Vol.43 No.1 JUL‑SEP 2014

V O L U M E 4 3 J U L Y – S E P T E M B E R 2 0 1 4 N U M B E R 1 WRRDA impact analysis . Moving liquid bulk . Ship repowering . Shared border security G LGREAT LAKER Interlake Steamship Interlake Steamship’s capable and experienced vessel crews know the Great Lakes. They’ve navigated them all, even the most challenging ports. Interlake’s knowledgeable marketing and traffic personnel understand your business. And Interlake’s conscientious operations and engineering staff oversee machinery upgrades and continual improvement processes aboard their nine versatile self-unloaders. Together, the Interlake team provides safe, reliable, and timely delivery of your bulk cargos. Vessel capacities from 17,000 to 68,000 gross tons permit flexibility in fulfilling your Great Lakes transportation needs. Put the knowledgeable Interlake team to work for you. 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 July-September, 2014 1 The international transportation magazine of Midcontinent North America Lower Lakes repowers, converts saltie to selfunloader. Page 19. Canadian Coast Guard discusses icebreaking. Page 24. Historic photos compare evolving ship designs. Page 70. 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 Events A DAY OF LAKERS, LOCKS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Corps provides public access to restricted areas at Soo Locks Engineers Day. Marine Photography DOCUMENTING HISTORY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Photos compare the technology and design of four Lakes vessels. Maritime Heritage WELCOMING & EDUCATING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 New National Museum of the Great Lakes enjoys smooth sailing. Meet The Crew CAPTAIN STORM CHASER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Sykes skipper plans vacations around weather patterns, seasons. Meet The Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Laker Library . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Legislation WRRDA AND THE GREAT LAKES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 An analysis of how the new law impacts regional shipping. Commodities MOVING CRUDE OIL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Using collaboration and science to optimize choices, safety. Ship Repowering ADDING TO THE FLEET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Lower Lakes modifies Danish tanker into self-unloader. Interview SAFETY FIRST, SERVICE ALWAYS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Canadian Coast Guard discusses record breakout, ongoing icebreaking plans. Ballast Water Management TREATMENT TIMING, REQUIREMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Agencies and vessel owners struggle to implement ballast water discharge standards. Interview THE GOOD LIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 At 84, Joe Fischer spends his days designing masterpieces. Propulsion OLD SCHOOL MEETS NEW SCHOOL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 SS Badger sails with one-of-a-kind combustion control system. Security SECURITY ALONG THE SHARED BORDER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 How U.S. Coast Guard manages a shared perimeter approach with Canada. Water Levels IMPACTS AND ACTION STEPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 New study pairs low lake levels with regional economic impact. Shipbuilding LAKER CHRISTENING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Algoma Harvester enters the system as Algoma Central’s newest self-unloader. Training & Recruitment OPERATING AT CAPACITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Maritime education prepares next generation seafarers. GREAT LAKER J U LY – S E P T E M B E R 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Great Lakes Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 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 43 JULY-SEPTEMBER 2014 NUMBER 1 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: Kaolin clay is unloaded in Duluth. Photo by Robert Welton. Great Laker Cover: Ojibway locks through at the Soo. Photo by Walter Barkley. 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 GREAT LAKES/SEAWAY REVIEW July-September, 2014 3 LNG use stalled for lakers Shell and Interlake Steamship Company are no longer working together exclusively on an LNG project. When Shell committed to constructing a small-scale liquefaction plant in Sarnia, Ontario, Interlake began making plans to convert its first laker to use the fuel. Mesabi Miner was identified as the first candidate for conversion. In July, Shell put its plans to build the plant—and two others in North America—on hold. Other than Sarnia, the other plants stalled were proposed for Calgary, Quebec and Geismer, Louisiana. According to Mark Barker, President of Interlake Steamship Company, the carrier continues to explore ways to use LNG as fuel. . House passes amendment to reach WRRDA funding target The Hahn-Huizenga Amendment to the FY2015 Energy and Water Development Appropriations Act was passed by the U.S. House of Representatives July 9 with a vote of 281-137. According to the amendment’s co-sponsor, Janice Hahn (D-CA), the legislation passed with “overwhelming bipartisan support.” The amendment increased U.S. Army Corps of Engineers funding coming from the Harbor Maintenance Trust Fund (HMTF) by more than $57 million. The additional dollars would raise expenditures from the fund to 67 percent of annual revenues—or $1.166 billion— the FY2015 target set by the Water Resources Reform and Development Act (WRRDA) signed into law by President Obama in June. Currently only about half of the revenues collected are allocated for dredging. According to WRRDA, HMTF funds will be fully utilized for their intended purpose by 2025. The President “strongly opposes” H.R. 4923, however, according to a statement of administration policy released by the Office of Management and Budget, which states the bill significantly underfunds critical energy investments and includes objectionable environmental riders. The statement goes on to say the President’s senior advisors will recommend he veto the bill as written. For a full navigational analysis of WRRDA, see page 7. . New port executive appointed in Detroit The Detroit/Wayne County Port Authority Board of Directors appointed John Loftus Executive Director in August. “John’s experience with port authorities is unparalleled,” said Thomas Orzechowski, Jr., board Chair. “We are thrilled that John is coming aboard and bringing his wealth of knowledge to make a positive impact in the Detroit/Wayne County region.” Loftus was Executive Director of the Lake County Port Authority in Painesville, Ohio, Vice President of Regional Development at the Cleveland- Cuyahoga County Port Authority and Seaport Director at the Toledo- Lucas County Port Authority. . Minneapolis lock set for closure The Upper St. Anthony Falls lock is being