico. “Natural gas is an abundant and cleaner-burning energy source in North America and Shell is leveraging its LNG expertise and integrated strength to make LNG a viable fuel option for the commercial market,” said Marvin Odum, President of Shell Oil Company. “We are investing now in the infrastructure that will allow us to bring this innovative and cost-competitive fuel to our customers.” In addition, discussions are ongoing on the potential of constructing additional LNG liquefaction plants along the Great Lakes. With options for fuel sources taking shape, companies such as Interlake are gaining confidence in considering LNG as a future fuel. The conversion of Interlake’s fleet is expected to begin with the Mesabi Miner, a 1,004-foot self-unloader capable of hauling 63,300 gross tons of cargo. The vessel is currently powered by two turbo charged diesel engines burning intermediate grade 280 fuel. The rest of the fleet will follow, with exception of a tug-barge unit, Dorothy Ann/Pathfinder, and the Stewart J. Cort, a 1,000-foot selfunloader built in 1972. Regulatory requirements. Emissions regulations of the U.S. Environmental Protection Agency (EPA) are requiring Interlake and other carriers to make aggressive changes to their fleets. If shipowners do not opt to move to LNG, must install scrubber systems to clean the emissions before they leave the ship, which is the approach being taken by Canadian companies constructing new lakers. Interlake began researching its options as the EPA began rolling out tighter emissions standards for diesel ships. In 2008, the EPA finalized a three-part program to reduce emissions from marine diesel engines below 30 liters per cylinder displacement. The rule covers engines used on vessels ranging from recreational and small fishing boats to towboats, tugboats, lakers and marine auxiliary engines ranging from small to large generator sets on ocean-going vessels. The rule cuts particulate Discussions are ongoing on the potential of constructing additional LNG liquefaction plants along the Great Lakes. West Michigan Port Operators P R O P U L S I O N GREAT LAKES/SEAWAY REVIEW April-June, 2013 11 matter by as much as 90 percent and NOx emissions by as much as 80 percent from engines meeting current standards. In 2010, the agency adopted the Tier 2 and Tier 3 Emissions Standards for Category 3 Marine Diesel Engine Standards. These standards for large marine diesel engines are part of a coordinated strategy to address emissions from all ships that affect U.S. air quality, according to the EPA. (For more detail on the pending regulations, please turn to page 48.) Canada is adopting strict environmental standards to reduce air emissions from ships navigating in Canadian waters. These changes further align Canada’s air emission standards with the United States. (For more information, please see the related story on page 51.) With a growing interest in LNG as a fuel source for ships, DNV is offering shipowners support to make newbuilds and existing vessels ready for natural gas with class-approved designs ready for retrofit to LNG technology. The service enables shipowners to make choices and minimal investments in preparation for when LNG bunkering becomes widely available in the region. Refinery sites. As part of the ongoing discussion on increasing use of LNG in the system, Great Lakes Maritime Research Institute held a meeting in late May to discuss the possibility of locating a liquefaction plant in Duluth, Minnesota. It was attended by potential LNG users and suppliers from the mining, trucking, rail and maritime sectors. The discussion included whether there was enough base-load demand within a 200-mile radius to justify constructing a liquefaction plant. Estimates released at the meeting indicate development opportunities for LNG as a replacement fuel in the region could impact as many as 1,500 vessels and 650,000 heavy-duty trucks that are estimated to consume 12.5 billion gallons of diesel each year. Representatives from the LNG industry said it is likely bunkering would initially be done from trucks, since the permitting and construction of the necessary dockside infrastructure will take time. According to Jim Sharrow, Facilities Manager at the Duluth Seaway Port Authority, ships currently fuel at Calumet Refinery’s facility at the Clure Public Marine Terminal in Duluth, Minnesota and at the CN ore docks in Two Harbors, Minnesota which is also supplied by the refinery. Since ships will still need to receive petroleum fuels, as well as LNG, it would be logical to plan LNG fueling at the same locations. Having a second LNG refinery in the Great Lakes would be optimum to ensure convenient, timely bunkering while also providing redundancy should one plant experience mechanical problems. As the LNG fuel discussion continues, specifics on how many and where production facilities will be located will be determined. For now, initial agreements are moving toward having Interlake’s first LNG-fueled ship sail in 2015. Janenne Irene Pung . If shipowners do not opt to move to LNG, they will be forced to install scrubber systems to clean the emissions before they leave the ship. 