Vol.42 No.4 APR‑JUN 2014

V O L U M E 4 2 A P R I L – J U N E 2 0 1 4 N U M B E R 4 Regional economic development . An LNG supply chain . Vessel recycling . Lake levels G LGREAT LAKER Interlake Steamship Aself-unloading fleet of various vessel sizes and capacities ranging from 17,000 to 68,000 gross tons means the Interlake Steamship team will safely and reliably deliver your cargo. Interlake’s continuous improvement program keeps vessels operating at peak performance. The fleet is certified to the ISO 9001:2008 standard, and has an ongoing commitment to minimize its environmental impact. Recent ship re-powerings with clean, modern diesel engines earned Interlake the 2010 Midwest Clean Diesel Initiative Leadership Award. Interlake’s knowledgeable marketing personnel and experienced vessel crews work together to deliver your cargo where, when and how you want it. Put the reliable Interlake team to work for you. 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 April-June, 2014 1 The international transportation magazine of Midcontinent North America Working to develop a regional LNG supply chain. Page 21. Corps releases 2015 dredging plans. Page 41. Seeing the tugs at work. Page 68. 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 Great Lakes People WAR-TIME SAILING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Young man’s life is impacted by feeding coal into Carle C. Conway’s boilers. Marine Photography CALLING IN THE MUSCLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Harbor tugs are powerful work horses at ports on the Great Lakes. Meet The Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Laker Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Regional Economic Development MARITIME INITIATIVE UNDERWAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Bi-national Maritime Task Force works on coordinated approach to maximize the economic benefit and competitiveness of the Great Lakes/Seaway system. MAKING PROGRESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Task Force receives green light to implement recommendations for maritime initiative. Propulsion AN LNG SUPPLY CHAIN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Liquified Natural Gas to provide benefits beyond the maritime industry. Fleets VESSEL RECYCLING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Environmentally-friendly standards a focus. Ballast Water Management IN LIMBO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Federal Appellate Court stays initial date for meeting new ballast water discharge limits, but only for Canadian Shipowners Association members. Marine Photography GETTING UNDERWAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Patience and perseverance required to free, repair ships caught in extraordinary ice. Dredging 2015 DREDGING NUMBERS IN PLAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Corps reviews benefit-cost ratio for new Poe-sized lock. Interview CREATING MOMENTUM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 U.S. Maritime Administration revamps Title XI program, develops maritime strategy. Ballast Water Management BALLAST WATER COMPLIANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Vessel owners navigate specific needs and costs as implementation of U.S. regs draws near. Lake Levels WATER LEVELS AND SAFE NAVIGATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 A bi-national partnership on the St. Marys River provides crucial information for mariners. Infrastructure WHICH OPTION? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Great Lakes and Mississippi River Interbasin Study includes eight options for addressing aquatic invasive species. GREAT LAKER A P R I L – J U N E 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Great Lakes Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Barnhart 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: Direct drive nacelles await discharge from the BBC Louisiana at Duluth. Photo by Robert Welton. Great Laker Cover: G tug Minnesota assists a laker into port. Photo by Jerry Bielicki. 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 APRIL-JUNE 2014 NUMBER 4 WHEN IT COMES TO HEAVY CARGO, BARNHART KNOWS HOW TO GET IT MOVED. BARNHARTCRANE.COM EQUIPMENT & SERVICES • 550 ton heavy lift terminal at Port of Chicago • 300 ton Great Lakes Barge Crane • 180′ x 54′ x 12′ ABS Deck Barge • Project Cargo Roll-on/Roll-off • In-House Engineering for stowage and securement • Huge inventory of Goldhofer SPMT and other heavy haul transporters • Comprehensive Project Management ANCHORS TO ANCHOR BOLTS 2 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, 2014 3 ports” where shippers pay at least $15 million a year in HMT and receive back less than 25 percent of their HMT contributions and for ports handling at least 40 million tons in 2012, with at least 25 percent of that tonnage being an energy commodity. “In coming months, Corps lawyers will be analyzing the Great Lakes Navigation System language and trying to decide how to implement it,” said Steve Fisher, Executive Director of the American Great Lakes Ports Association. “This is a process our industry will need to monitor and work with our Congressional delegation to police.” According to a letter signed by 35 members of the Great Lakes Congressional delegation and sent to Assistant Secretary of the Corps, Jo-Ellen Darcy, the intent of the Great Lakes Navigation System is to view the Great Lakes/St. Lawrence Seaway as one system for budgetary purposes. “This is important because it will ensure that when the Army Corps prioritizes its project funding, it does so in a way that considers the interdependence of the port and harbor rather than looking at each project individually,” the letter stated. “For example, it makes no sense for the Army Corps of Engineers to maintain the St. Marys River and St. Clair River navigation channels at shallower depths than the harbors they connect. Likewise, Great Lakes steel manufacturing cities not only need their harbors dredged, they also need the harbors that provide raw materials needed to make steel to be dredged as well. This designation is meant to sustain an effective and efficient operations and maintenance budget for the Great Lakes.” . James Oberstar honored Former Congressman James Oberstar died May 3 at his home in Maryland. He was 79. Oberstar was born September 10, 1934 in Chisholm, Minnesota. He grew up there—the son of an iron miner—and moved to Belgium to earn a master’s degree in European Studies from the College of Europe. He then spent four years teaching French and Creole to U.S. Military personnel and teaching English to Haitian officials. He was elected to serve Minnesota’s District 8 in the House of Representatives in 1974, at the age of 40. He remained in the position for 36 years. Oberstar played an important role as the Transportation Committee Chairman. He was instrumental in getting Congressional backing to build the new icebreaker Mackinaw for the U.S. Coast Guard, in gaining approval for a second Poe-sized lock at Sault Ste. Marie and in supporting passage of the 2009 stimulus bill. In 1999, Oberstar was named Great Lakes Legislator of the Year. In 2011, Interlake Steamship Company christened an 805-foot laker as the Hon. James L. Oberstar. At the time, the former Congressman said: “I never imagined having my name on a vessel of this significance. My heart, my family’s tradition is on that ship.” “Interlake and all U.S.