closed to protect the Upper Mississippi River above the Twin Cities from invasive carp, according to the Minnesota Department of Natural Resources (MDNR). As part of the Water Resources Reform and Development Act (WRRDA), the action received little national attention. President Obama signed the bill to close the lock to boat traffic June 10. Located in Minneapolis, the lock is the northern-most navigational structure on the Mississippi River. It is 56 feet wide, 400 feet long and operated to accommodate a 49-foot lift in the river. “We’re waiting on implementation guidance from headquarters on how to close the lock.” said Patrick Moes, U.S. Army Corps of Engineers Public Affairs Specialist. Wording from the law, Section 2010, reads: “Not later than one year after the date of enactment of this act, the Secretary shall close the Upper St. Anthony Falls. It is the only lock closure specifically directed in the new WRRDA. The Upper St. Anthony Falls lock is used for recreational and commercial purposes. Around winter closure, it meets the commercials needs of Northern Metals, a recycling company that can receive up to 3,000 tons of scrap a day by barge, and Aggregate Industries. The onsite dam will continue to be used for flood control. . G R E A T L A K E S / S T . L A W R E N C E S E A W A Y DATELINE Kaolin clay continues moving through Duluth-Superior Duluth-Superior received its first delivery of kaolin clay for 2014 when the Lady Doris docked August 7. She brought in 19,400 metric tons for discharge at the port terminal. Kaolin clay was a new commodity at the port in late 2012. The supply chain spans from Brazil to North America, according to Adele Yorde, Public Relations Manager for the Duluth Seaway Port Authority. Kaolin is a hydrated aluminum silicate crystalline mineral used as a bulking agent or filler in a variety of industries, including ceramics, paper, paint, plastics, rubber, sealant, adhesive and chemical manufacturing. The clay adds gloss in papermaking and is being mined, refined and shipped by Imerys. The dry bulk product is offloaded by a clamshell into a hopper and then conveyed into Clure Public Marine Terminal for processing. The slurry is taken by tanker truck to kaolin customers. The deliveries are bringing new salties into the Great Lakes/St. Lawrence Seaway system. . Gold Medal Winners Great Lakes Winter Olympics 2013/2014 Presented to the icebreaking crews of the Ninth Coast Guard District by Lake Carriers’ Association in appreciation of their efforts to keep commerce moving during the winter of 2013/2014. LCA thanks icebreaking crews for efforts Lake Carriers’ Association presented framed copies of this commemorative Paul C. LaMarre print to U.S. Coast Guard officials at the Grand Haven Coast Guard Festival in appreciation for their icebreaking efforts during the winter of 2013-14. Each vessel and crewmember received a framed copy. SOURCE: ROBERT WELTON Ocean Group D A T E L I N E 4 www.greatlakes-seawayreview.com CSA questions whether CETA will support Canadian-flag marine industry Members of the Canadian Shipowners Association (CSA) are communicating with federal officials on whether the Comprehensive Economic and Trade Agreement (CETA) with the European Union (EU) will hurt Canada’s short sea shipping industry, its workers and suppliers and shippers. Canadian shipowners have invested in 14 high-efficiency vessels worth more than $700 million, which are positioned to play a part in the prosperity CETA is expected to bring. The CSA is concerned about the lack of transparency in the CETA negotiations and that access to trades between Canadian ports may be given to EU carriers who employ international labor at much lower rates, do not pay Canadian taxes or employ Canadian workers and are not regulated to rigorous Transport Canada safety and operating standards. Canadian- flag short sea shipping vessels are specially designed for Canada’s inland and coastal waters and to meet Canadian requirements. Canadian- crewed, Canadian-owned and regulated, the domestic fleet will be hurt if Canadian cabotage rules are reduced to allow any international vessels access to Canadian markets. . Locomotives ship from Erie, bound for Africa Fifty General Electric (GE) locomotives shipped through the Port of Erie on their way to Mozambique, West Africa this season. Under normal circumstances GE ships locomotives by rail to the East Coast, where they are loaded onto oceangoing vessels for final delivery overseas. But faced with a nationwide shortage of flatcars, the company looked to Erie Sand and Gravel at the Port of Erie, just three miles away from the manufacturing facility. In mid-May, CSX Rail moved the first shipment of 10 locomotives aboard flat cars to the Erie Sand and Gravel Terminal, where an eightman crew worked, using the largest stiff-leg crane in the Great Lakes, to stow the engines aboard the BBC heavy-lift ship Xingang. Delivery times for the full order were spread throughout the summer. “We’ve been pleased with the efficiency of shipping from the local port,” said Ann Miller, Communications Manager at GE Transportation. “Once our locomotives leave Erie, they don’t touch land again until arriving in Africa. It’s a good solution for us and for our customer in Mozambique.” . New oceangoing barges to launch in fall Keels for two new oceangoing deck barges were laid mid-summer at the Moran Iron Works fabrication facility in Onaway, Michigan. Durocher Marine, a division of Kokosing Construction Co. Muskegon being considered for exemption to allow river barges The Michigan Agri-Business Association’s request for a special load-line exemption from the U.S. Coast Guard is ongoing. The exemption would allow river barges to transit a special load-line route along the eastern shore of Lake Michigan between Chicago’s Calumet Harbor and Muskegon, Michigan. The route is similar to those running from Calumet to Burns Harbor, Indiana and along the Lake’s western shore from Calumet to Milwaukee, Wisconsin. The new route would link Muskegon to the Mississippi River system all the way to the Gulf of Mexico. The expansion of river barge commerce could benefit port communities along the new route as well, including St. Joseph, Holland and Grand Haven, Michigan. Barges permitted under the rule would be required to remain within five miles of the shoreline, transit only under favorable weather conditions and carry only dry, non-hazardous cargoes. . . t 1 t . X F Fmax t . t 2 . ) Axe = Fdt = Fmax . ( t . (Hyp. : varaiation de la force) t GREAT LAKES/SEAWAY REVIEW July-September, 2014 5 REGIONAL CALENDAR REGIONAL CALENDAR D A T E L I N E based in Cheboygan, Michigan, contracted with Moran for the build. Netsco, based in Cleveland, Ohio, assisted Moran with the design and engineering of the barges. The first barge, Kokosing III, was completed in September, while the second, Kokosing IV, is scheduled for completion in October. Both barges, measuring 