Vol.42 No.3 JAN‑MAR 2014

V O L U M E 4 2 J A N U A R Y – M A R C H 2 0 1 4 N U M B E R 3 Challenges with icebreaking . Dredging gets funding boost . The 2013 season . Unveiling newbuilds G LGREAT LAKER Interlake Steamship Interlake Steamship has a long tradition of being responsive to its customers and meeting their cargo delivery challenges. Our knowledgeable and accommodating marketing personnel, together with experienced and conscientious vessel crews, will work with you to deliver your cargo where, when and how you want it. Interlake’s versatile and reliable nine-vessel self-unloading fleet, with cargo capacities ranging from 17,000 to 68,000 gross tons, is ready to fulfill your Great Lakes transportation needs. Experience our commitment to superior customer service. Put the responsive Interlake team to work for you. Phone: 440-260-6900 • 800-327-3855 FAX: 440-260-6945 Email: boconnor@interlake-steamship.com Website: www.interlakesteamship.com The Interlake Steamship Company 7300 Engle Road Middleburg Heights, Ohio 44130 GREAT LAKES/SEAWAY REVIEW January-March, 2014 1 The international transportation magazine of Midcontinent North America Coast Guard Cutter Biscayne Bay breaks ice in the St. Marys River. Page 7. Traffic, cargo trends reviewed for the 2013 season. Page 14. The arrival of new vessels continues. Page 36. 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 Technology END OF AN ERA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Coast Survey breaks with tradition, moves to digital format. Crews BUILDING COMMUNITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Efforts underway to build recreational center in the Soo. Meet the Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Icebreaking A CHALLENGING SEASON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Historic, severe winter presents difficult spring breakout. Dredging DREDGING AND ASSET RENEWAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Great Lakes Navigation System receives increase in funding through Congressional add. The 2013 Season A MIXED 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Seaway experiences dip in tonnage while some ports break records. LOOKING AT THE PORTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 2013 season results include new cargoes, some records set. Interview MOVING THE GAMUT OF CARGO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 European-based carrier establishes monthly feeder line and opens office in Cleveland. Ports EXPANDING ROLES FOR PORTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Duisport transforms its inland port into a conglomerate of businesses. Shipbuilding UNVEILING THE NEWBUILDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 New self-unloaders, bulkers sail into the system. Safety EXCEPTIONAL PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Study details shipping performance compared to other transportation modes. Propulsion REPOWERING PERSPECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 A look at what shipowners are considering—then and now. Security MARITIME SECURITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 It may be time to recalibrate. Guardians DOZENS OF DRILLS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 U.S. Coast Guard Cutter Hollyhock’s voyage to proficiency. GREAT LAKER J A N U A RY – M A R C H 2 0 1 4 Great Lakes/St. Lawrence Seaway D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Great Lakes Maritime Research Institute 2 www.greatlakes-seawayreview.com Business and Editorial Office 221 Water Street Boyne City, Michigan 49712 USA (800) 491-1760 FAX: (866) 906-3392 harbor@harborhouse.com www.greatlakes-seawayreview.com www.greatlaker.com EDITORIAL AND BUSINESS STAFF Jacques LesStrang Publisher Emeritus Michelle Cortright Publisher Janenne Irene Pung Editor 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; Stephen Brooks, President, Chamber of Marine Commerce; Joe Cappel, Director of Cargo Development, Toledo-Lucas County Port Authority; Rick Dystra, Member of Parliament, St.Catharines, Ontario; Steven A. Fisher, Executive Director, American Great Lakes Ports Association; Anthony G. Ianello, Executive Director, Illinois International Port District; 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; 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. © 2014 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 moves through the ice. Photo by Robert Welton. Great Laker Cover: View from the pilothouse of Algoma Equinox in Toronto. Photo by Janenne Irene Pung. 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 42 JANUARY-MARCH 2014 NUMBER 3 229 Voss Kovach Hall 1305 Ordean Court Duluth, MN 55812 (218) 726-7446 A University of Wisconsin – Superior and University of Minnesota Duluth Consortium Research Institute Great Lakes Maritime The Great Lakes Maritime Research Institute brings together the strengths of the two host universities, along with the research capabilities of other Great Lakes Universities. Established in 2004, the Institute has been designated by the U.S. Department of Transportation’s Maritime Administration as the National Maritime Enhancement Institute for the Great Lakes. Learn more about us at: www.glmri.org Supporting Sustainable Maritime Commerce on the Great Lakes Photo by Chris Benson 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, 2014 3 DATELINE Port of Oswego appoints Executive Director Zelko Kirincich began his duties as the Executive Director & CEO for the Oswego Port Authority January 6. Kirincich comes from the Port Authority of Tampa, Florida, where he worked from 1996-2013. He most recently served there as Deputy Port Director and Chief Operating Officer. Prior to 17 years at the Port of Tampa, he worked for 14 years at the Port Authority of New York and New Jersey, where he specialized in engineering, project management and facilities management. Prior to his appointment to the Port of New York and New Jersey, he worked as a design engineer at the Syska Hennessey Engineering Group in New York City. While at the Port of Tampa, Kirincich led a team which increased shipping tonnage and diversified types of materials handled. As an example, aggregate and cement business grew from two to five million tons in less than four years. Kirincich received a bachelor’s degree in engineering from Manhattan College and a master’s degree in business administration from Manhattan College/Fordham University. . The Coast Guard Cutter Mackinaw, a 240-foot icebreaker home ported in Cheboygan, Michigan, passes through the Poe Lock. The Mackinaw was the first ship through the Poe lock since it closed for annual maintenance in January. Ice wreaks havoc with system fleets Below freezing temperatures and early ice left ships stranded throughout the Great Lakes/St. Lawrence Seaway system in 2013. As a result, both the U.S. Coast Guard and Canadian Coast Guards (CCG) have been critical to keeping crew aboard the ships safe and cargo moving. Between the Seaway and the Lake St. Clair and Detroit River regions, more than two dozen ships were stranded in the ice in January, resulting in severe financial losses for Canadian industries and their trading partners overseas. December ushered in firm ice, the kind typically found in the spring. In addition to blockages in the harbors and channels, the ice made lock passage difficult. To meet demand, U.S. icebreakers were called to the Seaway to help deal with what industry stakeholders are calling a “good, oldfashioned winter.” Yet, with the pull of U.S. resources into the system, some U.S.