-flag operators on the Lakes owe Congressman Oberstar a tremendous debt of gratitude and it was our pleasure to place his name on the bow and stern of a Great Lakes freighter,” said James Barker, Chairman at Interlake Steamship Company. “Great Lakes shipping has lost its greatest friend and staunchest supporter,” said Jim Weakley, President of Lake Carriers’ Association. “He was at the forefront of every effort to make waterborne commerce on the Lakes and Seaway safer and more efficient.” On the day of Oberstar’s funeral, the Hon. James. L. Oberstar offered a fleet salute in Duluth, Minnesota. The Aerial Lift returned the salute as the ship approached the ship canal. U.S.-flag ships throughout the system sailed their flags at half mast that day. . James Oberstar WRRDA 2014 becomes law The Water Resources and Reform Act (WRRDA) of 2014 was signed into law by President Barack Obama June 10. WRRDA establishes program and spending rules for Congress as funds are appropriated. Provisions of interest to the Great Lakes/St. Lawrence Seaway shipping industry include: • Increasing spending from the Harbor Maintenance Trust Fund (HMTF) over 10 years, beginning in 2015. By 2025, Congress should be appropriating 100 percent of what’s generated by the user tax. • Recognizing the Great Lakes as a single navigation system, giving the system a greater presence. • Requesting the U.S. Army Corps of Engineers consider the regional and national importance of a harbor/port to encourage more equitable distribution of funds. The bill will benefit ports moving less than one million tons a year because it prohibits funding based exclusively on tonnage and sets money aside for emerging harbors, making it no less than 10 percent of the FY2012 HMTF, about $870 million. • Defining priority funds as amounts above FY2012 spending levels. From FY2015-FY2024, every dollar of spending over $870 million is subject to a list of rules categorized in three layers defining how the new money will be prioritized when the Corps makes funding decisions. • Authorizing the Corps to maintain channels at 45-50 feet at full federal expense, five feet more than previously. • Establishing a new $50 million program for FY2015-FY2018 to fund “donor DATELINE Huizenga named Great Lakes Legislator of the Year Michigan Congressman Bill Huizenga (R) is presented artwork by Mark Pietrocarlo, Vice President and Controller of American Steamship Company, for being named 2014 Great Lakes Legislator of the Year by the Great Lakes Maritime Task Force. Chamber of Marine Commerce D A T E L I N E tainability is evident in the performance we are achieving from the Equinox Class vessels.” Algoma is investing C$300 million to construct six state-of-the-art Equinox class vessels and CWB Inc. is constructing an additional two Equinox class vessels to be managed by Algoma for use the system.. 2013 report released by Great Lakes Seaway Ballast Water Working Group The Great Lakes Seaway Ballast Water Working Group released its 2013 ballast water management report. In 2013, 100 percent of vessels bound for the Great Lakes/St. Lawrence Seaway system from outside the Exclusive Economic Zone received ballast management exams on each Seaway transit. No ballast management exams were impacted by the temporary U.S. government shutdown. In total, all 6,803 ballast tanks during the 371 vessel transits were assessed. Vessels that did not exchange, or flush, their ballast water tanks were required to either retain the ballast water and residuals onboard, treat the ballast water in an environmentally sound and approved manner or return to sea to conduct a ballast water exchange. Vessels that were unable to exchange ballast water/residuals and were required to retain them onboard received a verification exam prior to exiting the Seaway. In addition, 100 percent of ballast water reporting forms were screened to assess ballast water history, compliance, voyage information and discharge location. The verification indicated there was no noncompliant ballast water discharged in the system. The working group’s report can be downloaded at http://www.greatlakes-seaway. com/en/pdf/2013_BW_Rpt_EN.pdf. . Fednav expands investment in Canadian Arctic Fednav Limited has become the first shipping company to employ drones for ice reconnaissance on a commercial voyage. The Umiak I used a variety of videoequipped drones to scout ahead of the vessel in the ice-covered waters of the Labrador Coast. The goal was to provide the captain and officers with detailed real-time visual information on the local ice conditions. Enfotec, a Fednav subsidiary, has specialized in providing advanced ice imagery and analysis to vessels operating in difficult ice conditions for 20 years. With advances in recent years in the quality of Algoma Harvester delivers to Algoma Algoma Central Corporation has received the second of eight new Equinox class lake bulk carriers—Algoma Harvester. The ship will sail from Nantong Mingde shipyard in China to the system. When arriving in Canada this summer, Algoma Harvester will join her sister ship, Algoma Equinox, as part of Algoma’s 32-vessel, Canadian-flag Great Lakes fleet. The 2014 shipping season is off to a late start following the harsh winter weather and record ice conditions on the Great Lakes. The addition of the vessel will provide much needed capacity to help meet the needs of Canadian grain farmers to get last year’s record crop to market. “We are looking forward to the Algoma Harvester’s arrival in Canada this summer,” said Greg Wight, Algoma President and CEO. “We continue to be pleased with our decision to develop an innovative and advanced vessel and our commitment to sus- 4 www.greatlakes-seawayreview.com Duluth Seaway Port Authority REGIONAL CALENDAR GREAT LAKES/SEAWAY REVIEW April-June, 2014 5 REGIONAL CALENDAR D A T E L I N E information derived from satellite and radar images and conventional ice charts, this new method of ice detection allows for the immediate capture of subtle ice features such as ridges, leads and fractures. The drones deliver high-quality, short-range visual observations allowing navigators to see beyond the normal horizon for strategic navigation. In addition, Fednav brought its newest icebreaker, MV Nunavik, into the region. The ship will be used to export concentrates produced at the Nunavik Nickel mine at Deception Bay in northern Quebec. The vessel will also supply the mine with equipment and fuel. . Cleveland-Europe Express settles into its schedule With a couple of round trips on the books, the