180 feet x 54 feet x 12 feet, have a 2,400 short ton cargo capacity. They are classed as A1 Ocean Service Deck Barges and have an International Load Line Certificate. The new vessels will be launched at Port Calcite in Rogers City, Michigan. . New executive joins team in Duluth Deborah DeLuca joined the Duluth Seaway Port Authority July 29 as Government and Environmental Affairs Director. DeLuca began her career as a hydrogeologist with the Minnesota Department of Agriculture, after which she went to work with the Minnesota Pollution Control Agency, becoming supervisor of its Voluntary Investigation and Cleanup Program in 1996. She helped organize an international exchange program and served as lecturer on environmental policy for masters-level engineers in the Institute Nationale Agronomie in Paris, France. Before launching her own consulting company in 2000, she spent two years as Site Redevelopment Supervisor for Braun Intertec Corp. in Minneapolis. A founding member of Minnesota Brownfields, a nonprofit established in 2005 to ensure the effective reuse of brownfield sites across the state, DeLuca served as the organization’s board Chair from 2011-13. She earned a bachelor’s degree in molecular biology from the University of Wisconsin-Madison and a master’s in Land Resources from the university’s Institute for Environmental Studies. . SEPTEMBER 30-Oct. 2 SHIPPINGInsight 2014 Fleet Optimization Conference & Exhibition Sheraton Stamford Hotel Stamford, Connecticut www.shippinginsight.com/ 30-Oct. 2 Breakbulk Americas 2014 George R. Brown Convention Center Houston, Texas www.breakbulk.com OCTOBER 7-8 12th Annual Indiana Logistics Summit Indiana Convention Center Indianapolis, Indiana www.indianalogistics.com/summit 22 Quebec Marine Day Quebec National Assembly Quebec City, Quebec www.st-laurent.org 22-24 SNAME Maritime Convention Hyatt Regency, Houston, Texas www.sname.org NOVEMBER 9-13 103rd American Association of Port Authorities Annual Convention Hyatt Regency Houston, Houston, Texas http://www.aapa-ports.org/Programs/ content.cfm?ItemNumber=649 19-20 Hwy H2O Conference 2014 Toronto Airport Marriot Toronto, Ontario www.hwyh2o-conferences.com Deborah DeLuca Duluth Seaway Port Authority Cleveland Cuyahoga County Port Authority JAMES SARTUCCI Government Affairs Counselor K&L Gates On June 10, 2014, President Obama signed the Water Resources Reform and Development Act (WRRDA) of 2014 (Public Law 113-121). Since the previous WRDA bill was enacted in 2007, WRRDA was praised by many as long overdue. Additionally, due to recent Congressional rules against “earmarks,” WRRDA focuses much more on policy changes and less on Congressionally-added projects than previous WRDA bills. So what does WRRDA do? It essentially authorizes the U.S. Army Corps of Engineers to study and construct water resources civil works projects, changes Corps civil works policies and authorizes funding for various programs. Federal funding for these projects and programs is provided separately by annual appropriations bills. Focusing on system navigation. U.S. Great Lakes vessel operators, ports, cargo and business interests have expressed concerns for several years about inadequate Corps budget requests for Great Lakes harbor maintenance funding. Additionally, the Corps does not appear to appreciate the differences between the Great Lakes and other coastal navigation needs. Unlike coastal ports that compete with each other for international cargo imports and exports, the majority of Great Lakes cargo shipments are between Great Lakes ports. Rather than competing with each other, most Great Lakes ports depend on each other for business. Because of this, inadequate maintenance of connecting channels, such as the St. Marys River and the St. Clair River, can set the maximum vessel draft for the majority of Great Lakes shipments, even for harbors maintained at deeper depths. The reduction in channel depth through which the largest Great Lakes dry bulk vessels navigated resulted in loads that were at times more than 12,000 tons below what the vessels had carried in 1997, the last period of high water on the Lakes. Twelvethousand tons of iron ore is enough material to make 8,200 tons of steel or 10,250 cars. Clearly, the economic impact of inadequate harbor maintenance is real for the region’s workers. A coalition consisting of the Lake Carriers’ Association, Great Lakes Maritime Task Force, Great Lakes Metro Chambers Coalition, American Great Lakes Ports Association and Northeast-Midwest Institute requested Congress designate the navigation features of the Great Lakes, St. Lawrence River and connecting waterways as a single system for Corps maintenance purposes. This would influence the Corps to provide greater consideration to the interdependence of the navigation features of the system and authorize Congress to appropriate funding above the amount requested by the Corps specifically to maintain the system. In a significant victory for the region, WRRDA includes the coalition-requested definition of the Great Lakes Navigation System (GLNS). Even though 100 percent of annual Harbor Maintenance Tax (HMT) receipts are authorized to be spent annually on harbor maintenance, only a little more than half of this revenue typically has been appropriated for this purpose, resulting in an $8 billion surplus in the Harbor Maintenance Trust Fund (HMTF). Several years of nationwide maritime industry, business, labor and cargo interest pressure regarding inadequate harbor maintenance funding led to WRRDA establishing annual targets for HMTF appropriations. These annual targets start at 67 percent of annual HMTF revenues for FY2015 and reach 100 percent by FY2025. WRRDA also includes a provision stating how HMTF appropriations targets only apply if the overall Corps civil works appropriations level is increased above the previous fiscal year’s level by at least the amount of the increase in the HMTF appropriations target from the previous fiscal year. While WRRDA does not actually require these annual funding levels be provided, or provide a recourse if they are not, these targets provide harbor maintenance supporters inside and outside of Congress a firmer basis for pressuring Congressional appropriators to increase harbor maintenance spending. Guiding fund allocation. In addition to overall HMTF appropriations targets, WRRDA includes complex, but flexible, guidance on allocating harbor maintenance spending to harbors with various cargo and geographic characteristics. Naturally-deep West Coast ports wanted flexibility to use HMTF funds for purposes other than navigation channel dredging and jetty maintenance. “Donor ports” of all sizes—those whose shippers have been provided more L E G I S L A T I O N GREAT LAKES/SEAWAY REVIEW July-September, 2014 7 WRRDA and the Great Lakes An analysis of how the new law impacts regional shipping Donjon Shipbuilding 8 www.greatlakes-seawayreview.com