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 info@wmpo.com Internationally Accessible Marine Freight Corridors FERRYSBURG | HOLLAND | MUSKEGON Fednav M A N U F A C T U R I N G GREAT LAKES/SEAWAY REVIEW April-June, 2013 13 Sustainingmanufacturing’s multi-year climb from the brink may be the greater challenge for the future success of both the Great Lakes/St. Lawrence Seaway system and the region’s manufacturing sector. “This region has grown up on both sides of the border by that which flows through the system helping manufacturers procure what they need and building commerce,” said Ed Wolking, Executive Vice President of the Detroit Regional Chamber and Chair of the Great Lakes Manufacturing Council. “At this point, I would call it resurgence. Manufacturing is obviously blooming again.” The new show of strength reverses decades of manufacturing decline and weak demand by manufacturers for Seaway support in transporting inbound and outbound cargo. The industries peaked simultaneously around 1980. Now, the blossoming manufacturing sector is translating into new life for ports such as Hamilton, Ontario. Hamilton provides a snapshot of the historic interdependency of the two industries. Hamilton Port Authority attributes threefourths of its business to steel-related cargo, a relationship traced backed to 1912. The century-old port was established soon after the area’s first steel mills were launched. By 2000, the port was handling 12 million metric tons of cargo annually. Still getting past recession lows in 2012, tonnage totaled 10.3 million metric tons. As a result of the rising need for steel and the expansion of several other manufacturing industries, the Hamilton community’s GDP is anticipated to increase by 2.5 percent in 2013. The port authority also anticipates tonnage to once again increase in 2013, maintaining the upward trend. Manufacturing may have turned the corner, but the downturn left an ugly economic footprint. By 2008, the Great Lakes states lost more than 37 percent of the three million U.S. factory jobs. By the time industry stopped bleeding in 2010, factory jobs in the Great Lakes region had fallen from 4.2 The parallel renaissance Great Lakes/St. Lawrence Seaway business expected to follow manufacturing trend The very pulse of a manufacturing renaissance lies within the bi-national Great Lakes region, the source of nearly 39 percent of U.S./Canadian global trade. The region is the fourth largest economy in the world with half of Canadian manufacturing and one-fifth of U.S manufacturing based on the region’s freshwater coast. University of Findlay 14 www.greatlakes-seawayreview.com ufacturers raise the stakes in the Great Lakes through major investment. The General Motors Co. (GM) announced a C$250 million investment into its CAMI assembly plant at Ingersoll, Ontario. Expansion allows for production of global body styles. GM earlier committed to investing C$850 million for research and development at its Oshawa, Ontario complex. GM also announced plans to invest $332 million in four U.S. Midwest plants. This follows a previous announcement of plans to invest $646 million in Michigan plants. Chrysler Group LLC is investing $500 million in its Toledo plant, making it the largest assembly facility in North America. Capital investment is a profound gesture of confidence in the future, Wolking said. The automakers’ investment in Great Lakes operations is reciprocated by Great Lakes/St. Lawrence Seaway carriers who are committed to more than a billion-dollar domestic and ocean fleet renewal. “Upgrading your capital stock is a significant signal to manufacturers as we go forward,” Wolking said. “There’s a great emphasis on shipping efficiency and environmental friendliness.” Logistic efficiencies are critical to sustaining modern manufacturing growth, especially intermodal and port connections, according to Susan Christopherson, PhD, economic