Cleveland-Europe Express is moving a mixture of containers and noncontainerized cargo between the Port of Cleveland and Antwerp, Belgium. The round trip is made monthly and will remain on that schedule throughout the season, according to David Gutheil, Vice-President of Maritime & Logistics for the Cleveland-Cuyahoga County Port Authority. “Maintaining our monthly schedule is important to potential customers,” he said. Cargo aboard the vessel is moving between multiple states and countries. The service allows regional companies to ship goods up to four days faster than using water, rail, and truck routes via the U.S. East Coast ports. . JULY 16-18 Port Security Seminar and Exposition Sheraton Inner Harbor Hotel Baltimore, Maryland www.aapa-ports.org/Programs/ seminarschedule.cfm?itemnumber=19241 SEPTEMBER 9-12 Canadian Marine Pilots’ Association Marriot Gateway on the Falls Niagara Falls, Ontario www.cmpacongress2014.com/2014/ 18-19 Ohio Conference on Freight 2014 Hyatt Regency Columbus, Ohio www.ohiofreight.org/OCF.htm 25-26 BWMTech North America Trump International Beach Resort Miami, Florida www.informamaritimeevents.com/event/ ballast-water-management-technologconference- usa 29-30 2014 Great Lakes Commission Annual Meeting Hyatt Regency Buffalo Hotel and Conference Center, Buffalo, New York projects.glc.org/meeting/ 29- Breakbulk Americas 2014 Oct. 2 George R. Brown Convention Center Houston, Texas www.breakbulk.com 30- 9th Annual Ship Recycling Conference Oct. 1 Kensington Close Hotel London, England www.informamaritimeevents.com/event/ shiprecycling OCTOBER 7-8 Indiana Logistics Summit Indiana Convention Center Indianapolis, Indiana www.indianalogistics.com/su Fednav www.fednav.com DELIVERING PEACE OF MIND | FMT | FALLine | Fednav Dir v Direct | www R E G I O N A L E C O N O M I C D E V E L O P M E N T GREAT LAKES/SEAWAY REVIEW April-June, 2014 7 Maritime initiative underway Bi-national Maritime Task Force works on coordinated approach to maximize the economic benefit and competitiveness of the Great Lakes/Seaway system The Council of Great Lakes Governors and Premiers formed a Maritime Task Force in 2013 to develop recommendations for improving maritime transportation in the Great Lakes/St. Lawrence Seaway system. Knowing the region is home to an array of waterways, rail lines, interstate highways and airports—all of which create the regional transportation infrastructure—the Maritime Task Force is charged with developing recommendations to help rejuvenate the maritime component of the region’s transportation system. The task force is working with an advisory committee of Great Lakes stakeholders and industry representatives to help ensure its efforts create a positive impact on the economic competitiveness of the region. “The Great Lakes governors and premiers recognize there is a great need to reinvest in the Great Lakes/St. Lawrence river maritime infrastructure that serves our region and connects us with the world,” said Kirk Steudle, Director of the Michigan Department of Transportation and task force member. “The new Great Lakes/St. Lawrence River Maritime Initiative was launched to advocate for and implement changes needed to improve the maritime transportation system. Commercial shipping relies on an efficient, well-maintained infrastructure that includes navigation channels, locks and canals, breakwaters, aids-to-navigation and related services. Unfortunately, the current funding system for supporting navigation is inadequate to meet the demands of the global marketplace. By working together, the Great Lakes states and provinces will recommend financing options and elimination of regulatory barriers in order to reenergize our maritime system.” “The task force is trying to bring more attention to the Great Lakes/St. Lawrence Seaway as an important avenue for commerce for Canada and the United States,” said Charles Zelle, Commissioner for the Minnesota Department of Transportation and task force member. “Waterways, especially for bulk freight, are a very efficient mode of transportation, are very environmentally friendly and, in most cases, are less expensive than other competing modes of transportation. Excess capacity still exists on the Great Lakes while other modes are experiencing congestion due to lack of investment and growing traffic. It also does not conflict with passenger traffic and has a better accident record than competing modes of freight transportation.” Through the task force’s efforts, the governors and premiers plan to create a coordinated approach to maximizing the economic benefit of the system for the U.S. and Canada. The intended result is a common set of policies to improve and better incorporate the maritime system into a seamless transportation network incorporating highway, air, rail and water across the region. A study has been conducted and was released in April to help the Maritime Task Force develop recommendations for the council. The governors and premiers have asked the task force to move the recommendations forward. (Please see the related story on page 19.) Members of the task force have participated in a roundtable discussion with Great Lakes/Seaway Review, answering questions about how their individual states are handling issues of importance to the Great Lakes commercial shipping industry. Members from Ontario and Quebec were invited to participate, but were unable to do so because of recent governmental changes. The states featured here accepted the invitation to participate. R E G I O N A L E C O N O M I C D E V E L O P M E N T 8 www.greatlakes-seawayreview.com GREAT LAKES/SEAWAY REVIEW: According to statements made by the governors and premiers, the Great Lakes/St. Lawrence Seaway system is one of the region’s competitive advantages and a key to continued prosperity. How does your state plan to use the asset to promote economic growth and environmental stewardship? NMILLER and SCHOEBEN: The Illinois Department of Transportation (IDOT) has teamed with the Illinois Department of Natural Resources in promoting economic growth and environmental stewardship with our participation in the Council of Great Lakes Governors. IDOT will include freight movement on the Great Lakes in its Long- Range Transportation Plans and in its Freight Mobility Plan. This will provide a more holistic, multimodal approach by including freight movement on our inland waterways (by tonnage and volume) into our strategic freight plans. OPEACOCK: The State of Indiana has long embraced the economic and environmental benefits of Great Lakes shipping and considers this valuable waterway to be one the biggest drivers for future business development and sustainable transportation solutions in North America. Indiana has only 43 miles of shoreline on Lake Michigan, but the state accounts for over 43 percent of U.S. business revenue generated by Great Lakes shipping. Each year, waterborne shipping moves 32 million tons of foreign and domestic cargo on Indiana’s lakeshore, contributes $14.2 