Vol.44 No.4 APR‑JUN 2016

V O L U M E 4 4 A P R I L – J U N E 2 0 1 6 N U M B E R 4 Infrastructure funding . Processing dredged material . Regional LNG use . Lake Erie wind farm G LGREAT LAKER Interlake Steamship The Interlake Steamship Company 7300 Engle Road Middleburg Heights, Ohio 44130 Phone: 440-260-6900 • 800-327-3855 FAX: 440-260-6945 Email: boconnor@interlake-steamship.com Website: www.interlakesteamship.com PARTNERSHIP Interlake Steamship believes that partnership isn’t just an idea. Partnership has a face. It’s the face of the individuals who touch its customers’ business on a daily basis. At Interlake, each team member – from management to operations personnel to vessel crew – understands that individual effort can make a difference in helping customers meet their goals. Our people set Interlake apart. Advanced training, valuable experience, and close cooperation help Interlake continue its century-long customer-first philosophy. Great Lakes transportation is our business, our only business. Let us deliver for you. Great Lakes Fleet Rely on our Enduring Resolv e. James B. ck steamer. 2. Retired 36. cn. g greatlakes Port of Milwaukee Marine Pollution Control 2 www.greatlakes-seawayreview.com THE INTERNATIONAL MARITIME MAGAZINE OF THE GREAT LAKES/ST. LAWRENCE SEAWAY SYSTEM VOLUME 44 APRIL-JUNE 2016 NUMBER 4 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 Senior Account Manager 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; Dale Bergeron, Associate Professor, 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; Steven A. Fisher, Executive Director, American Great Lakes Ports Association; Tim Heney, Chief Executive Officer, Thunder Bay Port Authority; Peter Kakela, Ph.D., Professor, Department of Community, Agriculture, Recreation and Resource Studies, Michigan State University; Kevin McMonagle, Vice President-Operations, American Steamship Company; Allister Paterson, President, Canada Steamship Lines; Mark Pathy, President and Co-CEO, Fednav Limited; Wayne Smith, Senior Vice- President, Commercial, Algoma Central Corporation; Joseph P. Starck, Jr., President, Great Lakes Shipyard; 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. © 2016 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: Generators from Finland are offloaded in Duluth en route to North Dakota. Photo by Robert Welton Great Laker Cover: Edwin H. Gott makes her way under the road and rail bridges at Sault Ste. Marie, Michigan. Inland. S Sea. Solut tions. M www.MarinePollu +1 (313) 84 Marine MPC IS OSRO #003 utionControl.com 49-2333 – 24/hour Pollution Control OVERSIZED AND HEAVY BULK, BREAKBULK, LIQUID CARGO . 16 day Europe to Milwaukee service with Fednav shipping line . Year-round river barge service to the Gulf region . Deck barge service throughout the Great Lakes . Tramp liner service by Inducement . Heavy lift capacity up to 187 metric tons with Stiff Leg Derrick crane . Inside and outside storage availability . Direct Union Pacific an d Canadian Pacific railroad service . All interstate highway routes to Illinois and Iowa for overdimensional cargo FOR MORE INFORMATION: Port of Milwaukee 414-286-3511 www.milwaukee.gov/port CARGO VIA THE GREAT LAKES AND INLAND WATERWAYS PORT OF MILWAUKEE IS PART OF THE GREAT LAKES/ST LAWRENCE SEAWAY SYSTEM GREAT LAKES/SEAWAY REVIEW April-June, 2016 3 The international maritime magazine of the Great Lakes/St. Lawrence Seaway system A R T I C L E S Training & Recruitment FINDING AN ALTERNATIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Innovative program prepares students for a future in maritime and beyond. Shipbuilding & Ship Repair GETTING NEW ENGINES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Maid of the Mist VII follows her sister ships in repowering project. Meet the Fleet A POWERFUL LADY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Edwin H. Gott adds muscle to regional ore trade. Meet the Crew A HAWSEPIPE LIFE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Chief Engineer Ray Morrissey spends nearly 70 years moving cargo. Locks CRITICAL INFRASTRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Requests mount to expedite study for construction of new Poe-size lock. HIDDEN PROBLEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Lock inspection reveals cracked anchors, prompts unplanned repairs. Dredging FILL MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Instead of confined disposal, many ports are turning to processing and reuse of sediment dredged to maintain navigation. Commodities SCIENCE-BASED PLANNING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 A look at crude oil and refined products logistics in the Great Lakes Basin. Interview DEVELOPING POLICY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Minister of Transport addresses approaches to environmentally sound economic development. Propulsion MAKING THE CHANGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Canadian ferry operators sail forward with LNG technology. LIQUIFIED NATURAL GAS BUNKERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Analyzing regulatory and operational issues for Great Lakes vessels. Business Development ENERGY PRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Lake Erie set as future location for the United States’ first mid-lake wind farm. Commodities ARE CONTAINERS VIABLE? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 A review of container movement on the Great Lakes over time. Technology PRECISION REQUIRED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Step-by-step cargo recovery requires specialized equipment, modifications. GREAT LAKER A P R I L – J U N E 2 0 1 6 Great Lakes/St. Lawrence Seaway D E P A R T M E N T S Dateline: Great Lakes/St. Lawrence Seaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The Administrator’s Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Guest Editorials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38, 47 On The Radar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 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/ U.S. Army Corps addresses increased maintenance needs at the Soo Locks. Page 9. Canadian ferry F.A. Gauthier uses LNG as a fuel, with more ferries to follow. Page 36. The powerful 1,000-footer Edwin H. Gott. Page 69. Fednav RELIABLE | F ELIA MT | FALLine | Fednav D ABL irect | LE www.fednav.com GREAT LAKES/SEAWAY REVIEW April-June, 2016 5 U.S. WRDA bill moves forward The House Transportation and Infrastructure Committee approved the Water Resources Development Act (WRDA) of 2016. The Senate draft of the bill, S. 2848, has been approved by the Environment and Public Works Committee. The bills address funding for America’s harbors, locks, dams and other water resources infrastructure. “Restoring the two-year WRDA cycle is vital for our nation, as other countries continue to invest in their own water resources infrastructure,” according to a recent T&I Committee report, which also noted how the recent opening of the expanded Panama Canal accommodates larger vessels that can carry nearly three times as many shipping containers as the previous canal could service. Regular action and oversight by Congress through