geographer at Cornell University. At the Oshawa, Ontario harbor, a new CN Rail spur off the main line helps position the port for industry’s need for peak logistics efficiency. The C$1.8 million project is a joint venture between CN, the Oshawa Port Authority and port companies. Located in the heart of the Canadian auto manufacturing belt, diverse capital expansions within the area helped Oshawa Stevedoring break tonnage records last year with a 60 percent increase over 2011 levels. “Ontario is one of the hottest spots in North America,” said Oshawa Stevedoring’s Director Frank Robertson. The very pulse of a manufacturing renaissance lies within the bi-national Great Lakes region, the source of nearly 39 percent of U.S./Canadian global trade. The region is the fourth largest economy in the world with half of Canadian manufacturing and one-fifth of U.S manufacturing based on the region’s freshwater coast. According to the Great Lakes Information Network, the region accounts for 60 percent of steel production in North America. Automotive, pulp and paper, high tech, chemicals and other light manufacturing add the benefits of diversity. Manufacturing’s refound strength has shed the region of its Rust Belt image, almillion to 2.7 million. Great Lakes/St. Lawrence Seaway system business peaked in terms of cargo in 1980, handling 67 million metric tons. Tonnage dropped to 30.7 million metric tons by 2009. Positive milestones. Industry welcomes a wave of growth marking positive milestones. Canadian Seaway traffic for 2012 was hailed as the best showing since the pre-recession peak in 2009 with experts hinting of system-wide revival in 2013. “Since 2009, the recovery has been slow, but every year the volumes improve and we see that continuing,” said Paul Gourdeau, Fednav Limited’s Sr. Vice President. The Montreal-based Fednav Limited is Canada’s largest dry-bulk shipping group. “The Great Lakes markets are important to us,” Gourdeau added. “A vibrant Midwest economy generates the need for importing materials, machinery and equipment.” Automakers reliant on the water transportation system announced in March that sales hit pre-recession levels. The Seaway system is poised to benefit as vehicle man- M A N U F A C T U R I N G Ports of Indiana GREAT LAKES/SEAWAY REVIEW April-June, 2013 15 lowing it to embrace its identity as the foundation of North America’s manufacturing industry. Reshoring, the reversal of offshore. Efforts to rebuild Great Lakes region manufacturing muscle converge with the reversal of the offshoring movement, which took a firm hold in 2000. Christopherson estimates 25 percent of manufacturers could bring back offshored operations. When companies calculate today’s total cost factors, of which logistic costs are a major consideration, the bottom line looks different than it did 20 years ago. Christopherson reports that 53 percent of U.S. companies studied would realize cost advantages today by reshoring. “We have to make sure we can capture this opportunity in the Great Lakes with the best possible transportation connections to export markets and supply chains,” Christopherson said. The Wall Street Journal supports Christopher’s conclusions, reporting a study of 106 companies with annual sales of $1 billion or greater revealed 33 percent indicated reshoring is under consideration. Encouraging the reshoring trend is a drop in labor costs at home, in part due to union concessions. At the same time, labor costs have increased in emerging countries. Currency rates, the ability to control quality and procurement and intellectual rights protection are additional factors causing manufacturers to rethink returning operations to North America. “From a risk management standpoint, you want to have critical production close at hand,” Wolking said. “All factors play a role and bode well for Canada and the U.S.” The development of shale gas resources over the last six years has proved so vital to North America’s manufacturing expansion and reshoring movement, some consider it the game-changer. Shale gas provides stable and affordable energy while reducing the bottom line. Christopherson maintains that companies with significant potential to achieve benefit from reshoring include traditional Seaway customers like manufacturers of heavy machinery, appliances, auto vehicle parts, transportation equipment, paper, petroleum, coal and aerospace. Structural shifts occurring in the manufacturing sector are anticipated to open bi-national opportunities, according to Wolking. He