-flag shipowners are concerned that the pressure will stretch the U.S. icebreaking fleet thin and cause additional delays in the Great Lakes. According to Lake Carriers’ Association, voyages scheduled to take a few days stretched into more than a week. Delays were experienced underway and at the loading docks. System stakeholders on both sides of the border expressed concerns over the break-out. According to Nicole Trepanier, President of the St. Lawrence Economic Development Council, about one-third of the CCG’s vessels committed to the system are operating at a limited capacity, missing engines, etc., and there is no fleet renewal plan in place for regional icebreakers. All available resources were involved in the spring breakout. Even though the locks opened, ships were unable to get through the ice to begin the season on time. . Zelko Kirincich Hands-free mooring expands During the system’s winter closure, the St. Lawrence Seaway Management Corporation (SLSMC) moved forward on implementing hands-free mooring in the locks. Hands-free mooring is designed to allow lakers and salties to move through the locks without special fittings or having to tie up to the walls. The technology is being used at a Beauharnois Lock in the Montreal/Lake Ontario section. Within five years, all 13 Canadian locks will be equipped with the custom technology, which uses large magnetic pads on arms that move up and down to attach to a ship’s side to provide stabilization. The technology is expected to lower operating costs and increase safety, according to Terence Bowles, President and CEO of the SLSMC. “We cannot stand still,” Bowles said. “We need to reshape how we do business.”. Seaway tolls increase St. Lawrence Seaway Management Corporation increased Seaway tolls by 2.5 percent for the 2014 season to help cover operating costs and infrastructure investments. The revised tariff includes the following incentives: • A New Business Incentive offering a 20 percent discount on cargo tolls for three seasons for any commodity/origin/destination combinations approved as new business • A Volume Rebate Incentive 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 • A Service Incentive offering an additional 20 percent discount on cargo tolls for new business export cargo for a regular service in the Great Lakes • A new Gateway Incentive for which was details have not been finalized. . SOURCE: U.S. COAST GUARD, CADET JONATHAN YOUNG Donjon Shipbuilding & Repair D A T E L I N E large-scale iron ore transshipment operation, which was performed for Cliffs Natural Resources in December 2013. Once loaded, the CSB Year, owned by China Shipping Bulk Carrier Company, set sail for China where her iron ore cargo was delivered to Wuhan Iron and Steel Company (WISCO). . GLMA receives Maritime Administration grant The Great Lakes Maritime Academy in Traverse City, Michigan is receiving a $1 million grant from the U.S. Department of Transportation for education and training. The grant was made possible by the sale of obsolete vessels from the Maritime Administration’s National Defense Reserve Fleet, which were purchased for recycling. The National Maritime Heritage Act requires 25 percent of the sales be distributed to maritime academies for facility and training ship maintenance, repair, modernization and for the purchase of simulators and fuel. “Shipping is a major driver of the Great Lakes economy and trained crews are essential to the safe and efficient operation of our merchant fleet,” said Senator Carl Levin (D-MI). “As the only freshwater institution of its kind, the Great Lakes Maritime Academy is essential to the region’s economy and to continuing our maritime heritage. I’m pleased that this federal support will help it fulfill its vital mission.” The Great Lakes Maritime Academy trains deck and engineering officers for the commercial shipping industry. It is the only maritime academy in the U.S. to offer graduates the opportunity to be licensed on the Great Lakes and at sea. The California Maritime Academy, Maine Maritime Academy, Massachusetts Maritime Academy, SUNY Maritime College and Texas Maritime Academy and the U.S. Merchant Marine Academy in Kings Point, New York are also receiving $1 million each from the program. . TWIC cards expiring, renewal process in place The first round of Transportation Worker Identification Credential (TWIC) cards will expire on or before December 31, 2014. Mariners who are U.S. citizens or U.S. nationals may replace their expiring TWIC with a three-year Extended Expiration Date (EED) TWIC for $60. TWICs are required for workers needing unescorted access to secure areas on ships and in ports regulated by the Maritime Transportation Security Act and those hold- CSL makes transshipment history in North America Canada Steamship Lines (CSL) completed the first loading of a Chinamax class drybulk vessel in North America. During the historic transshipment in the Bay of SeptÎles, 302,264 metric tons of iron ore were loaded by the CSL Spirit onto the CSB Years, one of the largest vessels in the world. “We are very proud of the key role CSL has played in this record-breaking achievement, and are grateful to the dedicated teams, both on the ground and onboard the CSL Spirit and CSB Years, for carrying out this complex operation,” said Louis Martel, President of Canada Steamship Lines. “This massive undertaking highlights the flexibility, reliability and efficiency that can be expected from CSL’s transshipment services and marks a significant milestone for CSL and for shipping in Canada.” Equipped with a telescopic, centermounted discharge boom, the Panamaxsized CSL Spirit is well suited for the 4 www.greatlakes-seawayreview.com Duluth Seaway Port Authority REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW January-March, 2014 5 REGIONAL CALENDAR D A T E L I N E ing a Coast Guard-issued license, Certificate of Registry, Merchant Mariner Document or Standards of Training, Certification and Watch-keeping for Seafarers endorsement. The U.S. Coast Guard considers the EED TWIC equivalent to a standard card and will allow port and vessel operators to accept it just as they accept TWICs issued through the standard enrollment process. To apply for an EED online, go to https://universalenroll.dhs.gov or call (855) 347-8371 Monday-Friday from 8 a.m. to 10 p.m. One trip to an enrollment center is required to pick up or activate the card. The five-year standard TWIC costs $129.75 and requires two visits to an enrollment center. . Green Marine enters sixth evaluation year Canadian and U.S. ports, shipowners, terminals, shipyards