the biannual WRDA process will ensure U.S. infrastructure is prepared for future growth and growing in global competition. If passed by the full bodies, WRDA 2016 will take precedence over the 2014 law, including authorizing U.S. Army Corps of Engineers projects and new reforms to the Harbor Maintenance Trust Fund. While the 2014 law made progress in allotting more of the collected tax to its intended purpose, the newer House version includes mandatory spending. “This change will help our struggling ports accommodate growing cargo demand and increasingly larger ships,” said Edward Wytkind, President of the Transportation Trades Department, AFL-CIO. “The Constitution tasks Congress with the responsibility for maintaining our nation’s critical infrastructure and advancing commerce,” said Sen. Jim Inhofe (R-OK). “Each year, $1.4 trillion worth of goods moves through our nation’s ports, and this number will only grow as our trade volume is expected to double within a decade. In order to set our economy up for success, Congress must provide steady support and thorough oversight of our inland water and marine transportation system by authorizing WRDA every two years.” The Senate bill will soon be introduced to the floor. . Step taken toward new Great Lakes icebreaker Progress has been made on the potential construction of a second heavy icebreaker to partner with the 10-year-old Mackinaw. Sen. Tammy Baldwin (D-WI) included $2 million for an initial survey and design work for a second heavy icebreaker in the committee report on the Department of Homeland Security Appropriations Bill. The Coast Guard Authorization Act of 2015 authorized a new heavy icebreaker for Lakes service. Sen. Baldwin’s provision would provide the first funds targeted toward acquisition of the icebreaker. “It is essential that Congress provide the men and women of the Coast Guard with the resources they need to keep open shipping lanes in the Great Lakes and to conduct search and rescue missions to keep ships and their crews safe during winter’s cruelest months,” wrote Sens. Debbie Stabenow and Gary Peters in a joint letter. Cargo movement during the ice season is crucial to commerce. Ice can begin forming in early December and linger into April and May. The cargoes that move during those months can top 20 million tons, or 15-plus percent of the Lakes/Seaway’s annual total, according to the Great Lakes Maritime Task Force (GLMTF). Iron ore for steel production and coal for power generation are the primary cargoes shipped during the ice season. The U.S. Coast Guard has nine icebreakers assigned to the Lakes, but one is undergoing modernization. When it is ready, another will undergo service life extension until all six 140-foot-long icebreaking tugs have been modernized. Canada has two icebreakers permanently stationed on the Lakes. “Just 16 months ago, a U.S.-flag laker with an ice-strengthened bow and 7,000 horsepower engine sat immobile within sight of land for five days. The Coast Guard icebreaker dispatched to the scene was unable to free the vessel and its last cargo had to be cancelled. The U.S. Coast Guard must have two heavy icebreakers in order to reliably meet the needs of commerce,” said James Weakley, GLMTF 2nd Vice President and President of Lake Carriers’ Association. . 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 McKeil Marine takes delivery of second bulk carrier McKeil Marine Limited is adding a new bulk carrier to its fleet. Arklow Willow, being renamed Florence Spirit, is the second bulk carrier which was purchased in as many years. The 14,881-ton vessel will complement Evans Spirit, which was purchased in 2015. Together, the vessels enable McKeil to create 50 permanent, full-time jobs. The ships are named after company founders, Evans and Florence McKeil, who are Chairman and CEO Blair McKeil’s parents. Built in 2004, Arklow Willow is a 446-foot general cargo vessel. Trading predominantly between the Great Lakes and the Maritimes, the vessel will carry powdered cement and raw materials for customers in the cement industry. The new vessel was sailed from Marseilles, France to Sydney, Nova Scotia and has been registered under the Canadian flag. She will load her first cargo by late July. The bulk carriers will be christened together as part of McKeil Marine’s 60th anniversary celebrations. . Corps’ Buffalo District welcomes new Commander Lt. Col. Adam Czekanski assumed command of the U.S. Army Corps of Engineers, Buffalo District June 7. He replaced Lt. Col. Karl Jansen. “This organization is highly respected throughout the community and the Corps of Engineers for its engineering expertise, technical competence and commitment to public service,” said Czekanski. “I am very appreciative of this opportunity to serve with the men and women of the Buffalo District and I look forward to working together to solve our nation’s most challenging problems.” Czekanski was commissioned as a Second Lieutenant in 1998 after earning a bachelor’s degree in Agriculture and Biological Engineering from Cornell University. In 2007, he earned a master’s degree in Environmental and Water Resources Engineering from the University of Texas. . The $18 million dock redevelopment is underway at Duluth-Superior. Recent work on rebuilding the Duluth Seaway Port Authority’s Docks C and D includes a 620-cubic-yard concrete slab for roll-on/roll-off, new sheet piling, tie back rods and anchors, heavy concrete bases for bollards, storm sewer connection, dredging the slip and contouring the 26-acre surface with fabric and gravel. The intermodal project is scheduled for October completion. Lt. Col. Adam Czekanski Andrie 6 www.greatlakes-seawayreview.com D A T E L I N E other goods from here to other U.S. and overseas markets,” said Minnesota Gov. Mark Dayton. Dayton is Co-Chair of the Governors’ and Premiers’ Regional Maritime Entity. To review more information on the Governors’ and Premiers’ Maritime Initiative, please go to www.cglslgp.org. . Pay increase for pilots prompts lawsuit A coalition of U.S. Great Lakes ports, vessel operators and maritime trade associations filed suit in the U.S. District Court for the District of Columbia May 31 challenging the U.S. Coast Guard’s 2016 increase in Great Lakes pilotage rates. The American Great Lakes Ports Association, Shipping Federation of Canada and U.S. Great Lakes Shipping Association were joined by vessel operators Fednav International Ltd, Canfornav Inc., Polish Steamship Company, Spliethoff Transport, Brochart Shipping and Wagenborg Shipping in filing the complaint. The coalition disputes the agency’s proposed 58 percent increase in pilotage fees to be implemented over 2016 and 2017, arguing key flaws in the agency’s work. “Pilotage is currently one of the single largest costs to vessel operators engaged in international trade on the Great Lakes,” said Steve Fisher, Executive Director of the American Great Lakes Ports Association. “On average, the daily cost of a pilot now exceeds the cost of chartering the entire cargo ship and its crew.” Will Friedman, President of the Cleveland- Cuyahoga County Port Authority, said: “Great Lakes pilotage costs have gone up 114 