Vol.43 No.3 JAN‑MAR 2015

V O L U M E 4 3 J A N U A R Y – M A R C H 2 0 1 5 N U M B E R 3 Expanding liner services . Transport Canada on ballast . The 2014 season . System investments 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 January-March, 2015 1 The international transportation magazine of Midcontinent North America Salties calling at the Port of Cleveland. Page 7. A detailed account of the 2014 season. Page 22. Water and cold temperatures sculpt art out of ice. Page 69. 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/ J A N U A RY- M A R C H 2 0 1 5 Great Lakes/St. Lawrence Seaway A R T I C L E S Passenger Cruising REPOWERING A FLAGSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Maid of the Mist VI prepares to sail with new engines. Great Lakes History THE EASTLAND DISASTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 100 years have passed since the fateful loss of lives and vessel. Marine Photography BITTER-COLD BEAUTY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Ice build-up is more beautiful than friendly to Great Lakes shipping. Meet The Fleet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Trade Patterns EXPANDING LINER SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Spliethoff doubles Cleveland-Europe Express frequency, plans for more ports of call. Ballast Water Management DECISIONS PENDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Transport Canada framing its ballast water management regulations. Regulations IT’S 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Is your ship’s bunker fuel compliant? The 2014 Season 40 MILLION METRIC TONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Seaway celebrates tonnage increase, new cargoes flowing through the system. BUSINESS, PORT BY PORT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Cargo totals increase at most system ports, infrastructure investments on a high. Ports AUTOMOBILE MANUFACTURING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Port of Oswego captures booming metal market. Interview ASSEMBLY-LINE WARSHIPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Jan Allman leads Marinette Marine through LCS construction refinements. Propulsion ADAPTING FUEL USAGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 System’s fleets prepare for low-sulphur operation. Passenger Cruising WELCOMING NEW PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Cruise ships to benefit from U.S. Customs and Border Protection pilot program. Economic Development MAKING THE CASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Bi-national survey identifies $7 billion in investments, private dollars double public spending. Dredging MAKING HEADWAY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Corps reports upward trend in federal funding. Ports PORT CLEAN-UP COMPLETE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Waukegan’s North Harbor no longer a toxic hot spot. Environment EXCEEDING EXPECTATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Assessing environmental performance, increasing the pool of verifiers. GREAT LAKER D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Guest Editorial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15, 53 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Great Lakes Ports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 WHEN IT COMES TO HEAVY CARGO, BARNHART KNOWS HOW TO GET IT MOVED. 815.431.0078 | BARNHARTCRANE.COM EQUIPMENT & SERVICES • 550 ton heavy lift terminal at Port of Chicago • Port of Monroe, Michigan terminal with ro/ro dock • 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 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, Vice President of Business Development, Toledo- Lucas County Port Authority; Rick Dystra, Member of Parliament, St.Catharines, Ontario; Steven A. Fisher, Executive Director, American Great Lakes Ports Association; Tim Heney, Chief Executive Officer, Thunder Bay Port Authority; 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; Allister Paterson, President, Canada Steamship Lines; Mark Pathy, President & Co-CEO, Fednav Limited; Joseph P. Starck, Jr., President, Great Lakes Shipyard; John Vickerman, Founding Principal, Vickerman & Associates, LLC; James H.I. Weakley, President, Lake Carriers’ Association; Wendy Zatylny, President, Association of Canadian Port Authorities 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. One year print & digital edition $38. Foreign: One year $47.00; two years $68.00; three years $100.00. One year print & digital edition $53. 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. © 2015 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: Containers at the Port of Cleveland. Source: Cleveland-Cuyahoga County Port Authority. Great Laker Cover: The Burns Harbor covered with ice. Photo by Walter Barkley. 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 JANUARY-MARCH 2015 NUMBER 3 2 GREAT LAKES/SEAWAY REVIEW January-March, 2015 3 Senate committee approves ballast reform bill The bipartisan effort to establish a uniform national framework for regulating vessel discharges moved forward when the Senate Committee on Commerce, Science and Transportation approved S. 373, the Vessel Incidental Discharge Act (VIDA), in March. A coalition of nearly 60 organizations is supporting passage of VIDA, which would streamline ballast water regulations for the Great Lakes/St. Lawrence Seaway system and beyond. The measure would replace the patchwork of overlapping and conflicting federal and state regulations with a uniform, sciencebased federal framework for ballast water regulation. Under the bill’s provisions, the U.S. Coast Guard is granted sole responsibility for regulating ballast water and other vessel discharges. The U.S. Environmental Protection Agency would no longer regulate discharges under the Clean Water Act. The bill would also pre-empt state governments from regulating ballast water discharges, addressing the current patchwork of policies of two federal agencies, 26 states and two tribes. “The bill is good for the maritime transportation industry and the industries that rely upon it, good for the health of the nation’s waterways and good for the American taxpayer,” said a letter the coalition sent to the Senate Commerce Committee in advance of it passage. The committee approved identical legislation last Congress. The U.S. House of Representatives has approved similar legislation several times. Currently, the Committee on Transportation and Infrastructure is reviewing H.R. 980, the Vessel Incidental Discharge Act. The House bill would also place regulation responsibility with the Coast Guard. S. 373 is expected to be considered by the Senate yet this spring. If passed by the committee, H.R. 980 will go before the House. . Interlake vessel retrofitted with gas scrubbers Interlake Steamship Company has