and the Seaway corporations participating in Green Marine are reviewing in detail their environmental performance for 2013. To receive certification, participants must complete a process of evaluation, verification and publication of their annual environmental performance results in accordance with the new certification policy adopted by Green Marine in 2013. The self-assessments are reviewed by an independent auditor. In addition, Caroline Denis is serving as Acting Program Manager, replacing Francoise Quintus, who is on maternity leave. . MAY 1 Windsor Marine Night 2014 St. Clair Centre for the Arts Windsor, Ontario, (519) 258-5741 wpa@portwindsor.com www.portwindsor.com 7-9 Mari-Tech 2014 Exhibition and Conference Niagara Falls, Ontario (613) 283-2697 ext. 3 mc@creativerelationsplanners.com www.mari-tech.org/index.php/mari-tech-2014 12-15 Breakbulk Europe 2014 Antwerp, Belgium Joanna Lenck, (973) 220-4827 events@breakbulk.com www.breakbulk.com 14-15 LNG Canada Export and Infrastructure Conference Delta Bow Valley Hotel Calgary, Alberta www.ibcenergy.com/event/LNG-Export-and- Infrastructure-Canada-Conference JUNE 1-4 49th Annual Canadian Transportation Research Forum Conference St. Clair College Centre for the Arts Windsor, Ontario, (519) 421-9701, www.ctrf.ca 11-13 2014 Supply Chain Management Association National Conference, Shaw Conference Center Edmonton, Alberta portal.scmanational.ca/mpower/event/ loadevent.action?e=31#home 10-12 Green Tech 2014 St. John, New Brunswick (418) 649-6004 www.green-marine.org/annual-conference 18-20 Great Lakes and St. Lawrence Cities Initiative 2014 Annual Meeting & Conference Thunder Bay, Ontario www.glslcities.org/annual-meetings/2014.cfm The Port of Duluth delivers one heavyweight performance after another when it comes to moving dimensional equipment for oil and gas production, wind energy cargo, and other huge and heavy industrial components. Located at the western tip of the Great Lakes/Seaway system, Duluth anchors a fast, flexible multimodal freight network in and out of North America’s heartland. Strategic location. Award-winning service. 218.727.8525 | www.duluthport.com THE BIG THE WIDE THE HEAVY Fednav I C E B R E A K I N G GREAT LAKES/SEAWAY REVIEW January-March, 2014 7 REAR ADMIRAL FRED MIDGETTE Commander Ninth Coast Guard District LORNE THOMAS Chief External Affairs Ninth Coast Guard District The prolonged arctic-like weather across the northern half of the country has produced what will surely be remembered as the historic winter season of 2013- 14. While the above-average snowfall and ice coverage amounts are generally good for lake levels, the unremitting cold and winds produced ice conditions that have not been present on the Lakes since the mid-1990s and could rival the benchmark winter of 1977-78 to which all Great Lakes severe winters are compared. The surprising early burst of cold and snow that hit the Great Lakes in October was indeed a harbinger of things to come for the U.S. and Canadian Coast Guards. The ice generated during the early onset of extreme cold weather challenged both countries’ cutters and aids to navigation teams (ANTs) as they hurried to replace traditional buoys with sturdier winter markers. Once that work was complete, the buoy tenders shifted their mission focus to icebreaking. Operation Taconite, the name of the binational icebreaking operation for Lake Michigan, Lake Superior, the Mackinac Straights and the Sault St. Marie area, commenced on December 6—the earliest start on record. Operation Coal Shovel manages icebreaking operations in Lake Huron and Lake Erie, including their connecting Detroit and St. Clair Rivers, as well as Lake Ontario and the Seaway. Rapid ice growth in the northern reaches of the Great Lakes immediately impacted shipping traffic as the “salties” hurried to complete their last voyage and exit the A challenging season Historic, severe winter presents difficult spring breakout The crew of Coast Guard Cutter Biscayne Bay breaks ice in the St. Marys River in the vicinity of Paul R. Tregurtha as she transits upbound December 15, 2013. The Biscayne Bay, homeported in St. Ignace, Michigan is part of Operation Taconite, which is an icebreaking operation designed to keep commercial traffic moving during the winter shipping season. SOURCE: U.S. COAST GUARD, CAPT. JOSEPH McGUINESS Adonis 8 www.greatlakes-seawayreview.com Lakes prior to the closure of the Seaway. The brutal cold that accompanied the first “polar vortex” in early January significantly exacerbated already-difficult conditions. The U.S. and Canadian lakers struggled to complete their last runs before the mid-January Soo Locks closure, which ends the shipping season for a large portion of the two countries’ domestic fleets. In addition to the scheduled drydock and maintenance planned for the laid-up vessels, several lakers are having to repair hull damage incurred while transiting through this year’s thick ice. Despite the moniker of the “closed season,” some vessels continue to operate through the winter months moving critical road salt, heating oil and coal throughout the region. These movements usually require escorts for a good portion of their voyages and direct assists to break out beset ships are commonplace. For the first time in nearly 20 years, the Great Lakes are almost completely frozen over; only Lake Ontario is putting up any noteworthy resistance. Needless to say, this year’s spring breakout will be challenging for the U.S., Canadian and foreign-flag shipping industry, as well as the businesses that depend on the delivery of raw materials and other cargoes. Absent an extended warming period, both the U.S. and Canadian Coast Guards are faced with extremely challenging conditions, well above what we’ve seen in the recent past. In anticipation of severe conditions, we expect that multiple cutters will be needed to break out and maintain the critical waterways and in some cases escort vessels across the completely frozen lakes; as a result, there will likely be more convoys. In addition, many harbor areas and connecting I C E B R E A K I N G SOURCE: U.S. COAST GUARD, LT. MICHAEL PATTERSON Despite the moniker of the “closed season,” some vessels continue to operate through the winter months moving critical road salt, heating oil and coal throughout the region. The crew of Coast Guard Cutter Katmai Bay escorts Algo Steel through the Straits of Mackinac February 7, 2014. Andrie GREAT LAKES/SEAWAY REVIEW January-March, 2014 9 waterways normally broken out by commercial icebreakers may prove to be too difficult for them this year, and that may increase the Coast Guards’ workload. Fortunately, this past summer’s permanent homeport change of the U.S. Coast Guard Cutter Morro Bay to Cleveland provides an additional icebreaker for the Lakes. This cutter’s arrival on the Great Lakes could not have come at a better time since all six of our icebreaking tugs are at or beyond their 30-year service life. These cutters are vital to the icebreaking mission, but their age requires an increasingly greater effort (and more maintenance money) to keep them running. In addition to icebreaking, the thaw that comes with warmer weather is likely to increase the threat of coastal flooding. Flooding events place an additional demand signal on the icebreaking fleet and adds a flood relief mission that impacts the maritime transportation system. For the first time in several years, the St. Lawrence Seaway will require icebreaking resources to initially open up the Seaway and maintain it through the early part of the season—yet another demand on the binational icebreaking fleet. A secondorder consequence of an extended and difficult ice season will be the delay in restoring the aids to navigation that were removed in the fall. It’s expected our multimission vessels will be breaking ice well past the time they would shift over to their buoy tending roles. In light of all of this, both the U.S. and Canadian Coast Guards ask for your patience and cooperation this spring as we work as hard and as quickly as we can to systematically open the waterways that make up the Great Lakes’ maritime transportation system. . I C E B R E A K I N G For the first time in nearly 20 years, the Great Lakes were almost completely frozen over. SOURCE: JERRY BIELICKI A second-order consequence of an extended and difficult ice season will be the delay in restoring the aids to navigation that were removed in the fall. 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 Ports of Indiana GREAT LAKES/SEAWAY REVIEW January-March, 2014 11 When Congress passed the Fiscal Year 2014 Consolidated Appropriations Act January 16, $94.9 million was designated for the Great Lakes Navigation System’s operations and maintenance (O&M) budget. The bill included the President’s budget, as well as an additional $270 million toward 2014 O&M funds for ongoing work, which was allocated by the U.S. Army Corps of Engineers Headquarters— increasing funding for the Great Lakes by $25 million—about $5 million less than regional representatives and senators had requested. Great Lakes legislators have taken the position that the region should receive 15 percent of all dredging funding. The Corps designated about 12.5 percent of the potential funding to the region. “Despite the benefits the Great Lakes Navigation System provides, inadequate funding and maintenance has resulted in a tremendous backlog of dredging projects that have forced vessels to light-load, grounded vessels, impeded navigation and closed harbors and threatened other harbors with closure,” said a letter sent to Assistant Secretary of the Army for Civil Works, Jo- Ellen Darcy, by 39 House members. “To further exacerbate the problem, the water levels of several of the Great Lakes have reached record lows in the last few years. The impacts of the lack of dredging and other required maintenance, including lock improvements, breakwater repairs and construction of dredged material disposal facilities, have economic consequences that hinder economic growth.” “The Great Lakes serve a vital transportation function for hauling raw materials for our manufacturing, building materials for roads and bridges, coal for powering our homes and businesses, equipment for wind turbines and food for domestic and international consumption,” said a letter to Darcy from 13 senators. “Providing funding to adequately maintain this infrastructure needs to be prioritized.” Dredging and asset renewal D R E D G I N G Great Lakes Navigation System receives increase in funding through Congressional add W.W. Williams 12 Original funding. In the original budget, the Great Lakes Navigation System was allotted $94.9 million for operations and maintenance, including: • $39.9 million to dredge 18 projects to remove 3.1 million cubic yards • $10.6 million for dredged material maintenance • $1.6 million for renewing the locks in Sault Ste. Marie, Michigan Additional funding for ongoing work is divided by designating $25.72 million for navigation maintenance, $128 million for deepdraft harbors and channels, $42 million for inland waterways and $40 million for small, remote or subsistence navigation. The original 2014 budget represents an increase over 2013 funding— nearly $3 million—but it falls short of the amount needed to retain the transportation system’s current depths and widths. Each year, 3.3 million cubic yards of sediment must be dredged to maintain the system. The 2014 budget will clear about 3.1 million cubic yards, according to Mike O’Bryan, Business Line Manager for the Great Lakes Navigation Team. Congressional add. With the Great Lakes being apportioned $25 million beyond the President’s budget, an additional $13.8 million is being spent on dredging. The funding will pay for the removing about another 1 million cubic yards of dredged material, for a total of about 4.1 million cubic yards to be removed this year. Funding has not been sufficient to do more than minimal maintenance since FYs 2008 and 2009. About $13.8 million of the additional $25 million is being spent to clear the harbors and channels. A breakdown of where the original appropriation and the Congressional appropriation beyond the President’s budget follows: PROJECT ORIGINAL $ ADDITIONAL $ Black River, Port Huron, MI $0 $1,000,000 Buffalo Harbor, NY 100,000 0 Burns Harbor, IN 170,000 0 Calumet Harbor and River, IL/IN 78,000 367,200 Cheboygan Harbor, MI 0 610,000 Cleveland Harbor, OH 225,000 0 Detroit River Channel, MI 195,000 0 Duluth-Superior, MN/WI 110,000 390,000 Erie Harbor, PA 0 1,520,000 Fairport Harbor, OH 200,000 0 Grand Haven Harbor 50,000 330,000 Green Bay Harbor, WI 150,000 0 Holland Harbor, MI 125,000 0 Huron Harbor, OH 0 1,480,000 Irondequoit Bay Harbor, NY 0 350,000 Indiana Harbor, IN 217,000 0 Kewaunee Harbor, WI 0 800,000 La Pointe Harbor, WI 0 190,000 Leland Harbor, MI 0 260,000 Lorain Harbor, OH 150,000 0 Manitowoc Harbor, WI 0 590,000 Menominee Harbor, MI/WI 0 460,000 Monroe Harbor, MI 100,000 510,000 Rochester Harbor, NY 0 2,200,000 St. Joseph Harbor, MI 0 1,500,000 St. Marys River, MI 30,000 0 Saginaw River, MI 210,000 700,000 Sandusky Harbor, OH 140,000 0 Toledo Harbor, OH (Project 1) 150,000 0 Toledo Harbor, OH (Project 2) 600,000 0 Waukegan Harbor, IL 75,000 537,200 $3,075,000 $13,794,400 Our factory trained and authorized service technicians know that any day on the water is a good day. They also know everything there is to know about what powers your yacht. Their heroics are well documented in marinas from Savannah to Saginaw. Our goal is simple. We want to make sure you’re ready for the open water. On those days that are perfect. And on those that are a little rough. GREAT LAKES LOCATIONS: Cleveland, OH 800.321.0459 Toledo, OH 800.758.8785 Dearborn, MI 800.468.6332 Grand Rapids, MI 800.701.9993 Saginaw, MI 800.906.4235 OTHER LOCATIONS: Atlanta and Savannah, Georgia; Charleston and Columbia, South Carolina Canden 13 In addition to dredging dollars, $11.2 million of the additional $25 million is being directed for improvements at locks, confined disposal facilities and hydropower work, the most notable of which designates $5.5 million for Soo Asset Renewal. There is also $400,000 allocated for work on confined disposal facilities at Detroit and $31,000 set aside for miscellaneous work at Toledo Harbor. Lake levels. For years, low lake levels have hindered commercial vessels from carrying their maximum tonnage. Although Lakes Michigan- Huron are still experiencing levels below their long-term average, the remaining Great Lakes have experienced significant increases in water levels over the winter. The February level for Lake Superior was 12 inches above its level a year ago and an inch below its long-term average, according to the Corps. Lake Superior is forecasted to be between two and three inches above last year’s levels through August. Lakes Michigan-Huron are 13 inches above last year, but still 13 inches below the long-term average for February. Through August, the Lakes are expected to be eight to 14 inches above last year’s levels, but still nine to 13 inches lower than the long-term average. Extensive ice buildup in the St. Clair River and Lake St. Clair has been impacting the water level by restricting water flow into the lake. As of the end of February, the lake was three inches above its level a year ago and seven inches below its long-term average; however, it is expected to increase two to three inches through August. Lake Erie was three inches higher this February than in 2013 and two inches below its long-term average. It’s projected to be two to six inches above levels a year ago from March through June and three to four inches below last year’s levels in July and August. Lake Ontario is projected to be two inches above the long-term average through May and to be five to seven inches below the longterm average from June to August. With lake levels showing at least short-term improvements and overall funding up for maintenance and clearing the backlog of silt and sand, carriers are calculating loads and hoping for the trend to improve business. As far as funding, Jim Weakley, President of Lake Carriers’ Association, is encouraged. “We really worked hard as a region,” he said. “No region in this country has worked harder to expand the Corps’ funding. We’ve been heard and we’ve been successful in making our case from a regional perspective. We’re clearly not where we were five years ago.” Janenne Irene Pung . 3.3M Annual Requirement . Appropriation – Additional Funds for Ongoing Work . ARRA (Stimulus) . L. Superior Regional Provisions . Michigan Regional Provisions . Commercial Regional Provisions . Energy & Water Adds . President’s Budget 6.0 5.0 4.0 3.0 2.0 1.0 0.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 Quantity Dredged (millions of cubic yards) DREDGING FUNDING TRENDS 2007-2015 SERVING YOU • Experienced staff • Competitive prices • Creative, value-added time-saving solutions • Reliable, dependable service and follow-up COMMITTED TO YOU Contact us with questions regarding bunker prices, availability, congestion and port/ delivery options. We’ll always be here for you —365 days a year… CANDEN Marine Fuel Services Ltd. 24 hours a day, 7 days a week 282 Elm Street St. Lambert, Quebec Canada J4P 1W3 Tel.: 450-259-1791 Fax: 450-465-7680 E-mail: bunkers@canden-mtl.com U.S. / Canadian Great Lakes – St. Lawrence Seaway system SOURCE: U.S. ARMY CORPS OF ENGINEERS T H E 2 0 1 3 S E A S O N Edgar B. Speer approaches the Port of Duluth-Superior. SOURCE: ROBERT WELTON, COURTESY DULUTH SEAWAY PORT AUTHORITY T H E 2 0 1 3 S E A S O N GREAT LAKES/SEAWAY REVIEW January-March, 2014 15 Although the Great Lakes/St. Lawrence Seaway system was open for business a day longer than in 2012— 286 days from March 22 to January 1 —delayed grain movements and the early onset of ice squeezed potential tonnage out of 2013 season totals. The locks remained open two days longer than planned to accommodate vessel delays caused by the early ice. “Mother Nature did all she could to short-circuit the 2013 shipping season— from start to finish,” said Vanta Coda, Executive Director of the Duluth Seaway Port Authority. “Record snowfalls and gale-force winds in April, coupled with winter storms and the second-earliest and thickest ice formation in recent history drastically reduced bulk cargo tonnage totals, primarily shipments of iron ore.” Interlake cargo for the 2013 season fell just short of 2012, dipping from 81.1 million to 80.9 million metric tons, or from 89.5 million to 89.2 million nets tons. According to the St. Lawrence Seaway Management Corporation (SLSMC), 37 million metric tons of cargo moved through the Seaway in 2013, down 2 million metric tons from 2012’s total. There were 3,900 transits in 2013, 183 fewer than in 2012. While U.S. grain rebounded from 2012, a slow, record-breaking harvest in Canada delayed deliveries. When the grain began to move, it peaked December’s numbers to 4.4 million metric tons, exceeding the 2012 volume by 130,000 metric tons, an increase of 20 percent over the five-year average. “Once again, marine carriers moving grain through the Seaway proved to be an invaluable part of the transportation network, enabling farmers to reach markets that they may otherwise not have been able to profit from,” said Terence Bowles, President & CEO of the SLSMC. The early ice caused carriers to shut down, leaving a portion of the grain harvest in storage at the docks, as well as iron ore and coal. “When the new season opens, a large amount of grain, now in storage, will be ready to ship,” Bowles said. A high point in the Seaway in 2013 was the 16 percent surge in moving liquid bulk, totaling 3.7 million metric tons. Specifically, double-hulled tankers moved petroleum distillates between distribution locations to ensure adequate supplies. “This is a key market we see growing,” Bowles said. “We see the oil sector as an opportunity moving forward.” A breakdown of other major commodities moved during the 2013 season includes: • Overall, grain was down 3.2 percent • Iron ore fell 4 percent, which is being attributed to challenges in the North American steel industry resulting in a decrease in exports; an increase in Labrador ore which has historically moved upbound into Lake Ontario is now moving directly from the Gulf of St. Lawrence to export markets • Coal dipped 3 percent, with less coal being used for energy production in North America • Dry bulk was down 12 percent, mostly due to a lag in the construction industry’s demand for cargoes such as cement and aggregates; the loss represents 1.23 million metric tons • General cargo is down 20 percent, partially due to reduced importing of steel products and fewer wind turbines moving because of the delayed implementation of the U.S. tax credit “The slow European and North American economies contributed to our moderate results,” said Bruce Hodgson, Director, Market Development for the SLSMC, adding that a modest increase is expected for the 2014 season. Interlake trade. Like in the Seaway, carriers in the Great Lakes experienced delays and cargo cancellations due to the early ice. With the 2013 season down only 0.4 percent, December delays for U.S.