percent over the last 10 years. The Coast Guard wants to increase them another 58 percent by 2017. These increases are unsustainable and will ultimately erode the viability of international trade through Great Lakes ports.” By law, salties operating on the Great Lakes/St. Lawrence Seaway system must pay local pilots. The U.S. Coast Guard regulates pilotage. Rates are set annually by the Coast Guard through a federal rulemaking. In the 2016 rate-setting, the Coast Guard decided to expand the number of pilots, increase pilot compensation to $326,000/year and ensure that pilots have 10 days off each month during the nine-month shipping season. The rulemaking also involves increasing the number of system pilots from 36 to 48 by the start of the start of the 2017 shipping season and to 54 by the end of that season. Those elements are estimated to cost shippers an additional $1,865,025 or about 12 percent more. The Coast Guard also proposes shippers pay a “temporary surcharge” of $1,650,000 for the cost of hiring and training new and current pilots. The total cost increase in 2016 for shippers is calculated at $3,515,025, nearly 23 percent over the 2015 rates. Regional maritime strategy released A maritime strategy by the Conference of Great Lakes and St. Lawrence Governors and Premiers has been introduced to jumpstart the Great Lakes/St. Lawrence Seaway maritime transportation system. The regional strategy’s objectives are to double maritime trade, shrink the environmental footprint of the transportation network and support the industrial core. Once fully implemented, the strategy will help grow the maritime sector, which already contributes more than $30 billion to the U.S. and Canadian economies and accounts for more than 220,000 jobs. The strategy includes a blend of policies, programs and projects to rejuvenate the regional maritime system. Ten-year implementation of the strategy is estimated at $3.8 billion. “This new strategy will strengthen our region’s economic competitiveness in the global marketplace. These investments will make it easier, faster and cheaper to move iron ore and SHIP ASSISTS • TOWING CREW BOAT SERVICES • ICE BREAKING SPECIAL PROJECTS ASPHALT & FUEL OIL TRANSPORTATION VESSEL & FLEET MANAGEMENT PROJECT MANAGEMENT 561 E. Western Ave. Muskegon, MI 49442 TUGS • BARGES • JACK-UP BARGES • CREW BOAT • CRANES Call Stan Andrie at (231) 332-9227 or Mike Caliendo at (231) 332-9243 www.andrietg.com Duluth Seaway Port Authority GREAT LAKES/SEAWAY REVIEW April-June, 2016 7 REGIONAL CALENDAR D A T E L I N E When considering how the numbers impact into 2017, shippers involved in the lawsuit anticipate more than a $6 million, or about 50 percent, increase over a two-year period. . VIDA bill moves through U.S. House The Vessel Incidental Discharge Act (VIDA) was approved by the U.S. House of Representatives May 17. If passed by the Senate, the legislation would harmonize ballast water discharge regulations for commercial vessels and establish a single federal discharge standard, to be regulated by the U.S. Coast Guard. As proposed, state regulation of ballast water would be pre-empted. The new ballast water regulations were included in the National Defense Authorization Act (NDAA). The bill establishes a certification requirement for ballast water treatment technology, with guidelines stating the Coast Guard may not approve a technology using a biocide or generating a biocide that’s a pesticide. Because VIDA is part of the House version of NDAA, it will be part of the House-Senate conference on the defense bill—even though it is not currently included in the Senate version of NDAA. The legislation reauthorizes Pentagon programs and is viewed as “mustpass” legislation. . Green Marine members continue to advance environmental performance A new report issued by Green Marine shows its members making progress with environmental efficiencies. In 2015, as outlined in its annual report, Green Marine’s participants maintained an average of 3.2 on a 1-to-5 scale, with Level 1 indicating monitoring of regulations and Level 5 reflecting excellence and leadership. Green Marine participants are shipowners, port authorities, Seaway corporations, terminal owners and shipyard operators. To assure the program’s rigor and transparency, participants undergo an external verification. The voluntary environmental program has 12 performance indicators addressing environmental issues such as air pollution emissions, greenhouse gases, aquatic invasive species, waste management and community impacts. “Improving from an average of 2 in 2008 to 3.2 in 2015 is no small feat,” said David Bolduc, Green Marine Executive Director, explaining how the program has significantly augmented its criteria every year, as well as welcomed quite a number of new participants. “Ports and terminals, for instance, have a new performance indicator this year: waste management.” The 2015 Performance Report, containing the individual results of all of the program’s participants, is available at www.greenmarine. org. . JULY 20-22 AAPA 2016 Port Security and IT Seminar and Exposition Arlington, Virginia, www.aapa-ports.org AUGUST 7-9 TrustBelt Conference 2016 Chicago, Illinois, www.trustbelt.com 22-24 Ohio Conference on Freight Cleveland, Ohio www.ohiofreight.org 30- Midwest Specialty Grains Conference Sept. 1 Indianapolis, IN, www.grainconference.org SEPTEMBER 6-9 Association of Canadian Port Authorities Conference 2016 Thunder Bay, Ontario, www.acpa2016.ca 26-29 Breakbulk Americas 2016, Houston, Texas www.breakbulk.com 27-29 BWMTech North America, Miami, Florida maritime.knect365.com/bwmtechnorth- america/ While we go about our daily lives, it’s easy to forget that the Port of Duluth-Superior never sleeps. Dock and vessel operators stay busy round the clock, handling a mix of ships and cargoes—moving everything from limestone, iron ore, coal, cement, salt and grain to project cargo for the mining, manufacturing, wind energy, oil/gas exploration and power generation sectors of our global economy. While most folks are catching up on sleep, we salute the waterfront workers who aren’t. They keep cargo moving. This Port never sleeps. 