contracted with Belco Technologies Corporation to install closed-loop exhaust gas scrubbers on the self-unloading dry bulk carrier M/V Honorable James L. Oberstar. Installation began in mid- January at Bay Shipbuilding in Wisconsin. Testing is scheduled for April. The system will allow Interlake to meet all North American Emission Control Area and International Maritime Organization (IMO) Annex VI sulfur requirements while continuing to operate on heavy fuel oil. The scrubbers will take advantage of a common effluent treatment system to meet all U.S. Coast Guard, U.S. Environmental Protection Agency and IMO washwater emission standards. . Magazine welcomes advisory board members With a focus on continuing its bi-national and diverse system coverage, Great Lakes/ Seaway Review has added four commercial shipping experts to the Editorial Advisory Board: Tim Heney, CEO of Thunder Bay Port Authority, Allister Paterson, President of Canada Steamship Lines, Joseph P. Starck, Jr., President of Great Lakes Shipyard and Wendy Zatylny, President of the Association of Canadian Port Authorities. Editorial Advisory Board members represent various sectors of the Great Lakes/St. Lawrence Seaway system and share their views on issues impacting the industry during board meetings. For a complete listing of the members, see page 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 DATELINE Soerensen takes lead at Algoma Central Ken Bloch Soerensen is the new President and CEO of Algoma Central Corporation, effective April 1. He succeeds Greg Wight, who retired March 31 after 35 years with Algoma Central. “The company has a strong franchise and a solid global reputation as the foremost provider of marine freight services in the Great Lakes,” said Soerensen, who is new to the Great Lakes/St. Lawrence Seaway system. “I anticipate building from that base into new markets.” Soerensen is a native of Denmark, who was most recently based in Dubai. He began his career with 18 years at A.P. Moller/Maersk, where he was General Manager of several global operating units. Following his years with Maersk, Soerensen served as CEO of Swiss Federal Railways Cargo and, from 2005 to 2009, was CEO of United Arab Shipping Co. For two years, he represented the industry on regulatory matters in the European Union as the Executive Director of the European Liner Affairs Association in Brussels. Most recently, he was Managing Director and Partner in IPSA Capital Limited. “Ken brings a wealth of experience and a depth of knowledge, particularly in international marine operations, which will be critically important to Algoma as we seek out new opportunities for investments in growth initiatives,” said Duncan Jackman, Chairman of Algoma Central’s board of directors. . CSL completes newbuild program The last of six new Trillium Class Great Lakes vessels arrived at the Port of Montreal February 12, completing Canadian Steamship Lines’ fleet renewal program producing 11 self-unloaders and bulk carriers for CSL’s Canadian and Americas fleets. “This is a truly historic moment for CSL and our customers within the Great Lakes,” said Allister Paterson, President of Canada Steamship Lines. “CSL St-Laurent and all Trillium Class ships represent the labor and ingenuity of a vast number of employees, partners and suppliers who saw CSL’s newbuild program through from design to delivery, as well as the support of the Canadian and Quebec governments. This investment by CSL represents major gains in shipping efficiencies and environmental responsibility in the Great Lakes, along with hundreds of high paying sailing jobs for decades to come.” . Allister Paterson Wendy Zatylny SOURCE: CSL The Chamber of Marine Commerce D A T E L I N E 4 www.greatlakes-seawayreview.com will fall again to below-average levels.” The swift rebound in water levels broke records across the region. The net rise in water levels on Lake Superior from January 2013 through November 2014 was roughly 2.3 feet, the highest net increase ever recorded for the 23-month period. Similarly, on Lake Michigan-Huron, the net rise in water levels from the record-low in January 2013 through November 2014 was 3.2 feet, an increase that tied the previous record set in 1950-1951 for the same 23-month period. . Continued success with ballast water exchange With 10 ballast water treatment systems undergoing testing by the performance/verification testing services for U.S. Coast Guard certification, the Great Lakes/St. Lawrence Seaway system’s shipping industry continues to await an approved system. Twelve additional systems are scheduled to enter the testing process, according to U.S. Coast Guard Rear Adm. Fred Midgette, Commander of the Ninth District. Internationally, there are 51 ballast water management systems approved with 345 vessels operating system onboard. Regionally, Great Ships Initiative of Duluth-Superior is testing systems for use in freshwater. While awaiting the next steps in treating ballast water, the Ballast Water Working Group—tasked with harmonizing the ballast water management efforts between the U.S. Coast Guard, Transport Canada-Marine Safety and Security, the Saint Lawrence Seaway Development Corporation and The St. Lawrence Seaway Management Corporation— continues to inspect vessels coming into the Seaway for successful ballast water exchange. In 2014, 100 percent of ships bound for the Great Lakes via the St. Lawrence Seaway from outside the Exclusive Economic Zone received a ballast tank exam. In total, the group’s partner agencies examined 8,497 ballast tanks during 454 vessel transits. Vessels that did not exchange ballast water or flush ballast tanks were required to either retain the ballast water and residuals onboard, treat it in an environmentally-sound and approved manner or return to sea to conduct a ballast water exchange. This is the sixth consecutive year the group has ensured the examination of 100 percent of ballast tanks entering the system. The group anticipates continued high ship compliance rates for the 2015 navigation season. To see the full report on the inspections, please go to http://www.greatlakes-seaway.com/ en/pdf/2014_BW_Rpt_EN.pdf. . Increases in lake levels impact industry Scientists at the U.S. Army Corps of Engineers, Environment Canada and the National Oceanic and Atmospheric Administration (NOAA) recently documented a record-setting surge in water levels on Lakes Superior and Michigan-Huron, which began in January 2013 and has continued through November 2014. At no other point in recorded history have water levels raised as much on Lake Superior and Michigan-Huron over the same two-year period. Since September 2014, all of the Great Lakes have been above their seasonal averages for the first time since the late 1990s. “The recent surge in water levels brings to an end a 15-year period of persistent belowaverage water