in annual taxes into the HMTF than the port received in annual harbor maintenance— wanted a greater “return” on those taxes. In the aggregate, small ports that have been receiving approximately 5 percent of annual HMTF spending wanted greater attention from the Corps. Because maintenance cycles among harbors and waterways vary, the Corps wanted flexibility to schedule maintenance work based on need, not fixed allocations. WRRDA was written to provide the Corps with the greatest flexibility within a “baseline” amount of funding equal to FY12 HMTF funding, which WRRDA described as $898 million. Within that baseline, the only allocation is a requirement that 10 percent of those funds must be used at “emerging harbors,” those with annual cargo volumes of less than one million tons. For HMTF appropriation above that baseline, which WRRDA describes as “priority funds,” WRRDA imposes several allocations: • 10 percent for emerging harbors • 10 percent for the GLNS • 10 percent for “expanded uses” (berth dredging, contaminated sediment dredging and disposal, and environmental remediation) • 5 percent for “underserved” harbors WRRDA defines “underserved” harbors as having: • Annual cargo volumes of less than 10 million tons • Been maintained at less than constructed depth and width during each of the six preceding years • Received state or local investments in infrastructure during the preceding six years While, at first, it appears that 35 percent of “priority” funds are set aside by WRRDA, the law specifically allows appropriations for harbors that meet more than one of these set-aside categories to be counted toward all eligible allocations. Also, the Corps has discretion to determine which appropriations fall within the baseline and which are priority funds. Depending on how the Corps assigns harbor maintenance spending to these various categories, all of the priority funding set-asides could be met with an amount approximating 20-25 percent of the priority appropriation amount and some priority allocations could be partially met with maintenance work already included in annual Corps budget requests. The only certainty is the emerging harbors’ share will increase to 10 percent of the total HMTF appropriation. If the WRRDA HMTF appropriations targets are met, however, the priority funds proportion of overall HMTF spending will increase, which will increase L E G I S L A T I O N So what does WRRDA do? It essentially authorizes the U.S. Army Corps of Engineers to study and construct water resources civil works projects, changes Corps civil works policies and authorizes funding for various programs. Federal funding for these projects and programs is provided separately by annual appropriations bills. Andire GREAT LAKES/SEAWAY REVIEW July-September, 2014 9 the influence of the above allocations. WRRDA includes another funding allocation provision for specifically defined “donor ports” and “energy transfer ports.” Donor ports are defined as ports: • Subject to the HMT • Where annual HMT collections are not less than $15 million • Which received less than 25 percent of the annual value of HMT collections from the port’s cargo back in the form of harbor maintenance spending • Which are located in a state in which more than two million 20-foot equivalent units of containerized cargo were loaded or unloaded in FY12 Energy transfer ports are defined as ports: • Subject to the HMT • Where petroleum products, natural gas, coal, wind and solar energy components and biofuels comprised greater than 25 percent of all commercial cargo tonnage in FY12 • Through which more than 40 million tons of cargo were transported in FY12 WRRDA authorizes up to $50 million in annual appropriations to be divided among these two types of ports from non- HMTF Corps operations and maintenance funds. No Great Lakes port qualifies under either of these definitions. Meeting new expectations. Finally, WRRDA requires the Corps to submit to Congress by March 2015, and every two years thereafter, a report detailing every federally- maintained harbor the HMTF needs to restore its navigation channel to constructed dimensions, the amount of funding requested for the upcoming fiscal year and a five-year budget request outlook. WRRDA also requires this report to identify the current uses and national, regional and local economic benefits of each harbor. The information will allow members of Congress to more easily track how harbors in their Congressional districts are competing for federal maintenance dollars. Through WRRDA, the Congressional authorizing committees have challenged the appropriations committees to provide substantial increases in Corps funding for operations and maintenance of navigation projects. It remains to be seen whether Congress will provide the funding necessary to meet all of the new law’s mandates. The effectiveness of WRRDA’s system of annual HMTF appropriations targets was tested one month after the bill became law. The WRRDA appropriations target for FY15 Corps harbor maintenance funding is $1.166 billion. The House of Representatives considered the energy and water development (E&W) appropriations bill, which funds the Corps’ civil works program, in early July. The committee report for the bill states that the committee did not have time to allocate HMTF funding to meet WRRDA’s HMTF allocation mandates, but it could be accomplished later in the appropriations process. The House E&W appropriations bill also did not allocate any Corps operations and maintenance funds for WRRDA-authorized donor-port or energy- transfer-port uses. The House Appropriations Committee had recommended $1.108 billion be appropriated from the HMTF for FY15, almost $58 million less than the WRRDA target for that year. Would Congress abandon WRRDA’s HMTF appropriations targets so soon after enacting them? The coalition of maritime industry and cargo interests that supported fixing the HMTF problem in the WRRDA bill swung into action to support an amendment by Reps. Janice Hahn (D-CA) and Bill Huizenga (R-MI) to increase Corps HMTF appropriations by $58 million by shifting $73 million from the Department of Energy. This L E G I S L A T I O N Stan Andrie President 231.332.9227 Mike Caliendo Vice President – Transportation 231.332.9243 561 E. Western Ave. Muskegon, MI 49442 www.andrietg.com KCBX Terminals 10 www.greatlakes-seawayreview.com amendment attracted bipartisan support from members of Congress who recognized the link between adequately maintained harbors and the nation’s economy and appealed to others who liked the net reduction in federal spending it accomplished. On July 9, 2014, the House voted to approve the Hahn/Huizenga amendment by an overwhelming vote of 281-137. In a letter to Rep. Huizenga, the Great Lakes Maritime Task Force stated, “By increasing the Corps budget to the level called for in the recently passed WRRDA, you have sent a clear message that the days of abusing