billion to the Indiana economy, supports 104,000 Hoosier jobs and keeps nearly 1.3 million truckloads of cargo off the region’s highways. From a green perspective, the fuel efficiency of Great Lakes ships exceeds rail by 14 percent and truck by 593 percent, while the greenhouse gas emissions from Great Lakes ships are 16 percent less than rail and 84 percent less than truck per ton-mile. Indiana has created a unique public-private partnership model for ensuring the state’s maritime assets can provide long-term economic growth and general welfare for its citizens through the development of a statewide port authority. Now 53 years old, the Ports of Indiana is a self-funded enterprise that has developed 2,800 acres of ports in Indiana and serves as the state’s lead maritime authority for all issues related to Great Lakes and Ohio River shipping. Indiana is keenly aware of the competitive advantages created by the Great Lakes system and is committed to working with our partners in the U.S. and Canada to help the region better utilize this system to promote economic growth and environmental stewardship throughout North America. VSTEUDLE and ALLAN: Michigan enjoys the longest shoreline (3,200 miles) of any Great Lakes state and has the most commercial ports (nearly 40). Marine transportation has historically been a key factor in the development and growth of our major industries, including steel, agriculture, forestry and construction. Each year, 70-90 million tons of cargo passes through our ports, supporting thousands of jobs and leading to regional prosperity. The maritime system provides energy-efficient, economical and environmentally-friendly transportation for many of our state’s commodities. As a mature system, most of our ports and marine terminals are operating at less than their capacity, thereby providing the ability to handle more cargoes at little additional cost. Michigan’s economic development activities promote the availability of this ILLINOIS Marc Miller is Director of the Illinois Department of Natural Resources. He has been serving in the position since 2009. Kevin Schoeben is Deputy Director of the Illinois Department of Transportation. He has 25 years of state government experience, serving 10 years as a legislative budget analyst for the Illinois House Democratic Appropriations Staff, 12 years as the legislative affairs director for the Illinois State Comptroller’s Office and three years as Deputy Director of the Office of Program and Planning for the Illinois Department of Transportation. INDIANA Jody Peacock joined the Ports of Indiana in 2001 and currently serves as Vice President, providing strategic leadership as the second-incommand for Indiana’s statewide port authority. He also directs corporate initiatives involving business development, strategic planning, marketing, communications and government relations for the organization’s three ports on the Ohio River and Lake Michigan, as well as statewide financing and foreigntrade zone programs. MICHIGAN Kirk Steudle is Director of the Michigan Department of Transportation (MDOT) and has served in that position since 2006. He is engaged in all aspects of transportation in the State of Michigan and is the 2014 Chair of the Transportation Research Board (TRB) Executive Committee. Jon Allan comes to the Office of the Great Lakes with a strong background in fisheries, wildlife and the aquatic sciences. With decades of experience in environmental policy and law, he has taught courses in biology, ecology, environmental impact assessment and marine biology and island ecology at Michigan State University and other institutions. R E G I O N A L E C O N O M I C D E V E L O P M E N T GREAT LAKES/SEAWAY REVIEW April-June, 2014 9 marine system and its efficient connections to other modes of transportation. WZELLE and PHENOW: Because Minnesota is at the west end of the Great Lakes system, it will draw freight from states that do not have waterway access to take advantage of this lower cost mode. Minnesota will also be used for distributing products coming in for these same states. As new shippers understand the benefits of Great Lakes/St. Lawrence Seaway shipping, more products will find their way to this mode, as long as the infrastructure is maintained and improved to handle more and diverse products efficiently. lPACKER and SCHRECKENGOST: The Commonwealth has supported the Port of Erie in all its venues, with manufacturing, shipping and recreation being the primary areas. It is targeting growth in biomass exports, energy and project cargo. It is imperative to make the Great Lakes a strong, fully developed and competitive system. A balance must be created and sustained between economic growth and environmental stewardship. vFRIIS and WALZ: Wisconsin is surrounded on three sides by the waters of Lake Superior, Lake Michigan and the Upper Mississippi. Wisconsin port facilities serve as hubs of diverse economic activity linking waterborne commercial vessels with an extensive network of highways, railroads and airports. Each year, over 30 million tons of goods worth more than $2.4 billion pass through Wisconsin’s commercial ports, including essential products such as coal for power plants, iron ore for industry and salt for road safety. The state continues to promote commercial waterborne transportation efficiency through its Harbor Assistance Program. Since 1980, the Wisconsin Department of Transportation has awarded over $100 million in grants for dredging, maintenance and construction of new facilities at Wisconsin public and private commercial port facilities. The Wisconsin Department of Natural Resources, Wisconsin Coastal Management Program and the U.S. Army Corps of Engineers promote environmental stewardship in recreational and commercial use of water resources. GREAT LAKES/SEAWAY REVIEW:With heavy ice delaying delivery of iron ore to steel mills on the Great Lakes this spring and business being impacted by slowed production, how has your view of the commercial shipping industry’s role in the region’s economy been impacted? NMILLER and SCHOEBEN: Transportation stakeholders should acknowledge the limitations maritime navigation presents in various climate zones where seasonable weather conditions can restrict navigable waterway channels. OPEACOCK: The importance of Great Lakes shipping is never more clearly evident than when something happens to disrupt normal shipping patterns. This year’s heavy ice conditions have created havoc for businesses that rely on these shipments. In Northwest Indiana, U.S. Steel temporarily idled steelmaking operations at one of the nation’s largest steel mills because ice on the Great MINNESOTA Charles Zelle was appointed Commissioner of the Minnesota Department of Transportation December 15, 2012 by Minnesota Governor Mark Dayton and began the job January 15, 2013. MnDOT is the Minnesota state agency charged with managing and maintaining the state’s multimodal transportation system. Zelle came to MnDOT from