levels on Lakes Superior and Michigan-Huron,” said Drew Gronewold, a research hydrologist with NOAA’s Great Lakes Environmental Research Laboratory. “However, it is uncertain if, years from now, water levels will continue to rise, or if they Duluth Seaway Port Authority REGIONAL CALENDAR REGIONAL CALENDAR D A T E L I N E GREAT LAKES/SEAWAY REVIEW January-March, 2015 5 Great Lakes pilotage rates increase The U.S. Coast Guard is adjusting rates for pilotage services on the Great Lakes, which were last amended in March 2014. The increase establishes new base rates to match the rate increase of the Canadian Great Lakes Pilotage Authority, according to the Federal Register. The increase is effective August 1, 2015. The final rule, 46 CFR 401, published February 26 and may be reviewed at https:// www.federalregister.gov/articles/2015/02/26/2 015-04036/great-lakes-pilotage-rates-2015- annual-review-and-adjustment. . APRIL 26-28 Great Lakes Economic Forum Chicago Cultural Center Chicago, Illinois www.greatlakeseconomicforum.com MAY 5-6 22nd Annual River Symposium 2015 St. Lawrence River Institute of Environmental Sciences Cornwall, Ontario http://riverinstitute.ca/river-symposium/ program-speakers/ 7 28th Annual Windsor Marine Event St. Clair Centre for the Arts Windsor, Ontario (519) 258-5741, www.portwindsor.com 13-14 Shortsea Shipping, Current and Future Biennial Conference Iberville Passenger Terminal Montreal, Quebec (418) 648-4378, ext.102 anne-marie.desmeules@asl-sls.org 18-21 Breakbulk Europe 2015 Antwerp, Belgium Joanna Lenck, (973) 220-4827 events@breakbulk.com www.breakbulk.com 18-22 Seaway Trade Mission to Europe (In conjunction with Breakbulk Europe) Rebecca Spruill, (202) 366-5418 Bruce Hodgson (905) 641-1932, ext. 5436 21-22 Canada-U.S. Marine Gateway 2015 Conference The Westin Hotel Ottawa, Ontario www.shipowners.ca 24-26 50th Annual Canadian Transportation Research Forum Conference The Marriott Chateau Champlain Montreal, Quebec (519) 421-9701 www.ctrf.ca 27-29 GreenTech 2015 Renaissance Seattle Hotel, Seattle (418) 649-6004 www.green-marine.org/greentech/ JUNE 10-12 2015 Supply Chain Management Association National Conference Halifax, Nova Scotia scmanational.ca/en/events/scma-nationalconference/ 2015-national-conference 17-19 Great Lakes and St. Lawrence Cities Initiative 2015 Annual Meeting & Conference Sarnia-Lambton County, Ontario www.glslcities.org/annual-meeting/ 2015.cfm … make the world a little smaller. In the world of shipping, size matters. Whether moving a single piece of machinery or several smaller lots of equipment, the Port of Duluth has become Intermodal Headquarters for the Heartland. Working with the Spliethoff Group, we offer direct, all-water parcel sailings (less-than-shipload) between Duluth and Europe. Seamless transport. First class service. Duluth Delivers. 218.727.8525 | duluthport.com Fednav DELIVERING A HIGHER STANDARD FOR 70 YEARS | FMT | FALLine | Fednav Direct | www.fednav.com With one season on the books, The Spliethoff Group and Cleveland- Cuyahoga County Port Authority are doubling the frequency of moving cargo between Cleveland and Antwerp, Belgium in 2015. Cleveland-Europe Express (CEE) sailing will now occur biweekly, with vessels passing in the Atlantic Ocean. “We are trying to be a consolidation point—for containers, breakbulk and heavy-lift cargoes,” said Will Friedman, President and CEO of the Cleveland-Cuyahoga County Port Authority. CEE is the only direct, scheduled vessel service for containerized and non-containerized cargo between the Great Lakes and Europe, entering through the Port of Antwerp. The Spliethoff Group has immediate connections from the Port of Antwerp to Russia, Finland, Spain, UK and the Baltic States. During the winter closure of the St. Lawrence Seaway, cargoes are taken through a port on the East Coast. The liner service began in April 2014, arriving in Cleveland with containers, wind turbine components, consumer and industrial goods and other industrial equipment. Over the season, it completed eight calls in Cleveland and in Antwerp. While cargo didn’t mirror expectations—carrying few containers and more project cargo than anticipated— it did satisfy the partners enough to add a second sailing, creating biweekly loading and unloading at each port for 2015. Project cargo dominated the first season. School buses, boats, power plant turbines, crated equipment, containers and more moved between the continents. As an example, 12 presses weighing a total of 35 metric tons moved from Ohio to China. They were trucked to the Port of Cleveland, shipped to Antwerp and directly transshipped to China. “We broke every record for transit time, making it to Antwerp in two weeks,” said Bart Peters, Manager of the Atlantic Department for Spliethoff Transport B.V. “It would have taken weeks just to truck them to the East Coast or the Gulf. We offer transit times from the Midwest to anywhere worldwide that are faster than using the East Coast and Gulf Coast.” Sailing time between Cleveland and Antwerp is 13 days. Container service lagged because shippers want more frequent departures to best meet customer demand. “We really struggled to convince the container shippers to commit regular volumes because we didn’t have frequency. It became clear we needed to sail every two weeks, which is why the second ship is going to change the container market for us,” Friedman said. “We are optimistic that it will make us competitive for the container and non-container segments of the market.” “We have established the CEE as a legitimate, cost-effective alternative for the breakbulk and heavy-lift markets,” Peters said. “Now with the second ship, we can offer a very attractive option for container shippers. The advantages of an all-water service to the U.S. Midwest, combined with our transshipment connections in Antwerp throughout Europe and the world, make this a powerful alternative.” Port backs service. The Port of Cleveland has served as the initial investor, dedicating acreage to the operation, committing its stevedore and financially backing the business case for Spliethoff. In return, the carrier committed multi-purpose, M-type vessels for the monthly—and now biweekly— voyages. The ships have the capacity to carry 552,300 cubic feet of cargo, have 160-ton lift capacity and can load up to 702 containers at a time. During year one, the service generated about $4 million in revenue, slightly below the original projection, according to September 2014 minutes from the port authority’s board of directors meeting. Expenses T R A D E P A T T E R N S GREAT LAKES/SEAWAY REVIEW January-March, 2015 7 Expanding liner services Spliethoff doubles Cleveland-Europe Express frequency, plans for more ports of call Cleveland-Europe Express (CEE) sailing will now occur biweekly, with vessels passing in the Atlantic Ocean. The Port of