218.727.8525 | duluthport.com Serving the Heartland of North America The Great Lakes Seaway Partnership d l A techn f th G t L k ical background supporting 227 Great Lakes Se 000 jobs in the United St away shipping drives eco tates and Canada onomic growth, on that challenge. at a busy shipyard. He thrive Today, he supervises project become a marine mechanic inspired Chris Henderson to and a love of the Great Lake For more inform es ts c. o s www.greatla @GLSPartne mation, please visit us at ,000 akesseaway.org ership : Canada. Estimating & Planning, Great Lakes Shipyard CHRIS HENDERSON, Project Coordinator/ Michigan Sens. Debbie Stabenow and Gary Peters urged the U.S. Army Corps of Engineers in May to “swiftly complete” the Economic Reevaluation Report (ERR), a study hoped to lead to upgrades at the Soo Locks. The $1.35 million process is scheduled for completion in December 2017. “The recent meetings we have both held at the locks with the U.S. Army Corps of Engineers highlighted the profound harm that an outage would have on the economy and security of Michigan, the Great Lakes region and the entire nation,” states a joint letter sent to Corps Assistant Secretary Jo-Ellen Darcy in May. “We urge you to complete the Economic Reevaluation Report as quickly as possible in order to begin the process of building a Poe-size replacement lock.” Typically, this type of study takes three years, said Scott Thieme, Corps Deputy District Engineer for Program and Project Management at the Detroit District. Earlier requests to expedite the process have prompted a shortened timeline. “We’ve already condensed everything we could to do the study in two years,” he said. “I don’t see how we could get it down more. We have to make sure we get it right.” The primary focus of the ERR is: • Updating the commodity and transportation forecast • Calculating costs of alternate transportation modes • Determining current consequences and benefits of either building or not building a new lock • Updating component reliability and failure probabilities • Updating and certifying the analysis with and without project costs L O C K S 9 Critical infrastructure Requests mount to expedite study for construction of new Poe-size lock A Quick Look » • Congress pushes Corps timeline • Two studies impact future lock construction • Steps before construction can begin Midwest Energy Resources The ERR coincides with a recently released U.S. Department of Homeland Security (DHS) study, which shows that failure of the supply chain limited to the Poe Lock could be catastrophic for the nation—putting North America into recession with job losses in the United States of more than 10 million and two-to-five million in Canada and Mexico. The economic impact would be massive through the Great Lakes region while also reaching to the west and gulf coasts. Entire industries would be debilitated, including those manufacturing automobiles, appliances, construction, farming and mining equipment, as well as railcars and locomotives. “Basically, anyone who cares about jobs in the Great Lakes region and in our nation should be concerned with the Soo Locks,” said Jim Weakley, President of Lake Carriers’ Association, which has been pushing for the ERR since a flawed report was released years ago—hindering the construction of a new Poe-size lock already authorized by Congress. “We literally connect mining with manufacturing and form the basis of tens of millions of jobs in the United States and more in Mexico and Canada.” The basis for a new study. The original Corps study assumed that if the Poe Lock failed, railroads could haul iron ore from the northern Minnesota and Michigan mines to mills along the southern shores of Lake Michigan and Lake Erie. Between those locations— the Soo Locks, the only passage through the 21-foot drop in the St. Marys River. The required rail capacity does not exist and rail lines have estimated a $5 billion cost to upgrade the region’s lines and trains to the required level. “We now know there is no way, with the existing infrastructure, to move the goods through another mode of transportation,” Thieme said. “The ERR includes looking at the completion of rail lines from the Duluth area to south of the locks and loading ships from there for water delivery. We put all of the information together and look at the cost of the new lock and the benefit-to-cost ratio.” The study also includes updating the cost to build the lock, which was certified at $580 million in 2008. The cost isn’t expected to increase significantly. To date, $18.7 million has been spent for design and construction of the coffer dams and downstream channel deepening. Since this work was done, the project has stalled. The ERR and the DHS studies will differ in outcome because they differ in the process. DHS followed the supply chain and in- L O C K S 10 www.greatlakes-seawayreview.com Steps toward constructing a new Poe-size lock Discussion of building a new Poe-size lock has been going on for decades. The current lock—the only one large enough for the U.S.-flag freighter fleet, was constructed in 1968. • In 1986, the second Poe-size lock was authorized by Congress. • In 2004, a flawed benefit-cost ratio halted the process. • In 2007, Congress authorized construction of the lock at full federal expense. • In 2009, preparation for lock construction began. • In 2014, the Corps conducted a “sensitivity” study to determine if a new study was warranted. • In late 2015, a new U.S. Department of Homeland Security study was released. Simultaneously, the Corps’ sensitivity study confirms the need for the Economic Reevaluation Report, a secondary benefit-cost study. For more informatio n, visit our website at www.midwestenergy.com or call 715-392-9807 WHATEVER IT TAKES TO MEET YOUR COAL TRANSPORTATION REQUIREMENTS • Coal Sourcing • Rail Transportation • Dock Services • Blending • Trucking • Vessel Transportation American Great Lakes Ports Association L O C K S GREAT LAKES/SEAWAY REVIEW April-June, 2016 11 terviewed companies throughout to gauge what would happen if the Poe Lock unexpectedly shut down for six months. The Corps’ economic consideration only includes the monetary value of the ratepayer to get the goods from point A to point B, or in this case, between the mines and the mills. However, the DHS study is providing an independent analysis confirming the criticality of twinning the Poe Lock. “The DHS study is a game changer,” Weakley said. “DHS has a lot of credibility. It’s a separate government agency and they’ve gone to sources we didn’t have access to—like the automobile industry and others downstream. The computer modeling is independent of what the Corps has done.” Required processes. While the outcome of the DHS study is being considered by the Corps, the same metrics cannot be applied to the ERR. As was true with the original benefit-cost report, the project must score a 1.0 to qualify for funding within the Corps’ processes, which some industry representatives see as developed for the inland rivers where barges can be separated and moved through alternative locks, whereas 1,000-footers have no other option than transiting the Poe Lock. The 2005 version, however, incorrectly assumed rail availability, didn’t include in-depth research into the lock’s engineering components and didn’t consider lock failure, according to Thieme. “Relying on a single lock at the Soo is a major risk to the nation’s manufacturing base and other critical infrastructure,” said an earlier letter to Darcy which was signed by 11 Great Lakes senators even before the DHS study was released. “For that reason, Members of Congress worked to ensure that a new replacement Poe-size lock would be built at the Soo by including a provision in the Water Resources Development Act of 2007 authorizing the Corps to build the new lock with full federal funding.” When the ERR is complete in December 2017, it will be sent to the Corps’ headquarters for review. If over 1.0, the next step will involve funding. If the new cost estimate for construction exceeds the previously approved $580 million, Congress will need to reauthorize the cost. The final hurdle will be actually