the HMTF are over!” Two other amendments relating to HMTF funding were adopted in the House. Prior to the Hahn/Huizenga amendment, an amendment by Rep. Bill Cassidy (R-LA) increased HMTF spending by $1 million by voice vote. Finally, an amendment by Reps. Mike Kelly (R-PA) and Sean Duffy (RWI) requiring WRRDA’s GLNS harbor maintenance allocation to be complied with was agreed to by voice vote. While the Senate Appropriations Committee has not completed action on its version of the E&W appropriations bill, the committee report for the bill stated that it would provide in excess of $1.06 billion in HMTF appropriations, which is at least $100 million less than the WRRDA target for the year. Similar to the House bill, the Senate bill does not meet WRRDA’s HMTF allocation mandates and does not allocate any Corps operations and maintenance funds for WRRDA-authorized donor-port or energy-transfer-port uses. With recesses occurring prior to the November election, it appears the E&W appropriations bill will not come to the Senate floor, where a similar amendment to increase harbor maintenance funding to match the WRRDA target could be offered. Instead, it appears that if the current Congress is to reach an agreement on FY15 Corps funding, it will be enacted in a takeit- or-leave-it omnibus appropriations bill in late November or early December. Supporters of maintaining the nation’s harbors should consider asking their representatives and senators to press for negotiating the final FY15 E&W appropriations bill to fully fund the WRRDA target of $1.166 billion. While the Corps will determine where the additional funds would be spent, Great Lakes navigation interests are likely to benefit more if the WRRDA target is met than if the lower Senate funding level is provided. . Jim Sartucci is a Government Affairs Counselor at K&L Gates, LLP, a global law firm with an extensive maritime practice. He has experience with maritime and water resource development legislation. L E G I S L A T I O N Through WRRDA, the Congressional authorizing committees have challenged the appropriations committees to provide substantial increases in Corps funding for operations and maintenance of navigation projects. It remains to be seen whether Congress will provide the funding necessary to meet all of the new law’s mandates. 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! Great Lakes Towing Company GREAT LAKES/SEAWAY REVIEW July-September, 2014 11 or limitations of their educe their abilities. r stern thruster, they e to operate safely severe conditions or A TUG.” Jeff Stabler has lived by the standards of the master mariner for over 20 years — everywhere from the Arabian Sea, to the Red Sea, to the Caribbean Sea, the Atlantic Ocean and the Gulf of Mexico and now The To station 40 por Lakes s “IT’S A “IT’S GOOD SEAM wing Company’s network of tugs are ed in 11 ports, and serve more than rts and harbors across all eight Great states. TUG ” It’s the capability o vessel that can re Even with a bow or might not be able s MANSHIP TO TAKE Mexico, on the Great Lakes. As Fleet Captain of The Great Lakes Towing Company, Stabler ensures that his tug crews provide the best and safest service. “We want our Captains and their crews to have the confidence they need to get through any situation. That’s why we are on time, and don’t delay our customers. And we do that time and time again, without cutting any corners. That’s how we operate 100% of the time.” The tugs operated by the Towing Company have the longest running history for safety and dependability, while providing critical and essential services to Lakers and Salties in ports throughout the Great Lakes and St. Lawrence Seaway system. With o and ste it’s goo assista and se the ve Taking becom such as It’s add leave y “AD Accord “The not t GET A QUOTE ON YOUR FULL THE GREAT L ADDED INSURANCE TO TAKE A TUG.” ver 15 groundings, marine causalities, eering failures in the past three years, od seamanship to take a tug. Ship nce provides an added level of safety ecurity for the captain and owner of ssel. Not only is it safe, it’s smart. a tug decreases the chance of ships ing involved in a marine causality, s running aground or hitting a dock. ded insurance to take a tug. Don’t your port without one. DD OUR YEARS OF EXPERIENCE TOGETHER.” ding to Stabler: e expertise of the vessel’s captain is he problem, they have the experience. and effectively in even shallow water without a tug. That’s where we can assist most, and add our years of experience together with the vessel captain’s to create a plan and help maneuver the vessel safely. But even in good conditions, it’s just good seamanship to take a tug. You never know what could happen. The smallest mistake or unanticipated circumstances could have devastating consequences. We help the captain decrease the chance of that happening.” Utilizing a Full-Service Lakes-Wide Towing Contract with the Towing Company provides added insurance. It’s an added level of safety and seamanship to protect your crew, equipment, and the environment; wherever your vessel may call on the Great Lakes. esgroup.com • www.thegreatlakestowingcompany.com -SERVICE LAKES-WIDE TOWING CONTRACT TODAY LAKES TOWING COMPANY 216-621-4854 • sales@thegreatlake FULL Sennebogan 12 www.greatlakes-seawayreview.com P b il f M h aterial handlers from the Purpo -bu s from SENNEBO e ground se ilt 44,000 lb up OGEN – bs. to 750,000 lbs. Si w Te mple design… Lift www.sennebogen-na.co el: +1-704-347-4910 more. Move faster. om . Save fuel. Run lon nger. DALE BERGERON Maritime Transportation Specialist Minnesota Sea Grant MARK FISHER Chief Executive Officer Council of the Great Lakes Region Oversimplifying a complex issue can lead to false conclusions, polarization of positions, high emotions, increased risk and lost opportunity. Hidden subsidies, uneven regulatory oversight and competition built into our intermodal transportation systems have led us to suboptimal transportation choices negatively impacting citizens, the economy and the environment. An opportunity exists to use crude oil movements across the Great Lakes Basin as a foci to conduct a case study to compare and contrast the true impacts of our multi-modal transportation choices, in addition to better understanding the risks and options for crude oil transport within the basin. Currently, there are limited plans for maritime movement of crude oil in the basin. While reasonable potential exists, a conversation between a carrier and trade development specialist was telling: the first, who stated he feared the “drama” of even exploring the options, was checked by the latter, who said, “don’t you mean trauma.” It is difficult to know if the right choices are being made. There are both physical and social systems at work supporting or impeding the flow of basic resources and the efficiency of the transportation infrastructure in the Great Lakes Basin. Current transportation