Cleveland is handling increased international cargo through its feeder line service. ran $1 million over budget. Though the service will not show immediate financial gain, resources are being applied correctly by the port, adding that this type of leadership and innovation is what the public and the shipping industry expects from the organization. “Ports are generally investors in ‘patient capital’ that do not show quick financial returns,” said Friedman. “We learned a lot operationally. We’re handling containers which haven’t been handled much in the Great Lakes. The workforce and management have had to get up to speed on container handling and we don’t have gantry cranes, which are faster and more efficient. Everyone has to hustle.” However, Friedman said the service must be profitable to continue. “Going in, I told our board there are no guarantees,” he said. “We are trying to innovate and bring cargoes back to the system we have not seen on a regular basis. We’re trying to change shipper and 3PL mindsets after many, many years of not considering the Great Lakes as a route for general cargo and containers. It takes time. “We know others are watching,” he added. “The service has to make a profit. We are not going to subsidize this business on an indefinite basis.” During season one, the port changed stevedores, from FMT to C-Port Maritime, a sister operation to Valport, operator of the Port of Valleyfield in Quebec. According to Peters, Valport is familiar with Spliethoff’s ships, which have multiple and moveable decks to accommodate various types of cargo—bulk, breakbulk and containers— during the same sailing. Growing the business. During the first season, thousands of customers and potential customers were given quotes for using CEE. The additional ship is hoped to broaden the customer base—making Cleveland a funnel for Midwest materials and products. With project cargo flowing, the port and carrier are meeting with companies from throughout the region to create business for 2015. “There is a lot of industry in the U.S. Midwest. We are speaking to industry which mostly produces for the U.S. and Canada, marketing the opportunity to go abroad with their products. We’re doing the same in Europe,” Peters said. “We are also hiring more people to reach out to customers.” Spliethoff is also considering which type of ship will best accommodate the service based on committed cargo. Because its fleet has more than 100 multi-purpose ships with various crane capacities, it will send the iceclassed ship best suited for each Atlantic crossing. The option allows shippers to make their own determination on whether to assemble heavy-lift machinery in the U.S. or wait until after the various components are offloaded at the end destination. In Cleveland, the port has plans for $20 million in capital investments to enhance maritime operations and sediment management this season. Possible investments include adding equipment to help more efficiently handle containers, such as a top pick, re-stacker, more cranes and additional storage space. During the 2014 season, Spliethoff also carried wind turbine components to Duluth- Superior. At the conclusion of the T R A D E P A T T E R N S CEE is the only direct, scheduled vessel service for containerized and non-containerized cargo between the Great Lakes and Europe, entering through the Port of Antwerp. Passenger maritime transportation General cargo and liquid bulk maritime transportation, coastal and international Shipowners, charterers, brokers and agents Rental and operation of cranes and heavy machinery Intermodal transhipment Road transportation Subsidiaries Desgagnés Marine Cargo Inc. Desgagnés Marine Petro Inc. Desgagnés Transarctik Inc. Navigation Desgagnés Inc. Services Maritimes Desgagnés Inc. Transport Desgagnés Inc. Petro-Nav Inc. Relais Nordik Inc. Tessier Ltd. 21 Marché-Champlain Street, Québec (Québec) G1K 8Z8 Telephone: (418) 692-1000 Fax: (418) 692-6044 info@desgagnes.com www.desgagnes.com Groupe Desgagnés inc. Liquid bulk maritime transportation division Petro-Nav Inc. 204 Saint-Sacrement Street, Suite 601 Montréal (Québec) H2Y 1W8 Telephone: (514) 843-8800 Fax: (514) 843-9195 E-mail : info@petro.nav.desgagnes.com 8 www.greatlakes-seawayreview.com American Great Lakes Ports season, it announced plans to expand its presence in the Lakes by potentially developing feeder line services in Duluth and Thunder Bay. “Cleveland was brave and opened up the system by contracting with us and securing sailings to get customers to commit,” Peters said, noting that it will remain the only port with a contract with Spliethoff for a regularly-scheduled service. The carrier will call on Duluth-Superior and Thunder Bay as contracted cargoes determine. “We’re all entrepreneurs and we have to run a line on an economical basis,” he added. The time is right. Duluth Seaway Port Authority has been discussing a container service with Spliethoff for several years, according to Ron Johnson, Trade Development Director. Not including general cargo in the considerations, the numbers didn’t indicate sustainability. With the option of filling the ships with other cargo types, transportation delays on the East Coast and the recovering economy, the operation looks more feasible. “The timing, I think, is right,” Johnson said. “We’re going to kick this off at least monthly and then with more frequency as the volume builds.” From Duluth-Superior, sailing time for the service is 14-15 days. Adding loading and unloading time means selling a service with a 21-day turnaround. With more grain being moved in containers, it may be a commodity to help fill the ships. “This is an exciting time,” Johnson said. “I know Lake Superior Warehousing is geared up for this. We’ve handled containers before, but they were part of a project—25 or 30 of them. This will be a combination of cargoes with deliveries all over.” In Thunder Bay, port authority CEO, Tim Heney, also hopes to turn his major exporting port into a port of call for a monthly feeder line service. Like Cleveland and Duluth-Superior, shipments will be determined by amassing various cargo types. “There is a possibility of containerized grain shipments to Antwerp from Thunder Bay that could provide significant tonnage on a regular basis, providing the costs are favorable,” Heney said. “The port authority has a modern, fully-rigged container crane, intermodal yard and top-lifter so we have the capacity for efficient container handling. We will do our best to take advantage of this opportunity.” With a year of experience, Friedman is focusing on growing the container part of the service. This area of the service is more competitive. Profit margins are thin. The region from which to draw is smaller than with project cargo. Yet, the port authority considers this an economic development opportunity for the region and