said manufacturing’s recent resurgence will spawn unprecedented alliances affecting growth within the Great Lakes region. “Going forward, parts of the region will see new connections, such as the aerospace industry in Ohio and Quebec,” Wolking says. “It’s an evolution. You’ll see the building blocks of manufacturing by water and other places that will be a significant part of the economy.” Having assets in place. Within the changing face of manufacturing, the Great Lakes competitive edge in attracting and sustaining companies stems from a deep manufacturing culture and infrastructure. “The Great Lakes states and Ontario have tremendous advantages in reshaping the new manufacturing needs,” Christopherson said. “They have a legacy of being engaged in manufacturing and it extends to innovation capacity. In a city like Cleveland, you have not just manufacturing skills, you a have a supply chain associated with steel and heavy machinery and you have engineering programs at universities.” Ability to compete globally. But companies can’t be left to flounder. Realizing sustained manufacturing productivity involves maximizing the potential of the gamut of businesses. Small- and mediumsized companies may have rich possibilities, but with fewer resources these businesses M A N U F A C T U R I N G M A N U F A C T U R I N G 16 www.greatlakes-seawayreview.com are disadvantaged in the contemporary manufacturing landscape. The National Center for Manufacturing Sciences (NCMS) at Ann Arbor, Michigan is helping change that. NCMS is the largest cross-industry collaborative R&D consortium in North America. Partnering with GE and the State of Michigan’s economic development arm, the Michigan Economic Development Corporation, NCMS recently unveiled the Michigan Grid Cell™ for aiding North America’s small and medium manufacturers in developing the ability to compete globally. “The center is going to make advanced digital tools available to companies that do not have the access or talent,” said Alissa Roath, NCMS External Relations spokesperson. Great Lakes/St. Lawrence Seaway system companies stand to benefit from what Roath calls a bottom up effect. The $3 million initiative is housed at GE’s Advanced Manufacturing Software Technology Center near Detroit. The first in a network of centers, its tools allow companies to design and deliver products to market in a matter of months by virtually assessing every material, variable and design factor in product creation. NCMS maintains that 90 percent of products will be designed virtually in years to come. By leveraging high power computing, NCMS expects to stimulate the expansion of potentially thousands of businesses. The Michigan Grid Cell™ exemplifies the power of private-public relationships in rebuilding manufacturing and helping it meet 21st Century demands. “In both countries, the United States and Canada, the federal governments are furthering strategies to help with everything from investing and innovation to training workers,” Wolking said. “At the state and provincial levels, initiatives in budgeting and policy making encourage manufacturing and support economic diversity.” Looking to the future. Canada’s 2013 Budget pledges support for manufacturing policies with measures to extend tax relief for manufacturing machinery and equipment. Also included is continued support for the collaborative bi-national Beyond the Borders initiative and U.S.-Canada Regulatory Cooperation Council, founded in 2011. Cross-border supply chains and trade strength is supported by the initiatives, boosting manufacturing competitiveness in the international marketplace. Likewise, President Obama’s 2013 U.S. federal budget allocates significant funds for measures enhancing manufacturing. On the federal or local level, collaboration may no longer be a matter of choice, but rather survival for the Great Lakes/St. Lawrence Seaway ecosystem, people and businesses. A pioneering nine-month plan The development of shale gas resources over the last six years has proved so vital to North America’s manufacturing expansion and reshoring movement, some consider it the game-changer. The Paul R. Tregurtha delivers coal to feed DTE Energy’s power plant in St. Clair, Michigan. involving scores of the region’s stakeholders and decision-makers is being spearheaded by the Northeast Midwest Institute, a Washington-based private, nonprofit organization. The proposed plan calls for developing regional strategies and tools to maximize and sustain the ecological, hydrological and economic