Jefferson Lines, an intercity bus company with routes in 13 heartland states from Minnesota to Texas. He worked there for more than 20 years and served as President and Chief Executive Officer. Patrick Phenow was recently appointed Director of Ports and Waterways for the State of Minnesota. He was preceded by Richard Lambert, who retired. PENNSYLVANIA Herbert Packer graduated from Penn State University and has served in many capacities with the Commonwealth of Pennsylvania. In 2013, he was commissioned as a member of the Great Lakes Commission and appointed by Governor Tom Corbett as Pennsylvania’s representative on the Council of Great Lakes Governors, Economic Task Force. Raymond Schreckengost has been Executive Director of the Erie-Western Pennsylvania Port Authority since 1994. His responsibilities include developing publicly-owned parts of the bayfront, promoting the Erie shipping port and the shipyard, obtaining development money and working with local, state and federal legislators to make the bayfront a regional asset and an engine for economic growth. WISCONSIN Michael Friis is Leader of the Resources Policy Team for the Wisconsin Department of Administration overseeing three program areas—the Wisconsin Coastal Management Program, the Wisconsin Comprehensive Planning Grant Program and the Wisconsin Land Information Program. Sheri Walz is the Harbors and Waterways Program Manager at the Wisconsin Department of Transportation. She administers the Harbor Assistance Program, which provides grants to ports along the Great Lakes and Mississippi River to maintain and improve waterborne commerce. Ocean Group From a green perspective, the fuel efficiency of Great Lakes ships exceeds rail by 14 percent and truck by 593 percent, while the greenhouse gas emissions from Great Lakes ships are 16 percent less than rail and 84 percent less than truck per ton-mile. 10 www.greatlakes-seawayreview.com Lakes choked off access to vital raw materials. This steel mill employs 5,800 workers and produces 7 million tons of steel per year. Ice has caused similar problems for many other industries by delaying shipments of grain, fertilizer, road salt, limestone, construction materials and heavy equipment. Even though channels have become passable, many ocean vessels still sat idle throughout the Great Lakes for more than a week because there were not enough specialized pilots available to navigate the icy channels. Unfortunately, these harsh conditions show just how quickly shipping disruptions cause problems for our Great Lakes economy, but they also emphasize the need to support funding for the U.S. Coast Guard icebreaker operations as well as the Army Corps of Engineers’ maintenance and modernization of our waterway infrastructure. VSTEUDLE and ALLAN: The unusually cold and snowy winter of 2013/ 14 has served to highlight the importance of our marine transportation system for major industries in the state. Navigation on the system ended sooner in January and began later in April than was expected, thereby affecting the ability to stockpile raw materials needed by steel and other industries. Given the large natural variability in weather conditions, it is important that the navigation channels be maintained and operated as authorized in order provide lake carriers with the ability to carry the needed volumes of cargo during the navigation season. WZELLE and PHENOW: Weather has an effect on all modes of transportation at different times and for varying reasons. Adjusting to changing conditions is a challenge that all modes face due to weather. Stockpiling bulk commodities has successfully answered this historic problem in many situations. lPACKER and SCHRECKENGOST: With the Seaway being closed for two months to three months a year because of weather and needed infrastructure upgrades, industry has been able to efficiently handle the logistics of these challenges. The overall economic impact of the waterborne trans- R E G I O N A L E C O N O M I C D E V E L O P M E N T Ports of Indiana As new shippers understand the benefits of Great Lakes/St. Lawrence Seaway shipping, more products will find their way to this mode, as long as the infrastructure is maintained and improved to handle more and diverse products efficiently. GREAT LAKES/SEAWAY REVIEW Aprl-June, 2014 11 portation has not changed due to these obstacles. The shipping industry is more than capable of handling the demand, but logistics planning must always consider the yearly needs of the Lakes. vFRIIS and WALZ: Last year’s low water levels and this past winter’s impact on waterborne transportation highlights the critical importance of the Great Lakes as a transportation route. In an April 9, 2014 Great Lakes Navigation Stakeholders meeting, the Army Corps of Engineers highlighted how this winter’s shipping delays illustrate the potential impact of a failure of the Poe Lock. Moreover, the delays illustrate the irreplaceable nature of the Great Lakes for shipping. Corps staff stated that to replace Great Lakes shipping capacity with rail would take over five years just for rail construction and 100 percent of goods could not be shifted to other modes from the water. GREAT LAKES/SEAWAY REVIEW: Do you plan to discuss ballast water management regulations, specifically the potential of the states and provinces aligning with what’s now in place through U.S. Coast Guard and U.S. Environmental Protection Agency (EPA)? NMILLER and SCHOEBEN: How to manage ballast water is and remains a critical issue. However, many other organizations are working on that issue, in addition to efforts by the individual jurisdictions. In light of this ongoing work, the task force’s focus in the near term will be on other issues. OPEACOCK: Ballast water management is a critical issue for Great Lakes shipping and the need for maintaining consistent regulations throughout the entire system is paramount for the region’s economy. The task force will be discussing this issue as part of its goal to encourage regulatory harmonization to support greater consistency and reduce compliance costs for Great Lakes shipping. However, the task force recognizes that many organizations are making significant progress toward developing federal ballast water standards and, therefore, will primarily focus its attention on other initiatives in the near term. R E G I O N A L E C O N O M I C D E V E L O P M E N T W.W. Williams VSTEUDLE and ALLAN: Ballast water discharges continue to be of concern across the basin. We do not see this as the key forum for ballast water standard discussions although these issues are likely to be part of the ongoing discussion of the Maritime Task Force. The U.S. has finalized ballast water standards through the Coast Guard and EPA, but these regulations are currently being challenged by the Canadian Shipowners Association. In addition, ballast water technologies and standards are being addressed in other venues. The Great Lakes Commission has work underway to further explore Great Lakes