Ohio. In 2014, the port moved 6,055 containers; in 2013, it moved zero. In 2014, Cleveland moved 200,000 tons of project cargo; in 2013, it moved 87 tons. “We essentially got half of the service in place with breakbulk during year one,” he said. “Now we need to come back with a second ship and get the container service locked in.” “It takes time to build confidence,” Peters said. “We managed to stay in business by showing good growth in volume and a lot of interested customers, but we are just at the beginning of this.” Janenne Irene Pung . T R A D E P A T T E R N S GREAT LAKES/SEAWAY REVIEW January-March, 2015 9 In 2014, the port moved 6,055 containers; in 2013, it moved zero. In 2014, Cleveland moved 200,000 tons of project cargo; in 2013, it moved 87 tons. Advocacy. promoting public policies that foster maritime commerce on the Great Lakes-Seaway system for membership information visit: www.greatlakesports.org SLSMC The Discounts Just Got DEEPER with the Service Incentive Program! If you Qualify as New Business on the Seaway you can save up to 20% on tolls. Carriers who also qualify as a New Service on the Seaway could save up to an additional 20% for a 40% total savings on tolls! These add to the savings of shipping via the Great Lakes St. Lawrence Seaway System. Visit our website for details or call Market Development at 905-641-1932 x5438 www.hwyh20.com/tollincentives.html SAVE UP TO 40% Great Lakes/Seaway Review: What do you consider the most important steps taken to protect the Great Lakes from invasive species? Transport Canada: Ballast water, required for the safety and stability of ships, is also a vector for the introduction of aquatic invasive species. Canada has a long history of actions to reduce this risk and a history of co-operation with the U.S. in our shared waters. Canada’s Ballast Water Control and Management Regulations under the Canada Shipping Act, 2001 established procedures for ships entering Canadian waters to manage their ballast water. On the Great Lakes, no new species attributed to ships’ ballast water has been reported since 2006. Great Lakes/Seaway Review: What’s the most important step yet to be taken? Transport Canada: Shipping is a global industry. In 2010, Canada acceded to International Convention for the Control and Management of Ballast Water and Sediments, 2004 because a fair and feasible global approach is the best way to address the problem of species invasions from ships. The convention will enter into force one year after adherence with it by countries representing 35 percent of the world’s merchant shipping tonnage. Currently, countries representing 32.54 percent of this tonnage have adhered to it. Great Lakes/Seaway Review: Please provide the status of Transport Canada’s ballast water management plan. Transport Canada: Canada is committed to facilitating marine transportation on the Great Lakes/St. Lawrence Seaway system, while reducing the introduction and spread of damaging invasive species and protecting the safety of ships and crews. The convention will not be applicable in Canada until it enters into force and is implemented in Canadian regulations. The regulatory process for implementation has not yet formally begun. In developing an approach for implementation, Transport Canada is consulting with U.S. and Canadian stakeholders, taking into account legal, scientific, technical, cost, benefit and regional compatibility considerations. When draft regulations are ready for stakeholder consultation, they will be published in Canada Gazette Part I. Great Lakes/Seaway Review: Do you believe ballast water regulations are necessary for the Great Lakes/St. Lawrence Seaway system beyond the saltwater flushing now required by The St. Lawrence Seaway Management Corporation? Transport Canada: Implementation of the convention on the Great Lakes will satisfy Canada’s international obligations and address both the introduction and spread of invasive species by ships. Great Lakes/Seaway Review: Have you reviewed the United States regulations passed by the U.S. Environmental Protection Agency and the U.S. Coast Guard? If so, are they part of what you’re considering as a federal regulation? Transport Canada: U.S. regulations are being taken into account through Transport Canada’s regional compatibility considerations, as noted above. Transport Canada is committed to continuing to work closely with the U.S. Coast B A L L A S T W A T E R M A N A G E M E N T GREAT LAKES/SEAWAY REVIEW January-March, 2015 11 Decisions pending Transport Canada framing its ballast water management regulations With ballast water management regulations passed by both the U.S. Coast Guard and the U.S. Environmental Protection Agency, Transport Canada is preparing its own regulations. Canada is a signatory to the International Maritime Organization’s ballast water management convention. The convention will enter into force 12 months after ratification by 30 states, representing 35 percent of the world’s merchant shipping tonnage. Ratification by 30 states is expected in the coming months. Representatives from Transport Canada provided the following information to Editor Janenne Irene Pung on the department’s pending regulations. Transport Canada is aware of concerns regarding implementation of the convention by Great Lakes ships and recognizes that if it were to enter into force now, technical and regional compatibility factors would pose challenges to its implementation in this region. SOURCE: JERRY BIELICKI Great Lakes Maritime Research Institute Marine Pollution Control 12 www.greatlakes-seawayreview.com Guard and the U.S. Environmental Protection Agency to achieve ballast water regulations that are fair, workable and protect the Great Lakes and St. Lawrence River, while meeting Canada’s international obligations under the ballast water convention. Great Lakes/Seaway Review: As of your current status, do you expect to require ships remaining in domestic waters to install ballast water management systems? Do you have a proposed timeline for such installations? Transport Canada: Transport Canada is aware of concerns regarding implementation of the convention by Great Lakes ships and recognizes that if it were to enter into force now, technical and regional compatibility factors would pose challenges to its implementation in this region. Transport Canada will monitor these challenges and work with stakeholders to achieve ballast water regulations that are fair, practicable and protective, while meeting Canada’s international obligations under the ballast water convention. Great Lakes/Seaway Review: How are you involving Canadian fleet owners in your development of the ballast water management regulations? Transport Canada: Transport Canada has been working closely with both Canadian and U.S. stakeholders (including fleet owners) and will continue to do so as it works toward fair, practicable and protective Great Lakes requirements that meet Canada’s international obligations. Great Lakes/Seaway Review: Because of the U.S.