services stemming from Great Lakes river mouths. Its objectives include examining whether the renewal of manufacturing within the Great Lakes region will call for new kinds of raw materials to be shipped along the Great Lakes/St. Lawrence system and whether those materials would require new types of vessels and port infrastructure changes. This blueprint for sustainability also would evaluate how the Seaway system might alleviate land traffic and increase short sea shipping and containerized traffic. It provides a holistic approach to revitalizing the region’s economy in sync with ecological restoration measures. The project targets the leadership of Joel Yudken, PhD for the Jobs/Workforce Team. Yudken is Principal in the Virginia-based consulting firm High Road Strategies, which provides industrial, economic and energy policy consultancy based on balancing economic competitiveness and environmental sustainability. Yudken emphasizes the need to bring all stakeholders to the table to create sustainable progress. “Public/private partnership means bringing in labor unions and community developers,” he said. “It’s an economic development issue for major ports of call. The communities have to be involved.” The plan’s advisory committee is to include policy leaders involved within the Great Lakes maritime system, ecosystem restoration, urban redevelopment organizations and others. A development map would be created based on integrated criteria for presentations to decision makers, stakeholders and the general public. “The Great Lakes is one of the major engines of our economy,” Yudken said. “If we don’t see a renaissance, the whole country will suffer.” An essential force in the rise of the Great Lakes region, waterborne shipping has come a long way in the past 100 years. Green ships with computerized controls usher in a new era along the Seaway, just as digital tools reshape the world of manufacturing. But the historic economic link between the two industries remains as vital as the day the first merchant ships sailed the great blueway. Sally Barber . Atlantic CAT Toromont CAT Hewitt CAT Wartsila BCS Automation DNV 18 The reason for this isn’t just the efficiency of our solutions, excellent though they are. Just as important is the efficiency enhancing lifecycle care on offer around the clock and all across the globe. Because an efficient propulsion system uses less fuel and gives off less emissions. This is just one example of how Wärtsilä solutions are good for both business and nature on land and at sea. Read more about what we can do for you and the environment at wartsila.com. EVERY SECOND SHIP YOU SEE IS SERVICED BY US. WARTSILA.COM WÄRTSILÄ® is a registered trademark. 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DNV s Tel: +1 201 512 8900 Mahwah, NJ USA One International Blvd, Suite 406 Crossroads Corporate Center DNV …………………….. …….. ……………….. advisory services, we can help you S H I P B U I L D I N G GREAT LAKES/SEAWAY REVIEW April-June, 2013 19 Fednav is expanding its fleet of oceangoing lakers by six new vessels. McKeil Marine is welcoming the first of two new tugs being built in Dubai. Canada Steamship Lines is tracking the cross-Atlantic journey of its fourth new laker—the Baie Comeau—from Chengxi Shipyard in China. The newbuilding trend is a continuation of 2012, when a new era of fleet renewal began producing the results of millions of dollars of investments. The end of the 2012 season ushered in: • Fednav’s sister ships Federal Satsuki and Federal Mayumi traveled from Oshima Shipyard in Japan and into the system. • Canada Steamship Line’s Baie St. Paul made a historic entrance in the system, the first of the company’s four new Trillium Class self-unloaders. • Algoma Central Corporation welcomed the first of eight new Equinox Class vessels—four gearless bulkers and four selfunloaders. As the 2013 season progresses, more deliveries and vessel orders are occurring. Fednav’s newest order of lakers is a partnership with Sumitomo Corporation and Oshima Shipyard in Japan. The new generation of lakers is suited to international trade. The ships will be 34,000-ton bulk carriers adapted to the dimensions of the system’s locks and are specially equipped for navigating ice. The vessels will be built with “box” holds, which are better suited for moving a variety of general cargo, such as steel and project cargo, according to Fednav. Their design will also streamline operations, minimizing time and effort to reduce cargo residues and will result in more efficient port