ballast water standards into the future. Type testing and certification of ballast water technologies for the Great Lakes through the NSF International and the Great Ships Initiative continues. Ballast water standards, harmonization of timeframes and technology approaches continue to develop and the final ratification of the IMO standard worldwide continues, albeit quite slowly. WZELLE and PHENOW: Since the Coast Guard initiated ballast water exchange in the ocean prior to entering the system, no new exotic species have been introduced into the Great Lakes. This should be a topic of discussion as the industry, universities and the Corps of Engineers experiment with products that will neutralize or eliminate exotics in the ballast of ships. We should be updated on that progress. lPACKER and SCHRECKENGOST: How to manage ballast water is and remains a critical issue. In addition to efforts by individual jurisdictions, it is incumbent to work with the many and appropriate stakeholders to arrive at a fair solution that creates that balance between the economy and the environment. The entire concept of the Maritime Task Force is to align the states and provinces to produce a seamless experience when using the Seaway. vFRIIS and WALZ: The Wisconsin Department of Natural Resources continues to participate in the Ballast Water Collaborative with the U.S. Saint Lawrence Seaway Development Corporation, International Joint Commission, the shipping industry and other state and federal regulators on ballast water and invasive species issues in the region. The importance of Great Lakes shipping is never more clearly evident than when something happens to disrupt normal shipping patterns. This year’s heavy ice conditions have created havoc for businesses that rely on these shipments. 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 marine vessel. Their heroics are well documented in marinas from Saginaw to Savannah. 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 (330) 225-7751 Toledo, OH (419) 837-5067 Dearborn, MI (313) 584-6150 Grand Rapids, MI (616) 878-7071 Saginaw, MI (989) 753-4411 OTHER LOCATIONS: Atlanta and Savannah, Georgia; Charleston and Columbia, South Carolina Visit us at www.wwwilliams.com. 12 Saint Lawrence Seaway Management Corporation GREAT LAKES/SEAWAY REVIEW: How is the task force using the Great Lakes-St. Lawrence River Basin Water Resources Compact (Great Lakes Compact) as a springboard for its efforts in forming a maritime initiative? NMILLER and SCHOEBEN: The Great Lakes governors and premiers demonstrated their ability to successfully create a regional consensus and solve a difficult shared challenge by developing and putting into action the Great Lakes Compact and companion agreement. Building on this and other shared successes, the governors and premiers have made an important commitment to address another longstanding shared challenge—maintaining and improving our region’s maritime system. Working together with governmental partners, industry and stakeholders, we all have a unique opportunity to support this critical component of our transportation network and regional economy. The understanding of the Great Lakes as a regional economy was a focus of the discussion at the Executive Meeting in Chicago in April, during which the Council of Great Lakes Governors recognized the important role of maritime transportation as part of the regional multimodal freight transportation system and its role in promoting the competitiveness of the region. Member governors and premiers committed to the inclusion of the Great Lakes/St. Lawrence maritime transportation system in state, provincial and regional multimodal freight transportation policies and plans. This effort builds on the previous resolution, adopted in June, 2013, which identified the states’ and provinces’ critical role in implementing and advocating for the changes necessary to improve the regional maritime system. VSTEUDLE and ALLAN: The compact and related agreement has not been featured directly in task force discussions. There is a compact council and considerations of water diversion are largely within the context of the council and within the state and provincial jurisdictions. To the extent that the compact and related agreement indicate a willingness and capacity to forge durable and complex multijurisdictional collaborations and relationships, the compact underpins both the hope and reality of regional harmonization and governance over these and other aspects of our shared water resources. Given the large natural variability in weather conditions, it is important that the navigation channels be maintained and operated as authorized in order provide lake carriers with the ability to carry the needed volumes of cargo during the navigation season. 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 13 Adonis The entire concept of the Maritime Task Force is to align the states and provinces to produce a seamless experience when using the Seaway. 14 www.greatlakes-seawayreview.com WZELLE and PHENOW: As stated previously, the task force wants to promote the increased use of the system for the benefit of both countries, their provinces and states. The compact sets important precedents and suggests some practical approaches to joint governance. This waterway is shared by Canada and the United States, although Canada may have a larger investment in the system as it owns and operates most of the locks and dams. The task force must consider any improvement initiatives it recommends in the context as to how it will impact each country and each state and province from a financial and benefit standpoint. lPACKER and SCHRECKENGOST: The task force is including all existing agreements in formulating a strategy, understanding that there are many factors that will need to be included in this initiative. vFRIIS and WALZ: Illinois DOT is spearheading a $1 million TIGER grant planning application for the Great Lakes, building on the 2014/15 work plan developed by the Maritime Task Force. Each Great Lakes state is being asked to contribute a letter of support and a $20,000 match. WisDOT has provided a letter of support and financial match. GREAT LAKES/SEAWAY REVIEW: How can the commercial shipping industry work more closely with the task force to improve your processes and ensure you have the information you need when making decisions? NMILLER and SCHOEBEN: A transparent and open process is key to forging the regional consensus that will be needed to achieve our shared goals. To that end, the Maritime Task Force has been hard at work in recent months. Following the appointments from the states and provinces, the task force commissioned a report on the regional maritime system and key challenges. The task force then created a series of recommendations for the governors and premiers, inviting informal input from a number of organizations as these were developed. In coming months, the task force plans to formalize an advisory structure as