getting the funds allocated during the next Congressional funding cycle. While it’s taken years to get this far, Thieme said that based on the bipartisan support he’s seeing for the project, he’s encouraged that Congress will do everything it can to get the new lock funded for construction. “I don’t feel like we’re on this uphill battle trying to convince people this is important,” he said. “They are onboard and would like to see it go forward.” Construction of the new lock is estimated to take 10 years. Janenne Irene Pung . The required rail capacity does not exist and rail lines have estimated a $5 billion cost to upgrade the region’s lines and trains to the required level. Advocacy. promoting public policies that foster maritime commerce on the Great Lakes-Seaway system for membership information visit: www.greatlakesports.org The Great Lakes Group T HE TH GRE Su bcha GREAT apter LAKES SHIP r M A PYARD lert Subchapte r M is coming — You p ur tugboats are subj Gre ves ove no wit ect to these new US eat Lakes Shipyard has dr ssels than any shipyard on er 116 years in the tugboat a one is more experienced or h Subchapter M complianc SCG regulations. rydocked more USCG the Great Lakes. With and shipyard industries, r qualified to assist you e. We tug Sub it ta not SU CO p p are the largest owner and boat fleet on the Great Lak bchapter M regulations as y akes. Without a USCG-issue be allowed to operate. BCHAPTER M SOLUTION MPLIANCE PROGRAM operator of a U.S.-flag kes subject to the same you are – we know what d COI, your vessels will NS & Gre exp to c • B • W • S eat Lakes Shipyard is uniqu perienced to provide all requ comply with Subchapter M: est-in-Class Shipyard Se World-Class Shipyard & Fa tate-of-the-Art 770-Ton M uely capable and uired services necessary rvices & Capabilities acility Marine Travelift Don’t wait until it’s • F u C • S • Tu too late! ull-Service Subchapter M ontract is Flexible & Eco ubchapter M Consulting ugboat Loaner Program Service nomical & Advice M Consultation Today reatlakesgroup.com Don t it s Download The Subchapter M Fact www.thegreatlakesgroup.com/subc Sheet Today chapterm Request Your Subchapter 216-367-8133 sales@thegr Last summer, emergency closures of the Poe and MacArthur locks at Sault Ste. Marie, Michigan occurred simultaneously. Although the double outage was short-lived, it drew attention. The July 2015 closures delayed at least 103 ships for 166 hours, with additional time lost as ships purposely slowed travel in the Great Lakes. The 800-foot MacArthur Lock was down for 20 days. With both locks aging and construction of a new Poe-size lock stalled, the U.S. Army Corps of Engineers has increased lock inspections and maintenance. “With the Poe nearing 50 years old and the MacArthur 73 years old, we have experienced an increase in unscheduled outages and increased funding needs on maintenance,” said Marie Strum, Corps Assistant Chief, Engineering & Technical Services for the Great Lakes Navigation Team. When the MacArthur Lock’s gates were not securing properly in July 2015, the team had to dewater the lock and inspect its components to determine the problem. They discovered the links holding the gates to the walls were so worn they were not moving evenly. To make repairs, the old pins were bored out and new pin systems installed. The way the gates set is critical because they take on the weight of the water. With the locks functioning again and increased outages occurring, the Corps has launched a more detailed inspection process to better forecast potential failures and hopefully complete renewal projects before unscheduled shutdowns happen. Increasing costs. During theses inspections, X-rays were used to reveals cracks in the metal anchorage pins at both active locks. The pins are partially encased in concrete to secure the gates to the lock walls. Modeling was done based on the L O C K S GREAT LAKES/SEAWAY REVIEW April-June, 2016 13 Hidden problems Lock inspection reveals cracked anchors, prompts unplanned repairs With the locks functioning again and increased outages occurring, the Corps has launched a more detailed inspection process to better forecast potential failures and hopefully complete renewal projects before unscheduled shutdowns happen. Bird’s-eye and upclose views of jacking the gate to remove the load from the anchorage. A Quick Look » • Major maintenance needs discovered • Altering lock operations • Making long-term repairs Ashton Marine 14 www.greatlakes-seawayreview.com original drawings to determine wear and stress levels. “We found that the anchorages, in theory, had already exceeded the design life of those embedded anchorages,” said David Wright, Detroit Operations Chief for the Corps. “It raised a red flag and caused additional work.” The Corps then exposed the anchorage heads and further tested the welds in the pins. The cracking in those welds are prompting replacements. Replacing them has become a top priority for the Corps. An anchorage is made of steel components which are welded together. The Aframed structure is embedded in concrete while the upper plate remains exposed to attach to the gate. Each lock has three sets of gates. Two sets are required for ships to lock through. In most cases, where a gate is attached to the wall, there are primary and secondary anchorages, one that takes the load when the gate is open and one that takes on the load when it’s closed. In total, 12 locations need repair. Setting up lock restrictions. While the Corps has scheduled the repairs in phases, there may be interruptions to service. During high traffic, it’s important for the MacArthur Lock to accommodate lakers with lengths in the 700-foot range. According to Wright, using its intermediate gate could potentially restrict some of these vessels from locking through—putting a higher demand on the Poe Lock, the only lock large enough for the fleet’s 1,000-footers. In a Notice to Navigation Interests to industry stakeholders, the Corps has placed restrictions on using the MacArthur Lock. Detailed procedures are being used to accommodate the maximum number of ships that have been calculated down to the vessels’ design, like whether they have friction winches and/or bow overhang. In addition, the Poe Lock is at risk because it only has one set of gates on the upper end of Gate 1. There is no backup. Making repairs. The Corps has received LEFT: Rewatering the gate in the MacArthur Lock after repairs. OPPOSITE PAGE: A finished gate anchorage assembly before it’s recovered. An old gate anchorage link is removed. Divers chink the bulkheads to reduce seepage into the dewatered chamber. SHIP ASSISTS • TOWING ICE BREAKING • SALVAGE PROJECT CARGO MOVES 329 West Circle Drive, North Muskegon, MI 49445 For competitive rates call Phil Andrie at (231) 720-0868 or email phil@ashtontugs.com www.ashtontugs.com L O C K S $6 million to cover design, continued monitoring and the contract for anchorage placements. Additional funding for fiscal year 2017 is being sought for the next phase. Replacing pins on Gates 1 and 3 has been deemed the most critical. In the meantime, the Corps is using Gates 1 and 2 at the Poe, shortening its capacity a