-flagged carriers are believed to have dashed an A MIXED 2013 Seaway experiences dip in tonnage while some ports break records Seaway Traffic Results 37.06 39.06 37.54 36.55 30.71 2013 2012 2011 2010 2009 Total Cargo (in million metric tons) SOURCE: ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION 3,900 4,083 4,227 3,924 3,632 2013 2012 2011 2010 2009 Number of Transits SOURCE: ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION T H E 2 0 1 3 S E A S O N 16 www.greatlakes-seawayreview.com opportunity to improve upon the past season’s tonnage. The loss of December shipments created a 21 percent drop during the last month of the year from 2012 to 2013. The fleet moved a total of 80.9 million metric tons of cargo in 2013, according to Lake Carriers’ Association. The breakdown of cargo is as follows: • Iron ore – 39.8 million metric tons were moved, a decrease of 3 percent from 2012 • Coal – 16.5 million metric tons were transported, a 3.7 percent increase over 2012 • Limestone – 20 million metric tons were hauled in 2013, a 1.5 percent increase over the year prior • Shipments of cement, salt and grain were largely in line with 2012 Much of the remainder of interlake trade is done by Canadian-flagged vessels. Expectations for 2014. With 2013 in the books and the ships beginning to sail, the industry has set its sights on the success of the current season. “We expect to have a strong start to the season as there is a large carry-over crop of grain ready to ship,” Hodgson said. “Iron ore and coal volumes should remain at similar levels to 2012, with increases in aggregates, cement and salt.” New Canadian-flagged vessels will continue to sail into the system. Ship repowerings are modernizing the U.S.-flagged fleet. Tug-barge combinations grow as an option for carriers. Federal regulations draw interest and action as the system continues to familiarize elected officials with its value. “We need to use our creativity to develop new business opportunities as we move forward,” said Betty Sutton, Administrator for the Saint Lawrence Seaway Development Corporation (SLSDC). Asset renewal programs by both the SLSDC and the SLSMC bring new technology to the locks and other system assets. A hands-free mooring system has been approved by SLSMC and is being installed at the Canadian locks over the next five years. Other areas to watch—energy-related cargo, which moves throughout the system as bulk and break-bulk cargo—and changes in federal funding, whether through appropriations, grants or private investment. “An economic driver for both the U.S. and Canadian economies, are the infrastructure investments involving technology and new ships,” said Joe Starck, President of Great Lakes Shipyard. “There is a lot of economic development potential and emerging market opportunities. The epicenter is changing every landscape.” Janenne Irene Pung . U.S.-Flag Movement on the Great Lakes 2009-2013 and Five-Year Average (net tons) Commodity 2009 2010 2011 2012 2013 Average 2009-2013 Iron Ore 24,031,087 42,028,418 47,224,743 45,189,027 43,852,041 40,465,063 Coal 20,674,888 21,539,866 20,239,327 17,579,948 18,237,640 19,654,334 Limestone 17,067,232 20,410,266 21,434,839 21,794,394 22,111,494 20,563,645 Cement 2,865,323 2,782,259 2,817,846 3,183,388 3,129,748 2,955,713 Salt 1,260,901 1,391,239 1,452,134 1,020,157 1,004,837 1,225,854 Sand 262,805 225,593 332,172 336,316 371,279 305,633 Grain 304,507 306,872 283,200 371,406 447,653 342,728 Total 66,466,743 88,684,513 93,784,261 89,474,636 89,154,692 85,512,970 Seaway Traffic Results December, 2013 (thousands of metric tons) Montreal/Lake Ontario Welland Canal Combined Traffic 2012 2013 2012 2013 2012 2013 Grain 8,351 8,145 7,560 7,077 8,619 8,374 Iron Ore 10,281 8,751 6,264 6,793 10,281 9,923 Coal 2,105 1,970 4,557 4,454 4,596 4,454 Dry Bulk 5,668 4,684 7,996 7,249 10,173 8,946 Liquid Bulk 2,949 3,355 2,310 2,488 3,304 3,699 General Cargo 2,000 1,620 1,290 1,177 2,049 1,623 Total Cargo 31,388 28,561 29,980 29,237 39,055 37,055 SOURCE: LAKE CARRIERS’ ASSOCIATION SOURCE: ST. LAWRENCE SEAWAY MANAGEMENT CORPORATION Atlantic CAT Toromont CAT Hewitt CAT Engineering changes, maybe. The ability to burn all commonly available liquid and gas fuels, perhaps. But the real difference is in the ability to adapt to your changing business needs and that of your customers. Financial and environmental flexibility are built right in. The only thing that’s fixed is outstanding performance. With MaK dual-fuel engines and local product support you can do what all successful businesses do – hypothesize, qualify and then implement – now and in the future. In a rapidly changing world it’s an investment that makes absolute sense. DO YOU SEE THE DIFFERENCE? GREAT LAKES 1-877-MaK POWER QUEBEC, ATLANTIC CANADA AND NORTH EASTERN USA 902-468-0581 QUEBEC AND THE MARITIMES 902-468-0581 ONTARIO, NUNAVUT, MANITOBA AND NEWFOUNDLAND 1-877- CAT POWER Visit us at: marine.cat.com Cleveland Cuyahoga County Port Authority T H E 2 0 1 3 S E A S O N GREAT LAKES/SEAWAY REVIEW January-March, 2014 19 The final cargo volumes recorded at ports throughout the Great Lakes/St. Lawrence Seaway system are mixed. While traditional bulk cargoes still make up a majority of the commodities moved, new cargoes are filling in where cargo shifts have occurred. Many port executives attribute a surge in the economy and infrastructure investments for an increased flow of raw materials and general cargo in 2013 and expectations for growth in 2014. “There were clear signs of economic recovery reflected in the growth of general cargo, coal, grain and petroleum products that crossed our docks,” said Joe Cappel, Director of Cargo Development for the Toledo-Lucas County Port Authority. “We saw an increase in saltwater traffic and we were able to put our recent investments in terminal infrastructure and equipment to work to accommodate the increasing demand.” “The economic recovery seems to have taken hold in the United States and Europe should experience some growth this year,” said Melanie Nadeau, Communications Manager for the Montreal Port Authority. “The declining Canadian dollar should help our exports. Although we must remain prudent, we expect our total traffic to increase in 2014.” While the overall system experienced a decline in tonnage over the year, a number of ports either set records or welcomed new commodities through their terminals in 2013. To review port-byport tonnage totals and commodity percentages, please refer to the related graphs throughout the section. Port Calcite in Rogers City invested in a 440-ton crane in 2013 to move large modularized, fabricated metal components for Moran Iron Works. Improvements totaled $4.14 million for the year. Port Cleveland saw its overall tonnage increase by more than 20 percent over the previous season. Also in 2013, the port moved its headquarters to offices adjacent to its maritime operations. The move is expected to increase efficiencies and provide a more prominent presence for the Cleveland-Cuyahoga County Port Authority’s focus on maritime commerce. With