evaluations are often over simplified. However, there are strategies and processes to help stakeholders intelligently leverage the system’s multimodal choices, optimize current energy opportunities and protect communities and the environment. A case study. April 2014 saw North Dakota reach crude oil production of one million barrels per day. Volumes are projected to grow to 1.5 million barrels per day by 2017. Alberta oil sands production is currently more than two million barrels per day and is expected to reach 3.8 million barrels per day in the next seven years. A study by the Pew Research Center projects that by 2050 the population of the U.S. will add 135 million people, a 35 percent increase (world population will reach nine billion). Today, petroleum products account for the majority of transportation fuel, chemicals and plastics produced to support manufacturing, agriculture and mobility (in the U.S., only 1 percent of petroleum is used for electric generation). Even if per capita petroleum consumption is dramatically reduced, population growth will demand increased oil production for the foreseeable future. Society needs to make choices about how to move and manage crude oil. The prime concern in the Great Lakes is the movement of Alberta Oil Sands and Bakken crude. It moves predominantly east and south through the Great Lakes; however, traditional pipeline capacity is insufficient to move the product to refineries and new pipeline capacity is being developed slowly. This has driven crude oil movement to other modes of transport across the basin (rail showing the most dramatic increase), even though at higher transportation rates and potentially greater risks to communities and the environment. Historically, pipeline and marine transport have been used to move the majority of the world’s crude oil long distances. Today, rail and even road transport are used within the Great Lakes Basin. Recent rail accidents with crude oil have emotions about regional transportation choices running as high as demand. Well-meaning policymakers, citizens and even the transportation industry are trapped in a cloud of perceptual distortions prohibiting the use of best available science to optimize decisions. This has lead to diverted cargo and inaccurate or illogical interpretation of transportation issues, risks and the total costs to society. A study by the Transportation Research Board in Washington, C O M M O D I T I E S GREAT LAKES/SEAWAY REVIEW July-September, 2014 13 Moving crude oil Using collaboration and science to optimize choices, safety SOURCE: ALGOMA CENTRAL CORP. D.C., “Multimodal Freight Transportation Within the Great Lakes- Saint Lawrence Basin,” 2012, found limited integrated data on key performance measures, lack of coordinated communications and unclear regional and national transportation goals, indicating the need for a coordinated approach across transportation modes, geographies and jurisdictions. (http://www.trb.org/Railroads/Blurbs/ 167517.aspx) Due to the physical nature of the basin, it is clear that current crude oil movements are a bi-national, inter-regional concern and must be addressed by all levels of government, stakeholders and industry. Both industry and society must acknowledge that different performance objectives exist for different stakeholders and broaden the discussion appropriately. Otherwise, decisions are biased from the beginning and everyone risks making lopsided or false conclusions or risks letting emotions lead to inappropriate directions. Like a Rubik’s Cube, if policymakers focus on only one “convenient” facet of the problem, they can be sure the rest of the dimensions will be skewed and the efforts will fall short. An information solution. Transport of both North Dakota Bakken and Alberta Oil Sands crude are underway throughout the Great Lakes Basin by multiple modes. However, there are major information gaps: why is a particular mode being used for a given commodity, what is the relative security, safety, true cost and environmental impacts of each modal choice? Great Lakes communities and governments are asking these questions. There is a pressing need to frame both the positive and negative outcomes of all transportation choices in the basin to determine socially acceptable risk and cost, and plan collaboratively to avoid or address possible catastrophes. The process should also highlight existing or potential opportunities yet to be fully realized, as well as threats not being recognized or well understood. The inherent complexity of the issues points towards important initial steps in starting to create informed, coordinated adaptivemanagement strategies to address system-wide concerns. One strategy would be to implement a Great Lakes Basin transportation resiliency planning effort focusing on crude oil movement as a starting point. The goal would be to help stakeholders see and optimize their individual goals within a balanced social, economic and environmental framework delineated by best practices, technology and science, rather than being driven by special interests or emotion. To begin, some basic assumptions: • Current transportation, agriculture and manufacturing are dependent on petroleum products, so pressure will continue to move crude oil within the Great Lakes Basin. • Basic science is lacking on the properties, potential impacts and best practices for handling crude oil (two unique products); available data needs to be collected and enhanced with industry, regulatory and academic assistance. (Utica and Marcellus shale gas are another area of inquiry, as are all hazardous materials moved.) • Each mode of transportation presents both threats and opportunities to the population, the environment and the economy. The issues at hand need to be understood and addressed through: • Shared best practice protocols for material handling • Coordinated, complementary and equivalent regulatory oversight across modes • Reporting requirements • Response capacity • Fees and liability • Understanding of potential logistical and route impacts • Relative cargo risk and safety (i.e., lost containment consequence modeling) • Both immediate and long-term cumulative environmental impacts of each modal choice C O M M O D I T I E S 14 www.greatlakes-seawayreview.com 1.0 0.8 0.6 0.4 0.2 0.0 2005 2010 2015 2020 2025 2030 2035 2040 history projection High oil price Low resource High resource Low oil price Reference million barrels per day Crude oil produced from carbon dioxide injection in Annual Enery Outlook 2014, by case (2005-04) SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION 250 200 150 100 50 0 2005 2010 2015 2020 2025 2030 2035 2040 history projection High oil price Low resource High resource Low oil price Reference dollars per barrel (2012$) West Texas Intermediate crude oil prices in Annual Enery Outlook 2014, by case (2005-04) SOURCE: U.S. ENERGY INFORMATION ADMINISTRATION . Petroleum is a