-Canadian shared waterway, in addition to the Canadian-flag lakers, how do you expect your pending regulations to impact the U.S.-flag fleet? Transport Canada: Canada is committed to developing feasible rules for Great Lakes ships, with the goal of a level playing field for the Canadian, U.S. and international fleets that operate together in this region. . Canada is committed to developing feasible rules for Great Lakes ships, with the goal of a level playing field for the Canadian, U.S. and international fleets that operate together in this region. A University of Wisconsin – Superior and University of Minnesota Duluth Consortium Research Institute Great Lakes Maritime The Great Lakes Maritime Research Institute brings together the strengths of the two host universities, along with the research capabilities of other Great Lakes Universities. Established in 2004, the Institute has been designated by the U.S. Department of Transportation’s Maritime Administration as the National Maritime Enhancement Institute for the Great Lakes. Learn more about us at: www.glmri.org Supporting Sustainable Maritime Commerce on the Great Lakes Photo by Chris Benson Old Main, Room 129E P.O. Box 2000 University of Wisconsin-Superior Superior, Wisconsin 54880 715-394-8268 The Great Lakes Towing Company RY TOW.” With over 40 years of experience, Captain perience will prevent, “YOUR REPUTATION IS have s S ON THE LINE WITH EVER stamina. You’re gone all day and into mistakes, that our ex Get a Quote THE GREA easy The co experi well as Comp tugme Safety make it mak their w should father. and le pride Patter do this have t – bruta the nig without damaging the boats. 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Every time about the job is that a captain can’t do “One of the things I’ve always liked best The Great Lakes Towing Company. down to the next generation of tugmen at now feels passionately about passing Mike Patterson has honed skills that he @thegreatlakesgroup.com • www.thegreatlakestowingcompany.com on Your Full-Service Lakes-Wide Towing Contract Today AT LAKES TOWING COMPANY your vessel may call on the Great Lakes. equipment, and the environment; wherever seamanship to protect your crew, provides an added level of safety and Contract with the Towing Company Utilizing a Full-Service Lakes-Wide Towing It’s cheap insurance.” a tug far outweighs the cost of an accident. cost of an accident. The low cost of taking the cost is nothing when you consider the services. 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It’s really intense You re 216-621-4854 • sales@ 14 www.greatlakes-seawayreview.com The most complete marine offering on earth includes hundreds of ways to improve efficiency. Wärtsilä is the market leader in fuel efficiency, proven gas solutions and ensuring environmental compliance while protecting profitability. Our global network of over 160 service locations offers upgrades, minimises downtime and optimises performance when and where you need it. Read more at www.wartsila.com WÄRTSILÄ: YOUR SHORTER ROUTE ROBERT LEWIS-MANNING President Canadian Shipowners Association ments and inspection regime for oceangoing vessels continues to have a remarkable and positive impact on our environment, as no new aquatic invasive species have been detected in the Great Lakes since 2006. Notwithstanding the Herculean effort of the past, the regulators let their attention slip moving from regulatory conception into the implementation phase. Most of them assumed that technology would sort itself out over time. This assumption demonstrates a fundamental misunderstanding of the marine industry, technology developers and the economic business models of both. Technology appropriate for our waters and ships has not evolved as anticipated by regulators and now the USCG is the sole entity managing the complexities of implementing new technologies that will fundamentally change the marine industry. In this challenging regulatory landscape, the USCG is providing real leadership in assuming the burden of deciding which technology is suitable for which operating environment. Once it receives the first application for a type-approval, which has yet to happen, it will also be a significant undertaking for the USCG to assess the operational feasibility of this technology for specific vessels. I expect the USCG will endure untold scrutiny by numerous stake- G U E S T E D I T O R I A L TO FEDERAL REGULATORS We’re stuck in the middle of ballast water management with you GREAT LAKES/SEAWAY REVIEW January-March, 2015 15 The ‘regulate now and figure it out later’ approach has proven incredibly destructive to the industry and does not promote solutions to address the problem. holders in the early stages when there are only a handful of technologies that will largely be approved for the ocean-going environment. Canada holds a unique position. As a global leader at the International Maritime Organization (IMO) on ballast water regulations, science and type-approval certification, it also assumes one of the most significant regulatory challenges as it shares responsibility for the unique bi-national waters of the Great Lakes with the United States; a country that did not ratify the convention and which has two federal regulators of ballast water discharges. Canada has the ability to add to the complexity or to provide leadership to resolve this challenge. Industry has been clear. It needs flexibility and predictability in a regulatory framework and it has been trying, through testing and evaluation, to find a technical solution. This framework should be fair, agile and supportive of out-of-the-box solutions where industry can help to promote alternatives that make sense for its unique vessels and the unique waters in which they sail. The ‘regulate now and figure it out later’ approach has proven incredibly destructive to the industry and does not promote solutions to address the problem. We may not get another chance to chart a proper course and Transport Canada has the opportunity to show leadership in a bi-national, harmonized and progressive approach that respects its international commitments, its unique and important domestic industry and its most important trading partner. . The never-ending saga of ballast water regulations is approaching yet another milestone while the Canadian and American marine industry continues to face incredible uncertainty with a series of regulations and permits designed to protect our important marine environment. Suitable and protective technology appropriate for our vessels and our unique waters remains elusive and the regulatory demand for them is threatening the sustainability of our industry. This makes