it prepares to R E G I O N A L E C O N O M I C D E V E L O P M E N T Andrie In coming months, the task force plans to formalize an advisory structure as it prepares to move ahead with the governors’ and premiers’ direction. Constructive industry participation and support will be critical. GREAT LAKES/SEAWAY REVIEW Aprl-June, 2014 15 move ahead with the governors’ and premiers’ direction. Constructive industry participation and support will be critical. The planning objective in the regional study includes an outreach to the actual users and shippers of the Great Lakes waterway system. As indicated in the maritime report: “Modal shift (to the Great Lakes) will not happen unless it is in the best interest of shippers to do so.” This requires us to seek input and direction from industry on how the trends and forecasts in market forces and commodity flows will guide their supply chain objectives in the next five, 10, 20 years. The IDOT will incorporate this feedback into our state freight planning efforts to help shape better decisions regarding future planning and infrastructure needs for the local, regional and state multimodal system. In fact, the Illinois DOT is submitting a TIGER grant proposal for a regional planning grant. Our cooperative effort in submitting this application is a follow-up from a resolution adopted last year by the Great Lakes governors, in conjunction with the premiers from Ontario and Québec. As a result of that resolution, the Council of Great Lakes Governors commissioned a recently released report entitled, “Unlocking the Value of the Great Lakes/St. Lawrence River Maritime Transportation.” This report was directed by the Maritime Task Force and it is seeking federal TIGER funds for regional planning assistance. This regional cooperative effort is unmatched in the United States or Canada. OPEACOCK: It will be critical for this task force to meet with commercial shippers and users of this industry to hear their perspectives on the biggest barriers and opportunities for improving the maritime transportation system and economic competitiveness in the Great Lakes region. VSTEUDLE and ALLAN: The Great Lakes governors and premiers will coordinate closely with the commercial shipping industry, including the Lake Carriers’ Association, the Canadian Shipowners Association, St. Lawrence Seaway agencies and others to identify needs and opportunities to improve our vital system shared by Canada and the United States. We recognize that the private sector makes modal transportation decisions and provides transportation R E G I O N A L E C O N O M I C D E V E L O P M E N T Stan Andrie President 231.332.9227 Mike Caliendo Vice President – Transportation 231.332.9243 561 E. Western Ave. Muskegon, MI 49442 www.andrietg.com R E G I O N A L E C O N O M I C D E V E L O P M E N T 16 www.greatlakes-seawayreview.com services. The role of the states and provinces, along with the appropriate federal and local agencies, is to support and promote an efficient transportation system and provide the necessary public infrastructure. WZELLE and PHENOW: The shipping industry and the task force can share information at periodic meetings. This may include the status of the infrastructure and how that impacts the industry’s efficient product movement. The task force must find out what issues are important to the industry and how decision-makers impact waterway transportation. A better understanding of the issues and their impacts will hopefully make for better decision making for those in charge. lPACKER and SCHRECKENGOST: The Maritime Task Force is not working in a vacuum. It is working with other stakeholders to establish a regional consensus. The shipping industry needs to present immediate and long-range needs to help us better understand the economics of the industry. Attempting to make decisions that significantly impact an industry without input from the industry has been a failure of government for years. vFRIIS and WALZ: The Wisconsin Commercial Ports Association is undertaking a strategic planning effort so task force work is timely for the Wisconsin commercial waterborne shipping industry. WisDOT and Wisconsin Coastal Management Program will continue to work with the ports association on this effort. GREAT LAKES/SEAWAY REVIEW: Is there anything you would like to add? NMILLER and SCHOEBEN: Together, the estimated gross domestic product of the economy of these eight states and two provinces is approximately $5.3 trillion, of which 60 percent is generated within 150 miles of the Great Lakes. On a global scale, this region ranks fourth by GNP behind the U.S., China and Japan, and ranks higher than the GNPs of the United Kingdom and France combined. Development and publication of the Council of Great Lakes Governors report is reflective of the regional collaboration Secretary Foxx and the U.S. DOT have encouraged. The actionable items in this proposal will better enable participating states and provinces to work toward the Administration’s priority under the National Export Initiative to directly affect the private sector’s ability to export, remove trade barriers abroad and help firms of all sizes and farmers overcome hurdles to entering new markets. It is essential that regional freight planning begins immediately on the navigable waterway corridors of the Great Lakes so that the regions’ multimodal industry and transportation partners can better respond to current and future challenges. The navigable waterways of the Great Lakes already include the U.S. DOT Maritime Administration’s marine highway corridor designations of the M-90, the M-75 and the M-71/77. These designated corridors should serve as an integral part of U.S. DOT’s multi-modal plan for a more efficient national freight transportation system of highways, railways, waterways and airways. Great Lakes stakeholders recognize that all modal networks must work in unison as a single transportation system and that regional strategic planning investment is needed to support these waterway corridors to achieve regional and national goals. OPEACOCK: As a long-time member of the maritime community on the Great Lakes, I am pleased the Council of Great Lakes Governors has undertaken this effort. Building a consensus is difficult for any large region, but this region presents a unique set of challenges and opportunities when it comes to maritime-related issues because each state and province governs their maritime transportation system differently. A primary issue is that most ports in Great Lakes states are operated by city or county authorities and there are not many highranking officials in state governments who are solely responsible for maritime issues. As a result, when representatives of each jurisdiction come together to discuss important maritime issues, the group generally includes a diverse mix of people from departments of natural resources, environmental management and highway transportation. The task force must find out what issues are