bit. While it can still accommodate the fleet’s 1,000- footers, it does make transit tighter for them. “As a result of what we found, we have done weld repairs where we could,” Wright said. “We’ve also installed stiffener plates on the heads of those anchorages to reduce the risk of failure.” The interim measures are lightening the weight load on the cracked anchorages. Inspections have been increased. The Corps has designed new anchorage systems. Funding was approved for their fabrication and work will begin this summer on installing the systems. Over the winter closure, the gates will be switched over to the new anchorages. The old A-frame portion of the anchorages will be left in place since they are encased in the concrete lock walls. The top plate will be disconnected and the new system installed, drilling rods vertically into the concrete and attaching them to horizontal plates, better distributing the pressure and weight of the gates. The Corps’ interim steps and plans for long-term repairs are hoped to minimize interruptions to lock usage. Wright said 80- 90 percent of the work can be done without disrupting lock use. “We have a lot of steps in place to avoid catastrophic failure,” Wright said. “We’re comfortable with continuing to operate.” Janenne Irene Pung . L O C K S GREAT LAKES/SEAWAY REVIEW April-June, 2016 15 In a Notice to Navigation Interests to industry stakeholders, the Corps has placed restrictions on using the MacArthur Lock. SLSMC .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. ………. Hilton Toronto Airport Hotel & Sui NOVEMBER 16-17, 201 …….. ……………… Register by Septe EARLY BIRD ites 16 @hwyh2o .. ember 23rd and D RATE presentations relevant to Great Lakes/Se ……………. ……………… ………… …… …. This conference will showcase how SAVE $100 on yo Co-Founder & D ERIC TER Keynote Sp our registration fee. Director of Gen Y Inc. RMUENDE peaker working. Delivering insight on industry O Conference is a 2 he HWY H .. ……………….. …….. ………. …… go to and from the North Co eaway from stakeholders and industry specialists. Th …… …………………. ……………… …….. ………… …….. ……………. O is uniquely positioned to move carg 2 HWY H trends and market intelligence in a confer convergence of industry thought leaders a ww ………………………………………….. 2 HWY H ence environment designed for engagement and netw and experienced specialists in marine and shipping. D ww.hwyh2o-conferences.com O Conference 2016 2 HWY H 6 ~ November 16 – 17, 2016 ~ Hilton Toronto Airport H Hotel & Suites On November 7, 2014, speaking at the University of Toledo Law School’s annual Great Lakes Water Conference, Lt. Col. Karl D. Jansen, former Commanding Officer of the U.S. Army Corps of Engineers Buffalo District, made a somewhat provocative statement. “Across the Great Lakes,” he said, “we are approaching the end of the CDF era.” Indeed, dwindling capacity in confined disposal facilities (CDFs), landfill-like facilities built to hold dredged material, poses a looming threat to the future of navigation dredging in the Great Lakes. As such, efforts are being intensified to reclaim and recycle material from these facilities when practical, as opposed to permanently entombing it. The objective: a smarter, more long-lived dredging program to support commercial shipping and recreational boating and a program that manages clean dredged material as a commodity with value, as opposed to a costly waste product. One of the more significant outcomes of the River and Harbor and Flood Control Act enacted by Congress in 1970 was the authorization for the U.S. Army Corps of Engineers to build specially-designed facilities to receive—and permanently impound— dredged sediment contaminated by decades of industrial discharge. D R E D G I N G GREAT LAKES/SEAWAY REVIEW April-June, 2016 17 DAVID L. KNIGHT Principal David Larkin Knight, LLC GENE CLARK Coastal Engineering Specialist University of Wisconsin Sea Grant Institute Water is pumped through a sluiceway at the Erie Pier Processing and Reuse Facility to separate the more coarse, useable material from the dredged sediment. Dwindling capacity in confined disposal facilities (CDFs), landfill-like facilities built to hold dredged material, poses a looming threat to the future of navigation dredging in the Great Lakes. SOURCE: GENE CLARK Fill management Instead of confined disposal, many ports are turning to processing and reuse of sediment dredged to maintain navigation The Port of Toledo Up to that time, almost all Great Lakes dredged material, polluted or otherwise, was simply dumped in the open waters of the Lakes. Following the River and Harbor Act, the Corps built 45 CDFs at Great Lakes ports and harbors, sometimes in partnership with local or state interests, at a cost of nearly $900 million. Between 1998 and 2014, 45 percent of Great Lakes dredged material was placed in CDFs; another 37 percent was placed in open water and 14 percent on nearshore areas for beach nourishment and similar uses. Confined disposal diverted many tens of millions of cubic yards of contaminated sediments from placement in Great Lakes waters and thus contributed significantly to improved Great Lakes water quality. CDFs have clearly done their job, but they are filling up. Over the past four decades, 23 have been filled to capacity, capped and many converted to other uses. Today there are 22 active CDFs left in the Great Lakes and they are estimated to be, cumulatively, about 80 percent full. Adding to a growing sense of urgency are dim prospects for construction of any new CDFs in the foreseeable future; this, while maintenance dredging will continue to generate some three to five million yards of dredged material a year. D R E D G I N G 18 www.greatlakes-seawayreview.com Professor William Likos of the University of Wisconsin- Madison and his team take core samples of dredged material at the Port of Milwaukee CDF. SOURCE: GENE CLARK THE PORT OF TOLEDO +1 419 243 8251 toledoport.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! DNV-GL 0 5 10 15 20 25 30 1975 1980 1985 1990 1995 2000 2005 2010 2015 Maximum concentration of total PCBs (parts per million [ppm]) Saginaw Harbor Green Bay Harbor Buffalo Harbor Cleveland Harbor Ashtabula Harbor In its 2015 Dredged Material Management Strategic Plan, the Corps acknowledged the crisis of diminishing CDF capacity, noting that building new capacity within existing CDFs, or building new CDFs, is becoming increasingly unlikely. “Constructing a new CDF is typically considered a last option; costs can range from $30-$60/cubic yard compared to fill management ($7.50-$20/cubic yard) or beneficial reuse ($2.50-$20/cubic yard). Based on the high cost of construction, acquiring funding is very difficult,” according to the plan. A new outlook. Given the cost advantages of “fill management” and beneficial reuse—basically recycling—and the sustainability such practices build into a dredged material management strategy, they are prominently included in the plan as “potentially viable approaches for managing dredged material without building new CDFs….” The Corps also noted that dredged material is getting much cleaner as toxic sediments are removed and point sources of pollutants eliminated. Since