calls. “This investment highlights Fednav’s commitment to the Great Lakes and to our customers and partners in the industrial heart of North America,” said Paul Pathy, Fednav President and Co-CEO, upon signing of the contract. “The Great Lakes/St. Lawrence Seaway system is a very valuable part of the two countries’ economies. This order by Fednav demonstrates our clear goal to remain the leader in international Great Lakes shipping.” The vessels will share the environmental characteristics of the previous six lakers ordered from Oshima shipyard: They will consume 28 percent less fuel and produce 28 percent less emissions than vessels built by Oshima Shipyard for Fednav 10 years ago, ships already among the most efficient of their time. The order will contribute significantly to Fednav’s objectives of reducing GHG emissions in its fleet on a continuous basis. The fuel-efficient engines will also reduce nitrogen oxide emissions by about 33 percent. All the vessels will receive the CLEAN-DESIGN notation from the DNV classification society. The six additional vessels will be delivered between May and November 2015, as part of a series of 27 new ships, including 14 lakers added to Fednav’s fleet since January 1, 2012. Special-order tugs. McKeil Marine’s new tugs are fully insulated for sub-Arctic operation. The Beverly M 1, and the Sharon M 1, joined the fleet in moving cargo in the system. The sister tugs are equipped with two separate wheelhouses for flexibility when navigating large ice-class barges in the Arctic. Their oversized winches and deck gear are suitable for completing towing and anchor- handing duties. Other features include an oversized bow thruster for full bollard pull when working with construction and anchor equipment; salvage work equipment, including dive room and special sonar equipment; additional structural file protection to accommodate the block and foam tanks and monitor system that work independently from the main firefighting system; fuel-efficient medium speed diesel engines; upgraded, oversized Rexpellar drive units, which can operate in fixed-pitch or controllable pitch propeller mode for ice operations; modification to comply with Transport Strict Tow boat regulation; and nine individual crew cabins wired for Internet and satellite TV. Launching two Trillium Class lakers. Baie Comeau set sail from Chengxi Shipyard in Jiangyin, China June 30, the last of a Canada Steamship Lines’ order for four Seaway- sized self-unloaders. The ship is sailing across the Pacific Ocean, transiting the Panama Canal and will arrive in Montreal, Quebec to join the Canada Steamship Lines (CSL) fleet. The third Trillium Class selfunloader, Thunder Bay, anchored in Montreal July 21, joining Baie St. Paul and Whitefish Bay. Once the ships arrive in the system, extra supports installed for the ocean journey are removed and they are prepared for service. Two new bulk carriers are also set to join the CSL fleet in 2014. Also in May, the company’s second of three Trillium Class Panamax vessels, Tecumseh, has also set sail from Chengxi Shipyard and is already scheduled to proceed to Port McNeil, British Columbia to load aggregates for delivery in the San Francisco area. . More deliveries, more orders System continues to benefit from shipowner investments SOURCE: CANADA STEAMSHIP LINES T H E 2 0 1 2 S E A S O N 20 www.greatlakes-seawayreview.com SOURCE: DULUTH SEAWAY PORT AUTHORITY THE 2012 SEASON GREAT LAKES/SEAWAY REVIEW April-June, 2013 21 While international trade in the Great Lakes/St. Lawrence Seaway system increased in 2012, interlake tonnage was down compared to 2011, with a drop in coal and iron ore representing the largest losses. Steady growth of 4 percent in total Seaway tonnage for 2012 brings international cargo movements to 38.9 million metric tons—some 5 percent less than the 40.8 million metric ton peak of 2008. “It was a good year with tonnage increases in a number of areas,” said Terry Bowles, President/CEO of the St. Lawrence Seaway Management Corporation, noting the New Business Incentive through the St. Lawrence Seaway Management Corporation generated C$5.1 million in new business. Seaway increases for 2012 were found in late-season Canadian grain, iron ore and coal. The 285-day season closed December 31, with 4,063 commercial vessels transiting the bi-national Seaway. At the season’s closing, traffic results reflected a 1.39 million metric ton increase in overall cargo moved through the Seaway. Compared to 2011: • Iron ore increased by 1.29 million metric tons, totaling 10.14 million metric tons. • Coal improved by 888,000 metric tons, totaling 4.63 million metric tons. • Grain movements grew by 400,000 metric tons, totaling 8.57 million metric tons. • General cargo increased by 189,000 metric tons, totaling 2.06 million metric tons. • Dry bulk fell short of the previous year by 487,000 metric tons, totaling 10.19 million metric tons. • Liquid bulk decreased by 447,000 metric tons, totaling 3.32 million metric tons. From steady INCREASES to record GAINS System totals and trends indicate rebound toward the system’s 2008 peak The 285-day season closed December 31, with 4,063 commercial vessels transiting the bi-national Seaway. 