unique form of hydrocarbon. It can be semi-solid, liquid or gaseous. Today, petroleum products and their derivatives supply almost all of the world’s transportation fuels, chemicals and plastics (and approximately 1 percent of U.S. electrical production), according to the U.S. Energy Information Administration. Their use is largely focused on mobility, manufacturing and agriculture. . The value/demand for petroleum is not in the form of its energy, but rather in the “work” it allows society to accomplish, or the unique products made from it that support manufacturing and materials innovation. . With 60 percent of North American steel production, 20 percent of U.S. manufacturing and 50 percent of Canadian manufacturing occurring in the Great Lakes states and provinces, a primary concern for regional industry and communities is the availability and cost of petroleum- based products, as well as the cost of fuel for transportation, according to the Great Lakes Information Network. . Today’s global economies and social systems operate and are dependent on large amounts of energy. Renewable energy sources in the U.S. account for 11.7 percent of total energy use, slightly more than the percent of the world marketed energy consumption, according to the U.S. Energy Information Administration. Oil, natural gas, coal, coke (hydrocarbons) and uranium are the most common fuels in the world (representing 67 percent and 19 percent, respectively, of U.S. electrical generation). Every form of energy use (whether renewable or nonrenewable) has negative impacts on multiple levels. DEFINING DEMAND VS. SUPPLY Fednav DELIVERING SERVICE & EXPERTISE | FMT | FALLine | Fednav Dire ect | www.fednav.com • Impacts on overall transportation and commodity pricing • Modal impacts on total energy use and support of national energy goals • Potential for climate change impacts or climate change mitigation through modal choice • Commodity specific “scaling” and integration of modal choices All of these assessments must seek to use “equivalent intermodal comparisons” and include complete lifecycle cost analysis for each mode of transportation. Competition between modes of transportation and the lack of implemented national energy and transportation policies exacerbate regional problems. Intermodal regulatory oversight and requirements are not equivalent. It is essential to understand how the various jurisdictions and regulatory regimes compare, align or contrast in order to identify “hidden or unintended” subsidies, barriers or opportunities for one mode of transport over another. It’s also important to appropriately assure proper indemnification of interests between inextricably linked parties to the activity of crude oil movement specifically and transportation generally. Looking ahead. There are significant changes taking place in the U.S.-Canada energy market that will continue to alter the flow of petroleum into and out of the Great Lakes/St. Lawrence Seaway system. A need exists to build a shared understanding of the issues. It would be prudent to follow the successful model used by the Great Lakes Ballast Water Collaborative, led by the St. Lawrence Seaway Development Corporation and the International Joint Commission. Creating a Great Lakes Basin collaborative to discuss crude oil movements, would help leaders from government, business, NGOs, academia and labor illuminate and optimize their individual goals within a balanced social, economic and environmental framework. It would be a forum to delineate best practices, technology and science, rather than pursuing piecemeal dialogue that is driven by special interests or polarized positions. By building a virtual, bi-national, resiliency collaborative, starting with the issue of Great Lakes Basin oil transportation, participants can begin to create the capacity to address other complex basinwide transportation and resource issues as they come up. It is ideal to coordinate existing Great Lakes organizations to guide such an effort. This would allow for the inclusion of the largest stakeholder participation possible and help to build a vetted and shared body of knowledge, across different interest groups, from which informed decisions can be made. While it is critical to the region’s future growth and success to address the issue of crude oil movement within the Great Lakes Basin, it is equally important for decision-makers, businesses and residents to better understand the opportunities and relative risks related to their transportation choices. A collaborative approach can help build this capacity. A complete review of issues will likely yield new information and ideas, but it should also reinforce and clarify some long-held beliefs that will ultimately be tempered by social demand and need. The benefit of such an approach involves making transportation policies and regulations more transparent and the outcomes more intentional. Understanding the full complexity of the impacts of the transportation options is difficult but essential if policymakers are going to make informed choices as they seek to remain globally competitive and provide social, economic and environmental security for the region through the still growing North American energy boom. . If you would like to be involved in a network to discuss crude oil transportation issues within the Great Lakes Basin, please email Mark Fisher at mark@councilgreatlakesregion.org or Dale Bergeron at dbergero@d.umn.edu. fect. per And on those th for the open water. On is simple. We want to m marinas from Saginaw t vessel. Their heroics are is to know about what p a good day. They also k technicians know that a Our factory-trained and hat are a little rough. those days that are make sure you’re ready to Savannah. Our goal well documented in powers your marine know everything there ny day on the water is d authorized service Cleveland, OH GREAT LAKES LOCATIO ( 330) 225-7751 ONS: Columbia, South Carolin Atlanta and Savannah, G OTHER LOCATIONS: Saginaw, MI Grand Rapids, MI Dearborn, MI Toledo, OH Visit us at www.w na Georgia; Charleston and (989) 753-4411 (616) 878-7071 (313) 584-6150 (419) 837-5067 ) wwwilliams.com. 16 SLSMC St. Lawrence Seaway Management Corporation 18 www.greatlakes-seawayreview.com The Discounts Just Got DEEPER with the Service Incentive Program! If you Qualify as New Business on the Seaway you can save up to 20% on tolls. Carriers who also qualify as a New Service on the Seaway could save up to an additional 20% for a 40% total savings on tolls! These add to the savings of shipping via the Great Lakes St. Lawrence Seaway System. Visit our website for details or call Market Development at 905-641-1932 x5438 www.hwyh20.com/tollincentives.html SAVE UP TO 40% GREAT LAKES/SEAWAY REVIEW July-September, 2014 19 When the tanker recently purchased by Rand Logistics returns to the Great Lakes, she will arrive as a river class dry bulk self-unloader. The Danish-flagged