plans to launch the Cleveland- Europe Express, a regular freight service between Cleveland and the Port of Antwerp, the port authority expects 2014 tonnage to again increase. A growing automobile industry aided Port Detroit in its increased business, according to Executive Director John Jamian. New commodities being handled at the docks included cold-rolled and hotband steel coils, aluminum slabs and press and auto fabrication equipment. The port continues to work behind the scenes to change Michigan’s ballast water law that negatively impacts exports. A new rail line was built in 2013, contributing to the port’s expectations for business growth throughout the current season. The Port of Duluth-Superior experienced a steady season, despite the worst snow and ice conditions experienced in nearly two decades. Cargo volume increased by 0.1 percent compared to 2012, with tonnage left for early delivery this season. Highlighting the 33.3 million metric ton season was a significant increase in salt shipments, running 60 percent ahead of the previous year and well above five-year averages. The increase is due to the weather that hindered iron ore movements. The breakbulk terminal handled several notable heavy-lift project cargoes in 2013, including 16 300-plus ton electrical transformers shipped from Antwerp, Germany, en route to a major transmission line in Alberta, Canada. The transformers arrived in succession aboard four Hansa heavy-lift vessels and were discharged with nearly 500 crates of smaller, related components. The transformers were eventually loaded and moved on a series of specialized, 16-axle railcars— setting a record for the highest count of independent, overdimensional trains used for a single heavy-haul project. Infrastructure improvements are a major focus at the Port of Duluth- Superior. During the last season, nearly $20 million was invested in capital projects by dock-owners, including refurbishing an aging dock wall, installing new sheet piling, upgrading facilities and constructing new buildings—all in an effort to handle additional maritime commerce and serve core industries in the future. With pent-up demand for iron ore and coal at steel miles and power plants in the lower Lakes and the need for limestone at plants on the Minnesota Iron Range and construction companies, the port anticipates a brisk early season. Looking at the ports 2013 season results include new cargoes, some records set Nicholson Terminal at the Port of Detroit receiving cargo. SOURCE: DETROIT/WAYNE COUNTY PORT AUTHORITY West Michigan Port Operators T H E 2 0 1 3 S E A S O N 20 www.greatlakes-seawayreview.com “Since those have been, in recent years, the three largest groups of commodities moving through the Port of Duluth, U.S.-flagged lakers will be trying to make up for lost time as soon as the Soo Locks open,” said Vanta Coda, Executive Director for the Duluth Seaway Port Authority. “As steel production increases so will the demand for Minnesota iron ore, with increases in pellet shipments being reflected in 2014 tonnage totals.” Seeing a 16 percent increase in overall cargo volume, the Port of Green Bay surpassed its 2013 expectations by 2.2 million metric tons. It’s the highest tonnage recorded at the port since 2007, said Port and Resource Recovery Director Dean Haen. Large shipments of salt, coal and limestone helped increase the port’s totals. “Overall, U.S. salt increased by 35 percent, foreign salt went up 84 percent and coal and limestone both increased 21 percent from last year’s total,” Haen said. The port also exported ash and sand for the first time in years. Infrastructure improvements are highlighted by the completion of the $20 million Cat Island Restoration Project, which pairs rebuilding the Cat Islands with dredged materials. The season story at the Port of Hamilton was grains and trains. The port experienced a 17 percent increase—representing 540 more railcars—transiting the port in 2013. Agricultural commodities— grain and fertilizer—continued to lead cargo diversification, representing 9.8 percent of the port’s total cargo in 2009 and 17.8 percent in 2013. “Modal choice is attracting more customers and cargo,” said Bruce Wood, President & CEO of the Hamilton Port Authority. “We’re working closely with our tenants to understand their needs for increased rail capacity and storage. We’re making sure our customers have access to the right mode, at the right time.” Ports at a Glance TOTAL TONNAGE METRIC TONS SHORT TONS Calcite (Rogers City) 2013 5,238 5,774 2012 4,190 4,619 5-year average 4,304 4,744 Cleveland 2013 3,342,812 3,684,815 2012 3,053,912 3,366,358 5-year average 2,591,637 2,856,787 Detroit 2013 421,321 464,426 2012 328,000 361,558 5-year average N/A N/A PRIMARY CARGOES Fabricated Metal Components Steel Bulk Aluminum Machinery Bulk General Cargo SOURCE: INDIVIDUAL PORTS 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 Toledo Lucas County Port Authority T H E 2 0 1 3 S E A S O N GREAT LAKES/SEAWAY REVIEW January-March, 2014 21 Steel-related cargo continues to represent the bulk of the port’s tonnage—7.35 million metric tons of the overall 10.02 million metric tons. The port is beginning to see the impact of U.S. Steel ceasing steelmaking operations in Hamilton. Overall, tonnage was down in 2013 by less than 300,000 metric tons. A C$4 million partnership between the port and Agri-Services funded the construction of two new fertilizer storage tanks, which backs expectations for agricultural products as a growing business sector. Regional growth in manufacturing is also part of the port’s plans for cargo diversification in the coming years. The Ports of Indiana-Burns Harbor recorded its’ highest shipping volume in recent history, as 2013 shipments were up 17 percent over 2012 and 23 percent over five-year averages. Total tonnage was 1.81 million metrics tons. There were increases in steel, fertilizer, limestone, coal/coke and road salt. “The port continues to be a major hub for dimensional and mega project cargo shipments, including many construction materials for industrial developments in the Chicago metropolitan area,” said Richard Heimann, Port Director. “Because of the experience of the labor force and terminal operator Federal Marine Terminals, the port has developed a strong track record for handling large cargoes and specialty shipments.” In addition to welcoming more lakers and salties into port, a large volume of barge shipments continue to move cargo through the Inland Waterway System, the Chicago locks and the southern tip of Lake Michigan, providing a year-round connection to the Gulf of Mexico and 38 states. Barges are responsible for about one-third of the port’s total shipments. Like in Hamilton, port shipments were directly impacted by increased activities in the agricultural and manufacturing sectors, Ports at a Glance PRIMARY CARGOES Coal Iron Ore Limestone Grain Grain & Fertilizer Steelrelated Aggregates Liquid General Cement Salt Limestone Coal Petroleum Products SOURCE: INDIVIDUAL PORTS TOTAL TONNAGE METRIC TONS SHORT TONS Duluth 2013 