40.80 30.71 36.55 37.54 39.07 42.35 36.32 39.24 42.27 40.83 2008 2009 2010 2011 2012 Seaway Traffic Results (In metric tons) . Total Cargo . Total Transits SLSMC St. Lawrence Seaway Management Corporation 22 Ports at a Glance TOTAL TONNAGE METRIC TONS SHORT TONS Cleveland 2012 3,100,000 3,417,161 2011 3,100,000 3,417,161 5-year average 2,900,000 3,196,699 Detroit 2012 350,000 385,809 2011 436,000 480,607 5-year average 400,000 440,924 Duluth 2012 33,269,243 36,673,019 2011 33,657,973 37,101,520 5-year average 34,576,040 38,113,515 Green Bay 2012 2,000,000 2,204,620 2011 1,900,000 2,094,389 5-year average 1,630,682 1,797,517 Hamilton 2012 10,040,213 11,067,427 2011 10,303,189 11,357,308 5-year average 10,260,609 11,310,372 Indiana-Burns Harbor 2012 n/a n/a 2011 8,100,000 8,928,711 5-year average n/a n/a Lorain 2012 650,000 716,502 2011 700,000 771,617 5-year average 700,000 771,617 PRIMARY CARGOES Bulk General Cargo Aggregates Limestone Fertilizer Steel Other Agricultural Other Steelrelated Aggregates Cement Salt Other Limestone Coal Coal Iron Ore Limestone Other Steel Other Aluminum can become Qualify as New Business on the Seaway and you save 20% on tolls If your cargo qualifies as New Business, you can add to your savings by shipping via the Great Lakes St. Lawrence Seaway System. New Business can include cargo that has a new origin, a new destination, or that was previously moving via a different mode of transportation. Or cargo that has not been previously shipped via the Seaway in the last 5 years in a volume larger than 10,000 tonnes. Visit our website for details and an application to qualify. www.hwyh2o.com SOURCE: INDIVIDUAL PORTS Pere Marquette Shipping Envirolin 23 A look at the ports “With the 2012 navigation season in the books, things are looking bright at the Port of Thunder Bay,” said CEO Tim Heney, noting the port handled more than 7.8 million metric tons of cargo in 2012, the most since 2008. “The port also had the greatest volume of project cargo handled in a single season—at approximately 135,000 freight tons—and it handled the most grain in a single month since 2001.” “In 2012, the port had a 16 percent increase in ocean vessel calls and a 9 percent increase in multimodal shipments,” said Rick Heimann, Port Director for the Ports of Indiana-Burns Harbor. The Port of Sept-Iles had a 7.5 percent increase in volume handled over the previous year, reaching 28 million metric tons, according to Patsy Keays, Director of Corporate Affairs. About 80 percent of the growth resulted from increased iron ore production at the Labrador Iron Mines in the Schefferville area. The stories of growth reach throughout the system, spanning both sides of the border. A number of records were set, with some ports referring back to the 1980s when comparing their 2012 season totals. For example: • The Port of Three Rivers reached 3.3 million metric tons, making 2012 the second consecutive year since 1980 when it has surpassed 3 million metric tons. • Monroe moved the greatest tonnage at the port since 1997, the second largest amount since 1984. The increase is a result of the first outbound shipment of wind towers manufactured by port tenant Ventower. The towers were shipped to Oswego, New York and represent a series of similar shipments expected for 2013. • Receiving 11 inbound ships of wind turbine components and an inbound rail delivery of wind turbines from Colorado, the Port of Ogdensburg moved its most Hamilton SOURCE: HAMILTON PORT AUTHORITY Combining the economy of Great Lakes shipping with flexibility for cargoes not suitable for traditional self-unloaders, the tug barge PERE MARQUETTE 41 offers a level of dependable service that translates into outstanding value. Let us help you evaluate how our new articulated tug barge system can benefit your company. 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