the 1980s, concentrations of PCBs in dredged material have been reduced from as much as 25 parts per million in some industrial harbors to virtually zero. A number of Great Lakes CDFs are thus starting to be gradually modified to allow material to be removed and utilized in a more sustainable, beneficial way. This movement has contributed to the emergence of a new design concept, the processing and reuse facility, or PRF. CDFs can be converted to PRFs using a number of methods. The processing function can be as simple as dewatering and segregating similar material into stockpiles. Additional processing may involve separation D R E D G I N G GREAT LAKES/SEAWAY REVIEW April-June, 2016 19 SOURCE: U.S. ARMY CORPS OF ENGINEERS DREDGED MATERIAL PCB CONCENTRATIONS SAFER, SMARTER, GREENER Boost your ship’s fuel efficiency and mobilize the full potential of ship designs and operations. DNV GL can support you with: Ship Classification for US Flag under USCG Alternative Compliance Program LNG Fuel Expertise Use ECO Solutions to improve efficiency and save cost Operational Performance Safety and Risk Control DNV GL 4100 Rue Molson, Suite 100 Montreal QC, H1Y 3N1 Canada Tele:+1 (504) 861-0660 montreal.maritime@dnvgl.com DNV GL Crossroads Corporate Center One International Blvd., Suite 406 Mahwah, NJ 07495 USA Tele:+1 (201) 512-8900 newyork.maritime@dnvgl.com www.dnvgl.us TPG Marine Pere Marquette Shipping 20 www.greatlakes-seawayreview.com of certain grain sizes, such as separating out coarse (sandy) material from fine silts and clays. Sometimes the raw dredged material requires additional processing such as adding soil amendments like organic material or wastewater treatment plant byproducts. Specific research was conducted recently on the potential use of fly ash as an additive. The object is to produce a processed material matching specifications for such uses as construction and highway projects, mineland and brownfield restoration and landfill cover. Processing may be done either by mechanical or hydraulic grain size separation in the CDF or by selective placement methods into separate cells. Typically, the first stage of processing is the separation by material type or grain size and by the dewatering of the material. It is then tested and stockpiled. Material testing is done to help facilitate matching of the material to the specific needs of the end user. The design of the actual CDF can also be modified to facilitate mining of the material from the facility, processing and reuse. The addition of access roads and the division of the entire CDF into cells can provide more efficient user access to the material and reduce material handling and transportation costs. Converting an existing CDF into a PRF produces multiple winners: • The Corps—and the federal taxpayers— save money by reducing costs for permanent confined disposal of dredged material. • The Great Lakes marine transportation system benefits from a more sustainable and reliable maintenance dredging program. • Contractors have access to a readily available new commodity. While the Corps has limitations on its ability to “process” or actively market the dredged material for beneficial use, it is a key partner with the port and local agencies to promote the beneficial reuse of the CDF material. The more material taken out of the PRF, the more capacity remains for less re-useable dredged material. Regional port efforts. Ohio’s two major Great Lakes ports, Toledo and Cleveland, are both situated at sediment-rich river mouths and require extensive dredging; in fact, they account for a third or more of all the sediment dredged in the Great Lakes in a given year and are both listed by the Corps as having “critical” dredged material management situations, including CDFs at or near capacity. As part of a Corps-funded pilot program currently underway, the Toledo-Lucas County Port Authority is developing a mar- Combining the economy of Great Lakes shipping with flexibility for cargoes not suitable for traditional self-unloaders, the tug barge PERE MARQUETTE 41 offers a level of dependable service that translates into outstanding value. Let us help you evaluate how our new articulated tug barge system can benefit your company. 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As part of the project, it recently conducted an extensive lab analysis of dredged material in one of its CDFs and distributed findings to potential users. “We encourage you to review the information and assist us in determining creative yet financially feasible ways to mine out and beneficially use this material within the region,” wrote Joe Cappel, the Port Authority’s Vice President for Business Development. “The Port Authority, Ohio EPA and many other partners are committed to assisting interested parties use this material by incorporating it into projects.” The Cleveland-Cuyahoga County Port Authority is actively pursuing the conversion of one of its CDFs to a Sediment Repurposing Center, and expects to produce from 60,000 to 80,000 cubic yards of dry, usable material a year, according to Jim White, Director of the port’s Sustainable Infrastructure Program. This will effectively extend the CDF’s life for 40 years, said White. One of the first prototypes in the Great Lakes of a processing and reuse facility for dredged material was Brown County, Wisconsin’s Bayport facility at the port of Green Bay. The original Bayport facility had filled two 400-acre sites with cleaner dredged material over 40 years. In order to better manage the material for beneficial reuse, the county enlarged the facility by adding six new cells; four for initial dredged material placement and dewatering and two cells for stockpiling and storage until suitable beneficial uses can be found. Haul roads to facilitate access to each cell separate the cells. The new arrangement is a 100-acre PRF with a 2.5 million cubic yard capacity. Material from each year’s dredging cycle is typically placed into one cell and then allowed to dewater for two to three years before being moved to one of the two holding cells. The Port of Green Bay and Brown County have been active in promoting the beneficial use of its dredged material and have used it in several demonstration and construction projects. The most fully developed PRF in the Great Lakes is Erie Pier at the twin ports of Duluth/Superior. Originally built as a conventional CDF in the late 1970s, Erie Pier was designed for a 10-year life holding approximately 1.1 million cubic yards. To date, the PRF has had approximately 2.25 million cubic yards of dredged material placed into it. This extended life has been due, in part, to raising the interior dikes to hold additional material, to a better-than-expected material settlement volume and to the removal and reuse of approximately 250,000 cubic yards of coarse dredged material. Erie Pier’s transformation from a CDF to a PRF has been gradual over the past 10 years. Initially, raw dredged material was off-loaded by barges into one corner of the facility where it was then hydraulically separated using existing water in the CDF. The coarse sand-size material would settle out almost immediately