33,294,630 36,701,004 2012 33,269,291 36,673,072 5-year average 32,933,769 36,303,223 Green Bay 2013 2,216,904 2,443,715 2012 1,914,651 2,110,539 5-year average 1,940,000 2,138,481 Hamilton 2013 10,024,418 11,050,016 2012 10,303,190 11,357,309 5-year average 10,039,754 11,066,921 ……………………………… …………………………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………. …………………………………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………. ………………………………………………………………………………………………………………………. ………………………………………………………………………………………………………………………….. ……………………………………………………………………………. ………………………………………………………………………….. ………………………………………………………… …………………………………………………. ………………………………………………………… …………………………………………………………………. ………………………………………………………….. ……………….. …………………. KCBX Terminals 22 www.greatlakes-seawayreview.com specifically in the movement of fertilizer for area farmers and various by-products, raw materials and finished goods related to the steel-making industry. Investments made at the port include more than $2.8 million spread over nine capital improvement projects in 2013. “The port has invested over $20 million in the last four years as part of a strategic objective to maintain modern infrastructure and world-class, multimodal transportation connections for port customers,” Heimann said. “Part of this initiative includes mainline rail upgrades and installation of new track that is heavier than current industry standards to provide increased capacity and durability for rail traffic throughout the port.” While half of the port’s 30 tenants have forecasted 2014 to mirror the past season, the other half are expecting a slight increase in business, especially within the manufacturing industry, which will impact the port’s shipments of steel-related products. The Port of Johnstown, formerly known as the Port of Prescott, underwent a name change to better reflect its geographic location and it completed a new, 19-acre, 465- meter dock. The port also invested C$3.4 million in its C$34.73 million Marine Terminal Project. An additional C$10-12 million will be invested in 2014 to rehabilitate Pier 1 Harbourfront dock. Tonnage was up 25 percent, mostly due to increased demand for salt, and grain shipments increased 6 percent—both contributing to the port’s highest year of drybulk cargo on record. The salt increase is attributed to the construction occurring to the bridges in Toronto, Ontario. A new commodity moving through the port is a shipment of 22,000 metric tons of bauxite from the Dominican Republic and 5,000 metric tons of calcium chloride, liquid bulk brought in by barge. “We added one new customer in 2013, Morris Chemicals, who is expanding its calcium chloride business into Eastern Ontario and has recently completed the construction of an 8 million liter liquid bulk tank with a pipeline to the new Pier 3 dock,” said Robert Dalley, General Manager. “We also see new cargo such as scrap steel, raw sugar and project cargo as a real possibility in 2014.” With a 38 percent increase in tonnage, the Port of Milwaukee moved 2.6 million metric tons. The greatest factor in growth was the doubling of salt deliveries in 2013—making it the highest season of salt imports since 2007 and the second highest amount in the port’s history. Tonnage increases also occurred with steel, limestone T H E 2 0 1 3 S E A S O N Grain is loaded at the Port of Hamilton. SOURCE: HAMILTON PORT AUTHORITY DOCK SITE 100th St. and Calumet River, Chicago, IL 60617 Tel: (773) 375-3700 • FAX: (773) 375-3153 • E-mail: kramert@kochind.com Coal Blending STOCKPILING Transloading The most modern, innovative and customer-oriented transfer terminal in mid-continent North America will save you time and money in the movement, storage and transfer of your dry bulk cargo. With ease and dispatch. Worry free. KCBX will receive your cargo from rail cars, trucks and river barges. We will transfer it to any land or water mode or store it for you. We are ideally positioned to blend Western, Eastern and Illinois Basin coals as well as petroleum coke prior to transloading product to lake vessel, ocean vessel or river barge. We utilize our high speed bottom dump car unloading station or by blending from ground storage while dumping a single commodity from rail cars. Our portable material handling equipment can also provide customized on-site blending and stockpiling services at our 46 acre facility. We offer remarkably quick barge turn-around. If you are moving the products we most usually handle—steam coal, petroleum coke, metallurgical coal, taconite pellets or any other dry bulk commodity—call Tom Kramer’s marketing office at (773) 933-5302. Let us show you how it’s done best! Port of Toronto GREAT LAKES/SEAWAY REVIEW January-March, 2014 23 and liquid bulk cargoes while a decrease was seen in grain and general cargo. A new commodity delivered to Milwaukee involved Fednav bringing in foundry coke from Spain as a trial furnace fuel for nearby foundries. The product delivered in bulk and in containers. The port continues to invest in rail and road improvements, as well as additional cargo-handling machinery. All but one road at the port has been repaved or rebuilt. Significant rail improvements were made to port-owned tracks and rail leading into the port owned by both Union Pacific and Canadian Pacific. The boom to the revolving gantry crane was removed and rebuilt. Construction crews began work on I-794, which leads directly into the port—a $236 million reconstruction project to ensure the port’s inland connections for the next 25 years or more. With the upgrades in place, the port expects tonnage totals to increase again in 2014. The Port of Monroe produced the highest tonnage numbers on record and saw the first Seaway shipments delivered in many years. Two McKeil Marine barges of project cargo delivered components for DTE Energy expansion of its Selective Catalytic Reduction system, which were installed to reduce emissions at the Monroe Power Plant. One component came from Halifax, Nova Scotia. DTE Energy also received more than 200,000 tons of additional coal in 2013, the port’s primary cargo. “There’s a positive trend in marine versus rail pricing for bulk transport,” said Paul LaMarre, Port Director. “2013 was a year for the Port of Monroe to regroup and plan for our organization’s rejuvenation. 2014 will be the most productive season in the Port of Monroe’s history. While current cargoes are trending up, we also see the potential to capitalize on over half a million tons of new cargo. This will be coupled with more than $2 million in port improvements and Barnhart Crane & Rigging installation of a 400-ton crane.” A $250,000 port security grant is part of the infrastructure improvement plan for 2014. With total tonnage down by less than 1 percent, the Port of Montreal is experiencing an increase in container traffic. Many of the containers are being transshipped through the port en route to Mediterranean, European and Caribbean ports, which explains the diversification of the port’s markets over the past several years. Yet, bulk continues to top the port’s area

Maritime Editorial