little sense for the environment, the economy and the prosperity of our incredible region. It is probable that the International Ballast Water Convention will meet the conditions for coming into force in May 2015 and will be implemented one-year later in the spring of 2016. Canada, having ratified the convention in 2010, intends to implement the convention in all Canadian waters. It makes this assertion acknowledging that the technology does not currently exist. This approach will add one more layer of regulatory complexity and potentially divide markets in the Great Lakes and the industry across borders, imposing an impossible requirement for the unique vessels and environment of the Great Lakes/St. Lawrence region. One must question how this will protect the environment, promote commerce and improve the prosperity of the region’s population? Industry identified this regulatory conundrum almost a decade ago and sought the support of the U.S. Coast Guard (USCG), U.S. Environmental Protection Agency (EPA), Transport Canada and the state governments to help find solutions. Certainly, some significant progress was achieved, including joint requirements for ocean-going vessels entering the Great Lakes, collaboration between stakeholders through the Ballast Water Working Group and the alignment of standards between states and federal entities. The joint ballast water exchange require Ports of Indiana 16 www.greatlakes-seawayreview.com at Lake Michigan and Ohio 1,000 Acr of Multimodal Industrial Sites ts res River Por are Available North American Emission Control Area . ECA Boundaries JIM SHARROW Facilities Manager Duluth Seaway Port Authority January 1 of this year brought a sea change in permissible fuels to ships around the world. Nowhere is this change more costly to shipowners and operators than in the Great Lakes/St. Lawrence Seaway system. So, what has changed? The U.S. and Canada were certified in 2011 by the International Maritime Organization of the United Nations under the international MARPOL VI standard to create the North American Emission Control Area (NAECA). Under MARPOL VI, ships will be required to lower their engine emissions of the oxides of sulfur (SOx) and nitrogen (NOx)—similar to land-based modes of transportation. Millions of people will benefit by breathing cleaner air, particularly those living near crowded coastal ports. The ECA boundaries extend out 200 nautical miles from shore between the Mexican border and the Canadian Arctic on the East Coast and from the Mexican border to the Aleutian Peninsula on the West Coast. The Hawaiian Islands are included in the ECA and, in 2013; the U.S. Caribbean ECA was established to include the U.S protectorates of Puerto Rico and the U.S. Virgin Islands. Beginning January 1, 2015, vessels operating in these regions must be able to prove they are either burning ECA Marine Fuel with a maximum sulfur content of 0.1 percent (1,000 parts per million) or must scrub the sulfur from their stack emissions to a level of sulfur equivalent to this fuel. Waters stretching 24 miles from the California coast have an even tougher state rule because scrubbers aren’t allowed as a means of compliance. ECA Marine Fuel is expensive compared to the heavy, sulfur-rich fuels that have been used for decades on most ships. How expensive? A ship that switches from a heavy fuel oil to ECA Marine Fuel when in the ECA can expect to pay as much as 50 percent more in daily fuel cost; as much as $10,000 per day, depending on engine horsepower, efficiency and current fuel prices. Closed-loop exhaust gas scrubbers on lakers also are costly to operate, but appear to be the option of choice for many of the fleets. Shipowners also have the option to outfit their vessels to burn liquefied natural gas as a fuel, but, as early adopters of this fuel, they face high capital costs. Ships operating exclusively inside of the ECA zone—such as the U.S. and Canadian lakers—must always comply with the fuel and emissions rules. Ships trading between Duluth or Chicago and Europe, the region’s usual trading partner, are in the North American ECA, the North Sea ECA or Baltic ECA about 50 percent of their voyage time. In comparison, a ship that trades to an East Coast port will operate in the ECA for just 200 miles. A ship trading straight from the Atlantic Ocean to Duluth will travel about 2,500 miles in the ECA on each one-way transit of the system. Some ships are exempt from the sulfur content rule for awhile. Steam-powered ships are exempt until 2020 due to safety concerns. U.S.-flag, steam-powered ships operating on the Great Lakes are exempt until 2026 and under an incentive program offered by the U.S. Environmental Protection Agency (EPA), a U.S.-flag, steam-powered vessel can be repowered with more efficient diesel engines and still burn the higher sulfur heavy fuel through 2025. The EPA also has approved transitional and equivalency agreements with some shipowners. Canadian-flag ships can utilize a sulfur averaging scheme until 2020. Also, new engines will need to be certified to EPA Tier III NOx standards beginning in 2016. As a result of this regulatory change, the economics of ship operation in the system will never be the same. . R E G U L A T I O N S GREAT LAKES/SEAWAY REVIEW January-March, 2015 17 It’s 2015 Is your ship’s bunker fuel compliant? As a result of this regulatory change, the economics of ship operation in the system will never be the same. 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Federal Highway BETTY SUTTON Administrator Saint Lawrence Seaway Development Corporation During a busy and highly successful 2014 navigation season on the St. Lawrence Seaway, we realized headlines highlighting significant grain exports, increased ocean vessel transits and the launch of a new regular liner service in the Lakes. The Seaway system registered a 7.6 percent tonnage increase from 2013 to 2014, making it the first time since the 2008 navigation season that we’ve hit the mark of 40 million tons handled. Each month from May through December showed an increase in tonnage compared to the 2012 to 2014 three-year average. The strong finish to the Seaway’s 2014 navigation season contributed to the resurgence in the overall economy and foreshadows a positive outlook for increasing use of maritime transportation to move goods throughout the region and beyond. As maritime stakeholders, our shared commitment to increasing trade on the Great Lakes/St. Lawrence Seaway system helps support the growing import and export trends. I am encouraged by these very positive results and aim to further enhance the reach and role of the Saint Lawrence Seaway Development Corporation (SLSDC) across the Great Lakes region. An important mission of the SLSDC is to facilitate trade and economic development throughout the Great Lakes/St. Lawrence Seaway region. For 30 years, the SLSDC has engaged in trade development activities to promote the waterway and its stakeholders in order to drive economic growth. Frankly, the Seaway exists for economic activity, connecting North America’s ‘Opportunity Belt’ to the world. To that end, I am pleased to announce that, as of February 1, the SLSDC has established a Great Lakes Regional Outreach Initiative which will focus on trade and economic development activities and work ‘on-the-ground’ with the Great Lakes/St. Lawrence Seaway system stakeholder community. Adam Schlicht, a member of the SLSDC staff, will lead the new initiative, coordinating closely with Seaway governmental, nongovernmental and industry stakeholders across the ‘Opportunity Belt.’ As the SLSDC’s Great Lakes Regional Representative and Economic Development Specialist, he will work with and support Great Lakes/Seaway ports, terminals, shippers, carriers and labor to increase maritime trade; meet with federal, state and local elected officials to offer assistance; coordinate with other regional federal entities, Great Lakes state transportation officials and regional economic development agencies to ensure Seaway system maritime transportation is understood and prioritized in regional planning; and provide information about federal maritime transportation and funding assistance programs. In this role, he will also be responsible for leading future SLSDC regional activities and programs that directly assist Great Lakes ports, businesses, the public and other stakeholders. It is important that we have a direct presence in the region. The SLSDC Regional Outreach Initiative will greatly complement the SLSDC’s existing economic development and policy work in Washington, D.C., as well as our lock operations and marine services in Massena, New York. It will also enhance our joint trade development and marketing efforts with the Canadian Saint Lawrence Seaway Management Corporation through the binational Highway H20 program, promoting broader participation across all Highway H20 programs and initiatives. Highway H20 is the route and the ‘Opportunity Belt’ is the destination. Our outreach initiative will play a vital role in finding new ways to expand the use of the Great Lakes/Seaway system. You can reach Adam on his professional cell phone at (216) 379-9106 or by email at adam.schlicht@dot.gov. This is an exciting and dynamic time for the Seaway system and the Great Lakes region and the absolute right time to bring a new focus to our economic development role. Our bi-national waterway provides access to the cities, states and provinces in the region, where trade opportunities abound. SLSDC’s new regional outreach initiative will support and encourage greater economic opportunities for the people and businesses throughout the ‘Opportunity Belt’ that depend on the Great Lakes. I am confident this approach to trade and economic development will advance the SLSDC’s efforts to effectively support the Great Lakes region, increase commercial trade through the waterway and provide increased tangible benefits for the economies of both the United States and Canada. . T H E A D M I N I S T R A T O R ’ S O U T L O O K UNVEILING A GREAT LAKES REGIONAL OUTREACH INITIATIVE GREAT LAKES/SEAWAY REVIEW January-March, 2015 19 SLSDC has established a Great Lakes Regional Outreach Initiative which will focus on trade and economic development activities and work ‘on-the-ground’ with the Great Lakes/St. Lawrence Seaway system stakeholder community. Furuno The Port of Toledo 20 www.greatlakes-seawayreview.com THE PORT OF TOLEDO +1 419 243 8251 toledoseaport.org Just Got Bigger! Now Open For Business! 180 ACRES ADDED TO THE PORT OF TOLEDO AT THE IRONVILLE SITE Water Your Cargo Here! Rail Pipeline Truck 180 More Reasons to …………………… of Toledo! STEVE FISHER Executive Director American Great Lakes Ports Association G R E A T L A K E S P O R T S HOW ARE YOU INVOLVED? System stakeholders urged to engage GREAT LAKES/SEAWAY REVIEW January-March, 2015 21 Over the last year, our organization worked closely with Martin Associates of Lancaster, Pennsylvania to produce an infrastructure investment survey of the Great Lakes/St. Lawrence Seaway system. To begin that effort, a master list of 628 system stakeholders was compiled. This list guided the survey process and included vessel operators, port authorities, private terminals, shippers, pilots, dredging contractors, etc. Reviewing the list, I was struck by the large number of American companies who apparently rely on the waterway for economic gain, but play no active role in regional efforts to ensure its success. Without naming names, I ask each of you to consider— how are you involved? The Great Lakes/St. Lawrence Seaway system is under constant threat. The role call of challenges is familiar to many of you. Federal and state agencies have deployed a patchwork of ballast discharge rules that threaten vessel operations. While most of these are harmonized, some still are not. Michigan regulations continue to obstruct export activity at the state’s ports. U.S. Environmental Protection Agency (EPA) ballast rules disadvantage Canadian operators and future Canadian regulations may disadvantage U.S. operators. Many Great Lakes ports remain choked with sand and silt from an underfunded federal harbor maintenance program. Dredge material disposal is increasingly expensive and problematic, particularly in Lake Erie where the State of Ohio is now resisting open lake disposal. Our lock infrastructure is aging and in need of constant maintenance. Massive capital upgrades to the region’s locks are underway, but not yet completed. Funds to overhaul the Poe Lock have slowed to a trickle and the project is slipping behind schedule. Barge transportation to southern Lake Michigan ports is under threat as activists continue to champion closure of the Chicago Area Waterway System. Last winter’s record ice conditions highlighted the vulnerability of the navigation system in an era of climate change. Despite heroic efforts by the U.S. and Canadian Coast Guards, commerce slowed to a crawl. Vessel operators have called for construction of an additional heavy icebreaker—which will be a heavy lift in Congress. This litany of challenges makes it painfully clear—navigation is dependent on government. No matter how much you may believe in free enterprise, capitalism, private competition and marketplace solutions, the maritime industry operates on public waterways, enhanced by public infrastructure, constructed, operated and maintained with public tax dollars and is regulated by public agencies according to laws enacted by public officials. The Great Lakes maritime industry—and its stakeholders- have no choice but to actively engage government. Great Lakes/Seaway government relations work is carried out by an unfortunately mod

Maritime Editorial