while the finer silt and clays traveled down a sluice-way with the water into the interior of the CDF. The coarser material could be easily stockpiled and then sold to local construction companies. The PRF transformation continued with the expenditure of over $2 million to construct an elevated dredged material off-load platform and build haul roads around the exterior of the CDF and into the PRF interior to facilitate dewatering and stockpiling of the finer types of material. This stockpiled material was then tested for typical material characteristics and the search begun for a suitable beneficial use of the finer material stockpiles. Several demonstration projects using the finer materials have been completed, including mineland reclamation, road construction, landfill cover, topsoil creation for golf courses and parks, as well as in-harbor habitat restoration. The University of Wisconsin-Madisonbased National Center for Freight and Infrastructure Research and Education (CFIRE) recently sponsored a research project conducted by William J. Likos, Ph.D., a professor in the Department of Civil and Environmental Engineering at UW Madison, to explore approaches to characterizing and amending sediment contained in Great Lakes CDFs for specific beneficial use applications. The ensuing project, “Integrated strategy for beneficial use of dredged materials in the Great Lakes,” included an examination of combining fly ash with raw dredged material mined from a CDF at the Port of Milwaukee. The use of fly ash as a binder and stabilizer is attractive because fly ash is an industrial by-product that is relatively inexpensive compared with cement and lime. Results showed that blending the CDF material with fly ash reduced plasticity and improved its engineering properties, particularly for large scale civil engineering projects like road construction and embankment fill. Efforts like these to more aggressively identify property characteristics of dredged material placed in Great Lakes CDFs, and to assess potential for beneficial use, are clearly gaining support from a broad base of marine transportation stakeholders. And for good reason: Without a sustainable, forward- looking alternative to confined disposal, the question of what to do with three to five million cubic yards of sediment every year could bring the Great Lakes marine transportation system to a painful crossroads in the not-so-distant future. . D R E D G I N G GREAT LAKES/SEAWAY REVIEW April-June, 2016 21 The processing function can be as simple as dewatering and segregation of similar material into stockpiles. SOURCE: U.S. ARMY CORPS OF ENGINEERS McAsphalt Marine WE DELIVER ON TIME, EVERY TIME! ……………………………………………………………………..MMTL.. specializes in providing marine transportation that goes the extra mile. We pride ourselves in ……………. our customers the safest, most environmentally friendly and efficient means of transportation “on time, every time”. Operating two Articulated Tug/Barge (ATB) units, the “Everlast/Norman McLeod” and the “Victorious/John J. Carrick”, on the Great Lakes, St. Lawrence Seaway and Eastern Seaboard. …………………………………………………………………………………………………………………………………………………………………….. ………………………………………………………………………………………………………….. Crude oil is vital to living. Refineries convert it to transportation fuels (gasoline, diesel, jet fuel, bunker fuel) and many other products such as kerosene, asphalt, coke, propane and a host of feed stocks for the petrochemicals industry. The feed stocks are converted into a myriad of products such as acrylic fibers, fertilizers, pesticides, plastics and resins, glues, solvents, pharmaceuticals and detergents, to name a few. In short, crude oil and its products support modern lifestyles. How important is crude oil to the Great Lakes Basin economy? It’s vital: the map on page 25 shows numerous crude oil refineries in and near the Great Lakes Basin. Though not explicitly, there are large petrochemicals complexes in Montreal, Quebec; Akron/Canton, Ohio (known as the Polymer Valley of the U.S.); Lima, Ohio; Midland, Michigan; Sarnia, Ontario; and Chicago, Illinois. Supporting these industries, all known for high paying jobs, and keeping them competitive in the world marketplace, C O M M O D I T I E S GREAT LAKES/SEAWAY REVIEW April-June, 2016 23 Science-based planning A look at crude oil and refined products logistics in the Great Lakes Basin BRADLEY HULL, PhD Associate Professor of Logistics John Carroll University DALE BERGERON Associate Professor Minnesota Sea Grant College Program University of Minnesota Duluth Do Great Lakes carriers have an opportunity to move crude oil by ship? In the years ahead, should they expect increased waterborne movements of refined products? Significant changes in crude oil logistics over the past few years bring questions like these to the foreground. This article is the first of three to address questions on how to best move crude oil through the ongoing Sea Grant investigation into “Crude Oil Movements in the Great Lakes Basin.” This article describes the crude oil and refined products logistics systems for the Great Lakes Basin and outlines the thorny issues involved in answering these questions. The second article will detail the social and environmental issues intertwined with crude oil movement. The last article will lay out a quantitative framework to identify cost-effective, environmentally and socially sound crude oil routes by pipeline, rail and/or ship to supply the Great Lakes Basin. The overarching goal of the Sea Grant effort is to identify the optimal way to move oil throughout the Basin, be it by pipeline, rail or water. Increased waterborne shipping may well be a viable option. A Quick Look » • Crude oil routes in the Great Lakes Basin form a complex, important network • Shutting down any one route can have many unintended consequences • Stakeholders need to work together to develop the optimal transportation routes using environmental, social and economic inputs Sennebogen requires access to low-cost sources of crude oil and safe, secure, low-cost delivery routes. A brief history. The 1950s-60s were an era of energy independence for the U.S. With high volumes of crude oil from the Texas/Oklahoma fields, the U.S. was not dependent on foreign imports. As oilfields came on stream, railcars and trucks were used to transport the oil to refineries. The oil industry began to construct pipelines from the Texas/Oklahoma fields south to the U.S. Gulf Coast and north to Great Lakes Basin refineries, replacing rail deliveries. The Canadian pipeline industry was in its infancy and some Canadian crude oil was shipped from Superior, Wisconsin by water to Great Lakes refineries. Most Canadian oil was shipped to Canadian refineries by pipeline, rail or Great Lakes ship. As the Canadian pipeline network expanded, it ultimately phased out rail and the Great Lakes ships. As time passed, the Texas/Oklahoma fields began to deplete. In the 1970s-2000s, the U.S. became increasingly reliant on foreign imports, including imports from unfriendly nations. The major pipelines to the Gulf Coast refineries were reversed so f

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