vessel was purchased by Lower Lakes in late May and sailed to Chengxi Shipyard in China where a new forebody is being constructed and a repowering will occur. According to Capt. Scott Bravener, President of Lower Lakes Towing and Lower Lakes Transportation Co., the tanker paid for her trip to the shipyard by trading along the way in the Baltic, Mediterranean and Red seas. Once Rand Logistics—Lower Lakes’ parent company—purchased the tanker, she was chartered back to her former owner for trade and transport to China. Prior to the sale, the double-hulled tanker sailed as M/T Lalandia Swan, moving bulk liquids for Denmark-based Uni- Tankers. She was built in 1991 at Uljanik Shipyard in Croatia. Although well known in the seas, the nearly 15,000 metric ton deadweight saltie is no longer a stranger to the Lakes. She sailed in the Great Lakes/St. Lawrence Seaway system fairly frequently during the 2013/14 season. Being transformed. While at Chengxi Shipyard, the tanker is having her forebody cut away, a newly-constructed forebody affixed to the existing stern and a repowering. The new propulsion equipment includes an 8,000 hp B&W 5L50 MC main engine, shaft alternator, an exhaust gas boiler and Adding to the fleet Lower Lakes modifies Danish tanker into self-unloader S H I P R E P O W E R I N G SOURCE: ROGER LELIEVRE S H I P R E P O W E R I N G 20 www.greatlakes-seawayreview.com two new Tier 2 MAN/B&W 6L21/31 1,250 kilowatt generators. A new high-efficiency propeller will be fitted and the stern tube will be converted to water lubrication. Final assembly is scheduled to begin in January and a launch is set for late March. The ship will then undergo final fitting of the high-cubic capacity self-unloading equipment before sailing back to the system. “This will essentially be a new ship and one of the most efficient of its type,” Capt. Bravener said. “It will represent our largest investment in the fleet to date.” The project represents Lower Lakes’ third repowering in 14 years, with the SS Michipicoten being the most recent and Saginaw the first in 2008. When the repowering is complete, Lower Lakes’ new vessel will have a carrying capacity of about 24,000 metric tons at Seaway draft. She is expected to arrive in the system for the second half of the 2015 season, increasing the size of Rand’s fleet to 17, with 10 Canadian-flag and seven U.S.-flag vessels. Because of bi-national flagging, the company’s vessels operate under the U.S. Jones Act, which reserves domestic waterborne commerce to vessels that are U.S.-owned, built and crewed and the Canada Coasting Trade Act, which reserves domestic waterborne commerce to Canadian-registered and crewed vessels that operate between Canadian ports. While the Canadian newbuilds sailing When the repowering is complete, Lower Lakes’ new vessel will have a carrying capacity of about 24,000 metric tons at Seaway draft. She is expected to arrive in the system for the second half of the 2015 season, increasing the size of Rand’s fleet to 17, with 10 Canadian-flag and seven U.S.-flag vessels. Fleet Expansion Project Conversion Procedure Mark cutting line and vessel to be cut into forward body and after body. Forward body to be shifted out of drydock in floating condition and after body to stay without moving. The new forebody with self-unloading system to be prefabricated and to be adjusted to suitable draft for sit down in jig block. The rudder and steering gear to be renewed and the belt to be fabricated. Piping, electricity, outfitting and other jobs to be carried out in drydock. GREAT LAKES/SEAWAY REVIEWTo r oJumlyo-nSet pCteAmTber, 2014 21 Marine Pollution Control 22 www.greatlakes-seawayreview.com into the system are mostly coastal class, the former tanker is said to be the first new Canadian-flagged river class self-unloader introduced into service in the Great Lakes in more than 40 years. A project management team is overseeing the ship’s transformation at the shipyard in China. Experiencing market gains. The selfunloader, which has yet to be named, will support new a long-term contract awarded to the company. After an economic slump, the company’s customers are experiencing post-recession rebound. The new ship will service Lower Lakes’ existing customer base, with an increase in market share of a primary aggregate-receiving company. “We have secured substantial long-term, contractual new business beginning in April 2015 for our Canadian-flagged operations,” Capt. Bravener said. “The new tonnage we have secured is in addition to the more than 250 sailing days of new business we have been awarded for the 2014 sailing season.” The acquisition and conversion of the vessel reaffirms the company’s commitment to support the growth of its customers, enabling it to continue to grow as the largest carrier of construction aggregate on the Great Lakes. “We’re pretty excited about what adding the ship does for our fleet, the added services we can provide to our customer base and our employees,” Capt. Bravener said. “It’s a continued opportunity for their personal growth. We have been one of the only growing companies on the Great Lakes and our employees have done very well with the growing opportunities.” Janenne Irene Pung . The acquisition and conversion of the vessel reaffirms the company’s commitment to support the growth of its customers, enabling it to continue to grow as the largest carrier of construction aggregate on the Lakes. d RESP Lan olu EMERGENCY S . PONSE d. Sea utions. ADVANCED TECHN TRAINING AND COM INDUSTRIAL MAINT NOLOGY MPLIANCE TENANCE M www.MarinePollu +1 (313) 84 Marine MPC IS OSRO #003 utionControl.com 49-2333 – 24/hour Pollution Control BETTY SUTTON Administrator Saint Lawrence Seaway Development Corporation Although the beginning of the 2014 navigation season was not without its challenges coming off the harshest winter in 20 years, as the summer months have come and gone, we saw progressively increasing tonnage numbers and a great deal of activity at our U.S. ports. Here’s a snapshot of what’s been moving in the Great Lakes/St. Lawrence Seaway system and around the Lakes that accounts for this sustained comeback. This season, the main growth commodities are general cargo, primarily iron and steel articles such as coil, plate and slabs, as well as aluminum and containers. For bulk cargo, growth has been in chemicals, liquid and dry, grain and salt. Changes in power generation and auto production are affecting Seaway traffic. Rapid transition from coal to gas-powered generation is occurring in North America with most aging coal plants being replaced by new gas facilities delivering better environmental performances and fueled by abundant and cheap gas reserves. Integrated steel mills using coke are slowly being replaced by mini-mills so coal usage is dropping. Furthermore, auto production is rebounding from the 2008-09 recession and the CAFÉ standards coming into effect

Maritime Editorial