important to the industry and how decision-makers impact waterway transportation. A better understanding of the issues and their impacts will hopefully make for better decision making for those in charge. Together, the estimated gross domestic product of the economy of these eight states and two provinces is approximately $5.3 trillion, of which 60 percent is generated within 150 miles of the Great Lakes. On a global scale, this region ranks fourth by GNP behind the U.S., China and Japan, and ranks higher than the GNPs of the United Kingdom and France combined. Toromont CAT Hewitt CAT Atlantic CAT GREAT LAKES/SEAWAY REVIEW Aprl-June, 2014 17 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 Marine Pollution Control ABS 18 www.greatlakes-seawayreview.com There are exceptions. Pennsylvania has both a state port office and regional port authorities. In Indiana, we have a statewide port authority with 30 employees. Some states have one multimodal representative within their department of transportation. That’s not to say one model is the best, but it does mean that when each state and province sends their ‘Great Lakes person’ to a meeting about maritime issues, they are not all speaking the same language. The Great Lakes governors and premiers recognized this challenge and have committed to developing a Maritime Initiative to improve the region’s economic competitiveness. By coming together in this initiative, the states and provinces have committed to improving a maritime transportation system that has the potential to serve as a catalyst for many important areas, including business growth, job creation, access to world markets, cruise tourism, reduced highway congestion, infrastructure rehabilitation, dredging solutions and longterm sustainable transportation solutions for North America. VSTEUDLE and ALLAN: One aspect of our ability to compete globally lies in the efficient use of a well maintained and managed Great Lakes maritime system, both in terms of trade between the U.S. and Canada and with our collective trade interests with markets outside the Great Lakes region. We will continue to focus on the competitive advantages that our freshwater maritime system affords all of the parties in the Great Lakes region. WZELLE and PHENOW: The task force must look at the benefits of the waterway system. The region as a whole will be positively enhanced by lowering current barriers and collaborating on commerce and regulation. The task force can be a very important link between the industry and those who make the decisions that will affect the industry. n MPC IS OSRO #003 Sea. Land. Solutions. Marine P +1 (313) 849-2333 – 24/hour www.MarinePollutionControl.com Pollution Control ollutionControl.The task force must look at the benefits of the waterway system. R E G I O N A L E C O N O M I C D E V E L O P M E N T GREAT LAKES/SEAWAY REVIEW April-June, 2014 19 STATE/PROVINCIAL ACTION • Immediately identify one or more persons in each state or province who will coordinate maritime transportation system (MTS) issues both within each jurisdiction, across agencies, and on a regional basis. This will build maritime capacity within the states and provinces and help to develop and implement state and provincial-level policies, plans and initiatives to promote the competitiveness of the MTS and the overall multimodal system. • Develop an up-to-date inventory of MTS assets and investments (including cruising infrastructure) using a common framework, in partnership with marine sector asset owners, to enable the states and provinces to identify strategic priorities for the MTS in close collaboration with industry stakeholders. This inventory should be consolidated into a system-wide inventory that can be leveraged as part of the states’ and provinces’ multimodal freight transportation planning efforts. On an ongoing basis, the states and provinces should compile an annual summary of MTS investments and major policy actions. • Create a list of regional maritime priorities to inform policy and funding. This list will establish a framework for State and Provincial MTS engagement and ensure that decisions meet regional goals. Furthermore, this is an important step for future state and provincial engagement with the owners, regulators and other stakeholders of the MTS. • Develop a model for a 21st Century MTS regional entity to: – Foster investment in the MTS from all sources, including Canadian and U.S. federal governments, states, provinces, public-private partnerships and the private sector; – Promote MTS efficiency improvements; – Improve MTS connectivity and linkages; – Stimulate regional and international trade through greater access to global markets; – Coordinate MTS priority-setting, planning and implementation; and – Manage MTS strategic partnerships. • Recognize the important role of maritime transportation as part of the regional multimodal freight transportation system and commit to the inclusion of the MTS in state, provincial and regional multimodal freight transportation policies and plans. This effort builds on the governors’ and premiers’ resolution that identifies the states’ and provinces’ critical role in implementing and advocating for the changes necessary to improve the MTS. • Promote ongoing or planned State and Provincial actions to improve the MTS and work with regional stakeholders to build support for State and Provincial leadership on MTS issues. Results from the Maritime Task Force were presented to the Great Lakes Council of Governors and Premiers at an April meeting in Chicago, Illinois. Upon reviewing the task force’s consensus recommendations, the governors and premiers directed the group to move forward with implementing the recommendations. FEDERAL ACTION • Call on the U.S. and Canadian federal governments to recognize the MTS as a unique system. The governors and premiers will advocate for unique treatment of the regional maritime system in federal policy and regulations. This could inform options to reform federal policies and regulations in a way that is consistent with the unique environment and opportunities. • Call on the U.S. and Canadian federal governments to invest in the MTS. • Advocate for the full expenditure of the Harbor Maintenance Trust Fund. The full use of Harbor Maintenance Tax (HMT) revenue for its intended purpose of harbor dredging and other maintenance will reduce shipping costs, foster job creation and enhance the overall competitiveness of the MTS and regional economy. • Encourage MTS fleet investment and efficiency improvements, including through the potential use of alternative fuels like LNG. This will lead to greater operational efficiencies, improved reliability and enhanced environmental sustainability. • Exempt new, incremental non-bulk cargo moving through system ports from the HMT. This measure would encourage new traffic and could help to avoid further surface transportation congestion. There would be no reduction in total HMT fees collec

Maritime Editorial